DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs

DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs

SUMMARY

Telecom operators are bound by their licensing conditions to ensure that internet traffic remains non-discriminatory, said DoT

In July 2023, the Telecom Regulatory Authority of India (TRAI) released a consultation paper on regulating over-the-top (OTT) communication apps within the country

Earlier, Telcos have also raised concerns that the rise of OTT apps has impacted their revenues

Amid the ongoing debate over net neutrality, the Department of Telecommunications (DoT) has sought to reassure internet service providers and over-the-top (OTT) platforms that they need not be overly concerned.

According to an ET report, the DoT has stated that telecom operators are bound by their licensing conditions to ensure that internet traffic remains non-discriminatory.

DoT officials further clarified that, while the government has yet to make a decision regarding revenue sharing between telecom operators (telcos) and OTT players, any future mechanism would not jeopardise net neutrality.

In July 2023, the Telecom Regulatory Authority of India (TRAI) released a consultation paper on regulating over-the-top (OTT) communication apps within the country. Key points from the paper include the consideration of selectively banning OTT communication apps like WhatsApp (owned by Meta), Telegram, and Google Meet, as well as the lawful interception of messages by authorities.

Telcos have raised concerns that the rise of OTT apps has impacted their revenues. Prior to the entry of Reliance Jio into the telecom market in 2016, voice calls and messaging were major revenue sources for these companies. OTT communication apps utilize telcos’ internet services to offer free calls and messaging, which were previously chargeable by the operators.

Critics argue that the proposals put forward by the telecom service providers (TSPs) would undermine net neutrality principles. The Internet and Mobile Association of India (IAMAI), an industry body, stated that any collaborative framework leading to a revenue-sharing arrangement between OTTs and TSPs would violate the net neutrality framework established by the Ministry of Communications in 2018.

In response to these concerns, more than 100 Indian startups, including Paytm, PhonePe, and Zerodha, have strongly opposed subjecting internet services to the same regulatory framework as TSPs. They emphasised the structural and functional distinctions between TSPs and internet service providers, asserting that regulatory intervention is unnecessary in this regard.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs-Inc42 Media
DoT Soothes Industry Fears, Affirms Net Neutrality Amidst Revenue-Share Debate Between Telcos & OTTs-Inc42 Media
You’re in Good company