The Cellular Operators Association of India (COAI) has underscored the necessity of preserving the contractual nature of telecom service licenses, particularly amid the impending overhaul of the service authorisation regime. That recommendation arises in response to recent proposals from the Telecom Regulatory Authority of India (TRAI), which aims to introduce three new categories of authorisations under the upcoming Telecom Act, 2023.
COAI contends that upholding a contractual framework is vital, as it ensures uniformity, regulatory certainty, and investor protection, especially for those committing long-term capital to the telecom sector. In discussions with Telecom Minister Jyotiraditya Scindia, COAI stressed that the new authorisations should prioritise broader aspects, such as the application process and eligibility criteria.
Conversely, detailed terms must remain integral to telecom operators and government contracts. The association expressed concerns that deviating from a contractual agreement could lead to regulatory uncertainty, undermining investor confidence. Additionally, COAI emphasised that the Adjusted Gross Revenue (AGR) calculation should encompass only revenues generated from telecom services, a point that TRAI’s recommendations have not adequately addressed.
Moreover, COAI warned that excluding over-the-top (OTT) communication services from the new authorisation framework poses a significant threat to fair competition. While telecom operators are subjected to stringent compliance requirements, OTT services operate with considerably less oversight, which raises concerns about market fairness and national security. Therefore, the association advocates for maintaining the contractual nature of telecom licenses to ensure regulatory consistency and promote competitive fairness within the industry.
The Telecom Regulatory Authority of India (TRAI) has reassured telecom operators that they can continue operating under their existing licenses until expiration. This commitment provides regulatory stability and alleviates concerns regarding potential disruptions stemming from changes in contractual agreements.
Moreover, this assurance forms part of TRAI’s broader initiative to propose a new authorisation mechanism to simplify telecom operators’ service provision process. By enabling companies to offer a diverse range of services, including mobile, internet, international calls, and satellite connectivity, under a single license, TRAI aims to reduce the complexities associated with managing multiple licenses.
That shift marks a significant departure from the current regime in India, wherein operators often require numerous licenses for different services across various regions. Consequently, the proposed model is expected to enhance operational flexibility, foster innovation, and improve service quality while driving competitive tariffs that benefit consumers.
Furthermore, TRAI recognises the necessity of addressing industry concerns about potential rule changes without adequate notification. Therefore, it is committed to involving operators in discussions concerning significant regulatory shifts. In addition, TRAI plans to release consultation papers on satellite spectrum pricing and revisit its regulations on over-the-top (OTT) services, thus ensuring stakeholder participation in future telecom policy.
As a result, the anticipated benefits of these changes include improved service availability in remote areas, enhanced emergency services through satellite systems, and a more dynamic telecom market that reduces barriers for new entrants, ultimately promoting competition and innovation within the industry.
Telecom operators in India are increasingly concerned about the exclusion of over-the-top (OTT) messaging and calling apps, such as WhatsApp and Telegram, from the licensing framework recommended by the Telecom Regulatory Authority of India (Trai). They argue that these services function similarly to traditional telecom operators and should be subject to the same regulations.
The following issue was notably raised during a recent meeting with Union Minister Jyotiraditya Scindia, where leaders from major companies, including Reliance Jio and Bharti Airtel, convened to discuss how the current regulatory landscape hampers their competitiveness. In addition to regulatory concerns, financial sustainability is a critical issue, particularly regarding adjusted gross revenue (AGR) payments.
During discussions, operators highlighted the substantial financial burden of AGR liabilities, with Vodafone Idea owing ₹70,320 crore and Bharti Airtel approximately ₹21,500 crore. These debts strain their resources and threaten their viability in a highly competitive market. Moreover, the Supreme Court’s recent rejection of Vodafone Idea’s curative petition regarding AGR underscores the legal challenges that exacerbate their financial distress, reflecting the precarious state of India’s telecom industry.
Furthermore, consumer issues surrounding unsolicited commercial calls and SMS were also discussed. Operators pointed out the frustration these calls cause, prompting the Department of Telecommunications (DoT) to monitor and address the problem. Additionally, Scindia’s meeting with telecom equipment manufacturers in India highlights a comprehensive approach to tackling sector challenges and fostering innovation.
