OTT under Telecom Act? Despite govt’s denial, telecom have a different view

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Last Updated23/08/2024

Eight months after the law was passed in Parliament, telecom operators have interpreted that the definition of telecommunication services is in fact broad enough to regulate OTT services.

The recent developments surrounding the Indian Telecommunications Act have reignited concerns within the tech industry, particularly regarding the potential regulation of over-the-top (OTT) communication services like WhatsApp and Google Meet.
This issue has its roots in the broad definition of "telecommunication services" in the Act, which telecom companies argue should include OTT platforms, requiring them to obtain government authorization.

When the Telecommunications Act was first released, the definition of telecommunication services was broad enough to possibly encompass OTT communication services.
Although the then Telecom Minister publicly assured that OTTs would not be regulated under the Act, tech companies remained wary, concerned that these assurances lacked the binding nature of legal provisions.

Eight months after the Act was passed in Parliament, major telecom operators—Jio, Airtel, and Vi—along with their industry lobby group, the Cellular Operators Association of India (COAI), have interpreted the definition of telecommunication services to include OTT platforms.
In their submissions to the Telecom Regulatory Authority of India (TRAI), these companies have called for OTT platforms to require government authorization, arguing for a "same service, same rules" approach.
The telecom companies assert that they invest heavily in purchasing spectrum, setting up infrastructure, and obtaining licenses from the government. They contend that OTT platforms offering similar communication services, such as calling and messaging, should be subject to the same regulatory requirements.

The definition of telecom services in the Act includes the transmission, emission, or reception of messages through various means, which telecom companies believe is broad enough to regulate OTT platforms.
Despite previous government assurances that OTTs would not be included under the Act, the telecom companies' interpretation suggests otherwise, leading to renewed industry concerns.

Spectrum Allocation: While auctions remain the primary method for assigning spectrum, administrative allocation will now be allowed for specific sectors like metro rails, community radio, defense, and police.
Spectrum Management: The Act permits the government to reclaim unutilized spectrum, and it also allows for the sharing, trading, and leasing of spectrum.
Compliance and Dispute Resolution: The Act introduces a voluntary undertaking mechanism for disclosing inadvertent lapses and facilitating compliance. It also establishes a tiered dispute resolution structure involving an adjudicating officer, a designated committee of appeals, and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
User Authentication: Entities are required to conduct biometric authentication of users to curb fraud, raising concerns about user privacy.
Interception and Surveillance Powers: The Act empowers the central and state governments, or specially authorized officers, to intercept communications and seek disclosure in cases of public emergency or interest.