Global Tech Giants Argue Against India’s Telecom Networks for Attempting to Bring Internet Regulation

US technology giants oppose India’s telecom networks’ push for stricter internet regulations, arguing that these measures aim to create a “level playing field” and address national security concerns. 

“Not Substitutes of Traditional Telecom Services”

The Asia Internet Coalition (AIC), which represents many big industry bodies including Amazon, Apple, Google, Meta, Microsoft, Netflix, and Spotify, has strongly argued against the inclusion of the so-called (OTT) services in the proposed regulatory framework  (PDF) for telecom operators.

AIC said there are fundamental differences in technology, operations, and functionality between OTT services and traditional telecom operations.

“OTT communication services are not substitutes for traditional telecom services,” the AIC wrote in its submission to the Telecom Regulatory Authority of India (TRAI)

Warned About The Harm 

The AIC also warned about potential harm to the consumer interest.

“At the outset, we would like to submit that OTT communication services are already regulated under a host of laws, including as ‘intermediaries’ under the IT Act and the rules and regulations issued thereunder. Thus, concerns that OTT communication services operate in an ecosystem where there is no regulatory oversight are unfounded,” AIC Stated. 

This resistance comes in response to a joint effort by India’s top telecom operators—Bharti Airtel, Reliance Jio, and Vodafone Idea—to bring OTT services under a new set of rules. Jio, with over 475 million subscribers, and other telecom companies want OTT providers to help cover network costs based on their usage, revenue, and number of users.

The AIC also contended that bringing OTT services under the Telecommunications Act, 2023 would exceed the Act’s intended scope and the coalition pointed out that when the Act was introduced in Parliament.

Telecom Minister Ashwini Vaishnaw clarified that “OTT has been regulated by the IT Act of 2000 and continues to be regulated by the IT Act. There is no coverage of OTT in the new telecom bill passed by Parliament.”

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