Global technology giants, including Amazon, Apple, Google, Meta, Microsoft, Netflix, and Spotify, are resisting attempts by Indian telecom networks to subject internet services to stricter regulation. The Asia Internet Coalition (AIC), which represents these industry giants, has argued against including over-the-top (OTT) services in the proposed regulatory framework for telecom operators. The AIC highlights fundamental differences in technology, operations, and functionality between OTT services and traditional telecom operations. Unlike telecom service providers (TSPs), OTT providers do not have the same rights and responsibilities, such as acquiring spectrum or interconnecting with the public switched telephone network.
The AIC emphasizes that OTT communication services are not substitutes for traditional telecom services, as they offer additional functionalities like group chats, voice notes, and in-app content sharing. Including internet services in the regulatory framework could potentially violate net neutrality principles and harm consumer interests. The AIC points out that OTT services are already regulated under existing laws, including the IT Act, which classifies them as intermediaries.
The coalition argues that there are already sufficient regulations in place for overseeing OTT services in India, such as interception requirements, content takedown, incident reporting, and user grievance redressal. This resistance from the AIC is in response to a coordinated push by India’s top telecom operators, Bharti Airtel, Reliance Jio, and Vodafone Idea, to subject OTT services to a new authorization framework.
The telecom operators are seeking regulatory intervention to address their low average revenue per user and boost margins after investing heavily in 5G airwaves. They propose that OTT providers contribute to network development costs based on their traffic consumption, turnover, and user base. However, the AIC disputes claims that OTT services are “free-riding” on telecom infrastructure. Jeff Paine, the AIC’s managing director, highlights that OTT services have actually driven increased data consumption and revenues for carriers.
The AIC also argues that regulating OTT services under the Telecommunications Act, 2023 would exceed its intended scope. The coalition highlights that the Act’s introduction clarified that OTT services are already regulated by the IT Act of 2000. The telecoms minister, Ashwini Vaishnaw, further specified that the new telecom bill passed by Parliament does not cover OTT services.
This debate in India reflects similar discussions in South Korea and Europe, where network operators are also seeking contributions from large tech companies. The issue revolves around finding a balance between regulating internet services and fostering a competitive and innovative digital ecosystem.