The Cellular Operators Association of India (COAI) is advocating for government intervention in the regulation of Over-The-Top (OTT) service providers like WhatsApp. It suggests these platforms should be brought under the same licensing regime as telecom operators, thereby postponing net neutrality rules till such applications follow an equal set of rules.
Understanding COAI and Its Role
The Cellular Operators Association of India, established in 1995, is a non-governmental organization representing Telecom Service Providers (TSPs) such as Bharti Airtel Ltd., Vodafone India Ltd., and Reliance Jio Infocomm Ltd. These private companies operate nationwide, offering vital communication services to individuals across the country.
Explaining Over-The-Top Service Providers
OTT services are internet-based applications that offer audio, video, and other media, bypassing traditional telecom operators. Popular services like Skype, Viber, WhatsApp, and Hike exemplify OTT communication platforms. While these platforms provide valuable services, they actively employ TSPs’ infrastructure, posing a significant threat to traditional telecom services. This is due to these OTT applications being designed as alternative versions of existing communication means like SMS.
The Issue of Regulatory Imbalance
Presently, telecom operators need to adhere to quality norms, undergo account audits, procure service spectrum, pay taxes, licence fees and spectrum usage charges, and facilitate lawful interception and monitoring systems. However, OTT platforms are free from such obligations.
The UCC Regulation and Digital Intelligence Unit
Telecom Service Providers have been subject to Unsolicited Commercial Communication (UCC) regulation since 2007. A recent development has been the government’s decision to create a Digital Intelligence Unit (DIU), which will serve as the central agency handling UCC complaints and financial fraud cases. The Telecom Regulatory Authority of India (TRAI) has introduced a consultation paper to address UCC matters concerning OTT service providers. However, it clarified that no regulations would be implemented on OTT calling and messaging apps until there is clarity in international jurisdictions.
The Enigma of Net Neutrality Rules
Net neutrality rules prevent service providers from showing bias towards Internet content and services by blocking, throttling, or accelerating preferential higher speeds. Despite investing in network infrastructure and acquiring spectrum, TSPs do not share in the revenue of OTT service providers. Some argue without the ability to practice differential pricing, the investment by TSPs in internet infrastructure may decline due to lack of incentive. Another issue raised by TSPs is that particular websites or applications require higher bandwidth than others, meaning TSPs need to build and upgrade the network infrastructure accordingly.
Demands Raised by the COAI
COAI emphasizes that until a decision on licensing OTT communication providers is reached, TRAI should not further exacerbate inequity between TSPs and OTTs. It also requests no new licensing conditions, including traffic management practices for net neutrality, be imposed on TSPs during this period.
The Future Trajectory
Given the differing underlying technology, adoption trends, market dynamics, pricing models, resource utilization, and service quality, establishing a level playing field between TSPs and OTTs will take time. However, due to their immense popularity, OTTs should become accountable for Quality of Service.