TRAI’s Exclusion Of OTT Apps From New Licensing Regime Perpetuates Uneven Competitive Landscape: COAI

Industry body Cellular Operators Association of India (COAI) has reportedly expressed concerns over the exclusion of over-the-top (OTT) communication platforms such as WhatsApp and Telegram from the proposed new service authorisation framework. 

This comes weeks after the Telecom Regulatory Authority of India (TRAI) skipped mention of online messaging apps in its latest recommendations on the new authorisation regime, which were released on September 18.

As per news agency PTI, COAI said that the exclusion of OTT communication services from the proposed regime “perpetuated an uneven competitive landscape” even as telcos continue to “bear the weight of extensive compliance and security requirements”.

The industry body also urged the Centre to ensure a healthy and robust environment for the telecom operators, adding that it was looking forward to working closely with the government for an “amicable resolution” of its issues.

The fresh salvo comes days after the telecom regulator put the plans to bring messaging apps under Telecommunication Act, 2023 on the backburner. Earlier this month, TRAI chairman Anil Kumar Lahoti reportedly said that the regulator will discuss the policy to bring such apps under the regulatory ambit separately.

He added that TRAI was rather looking to prioritise pricing for satellite communication spectrum over regulating OTT apps.

However, the fight between telcos and various OTT messaging platforms is nothing new. A major fracas broke out earlier this year after TRAI sought comments and counter comments from relevant stakeholders in response to its consultation paper.

The paper sought feedback on the identification of a regulatory mechanism to cover OTT communication apps. It also sought to examine issues related to selective banning of apps such as Meta-owned WhatsApp, Telegram and Google Meet, as well as lawful interception of messages by authorities.

Telcos batted for regulation of these apps and called for bringing such apps under a licensing regime citing issues related to level playing field. They further added that online platforms were piggybacking on their networks to amass huge users without paying a single penny to telecom operators. 

On the other hand, digital advocacy groups said that any such move to regulate these apps would hit India’s digital economy and stifle investments. In total, around 48 stakeholders submitted their comments while 17 entities furnished counter comments.

TRAI also conducted an open house discussion and virtually sought inputs on the paper. Eventually, earlier this month, the regulator published its recommendations that skipped mention of these apps.