Indian Telcos Reiterate Call for Fair-Share Contributions by OTT Platforms: Report

Telcos Call for Fair-Share Contributions from OTT Platforms: Report
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.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

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.