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'No plan to share revenues of OTT apps with telcos'
Mint Mumbai
|September 19, 2023
The central government is not considering enabling a revenue sharing model between over-the-top (OTT) players or apps and the telecom service providers for using the telcos’ networks for carriage of the apps, said a top official in the ministry of communications.
“There is no thinking of creating revenue sharing mechanism between telecom service providers and OTTs," the official said, seeking anonymity. The official refuted reports suggesting that such a mechanism was in the works by the government. “There has been no proposal to that effect."
For a while, telcos have been demanding a share of the revenues earned by OTT platforms considering that some streaming apps have started offering bandwidth-heavy services and generating disproportionately high traffic, which is forcing telcos to upgrade and enhance the capacity of their networks. Therefore, telecom service providers are seeking a contribution from the OTTs for network expenses.
This story is from the September 19, 2023 edition of Mint Mumbai.
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