OTT regulation under purview of I&B ministry, concerns of telcos raised: Scindia

Regulating over-the-top (OTT) platforms comes under the purview of the Information and Broadcasting Ministry, Union Minister for Communications Jyotiraditya Scindia told adding that one of the six advisory groups that he had established, had flagged the issue, highlighting concerns from the perspective of telecom service providers (TSPs).

“That is something that, to be very candid, comes under the domain of the Ministry of I&B (information & broadcasting). Having said that, I have six advisory groups that I have set up and this concept has come up as an issue that they would like to discuss from the point of view of the TSPs,” Scindia said in an interview with ANI.

The debate stems from calls for OTT platforms to share the costs incurred by Telecom Service Providers (TSPs) in delivering content to consumers. While TSPs argue that cost-sharing could support much-needed investments in their network expansion, while critics highlight the potential violation of net neutrality principles.

Net neutrality mandates equal treatment of all internet traffic, prohibiting payments from content providers to TSPs. Introducing such payments, critics argue, could allow network operators to prioritize certain platforms, undermining the internet’s democratic nature.

Proponents of cost-sharing highlight that the digital economy and telecom landscape have evolved dramatically in recent years. Between 2015 and 2023, India saw an explosive growth in mobile data consumption, with average usage per user jumping from 0.09 GB to 17.36 GB per month.

However, the expansion of network infrastructure, such as the number of mobile towers, has not kept pace with this demand. Emerging technologies like artificial intelligence, cloud computing, and the Internet of Things (IoT) are expected to further amplify data consumption, intensifying the need for network upgrades.

It is argued that a blanket approach to net neutrality may no longer be sufficient to address the current challenges. Instead, a nuanced framework could balance the interests of all stakeholders.

For instance, larger OTT platforms with significant revenue streams, such as subscription fees or advertising, could be required to contribute to network costs. However, smaller or less profitable platforms might be exempt to avoid stifling innovation and competition.

At the same time, any framework must address potential contractual disputes between TSPs and OTT platforms, as well as avoid creating monopolistic practices that could harm smaller players.

One proposed solution is extending the Telecom Regulatory Authority of India’s (TRAI) interconnection regulations to OTT platforms. This would establish clear rules for how OTTs and TSPs interact, ensuring transparency and fairness while maintaining net neutrality principles related to quality of service.