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regular-article-logo Sunday, 22 December 2024

Telcos raise pitch to regulate OTT apps

In a meeting with Union minister Jyotiraditya Scindia on Tuesday, the operators expressed concern over the regulator’s decision to exclude over-the-top (OTT) apps from its recommendations on new licensing rules

Our Special Correspondent New Delhi Published 25.09.24, 10:54 AM
Jyotiraditya Scindia.

Jyotiraditya Scindia. File picture

Telecom players Reliance Jio, Vodafone Idea, Bharti Airtel and BSNL have intensified their pressure on the Telecom Regulatory Authority of India (Trai) to bring messaging and calling apps such as WhatsApp and Telegram within the purview of telecom licences.

In a meeting with Union minister Jyotiraditya Scindia on Tuesday, the operators expressed concern over the regulator’s decision to exclude over-the-top (OTT) apps from its recommendations on new licensing rules.

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“All telecom operators expressed concern over the exclusion of over-the-top apps by Trai in its recommendation on service authorisation,” sources said.

The meeting was attended by Reliance Jio chairman Akash Ambani, Vodafone Idea CEO Akshaya Moondra, Airtel MD and CEO Gopal Vittal and BSNL chairman and managing director Robert J Ravi.

The operators have argued that OTT apps provide similar services as traditional telecom players, such as voice calls and messaging. They should, therefore, be subject to the same regulatory framework as them.

The Telecom Regulatory Authority of India (Trai) did not heed to the demand of telecom operators and kept the apps out of its recommendation on the new licensing rules under the Telecommunications Act 2023.

AGR worry

The meeting also saw discussions on the ongoing issue of adjusted gross revenue (AGR) payments. Vodafone Idea and Bharti Airtel, which have significant AGR liabilities, reiterated their concerns about the impact on the sector’s financial health.

The Supreme Court recently rejected Vodafone Idea’s curative petition on the AGR issue, leaving the company with a massive liability. The government has been under pressure to provide relief to telecom operators burdened by AGR dues.

VIL has an AGR liability of 70,320 crore and Bharti Airtel has about 21,500 crore.

In addition to the OTT and AGR issues, the operators discussed the need for stricter regulations to curb unsolicited commercial calls.

Scindia discussed the menace of pesky calls and SMS texts. “The operators have some concern over unsolicited commercial calls which the DoT has taken note of,” the source said.

After telecom operators, Scindia met telecom equipment makers including Dixon Technologies, Nokia, Ericsson, Sterlite Technologies and VVDN.

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