COAI: Non-regulation of OTT players will put telecom firms at disadvantage

Telecom operators have said that the sector regulator's decision to not regulate over the top (OTT) players such as Facebook, WhatsApp, Google , Viber etc will put telcos at a "disadvantage", create a " non-level playing field" and raise security concerns.
"Without a resolution of these issues TSPs will continue to be at a disadvantageous position vis-à-vis OTT Communication Service Providers (CSPs). While, TSPs have to abide by a strict regulatory and licensing framework in order to provide the communication services, no regulatory/licensing framework is applicable on those OTT players who offer similar Communication Services in the form of messaging, voice and video calls," said SP Kochhar, director general of Cellular Operators Association of India (COAI), which represents telcos Bharti Airtel, Vodafone Idea and Reliance Jio.

COAI's comments come on the back of sector regulator's recommendations that there was no need to regulate OTT players, for now, saying this isn’t the right time to come up with any comprehensive regulatory framework on this score.

"We are of the view that these OTT services are substitutable to the services provided by the TSPs and hence a case of non-level playing field exists," COAI added.

The Telecom Regulatory Authority of India (Trai), in its recommendations on regulating communication apps issued Monday, also rejected the need for any regulatory intervention relating to privacy and security of OTT services though it said market developments need to be monitored, and that it can always intervene later if required.

However telcos disagree. "...the security issues, e.g. lawful interception which TSPs comply, are not applicable on OTT CSPs which remains a threat to the national security. The same is true in case of the privacy and security norms which are applicable on telcos but not applicable on OTT CSPs who also offer messaging and voice/video
communication services," said the director general.