COAI: With regard to OTT communication services, the telecom operators’ group COAI has presented a compelling case for “same service, same rules,” contending that a level playing field must be maintained for all technologies.
Voice and video calling are available on OTT, or over-the-top, communication apps like WhatsApp and others.
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COAI’S Official Statement
The Cellular Operators’ Association of India (COAI) stated in a statement that the regulatory requirements and treatment must be made consistently applicable for similarly positioned players.”
With regard to OTT Communication Services, COAI stated that “…there is a need to ensure a level playing field among all technologies, that is, Same Service, Same Rules, so that fair and healthy competition prevails in the market.”
The trade group stated that it supports the recent release of the draught Indian Telecommunication Bill 2022, which includes OTT communication services.
“However, COAI is of the considered opinion that the OTT Communication services need to be specified in the proposed Telecom Bill in order to bring comprehensiveness and eliminate any potential ambiguity,” it added.
According to COAI, several parties have expressed opinions “based on incorrect notions” that the “Same Service, Same Rules” approach may not apply to OTT communication services.
“It has been falsely asserted that Telecom Services and OTT Applications do not operate on the same layer, when in fact; services such as calls (voice/video) operate on the same layer, effectively riding on the network layer, whether provided by the TSPs (telecom service providers) or the OTT Apps,” COAI claimed.
A framework for regulating OTTs and putting them on par with telcos is not necessary, according to the industry association, because operators already have access to spectrum, resources for phone numbers, connections, and the right of way (RoW) to set infrastructure.
Operators do, in fact, go through a government-mandated process for allocating spectrum and numbering resources by making important pledges and delivering on them while making significant investments in networks, according to COAI.
The COAI, whose members include Reliance Jio, Bharti Airtel, and Vodafone Idea, claimed that “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 requirements, or network requirements.”
Regulatory requirements for telecommunications service providers include those relating to security, service quality, subscriber verification, anti-spam, tight compliances, and numerous audits.
On the other side, OTT communication service providers are not governed in any way.
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The level playing field in the market has been gravely damaged, according to COAI.
The group continued by claiming that while OTT communication service providers, who use telco networks, are not subject to such levies, telcos pay excessive levies and taxes in the form of licence fees and other expenses, “thus incurring loss to the Government exchequer.”
Additionally, OTT players use a lot of bandwidth, which puts a lot of strain on the operators’ network infrastructure. The OTT players benefit greatly directly and indirectly without paying any additional money.
According to COAI, it is only reasonable that the new Telecom Bill places OTT Communication services under a suitable regulatory framework, as required for any legal industry, given the introduction of new technologies and the growth of the telecom ecosystem to include such services/products.
If not, the licence requirements and regulatory requirements for telecommunications should also be loosened, it was stated.
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