Telecom operators in India demand OTT app regulation amid financial struggles

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.