Can OTTs stay away from telcos' stride?

OTT, or Internet-based communications platforms, have been excluded from the Telecommunications Act, 2023. Can they continue to survive?

- VERNIKA AWAL

The Telecommunications Act, 2023 received the Centre’s official green light in December last year, heralding new regulations that will govern the industry for years to come. While the law was necessary to repeal archaic legal frameworks such as the Indian Telegraph Act, 1888, one modern-era point remains contentious—whether Internet-based services should be governed under the same rules as traditional telecom operators.

Before proceeding, it is important to set the context for this conversation. In today’s world, many of our communications services are powered by Internet-based services, such as Meta’s WhatsApp for direct messaging and calls and Microsoft Teams and Google Meet platforms for enterprise-grade conferencing calls. These apps have collectively been bracketed under over-the-top (OTT) services, which rely on the Internet to deliver their functionality.

Over the years, OTT services have grown exponentially. According to industry estimates, WhatsApp alone has over 480 million users in India, against a backdrop of a 1.45 billion population base and as compared to over 1.07 billion telephone subscribers. This means WhatsApp serves around 33% of the country’s population and 45% of all mobile and telephony users.

Despite WhatsApp’s popularity, users incur no additional cost to use the service. Instead, they use data provided by telecom operators, who bundle it into their subscription plans; telcos seldom sell subscription plans without bundled data. Without any additional cost per message or call, users have been massively empowered in terms of their communications.

This has left telecom companies displeased.

WHAT IS UPSETTING THE TELCOS?