Cellular operators’ association COAI has revived its campaign for revenue sharing with Over-the-Top (OTT) platforms such as YouTube and Netflix, citing heavy investments in network infrastructure to support surging data traffic.
The Cellular Operators Association of India (COAI), representing Reliance Jio, Bharti Airtel and Vodafone Idea, argues that OTT services, categorised as Large Traffic Generators (LTGs), are primary drivers of data consumption.
It proposes a “fair-share charge” from OTTs to offset network upgrade costs and improve service quality for end-users.
“Investments in high-speed servers and network expansion driven by data-intensive applications offered by OTT platforms require a sustainable funding model,” said S.P. Kochhar, director-general of the COAI, in a letter to the telecom secretary.
However, the proposal faces resistance from advocacy groups and industry bodies such as Broadband India Forum, which warn it could stifle innovation and harm start-ups.
The COAI bolsters its case by pointing to global trends. They highlight the Lowering Broadband Costs for Consumers Act of 2023 in the US, which proposes a similar revenue-sharing model for dominant traffic generators. Additionally, the COAI mentions discussions on revenue sharing between telcos and LTGs in the European Union, Brazil and South Korea.
The telcos body has stated that telecom operators have spent an additional ₹10,000 crore in capex since March 2022 to enhance network infrastructure needed to support traffic from four to five OTT service providers. The body estimates that revenue sharing could increase telco earnings, enabling them to pay an additional ₹800 crore in taxes annually to the government.
