Over-the-top services: A woman stands next to a logo of messaging application Whatsapp in Mumbai. A controversial plan to get platforms such as WhatsApp and Telegram to pay a commission to Indian networks is being met with resistance. — Reuters
NEW DELHI: India’s Internet service providers have come up with a controversial proposal that may require popular online communication platforms such as WhatsApp and Telegram to pay them a commission for using their networks.
The Cellular Operators Association of India, which represents the country’s three leading private telcos, has proposed that such over-the-top (OTT) communication services, which also include the likes of Zoom and Instagram, contribute to setting up and maintaining their telecom infrastructure, instead of taking “a free ride” on them.
The association’s proposal was made this month in response to a consultation paper released by the Telecom Regulatory Authority of India, which sought public input on a regulatory mechanism for OTT communication services in the country.
The telcos’ proposal added that the rapidly growing use of these OTT platforms for voice calls and messaging services had led to an “erosion of revenues” for them, especially at a time when they have had to make higher investments to expand their networks and keep pace with growing data traffic.
OTT communication services are calling and messaging applications that are accessed over the Internet using infrastructure provided by Internet service providers.
Reducing costs has been a priority for debt-laden telcos in India, which have been trying to pass on a share of their expenses to the likes of WhatsApp and Telegram.
The country’s Internet subscriber base grew to nearly 866 million in December 2022, with more than 500 million users relying on WhatsApp for voice calls and messaging.
The proposal to get OTTs to pay a commission has raised worries among consumer rights organisations, as these platforms could ultimately pass on a share of the cost to their consumers, who are already paying telcos for data and even OTT platforms for their services.
Amol Kulkarni, research director at Cuts International, a research and advocacy think-tank, said this could prove to be a “double whammy”, particularly for price-sensitive users in India.
“There are several low income and vulnerable consumers who live on the fringes and for whom OTTs are a substantial source of livelihood, education and infotainment. They will be most adversely impacted,” he told The Straits Times.
A potential fallout, Kulkarni added, could see users either shell out more to access OTT services or make do with partial or poor access.
Some could even be completely cut off from services that may prove to be beyond their reach.
Critics of the proposal also said it is wrong to argue that the OTT services get a “free ride”, as they have increased telcos’ revenues from users who pay these telcos for the data they consume on these services.
The net monthly average revenue per user for telcos rose from 111.45 rupees in June 2013 to 141.14 in December 2022.
This was driven by a jump in data-based earnings from mobile subscribers. The share of such earnings in total revenue from subscribers has grown more than 10 times, from 8.1% in the quarter ending June 2013 to 85.1% in the quarter ending December 2022.
The Internet and Mobile Association of India, which represents the interests of the online and mobile value-added services industry, has also cautioned that agreeing to the telcos’ demand could distort markets and lead to “rent-seeking” by telcos. — The Straits Times/ANN
