Indian Telecoms Push for 5G Network Infrastructure Investment from OTT Services

Indian telecom operators are reportedly pressuring the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (Trai) to devise a mechanism that would require Over-The-Top (OTT) service providers such as Netflix, Amazon Prime, Disney Hotstar, Sony Liv, and others to contribute towards the development of the 5G digital network infrastructure in the country. The telecom operators argue that these OTT services generate the majority of internet data traffic, which justifies their involvement in covering the escalating costs associated with the infrastructure.

These companies aim to draw the attention of the government and industry regulators to the ongoing debate regarding the fair contribution of OTT streaming and communication service providers to the development of mobile broadband infrastructure. Similar discussions have emerged in the European Union (EU) and Brazil. The argument put forth is that since these businesses extensively utilise telecom networks, which hold significant value in the billions of dollars, they stand to benefit the most.