The Telecom Regulatory Authority of India (TRAI) has put forward a unified service authorisation framework designed to streamline the licensing process for various telecom services, including mobile, satellite, landline, broadband, and internet. That initiative embodies the principle of ‘One Nation – One Authorization,’ aiming to simplify the regulatory landscape and enhance market competitiveness.
TRAI has categorised the proposed authorisations into three distinct groups – main service authorisations, which encompass primary telecom services; auxiliary service authorisations, tailored for enterprise-focused services with lighter regulatory oversight; and captive service authorisations, intended for private networks that require specific spectrum allocations.
TRAI recommends consolidating commercial VSAT-CUG and GMPCS services into a single authorisation for satellite-based telecommunications to improve operational efficiency. By removing restrictions on VSAT operators, they will be able to extend their services beyond closed user groups, while satellite providers can utilise gateways in India for international operations.
Additionally, TRAI proposes significant reductions in entry fees for various service authorisations to lower barriers for new market entrants and stimulate competition. The merger of National Long Distance (NLD) and International Long Distance (ILD) services into a unified Long Distance Service Authorization will facilitate the establishment of gateways and cable landing stations, thereby streamlining operations.
However, the proposal needs to specifically address the regulation of over-the-top (OTT) services, leaving some stakeholders concerned about its implications for the broader telecommunications framework. That gap indicates a pressing need for further dialogue on this important issue.
China Mobile International (CMI) has officially activated the Pakistan & East Africa Connecting Europe (PEACE) submarine cable, a groundbreaking project that spans 15,000 kilometres, linking Singapore to France and extending its reach to Malaysia and various European countries. This cable is designed to deliver fast, open, and flexible connectivity between Asia and Europe, addressing the growing demand for reliable international data transmission.
China Mobile’s commitment to collaboration is evident in constructing the PEACE cable, which involved 11 partners. This open cable solution aims to provide neutral and flexible interconnection services to carriers, over-the-top (OTT) service providers, and enterprises worldwide. By leveraging the New Egypt Crossing, CMI utilises a network of fully diversified terrestrial cables across Egypt, moving away from traditional routes. This innovative approach enhances bandwidth services, ensuring high quality, low latency, and robust security for data transmission between continents.
China Mobile has enhanced its network by integrating the PEACE cable with existing submarine cables like AAE-1 and SMW5, creating three key routes between Asia and Europe. This integration meets growing bandwidth demands and allows for customisable solutions through CMI’s fibre optic ring systems in the region. The activation of the PEACE cable marks a significant milestone for China Mobile, providing over 150 terabits per second of bandwidth and connecting 78 countries.
The Indian government has introduced significant draft rules on telecommunications cybersecurity, marking a substantial advancement in the regulatory framework for telecommunications. Central to these rules is the government’s authority to request traffic data from telecom providers, aimed at enhancing cybersecurity and protecting users from online fraud, particularly concerning over-the-top (OTT) services like WhatsApp and Telegram. By monitoring this data, the government seeks to identify patterns and potential threats, thereby strengthening the security of telecom networks.
Telecom companies in India must adopt comprehensive cybersecurity policies, conduct regular audits, and establish Security Operations Centers (SOCs) for real-time incident monitoring and response. Additionally, they must appoint a Chief Telecommunication Security Officer (CTSO) to ensure compliance and report any security incidents to the government within six hours. This proactive approach facilitates swift government intervention, and bolsters network resilience against cyber threats.
The draft rules also provide a framework for lawful interception of communications and temporary suspension of services for national security or public order reasons, emphasising the balance between security and individual privacy rights. Currently open for public consultation for 30 days, these rules invite feedback from stakeholders to ensure a balanced and inclusive regulatory approach.
Furthermore, the draft rules stress the protection of critical telecom infrastructure, requiring detailed record-keeping and compliance with national security directives, including the registration of telecommunications equipment identifiers.
