The Cellular Operators Association of India (COAI) has issued a statement today regarding the Fair Share charge between OTTs and TSPs and its implications on Net Neutrality.
In a comprehensive release, COAI, which represents major telecom operators in India, emphasized that a fair-share contribution from Over-the-Top (OTT) services would not infringe upon the principles of Net Neutrality.
Addressing concerns surrounding potential bias towards specific websites, differential pricing, and case-by-case fair share charging, COAI labeled such scenarios as speculative and imagined. Indian telecom operators are committed to upholding Net Neutrality as per their licensing obligations, ensuring an open and unrestricted Internet to consumers.
COAI affirmed that the proposed fair share charge would not impede consumer access to an open and free Internet. Content and services would remain accessible with no traffic management or differentiation. There would be no throttling, blocking, or paid prioritization for any service or application, regardless of fair share charge payments.
One of the primary arguments against fair-share charges is that end users generate traffic, not OTTs. COAI countered this argument, highlighting that OTTs influence traffic volumes and compression techniques, impacting network congestion and data quality. The fair-share charge aims to compensate the largest traffic generators (LTGs) fairly and contribute to the sustainability of telecom networks.
The association stressed that the fair share charge seeks to distribute resources equitably among stakeholders, fostering infrastructure growth, innovation, and universal access to high-quality telecom services. By alleviating network costs through fair allocation, pressure on consumer prices can be reduced, supporting sector investments.
COAI proposed exemptions for startups, MSMEs, and small enterprises within the OTT ecosystem, intending to nurture smaller players and bolster network quality. Payment of the fair share fee by LTGs to Telecom Service Providers (TSPs) is envisioned to enhance customer satisfaction by improving network quality and service delivery.
S.P. Kochhar, Director General of COAI, emphasized that prioritizing network sustainability aligns with national connectivity goals and benefits both the industry and consumers. The fair share charge is seen as a means to foster a healthy digital ecosystem, ultimately enhancing customer experience and promoting technological advancement.
The Internet and Mobile Association of India (IAMAI), which represents major digital platforms such as Facebook, Netflix, among others, earlier said OTT providers have offered quality content for little-to-no cost to users. This in turn has spurred the rapid growth of Internet consumption and economic activity in India.
Mandating revenue-sharing mechanisms between OTTs and TSPs would effectively reverse this phenomenon by disincentivising growth for OTT based businesses, for whom a volume-based revenue sharing mechanism would be a glass ceiling for continuing growth and may prove to be an entry barrier for startups.
The Indian Council for Research on International Economic Relations (ICRIER) has earlier demanded the imposition of a Broadband Infrastructure Levy to be applied at 3 percent of India operations of major OTT service providers based on specialized contracts between service providers and mobile network operators.
