Broadband India Forum Opposes Telcos’ Call for Network Usage Fees on OTT Services, Cites Threat to Net Neutrality

In response to the Telecom Regulatory Authority of India’s (TRAI) Consultation Paper on “Regulatory Mechanism for Over-The-Top (OTT) Communication Services, and Selective Banning of OTT Services,” Broadband India Forum (BIF), a policy and regulatory think tank, strongly opposes the proposal to impose Network Usage Fees on OTT services, stating it is akin to clinging to outdated telecom models from the 1990s.
BIF argues that the “Sending Party Network Pays (SPNP)” principle, reminiscent of legacy voice telephony systems, is incompatible with the open and free internet. They emphasize that the internet functions differently, with users seeking continuous online connectivity for content, applications, and services. The imbalance of traffic between content providers and internet access providers further invalidates the application of SPNP in the internet era.

Additionally, BIF rebuts the reference to South Korea as a successful example of SPNP implementation, asserting it had poor outcomes, leading involved parties to withdraw agreements and causing smaller players to exit the country.

BIF expresses concern that imposing network usage fees and telecom licensing frameworks on OTTs would violate Net Neutrality principles outlined in 2016, favoring specific OTTs and stifling innovation, discriminating against smaller entities and startups, and ultimately harming consumer choice.

Addressing Telcos’ concerns over lawful interception and security, BIF underscores that OTTs are already subject to regulation under the IT Act 2000 and related laws, indicating the redundancy of additional regulations under the Telecom Law.

T V Ramachandran, President of BIF, emphasizes the empowerment potential of OTTs in enhancing productivity, socio-economic standing, and economic prosperity. He cautions that excessive regulation would escalate costs for customers, limit consumer choice, hinder innovation, and contravene Net Neutrality guidelines.