India’s Telecommunications Regulatory Authority of India is asking serious questions about the regulatory framework for over-the-top applications.
As part of a public inquiry, TRAI is asking whether a regulatory framework for OTT services is needed now, or is a decision that can be deferred.
TRAI also is asking whether OTT players offering communication services (voice, messaging and video call services) through applications (resident either in the country or outside) should be brought under the existing licensing regime. Though, in principle, TRAI could remove regulatory burdens from incumbent suppliers, giving them the freedom now enjoyed by OTT apps, that seems unlikely.
Though it is a contentious question, TRAI asks whether OTT competitors are affecting communications service provider revenue streams. If so, “is the increase in data revenues of the telecommunication service providers sufficient to compensate for this impact?
Among the contentious questions also is the matter of whether OTT app suppliers should “pay for use of the telecom service provider’s network, over and above data charges paid by consumers. “If yes, what pricing options can be adopted? Could such options include prices based on bandwidth consumption?” TRAI asks.
The answers to those questions will determine, in part, whether TRAI acts to “level the playing field” or change business models in ways that compensate access providers for OTT app provider imposed network costs.
The consultation might lead to hugely-important changes in regulatory regime that increase access service provider revenues and impose new costs for OTT app providers.
Among the other important implications, TRAI could move to shift revenue shares within the Internet ecosystem, supporting access provider revenue streams to some extent, while essentially raising OTT app provider costs of doing business.
TRAI could set huge new precedents, in that sense.
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