Telecom Body Seeks ‘Same Service, Same Rules’ For OTT Messaging Apps

Gunning for a level playing field, telecom body, the cellular operators association of India (COAI), has made a fervent pitch for regulation of the OTT apps. Citing ‘same service, same rules’, the industry body has said that regulatory conditions and treatment ought to be uniformly applicable for similarly placed players.

“…there is a need to ensure a level playing field among all technologies, that is Same Service Same Rules with respect to OTT Communication Services, so that fair and healthy competition prevails in the industry,” COAI said in a press statement. 

The intense lobbying is part of a renewed effort by telecom operators to increase pressure on the government to regulate the space which includes WhatsApp, Signal and Telegram. 

Welcoming the inclusion of OTT apps in the draft telecom bill, COAI called on the authorities to define OTT communication services in the proposed Act to avoid any ambiguity. 

Lashing out at OTT players, the industry body also said that services such as voice and video calls provided by both telcos and apps operate on the network layer. It also said that telecom operators had to invest heavily in networks and undergo spectrum allocation processes to offer such services.

“OTTs, on the other hand, are free from any of these obligations, but enjoy all the privileges of delivering the same services, without having to bear any of the regulatory obligations, security obligations, investment or network requirements… This seriously dents the level playing field in the market,” added COAI.

Training guns at OTT communication apps, the association claimed that such OTT apps rode on telcos’ networks and did not pay any levies in terms of license fees and other charges, causing ‘loss to the Government exchequer.’

It further added that the OTT players consumed massive bandwidth on telcos’ network, gaining massive direct and indirect benefits without incurring any additional costs. 

COAI also added that, in the absence of such norms for OTT players, the licence conditions and regulatory obligations for the telcos should be equally relaxed.

Telcos Vs OTT Apps

This is not the first time that the telcos have sought the regulation of OTT apps in the country. It all began in 2018 when TRAI issued a consultation paper that sought to formulate a regulatory framework to oversee such apps. 

While industry associations such as NASSCOM and IAMAI had vehemently opposed the move, COAI had backed the regulation. Since then, the association has continuously lobbied the government to place OTT apps under the ambit of law. 

Besides, even telcos have long demanded that OTT communication apps be subject to similar licensing rules as telcos. Before the current monthly unlimited calling regime, voice and messaging services were key revenue generators for telecom players. The advent of WhatsApp hit the revenue streams of these telecom operators badly. 

Without the requirement for heavy Capex and licences for such services, OTT apps provide free calling service and messaging, in stark contrast with operators. 

The COAI’s statement also comes at a time when social media platforms have been locked in a major tussle with the government. While Twitter has dragged the centre to court over ‘innocuous’ block orders, WhatsApp has appealed in various courts against a CCI probe into its 2021 privacy policy update. 

The union government has also been tightening regulatory scrutiny around digital platforms. With an overarching Digital India Bill and the proposed amendments to the new IT Rules in various stages, the stage is all set for a renewed conflict between telecom operators and OTT communication apps, with the government at the centre of it.