Tech Giants Clash with Indian Telecom Operators Over OTT Regulation

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Key Takeaways

  • Global tech giants oppose regulation of OTT services in India.
  • Indian telecom operators want OTT providers to contribute to network development costs.
  • AIC warns that regulation might violate net neutrality and harm consumers.

A heated battle is brewing between global tech giants and India’s telecom operators over the regulation of internet services. 

The crux of the dispute lies in the proposed inclusion of over-the-top (OTT) services, such as messaging apps and streaming platforms, within the regulatory framework for traditional telecom operators, as reported by Techcrunch.

The Cellular Operators Association of India (COAI), representing major telcos like Jio and Airtel has recommended to the Telecom Regulatory Authority of India (TRAI) that large tech firms should pay more for network usage. Telecom operators argue that this approach would ensure a level playing field and help fund network development. 

However, tech companies strongly oppose these recommendations. The Asia Internet Coalition (AIC), representing giants like Apple, Amazon, Microsoft, Google, and Meta, warns that such measures could violate the principle of net neutrality and could affect innovation and result in higher costs for consumers.

Other industry bodies, including the Internet & Mobile Association of India (IAMAI), Broadband India Forum (BIF), and U.S. India Strategic Partnership Forum (USISPF), have also hit back against the proposed regulatory framework [PDF]. They argue that OTT services are different from telecom services and should not be subject to the same regulations.

This conflict is not unique to India. A similar push is going on in Europe, where network operators are seeking contributions from tech companies to fund network upgrades and expansions. The European Union is currently exploring legislation that would require large tech firms to help fund telecom infrastructure. While this discussion has been watered down in the bloc, there are reports that the European Commission could revisit it in 2025.

The outcome of this debate between telcos and tech giants will have far-reaching implications for the future of internet services in India and could set a precedent for similar debates in other countries. As the debate intensifies, it remains to be seen whether the Indian government will side with the tech giants or the telecom operators.