India should take lead in formulating regulations on OTT: COAI

India should take the lead in formulating rules and regulations for OTT (Over the Top) players rather than following any global benchmark, according to the Cellular Operators Association of India.

India’s market conditions are different, it is one of the largest telecom markets, there will be no mergers and acquisitions, the data services have grown tremendously in the last few years, we should be deciding our own benchmarks, COAI Director General SP Kochhar said.

“With the 5G rollout, the capex of the industry has gone up while return on investment (ROI) is quite low. Telecom players create the network while OTTs just ride on this network for free,” he said.

Globally, Korea has implemented a network use fee on OTT industry and the 100% of fee is investing back into the networks. In Europe and the US, a similar model is being discussed. Many studies are being undertaken globally on this issue.

Currently, Trai is working on the consultation process for bringing regulations on the OTT industry.

One of the models that was earlier proposed by the telecom industry was a revenue-sharing mechanism between OTTs and telcos.