hometelecom NewsTRAI Chairman Exclusive: Telcos’ demand for compensation from OTT players must be balanced with OTT growth
TRAI Chairman Exclusive: Telcos’ demand for compensation from OTT players must be balanced with OTT growth
In this exclusive chat with CNBC-TV18, PD Vaghela, Chairman of TRAI, addresses telecom sector's demand for OTT compensation, emphasising the need for balance and considering network congestion due to OTT traffic.
PD Vaghela, Chairman of the Telecom Regulatory Authority of India, on Wednesday (September 27) said the increasing clamour from the telecom sector for compensation from OTT (over-the-top) content players needs to be balanced with providing room for growth for OTT providers.
In an exclusive conversation with CNBC-TV18, Vaghela said this was a “controversial” and “fascinating” subject but stressed the need for balancing the concerns of both sides.
Telecom service providers have been raising the issue of OTT compensation in public forums. They argue that they have to undertake vast expenses to develop massive telecom infrastructure networks. The pitch from telcos is that since OTT apps like Netflix, Amazon Prime Video, etc, are operating on telecom networks, they should pay for the use of said networks.
Vaghela noted that in 2018, TRAI had recommended that there should be no regulation of OTT players. However, he told CNBC-TV18 that the last five years have seen several changes in the digital landscape.
He also pointed out that telcos, not just in India, but across the globe, have been pushing for a mechanism under which OTT players compensate them. He acknowledged that the telcos’ argument is that the increase in OTT traffic is causing network congestion.
In July, TRAI issued a consultation paper on the regulation of OTT players. Telcos — Jio, Bharti Airtel, Vodafone Idea — have made submissions seeking a common regulatory framework for both OTTs and telcos.
Vaghela is due to retire as TRAI Chairman on September 30. He will demit office after a three-year term. He took charge on October 1, 2020.
(Edited by : Vijay Anand)
First Published: Sept 27, 2023 6:17 PM IST
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