Telecom Act allows licensing of OTT apps

• The ongoing debate between India’s telecom firms and over-the-top (OTT) communication platforms has reached a critical juncture with the recent statements from the Cellular Operators Association of India (COAI).

Highlights:

• The COAI asserted that under the Telecommunications Act, 2023, OTT communication platforms like WhatsApp are indeed classified as access services. This interpretation directly challenges previous government positions and has sparked concerns among tech companies and digital rights groups.

The COAI's Stance on OTT Platforms

• The COAI has been vocal in its demand that OTT communication platforms should be subjected to the same regulatory framework as telecom service providers (TSPs). According to S.P. Kocchar, COAI’s Director General, the new Telecom Act provides a basis for including OTT services under access services authorization. This would align with the principle of “same service, same rule,” ensuring that competing services are regulated equally.

Government Position and Legislative Background

• In a prior statement, Communications Minister Ashwini Vaishnaw had clarified that a provision to license OTT apps under the Telecom Act was removed before the bill was introduced in the Lok Sabha. However, the COAI maintains that the Act still holds the potential to require OTT platforms to operate under a licensing framework.

Concerns from Digital Rights Groups and Tech Companies

• Digital rights groups argue that imposing licensing requirements on OTT platforms could have serious implications for privacy and Net Neutrality.
• Tech firms, represented by the Internet and Mobile Association of India (IAMAI), have also pushed back against the COAI's demands. They argue that online platforms lack the extensive infrastructure that telecom companies possess, such as spectrum and physical assets like cell towers.

Technical Considerations: The OSI Model Argument

• It is crucial to understand that telecom service providers (TSPs) operate across all seven layers of the Open Systems Interconnection (OSI) model,” Dr. Kocchar said in response. “In the 4G/5G era, TSPs deliver their services through applications that span the entire OSI stack … This characterization [by tech companies] is fundamentally flawed and misrepresents the technical reality of modern IP communications

Prelims takeaway:

• COAI