Apple Google Amazon More tech giants oppose India’s strict internet service regulations TRAI OTT package

Global tech giants are opposing the Indian telecom sector’s efforts to impose stricter regulations on internet services, arguing that such measures are unnecessary and could harm the digital ecosystem. As reported by TechCrunch, the Asia Internet Coalition (AIC), which includes major players such as Amazon, Apple, Google, Meta, Microsoft, Netflix, and Spotify, has expressed its opposition to the inclusion of over-the-top (OTT) services in the proposed regulatory framework for telecom operators. In a letter to the Telecom Regulatory Authority of India (TRAI), the AIC highlighted the differences between OTT services and traditional telecom operations.

OTT services, which operate at the application layer, are fundamentally different from telecommunications service providers (TSPs), which operate at the network layer. Unlike TSPs, OTTs do not manage spectrum allocation, numbering resources, or connections to public networks. The AIC argued that OTT communication services, which offer features such as group chats and in-app content sharing, are not direct substitutes for traditional telecommunications services.

Violation of net neutrality

The coalition warned that regulating internet services under the new framework could violate net neutrality principles and negatively impact consumers. They stressed that OTT services are already subject to several regulations under the Information Technology Act, including those related to content monitoring and handling user complaints.

The pushback comes in response to demands from leading Indian telecom companies — Bharti Airtel, Reliance Jio and Vodafone Idea — that OTT providers be brought under the new regulatory framework. These telecom operators, which have invested heavily in 5G technology, argue that OTT services should contribute to network development costs based on their usage and revenue.

Regulatory changes to improve financial margins

Reliance Jio, which has over 475 million subscribers, along with other telecom companies, has raised concerns about low average revenue per user (ARPU), which currently stands at around $2 per month, and is seeking regulatory changes to improve its financial margins.

The AIC rejected the notion that OTT services were “free riders” on telecommunications infrastructure. Jeff Paine, managing director of the AIC, pointed out that OTT platforms had driven up data consumption, which in turn benefited telecommunications operators.

The AIC also stressed that regulating OTT services under the Telecom Bill, 2023 would go beyond the intended scope of the Act. The coalition cited statements by India’s Telecom Minister Ashwini Vaishnaw, who clarified that OTT services are regulated under the Information Technology Act, 2000 and are not covered by the new Telecom Bill.

The debate in India mirrors similar discussions on regulation in other regions, including South Korea and Europe, where network operators are also seeking support from big technology companies.