India's telecom industry has reportedly reiterated its demand for a fair share of revenue from large over-the-top (OTT) platforms, citing rising data traffic on networks they invested billions in developing. This issue, alongside concerns over satellite spectrum and tax credits, was discussed in a meeting Monday between top telecom executives and telecom minister Jyotiraditya Scindia, ET reported, citing officials aware of the details.
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Industry Calls for Fair Contribution
The meeting was reportedly attended by Reliance Jio chairman, Akash Ambani and managing director, Pankaj Pawar, vice chairman of Bharti Enterprises, Rajan Mittal, and Vodafone Idea MD Akshaya Moondra, among others.
Executives from Reliance Jio, Bharti Airtel, and Vodafone Idea stressed the need for OTTs to contribute to network costs. The industry has proposed that large traffic generators (LTGs), not startups or small businesses, should bear this cost.
The telecom industry also highlighted issues related to GST and ways to address some of the pain points, including concerns over input tax credit. The meeting was part of Scindia’s plans of getting updates about the sector.
According to the Cellular Operators Association of India (COAI), telecom operators invested an additional Rs 10,000 crore in 2023 to enhance network infrastructure in response to high data demands driven by these OTTs.
Satellite Spectrum Allocation Discussions
The meeting also covered the allocation of satellite spectrum, with telcos advocating for a level-playing field and urging that airwaves not be provided free or at low cost to companies offering consumer services. Telecom Regulatory Authority of India (TRAI) is currently evaluating satellite spectrum pricing policies, which are expected to be concluded by December 15.
According to the report, a person privy to the details said the issue of satcom spectrum was not discussed in detail, but the telcos expressed their concerns to the minister, who has already previously said that such spectrum needs to be given administratively as per international norms.
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Global Push for OTT Revenue Sharing
While the Department of Telecommunications (DoT) has yet to make a decision, telcos globally have raised similar demands, with nations like the US, EU, South Korea, Brazil and South Africa exploring fair-share models.
In recent remarks, Meta's head of connectivity policy, Thomas Navin, acknowledged that the issue was "worthy of exploration" if telcos ensure nondiscriminatory access across OTT platforms.
“As long as the cost is being borne by the consumer of a service that they (telcos) want to sell to consumers and they don’t discriminate among OTT providers in terms of reaching the consumer, then I think it seems like an area worthy of exploration,” said Thomas Navin, Director and Global Head of Connectivity Policy at Meta, according to the report.
Telcos worldwide, including Indian players, have been seeking a share of the OTT revenues. Telcos argue that OTT platforms are profiting by leveraging their networks without paying for the infrastructure, which telcos have invested billions of dollars to build.