The Cellular Operators Association of India (COAI) has urged the Indian government to bring over-the-top (OTT) communication apps like WhatsApp under the Telecommunications Act of 2023, citing national security concerns. COAI Director General SP Kochhar stated that unregulated messaging apps bypass telecom operators’ infrastructure for lawful interception and monitoring, posing a potential security threat. He argued that messaging apps should comply with rules in the same manner as telecom service providers and that the exponential growth of communication apps is creating an uneven playing field.
The demand comes after prominent telecom companies, including Reliance Jio, Bharti Airtel, and Vodafone Idea, demanded a licensing or authorisation regime for OTT apps, which industry bodies representing OTT platforms and digital advocacy groups have opposed. Critics argue that such regulations could infringe on privacy and disrupt net neutrality, as OTT apps operate under different models than traditional telecom services.
The Department of Telecommunications (DoT) has clarified that it does not plan to regulate OTT players, highlighting the complexities of the new Act. The debate continues, focusing on national security, compliance, and fairness in the digital communication landscape.
The South African telecoms industry, represented by the Association of Comms and Technology (ACT), is intensifying its push for digital content and service providers, known as over-the-top (OTT) platforms, to contribute financially to expanding and maintaining the country’s network infrastructure. OTT platforms, including popular services like streaming video, audio, and messaging, account for a substantial portion of internet traffic and depend on robust network infrastructure to operate effectively.
Central to this proposal is the concept of ‘fair share’ arrangements, which suggest that OTT providers should contribute to the costs associated with building and maintaining the networks that support their services. Mobile operators like Vodacom and MTN spend approximately 41 billion rand (around $2 billion) annually on network expansion.
By implementing fair share contributions, the ACT believes resource usage can be balanced, incentivising network operators to invest further in infrastructure. This collaborative approach supports the sustainability of the telecom sector and enhances the quality of service provided to consumers.
Additionally, the ACT calls for a regulatory framework in South Africa that would bring OTT service providers under the same licensing and policy regime as traditional network operators. That would ensure a fair and sustainable digital services sector, allowing for better oversight and collaboration between different players in the industry. MTN Group CEO Ralph Mupita supports the initiative but warns against harsh measures, emphasising the need for cooperation to sustain future developments and the telecom industry’s health.
Telecom operators in India, including Reliance Jio, Bharti Airtel, and Vodafone Idea, have recently called for the regulation of over-the-top (OTT) communication apps such as WhatsApp, Google’s RCS, and Telegram under the Telecom Regulatory Authority of India (TRAI). Their argument centres around the notion that these OTT services provide functionalities similar to traditional telecom offerings, such as voice calls and messaging, and should, therefore, be subject to licensing and regulatory oversight.
The following demand stems from concerns that OTT services have significantly impacted their revenue streams, as many consumers now prefer these free or low-cost alternatives over traditional telecom services. In response to this call for regulation, industry bodies representing OTT platforms have firmly rejected the proposal.
The Internet and Mobile Association of India (IAMAI) highlighted the fundamental distinction between telecom service providers (TSPs) operating on the network layer and OTT providers functioning at the application layer. IAMAI argues that imposing additional regulations would disrupt the current ecosystem, potentially stifling innovation and limiting consumer choices in the rapidly evolving digital landscape.
Similarly, the Broadband India Forum (BIF) expressed concerns that creating a single licensing framework for all communication services would be arbitrary and detrimental to competition. They warned that such a move could lead to a concentration of power among a few large players, imposing unnecessary burdens on smaller service providers who wish to operate within specific niches.
NASSCOM also warned that new regulations could raise operational costs for OTT services, ultimately harming consumers and undermining these platforms’ economic benefits to the digital economy.
Forty-five international organisations signed a communication to the Bangladesh Telecommunication Regulatory Commission (BTRC) urging them to withdraw or reconsider proposed regulations for digital media, social media, and over-the-top (OTT) platforms. The draft is dated October 2021 but was published on 6 February 2022. Stating that ‘The Draft Regulations seek to implement a content governance framework devoid of adequate judicial oversight, clarity and predictability, and integration of human rights and due process,’ the letter details eleven initial key concerns that require discussion.
