The Cellular Operators Association of India (COAI) has renewed its demand for large over-the-top (OTT) platforms to contribute to telecom network infrastructure costs, citing rising financial burdens on operators. It also emphasised that the absence of a regulatory framework is contributing to the increase in spam and fraudulent communications on popular mobile applications like WhatsApp, owned by Meta Platforms, according to an ET Telecom report.
Also Read: Over 780 Mobile Operators on Path to Complete 5G, Says GSMA
COAI Renews Call for OTT Contribution
COAI, which represents major telecom players Reliance Jio, Bharti Airtel, and Vodafone Idea, argues that OTT platforms benefit from telecom networks without sharing expenses, leading to increased investments by telcos. The association estimates an additional Rs 10,000 crore was spent on infrastructure in 2023 due to rising data traffic created by Large Traffic Generators (LTGs) straining telecom networks.
On Tuesday, COAI advocated for stringent measures to curb the menace of spam and fraudulent communications on telecom carriers' networks and OTT platforms.
Also Read: Telcos Have Reached a Saturation Point with Limited Monetisation Prospects?
Financial Burden on Telecom Operators
"We are saying that the traffic contributed to by OTT on our network makes it incumbent for them also to share (network building costs)," SP Kochhar, director-general of COAI, was quoted as saying during a roundtable discussion, according to the report. "OTT is presently conducting business on telecom carriers’ networks without contributing anything."
COAI also estimates a loss of Rs 800 crore to the Indian exchequer in adjusted gross revenue (AGR) dues and taxes from major four to five traffic generators. Kochhar reportedly reiterated the need to regulate OTT communication services under the Telecommunication Act, 2023, ensuring a "same service, same rule" principle.
Also Read: Telecom Operators Account for 85 Percent of Mobile Internet Infrastructure Investment: GSMA Report
GSMA Report Highlights Investment Trends
Separately, just ahead of MWC25, GSMA released a report stating that telecom carriers contributed 85 percent of the total investment in mobile internet infrastructure globally—approximately USD 109 billion on average over the past five years. You can read more about the report from the linked story.
Kochhar reportedly said that 11 telecom companies globally have shut down in recent years due to unprofitability and added that telecom carriers are hitting out at LTGs for not contributing to network infrastructure costs.
"These numbers are going to grow… We are talking only about LTGs, but the emphasis is that they are not sharing any revenue," the report quoted Kochhar as saying.
Regulating OTT Platforms
Additionally, COAI raised concerns over rising spam and fraud on messaging apps, calling for stricter measures to curb misuse. According to the report, Kochhar further said that globally, telcos want Internet-based calling and messaging applications such as WhatsApp and Signal, among others, to be covered under the same rules as telecom services.
Also Read: Indian Telcos Renew Calls for Fair Share from OTT Platforms: Report
Debate Over 6GHz Spectrum Allocation
On spectrum allocation, the association urged the government to reserve the 6GHz band for 5G and 6G networks instead of Wi-Fi services, advocating for Wi-Fi 7 as an alternative.
Addressing the debate over the 6GHz spectrum band, Kochhar emphasised that these airwaves should be allocated to telecom carriers to support their 5G and 6G network needs. He reportedly argued that Wi-Fi broadband companies should instead focus on Wi-Fi 7 technology, which is spectrum-agnostic, rejecting their demand for 6GHz airwaves for Wi-Fi 6E deployments to expand broadband access in the country.
"Wi-Fi 7 is no longer an experimental technology. Its equipment is commercially available, and that is agnostic of any frequency band. Therefore, spectrum, which is essentially required for IMT for their subscribers, should be given to telcos rather than keeping it locked up in cupboards for Wi-Fi," he reportedly said.
