Mumbai: Cellular Operators Association of India (COAI) on Monday defended the telcos' demand for a reasonable "use charge" from OTT providers after the Internet and Mobile Association of India (IAMAI) criticised it for boosting the "revenue sharing" demand for telecom service providers (TSPs).
The COAI restated its stance that telecom operators should seek a fair "user fee" from OTT communication service providers in exchange for using their networks to offer profitable services. This would help to build the nation's digital infrastructure and boost the economy.
"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," said COAI, Director General Lt Gen Dr SP Kochhar
According to the COAI, there doesn't seem to be enough understanding of how net neutrality relates to the non-discriminatory handling of material, which has nothing to do with the usage fee issue.
"Telecom service providers are committed to following the net neutrality principles, as per their license conditions, as also all other regulatory and security compliances which the TSPs undertake to safeguard consumer interest and security -- which OTTs presently do not," it argued.
The sending party network pays (SPNP) model is one that the COAI has been promoting since it would enable telecom service providers to take advantage of internet enterprises by formalising rent-seeking.
"The SPNP model would be a death knell for the digital economy and the creative ecosystem which it sustains," IAMAI had said last week.
Calls for an SPNP mechanism have re-emerged even though the demand for telecom services is entirely dependent on the ability of OTT services to attract users.
The COAI said that OTT platforms take a free ride on TSP-funded networks "without contributing to the setting up, operating and maintenance costs either directly or indirectly or for the expansion of networks."
In fact, many OTT communication players are considering or have already begun to charge users a hefty cost for verified accounts, which will increase their revenue streams.
"It is ironic that representatives of entities profiting themselves by levying charges on subscribers while riding free on the telcos' network are stating that paying for usage would effectively raise costs for users," commented Kochhar.
