Telcos object to TRAI recommendation on excluding OTT platforms

Telecommunications companies have expressed significant concerns regarding the recent Telecom Regulatory Authority of India (TRAI) recommendations concerning authorisation mechanisms and the exclusion of over-the-top (OTT) services from regulatory oversight.

The telcos have flagged TRAI’s suggestion to eliminate contract-based authorisation, arguing that such a move would disrupt the established framework that has governed the telecom sector for over three decades. They emphasise that existing contracts clearly outline the rights and obligations of telecom operators, providing necessary stability and accountability.

A significant point of contention is the exclusion of OTT services from the authorisation mechanism, which telcos argue perpetuates an uneven competitive landscape. They contend that while they are burdened with extensive compliance requirements, OTT platforms operate without regulatory oversight, raising concerns about market fairness, national security, and customer privacy.

Telcos have also criticised TRAI for failing to recommend a reduction in the License Fee and Universal Service Obligation Fund (USOF) levy, as well as for not addressing the long-standing demand to narrow the definition of Adjusted Gross Revenue (AGR) to include only telecom revenue. This oversight, they argue, continues to place an unfair financial burden on traditional telecom operators.

In a statement, industry representatives strongly disapproved of TRAI’s recommendations, stating that they undermine the current regulatory regime that has supported the sector for decades. They assert that the recommendations lack justification and do not align with the operational realities faced by telecom companies.