Decoded: Why telcos, OTTs are clashing over new Telecom Act definitions

Traditional telecom operators are pushing for over-the-top (OTT) services, such as WhatsApp and Google Meet, to be regulated on par with themselves to ensure a 'level playing field'

The Telecommunications Act of 2023 has sparked a showdown between the traditional telecom operators and the new-age over-the-top (OTT) service platforms over the interpretation of the telecommunication service under the new legislation.

Traditional telecom operators are pushing for OTT services, such as WhatsApp and Google Meet, to be regulated on par with themselves to ensure a ‘level playing field’. This would mean subjecting OTTs to a similar licensing regime and taxation as telcos.

In response, OTT providers argue that their services are ‘fundamentally’ different and should not be regulated like ‘same service, same rule’.

All three major telecom operators in India (Jio, Airtel and Vi) have argued before the Telecom Regulatory Authority of India (TRAI) that OTTs should be treated as an ‘access service’ under the new framework.

In response to the demand, IT sector representative body Nasscom argued that the OTTs and Telecom Service Providers (TSPs) complement each other and added that the OTT service providers contribute immensely to the revenues generated by TSPs.

What does the Act say?

According to the Telecommunications Act, 2023, telecom services have been defined as: the “transmission, emission or reception of any messages, by wire, radio, optical or other electromagnetic systems, whether or not such messages have been subjected to rearrangement, computation or other processes by any means in the course of their transmission, emission or reception”. And ‘messages’ has been further defined as “any sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication”.

What has the Centre said?

Amid the pressure from the telecom majors, it is to be noted that the Centre had earlier clarified that OTTs don’t fall under the definition.

Last year when the Act was tabled in the Parliament, former telecom minister Ashwini Vaishnaw had clarified publicly to the media that OTTs are not under the ambit of the law.