OTT Players Get a Huge Relief as Govt Decides Not to Regulate them: Report

The telecom players would certainly be disappointed by the decision. However, the new telecom bill won't include the OTT players under the licensing regime. Disney+ Hotstar, Netflix and other such broadcasting apps will be under the purview of the Ministry of Information and Broadcasting (MIB).

Highlights

  • The government is not looking to include the OTT players in the definition of telecommunication services currently.
  • This means that the OTT players won't be regulated as telecom service providers (TSPs) are.
  • It is a huge deal for the OTT companies because this means that they won't have to pay any sort of fair share charge to the telcos.

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ott players get a huge relief as

The government is not looking to include the OTT players in the definition of telecommunication services currently. This means that the OTT players won't be regulated as telecom service providers (TSPs) are. It is a huge deal for the OTT companies because this means that they won't have to pay any sort of fair share charge to the telcos. This puts the debate to the rest about whether OTT players such as WhatsApp, Telegram and more would have to pay a charge to the telcos out of their revenue.




Read More - COAI Says OTT Players Must Pay Telcos – Here’s Everything to Know

According to an ET report, the government doesn't want to include OTT in the definition of telecom services because it doesn't align with the definition of "telegraph". A telegraph means any instrument, appliance, material, or apparatus used or capable of use for transmission or reception of writing, signals, signs, images, and more. OTT doesn't come under this. While the government is looking to replace the old telegraph act, it wants to retain the definition of telegraph.

Read More - COAI Wants Level Playing Field for Telcos and OTT Players

The telecom players would certainly be disappointed by the decision. However, the new telecom bill won't include the OTT players under the licensing regime. Disney+ Hotstar, Netflix and other such broadcasting apps will be under the purview of the Ministry of Information and Broadcasting (MIB) while the Ministry of Electronics and IT will look after all the OTT players.

Currently, the government feels that there's no need to regulate the OTT apps as telecom services. If there's such a need in the future, it can be taken up. This is a win for the industry bodies such as the Broadband India Forum and the Mobile Association of India. The new telecom bill is expected to be tabled in the winter session of the parliament. Currently, some work is going on in terms of the language, the report added.

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