TRAI To Impose Light Regulation On OTT Services Like WhatsApp For Hurting Telecom Operators

Dhir Acharya - Mar 27, 2019

Telecom providers have been asking for a level playing field to against over-the-top players that they claim to have taken away their revenues.

It is likely that the Telecom Regulatory Authority of India (TRAI) will soon impose a lighter regulation form on OTT players like WhatsApp and Skype.

In particular, after the first open house session held by the regulator, there will be recommendations based on this session in May. Accordingly, the meeting will look into the problems surrounding over-the-top players, which are offering services in direct competition with telecom providers. As in the reports, the discussion will mainly focus on whether there is an imbalance between regulations on telecom players and those on OTT players.

Telecom providers have been asking for a level playing field to against over-the-top players that they claim to have taken away their revenues. Thanks to lower data rates and more budget mobile devices, consumers have been switching to OTT apps instead of using conventional ways of texting and calling. Even DTH and cable providers feel threatened by the growth of over-the-top video services like Amazon Prime Video, Netflix, Hotstar, and more.

Talking to DNA Money, a senior official at TRAI said:

TRAI is currently conducting an examination into the OTT services which are similar to what telecom players offer, like messages and voice calls. According to TRAI, however, only a number of OTT services will undergo the regulator’s examination.

TRAI puts OTT players into 2 categories. The first includes VoIP services that provide real-time telecom services by using the telecom operator’s network infrastructure to compete with them. The second is OTT apps like trade and commerce services, media services (gaming), as well as social media which also use telecom operator’s network infrastructure but don’t join in direct competition with them.

In November 2018, a consultation paper was issued on over-the-top players to seek public opinion on whether or not to apply the same rules on OTT players with telecom operators. In addition, social platforms like Facebook and WhatsApp are under government scrutiny for misinformation and spreading fake news.

Telecom providers complain that they are putting more and more investments in networks to enhance service quality while OTT players just use their network without being subjected to any standards.