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Industry Bodies Push Back Against Telcos’ Call for OTT App Licensing

The Broadband India Forum (BIF) and the Internet and Mobile Association of India (IAMAI) have voiced significant concerns, arguing that such a move would be detrimental to the industry.

  • The Broadband India Forum (BIF) opposes the creation of a "Super Authorisation" category, arguing it would consolidate power and create an anti-competitive landscape.
  • The Internet and Mobile Association of India (IAMAI) states that OTT platforms operate on the application layer and contribute significantly to telecom companies' revenue.

Industry bodies have strongly opposed the recent demands by telecom operators, including Reliance Jio, Bharti Airtel, and Vodafone Idea, to bring over-the-top (OTT) communication apps like WhatsApp under a licensing regime.

The Broadband India Forum (BIF) and the Internet and Mobile Association of India (IAMAI) have voiced significant concerns, arguing that such a move would be detrimental to the industry.

The BIF criticized the idea of a single authorization regime, labeling it as arbitrary and damaging to the regulatory framework. They emphasized that a "Super Authorisation" category would consolidate power within a few entities, creating an anti-competitive environment and imposing unnecessary regulatory burdens on service providers. They believe that different services require tailored terms and conditions, and a one-size-fits-all approach would not be effective.

Echoing these concerns, the Internet and Mobile Association of India (IAMAI) emphasized the fundamental differences between telecom service providers (TSPs) and OTT platforms.

"From a technical perspective, TSPs operate on the network side, while OTT providers operate on the application layer. Therefore, there is a clear distinction in the operational and technical nature of OTT service providers and TSPs," the IAMAI stated.

They also highlighted that OTT platforms "contribute ‘highly’ towards driving revenue for the telcos and create demand for online content."

In addition, the Asia Internet Coalition (AIC) and Nasscom also weighed in, arguing that imposing a licensing framework on OTT platforms would increase service costs for consumers and hinder the growth of the digital economy. The US-India Strategic Partnership Forum (USISPF) warned that such a regime could negatively impact India’s internet ecosystem, particularly affecting startups and small-sized OTT platforms.

This wave of opposition comes after the Cellular Operators Association of India (COAI) urged the Telecom Regulatory Authority of India (TRAI) to include OTT communication apps under the new Telecommunication Act’s licensing framework. An open-house discussion on the matter is scheduled for August 21.


Edited by Harshajit Sarmah

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