Amid growing concerns over the sustainability of telecom network investments, the GSMA has urged global regulators to establish a level-playing field and facilitate infrastructure deployment in the wake of surging data usage driven by over-the-top (OTT) or mobile app-based services, according to a top GSMA executive.
Also Read: Indian Telcos Reiterate Call for Fair-Share Contributions by OTT Platforms
GSMA Advocates Balanced Regulatory Framework
"There are growing concerns around the sustainability of network investment. Regulators should ensure a level playing field that encourages ongoing infrastructure development, while fostering innovation and consumer choice," said Vivek Badrinath, Director-General of GSMA, in an interaction with ETTelecom.
Badrinath, who succeeded Mats Granryd in April this year, stressed the need for a transparent and future-ready regulatory framework that supports fair contribution models and shared responsibility for network resilience.
OTT Platforms Account for Majority of Data Traffic
OTT platforms such as WhatsApp, Messenger, Telegram, Viber, and Google Talk continue to account for a significant portion of mobile data traffic. Telecom operators argue that these platforms should pay a "fair share" for utilising telecom networks, as they are among the largest traffic generators. Conversely, OTT providers have countered that telecom companies benefit from increased data usage and, therefore, should not demand additional compensation.
Also Read: Over 780 Mobile Operators on Path to Complete 5G, Says GSMA
According to industry estimates, OTT platforms are responsible for over 70 percent of data traffic on telecom networks. With mobile data consumption expected to reach 415 million terabytes per month by 2030—growing at a compound annual growth rate (CAGR) of 19.8 percent—industry leaders emphasize the urgent need for a balanced approach to regulation. A report by Research and Markets attributes this growth to increased video streaming, social media usage, and the rollout of 5G services.
Badrinath also reportedly said that a transparent, future-ready regulatory framework would be essentially required, considering "fair contribution models" and shared responsibility for network resilience.
Telecom Operators Demand Fair Share Contribution
"We believe in a balanced and collaborative approach, OTT players and mobile operators both benefit from - and contribute to - the digital ecosystem,' the top GSMA executive added, according to the report.
In India, there is currently no regulatory framework governing OTT communication services. The Cellular Operators Association of India (COAI), representing Bharti Airtel, Reliance Jio, and Vodafone Idea, has called for parity in regulations, citing that telecom operators and OTT players offer similar services. COAI further argued that large traffic generators (LTGs) should contribute towards the capital expenditure incurred in building and maintaining telecom infrastructure.
Also Read: Telecom Operators Account for 85 Percent of Mobile Internet Infrastructure Investment: GSMA Report
Growing Data Use, Growing Debate
In 2023, the Telecom Regulatory Authority of India (TRAI) initiated stakeholder consultations on potential regulatory mechanisms, including selective OTT bans. In their responses, major telecom players supported a compensation model wherein OTT platforms contribute financially for network usage.
GSMA's Head of Asia Pacific, Julian Gorman, previously noted that a fair share contribution from OTT players would enhance investor confidence and spur further infrastructure investments.
Also Read: Indian Telcos Renew Calls for Fair Share from OTT Platforms
According to a Statista study cited in the report, OTT video users are projected to reach 4.9 billion globally by 2029, intensifying the debate over cost-sharing and regulatory oversight.
You can also join the TelecomTalk WhatsApp Community and TelecomTalk WhatsApp Channel for updates and discussions.
