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Mumbai: The Cellular Operators Association of India<\/a> (COAI<\/a>) has opposed the argument that a usage charge levy by telcos on OTT communication services providers hampers net neutrality<\/a>. It reiterated that since the OTT service providers use telco networks to provide their services, a reasonable usage charge should be imposed.
The industry<\/a> body’s reaction comes after the Internet & Mobile Association of India (IAMAI<\/a>), which has Amazon, Meta<\/a>, and the likes as its members, opposed such a levy, arguing that it goes against the principles of net neutrality.
“Certain entities with vested interests are misdirecting the issue of the need for a regulatory framework for the communication OTTs and the need of usage charge to be paid by OTTs to the TSPs, by bringing in the aspect of Net Neutrality in a misleading manner, to make it a populist issue,” S.P. Kochhar, director general, COAI, said.
The association, which represents Reliance Jio<\/a>, Bharti Airtel and Vodafone Idea<\/a>, pointed out that net neutrality pertains to non-discriminatory treatment of content “which has no nexus to the usage fee issue”.
It said that the telcos are committed to follow the net neutrality principles in accordance with their license conditions, in addition to other regulatory and security compliances in the interest of consumers’ security unlike the OTTs.
OTT or over-the-top service providers are services that operate over the internet ranging from messaging apps like WhatsApp, to social media platforms like Facebook, and content streaming platforms like Netflix<\/a> and Audible.
In a statement released Monday, the association argued that telcos invest heavily in acquiring spectrum and setting up and maintaining networks over which the OTT services reside and operate. It added that a lot of these services, many owned by non-Indian entities, are charging users for verified accounts, and using consumer data collected to sell advertising.
“…OTT service providers wish to continue to have free lunch at the expense of TSPs, while conveniently overlooking the fact that the TSPs continue to invest immensely towards building the nation’s digital infrastructure and delivering connectivity, access and opportunities for inclusive growth to the Indian citizens,” Kochhar added.
The IAMAI had argued that the growth of the digital economy has been on the back of cheap or free to use OTT services and imposing a usage charge on OTTs could raise the cost of internet usage, thus slowing down the digital economy.
The association added that any entity which creates a property or infrastructure by investing funds, is entitled to take usage charges (rent \/lease charges, etc.) from someone who uses the same for commercial purposes. Hence, a legal framework enabling telcos (who invest in establishing nation-wide telecom infrastructure) to charge any user that uses its service\/infrastructure is fair and reasonable, it said.
The COAI also pointed out that the European Commission has also proposed similar steps so that “all market players benefiting from the digital transformation… make a fair and proportionate contribution to the costs of public goods, services and infrastructures…”.