Bring OTT Platforms Under Regulatory Framework: COAI

SUMMARY

COAI argued that OTT players offer voice and messaging services similar to telcos but operate outside the regulatory net

This regulatory gap creates challenges for law enforcement, as OTT players currently avoid compliance obligations such as lawful interception, subscriber verification, anti-spam protocols and domestic infrastructure investments

To address the gap, COAI proposed introducing a dedicated OTT authorisation under the Unified License system

The Cellular Operators Association of India (COAI) has asked the government to bring over-the-top (OTT) communication platforms such as WhatsApp, Telegram and Signal under a formal regulatory framework.

In a statement, COAI called these platforms the “weakest link” in the country’s communication security, arguing they offer voice and messaging services similar to telcos but operate outside the regulatory net.

Citing a recent incident in Pahalgam, where satellite phone signals helped track down three terrorists, COAI pointed out the importance of regulating all communication channels to strengthen national security.

The industry body, which represents private telcos Reliance Jio, Bharti Airtel and Vodafone Idea, said the regulatory gap creates challenges for law enforcement, as OTT players currently avoid compliance obligations such as lawful interception, subscriber verification, anti-spam protocols, and domestic infrastructure investments rules that telcos must follow.

“The security instructions by the DoT under this Act mandate domestic traffic retention, local infrastructure, and lawful interception capabilities all essential elements for ensuring national security while maintaining user privacy for satellite communication services.”

To address the gap, COAI proposed introducing a dedicated OTT authorisation under the Unified License system.

“Introducing a dedicated OTT authorisation under the Unified License would create consistency across platforms, ensure fairness, enhance security, and balance innovation with the country’s security needs,” said COAI director general SP Kochhar.

It also recommended aligning OTT regulation with the Indian Telecommunications Act, 2023, to address the current regulatory asymmetry.

While traditional telecom services are subject to infrastructure mandates and interception requirements, OTT platforms operating over the internet are not bound by these norms.

Although telecom players have pushed for a “same service, same rules” approach, the final version of the Telecommunications Act 2023, does not explicitly bring OTT platforms under licensing.

Tech groups and OTT providers argue that they are already regulated by the IT Act 2000 and that overregulating would stifle innovation and privacy rights.

Besides this, TRAI and COAI are also in the middle of a disagreement around the satellite spectrum recommendations. With many of the satcom players like Starlink, Amazon’s Project Kuiper, Airtel’s Eutelsat gearing up for entering the indian market, Indian telcos are critical of their entry into global satcom, especially around regulatory recommendations around satellite spectrum

Earlier, TRAI recommended that satellite spectrum be charged at 4% of adjusted gross revenue (AGR), and telcos called this TRAI’s spectrum pricing move “unfairly low” and based on “flawed assumptions”. The COAI also asked to review it again.

But, TRAI reportedly rejected COAI to review its satcom spectrum recommendations, asserting that the consultation process was thorough and transparent.