Unfair To Ask OTTs To Pay For Telecom Infrastructure: BIF To Telecom Secretary

The ongoing conflict between big tech companies and telecom operators on the latter’s demand of over-the-top (OTT) players paying charges for use of telecom infrastructure has taken yet another turn as the Broadband India Forum (BIF) has reportedly written to the government opposing the move.

In a letter to Telecom Secretary K Rajaraman, the BIF said asking OTTs to pay for 5G network rollout costs in India would be unfair as they were not involved at the stage of spectrum auctions, selection of bands, bidding for airwaves or in the selection of network infrastructure gear, ET reported.

“… OTTs had no role while planning the network infrastructure…so, to expect them to post facto pay for the infrastructure which is designed, owned, deployed and controlled/managed by telcos is seemingly unfair,” BIF President TV Ramachandra said in the letter.

The industry body counts big tech companies like Amazon, Google, Meta, and Microsoft among its members.

In the letter, the BIF argued that telecom companies should share their revenues with OTT platforms as they generate over 70% of traffic for them. “Telcos owe their infrastructure utilisation to OTTs and should be grateful to them; so it’s logical for them to pay revenue share to OTTs,” it said.

The report also said that the telecom players are set to urge the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) to come out with a mechanism to make OTT streaming and communication service players pay for 5G infrastructure investments based on fair share principle.

Earlier, the Cellular Operators Association of India (COAI) said that OTT communication service providers should pay a network usage charge to the telecom. Opposing this demand, the Internet & Mobile Association of India (IAMAI) called the revenue sharing plan a ‘death knell’ for the country’s digital economy.

As per an earlier report, the DoT was considering calling OTT players and telecom operators for a joint debate on the issue.

The development comes at a time when the government is on an overdrive to overhaul the country’s telecom space. Last year, the government introduced the much-awaited draft Telecommunication Bill, 2022 to replace the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires Act, 1950.

Meanwhile, the DoT has also sought recommendations from TRAI to set up a legal framework for OTT apps.