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Telecom corporations vs OTT corporations: The ‘letter struggle’

It is as soon as once more an open struggle. The Mobile Operators Affiliation of India (COAI), the business affiliation representing telecom corporations in India — Reliance Jio, Airtel and Vodafone-Thought — is up in arms in opposition to the Broadband India Discussion board (BIF). The physique representing telecom corporations is miffed over BIF sending a letter to the Division of Telecommunications (DoT) saying that the telcos also needs to pay the OTT platforms. The BIF letter mentioned that OTT platforms should contribute in the direction of creating and creating digital telecom infrastructure in India in trade for utilizing the service.
It is as ridiculous as may be
Responding to the letter, COAI mentioned that that is as ludicrous a suggestion as may be imagined. It termed the choice akin to roads paying autos for driving on them. “By a quite simple analogy, telecom networks are akin to roadways whereby the companies for public consumption — akin to public transport autos like buses function — are much like the OTT service suppliers. The outrageous suggestion of roads paying to the autos for getting passengers on their community is unparalleled. OTTs, although, aren’t paying something to the TSPs presently for his or her community prices,” the business physique mentioned.
The COAI mentioned that OTT platforms not solely cannibalise the companies provided by the telecom corporations, additionally they eat enormous quantities of bandwidth. This stresses the telcos’ community and makes the continual upgradation and growth important.

Based on the COAI, telecom service suppliers have contributed an quantity of practically Rs 17,627 crore in the direction of licence charge and Rs 7,073 crore in the direction of spectrum utilization cost (SUC) for FY 2021-22 alone. That is moreover the mammoth quantities invested in the direction of spectrum acquisition and community infrastructure.
“OTTs, then again, have nil or very miniscule contributions to the federal government regardless of their sturdy revenues. Communication OTTs don’t contribute to the exchequer within the type of taxes, levies, licence charge and many others., as they aren’t presently regulated by the Ministry of Communications, though their companies are much like that supplied by the telcos,” added COAI. The physique once more reiterated its demand for bringing OTT communication companies beneath the Telecommunication Act.
What did BIF letter say
The BIF letter despatched to DoT mentioned that OTTs aren’t free riders and are literally accountable for greater than 70 per cent of the telco visitors. “This idea of paying for using infrastructure is a superb idea whereby any entity that makes use of one other entity’s infrastructure , ought to pay for it. Nonetheless, the revenues earned by the infra supplier also needs to be shared with the entity utilizing it in the identical proportion,” the letter learn.

“If the idea of paying community entry prices is to be accepted, the telcos also needs to pay the OTTs for all of the above. Given the price of the opposite infrastructure is way larger than the price of the entry community, it’s fairly seemingly that telcos might find yourself paying to the OTTs moreover sharing their revenues with them,” the discussion board argued.

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