Telecom Bill drops OTT reference, retains regulator Trai’s powers

A new draft of the telecom Bill – introduced before Parliament on Monday – doesn’t mention over the top (OTT) services in its definition of telecom services and clears the way for the government to allocate satellite spectrum. It retains the powers given to India’s telecom regulator.

Reviewed by ‘Business Standard’, the draft defines telecommunications services as “any service for telecommunications”.

Previous drafts of the Bill extended the definition of telecommunications services to include OTT services such as messaging platform WhatsApp and video calling programme Skype. These internet-based service providers were to be subject to similar rules as other telecom companies.

The drafts specifically listed OTT among a wide range of specialised communication services, including machine to machine communication, in-flight and maritime connectivity.

The definition was demanded by telecom service providers such as Bharti Airtel and Reliance Jio who have said that they require a level-playing field as OTT communications and satellite-based services offer audio and video calls and messaging without paying licence or spectrum fees.

Civil servants had earlier said the government’s aim was to only regulate communication apps “that give the same service as telecom operators”. Telecom Minister Ashwini Vaishnaw said his ministry sought a “light-touch” regulatory framework for such OTT apps.

Due to the lack of clarity, various OTT apps like Netflix, Amazon Prime and Hotstar had raised concerns. There were also concerns that apps like Zomato and Swiggy may be regulated too.

Satellite spectrum
The latest draft includes satellite spectrum to a list of sectors where the government has the right to administratively allocate spectrum.

Satellite or orbit is a segment of radio spectrum made available when satellites are placed into orbit. A debate over whether the scarce resource should be auctioned or allocated by the government has split the telecom industry.

As part of the Telecom Regulatory Authority of India’s (TRAI) last consultation process in June, technology firms like American billionaire Elon Musk’s Starlink, Amazon’s Project Kuiper, and Nelco of India’s Tata Group opposed the auctioning of satellite communication spectrum. Telecom operator Bharti pushed for allocations and Reliance Jio called for auctions.