Trai pushes for OTT app regulation: Why WhatsApp and Telegram are in focus

Trai chief Anil Lahoti called for regulators across the globe to strike a balance between fostering innovation and maintaining a fair marketplace, given the cross-border nature of OTT services

India’s telecom regulator has recommended structured regulation for over-the-top (OTT) communication platforms like WhatsApp, Telegram, and Signal. This call comes after law enforcement agencies and telecom operators raised concerns regarding security and spam control.

Speaking during the second day of the India Mobile Congress 2024, Anil Kumar Lahoti, chairman of the Telecom Regulatory Authority of India (Trai), stated that while OTT communication platforms have provided significant benefits to consumers and businesses, regulatory issues raised by law enforcement agencies and traditional telecom providers suggest that these platforms should come under a structured regulatory framework, reported The Economic Times.

Lahoti emphasised that regulators across the globe must strike a balance between fostering innovation and maintaining a fair, competitive marketplace, especially given the cross-border nature of OTT services. This balance is crucial as OTT platforms continue to grow in influence.

What are the challenges in regulating OTT communication platforms?

Industry experts point out that both the Department of Telecommunications (DoT) and Trai have faced difficulties in curbing spam and online scams on OTT platforms. This issue highlights the jurisdictional challenges in regulating these platforms, as neither DoT nor Trai currently has the authority to enforce actions against potential offenders. Instead, the Ministry of Electronics & IT oversees these platforms under the IT Act’s intermediary rules.

Telecom companies have been vocal about increasing instances of spam on OTT platforms. They argue that measures to combat these issues remain ineffective since OTT services are not subject to DoT or Trai regulation.

DoT does not want to regulate WhatsApp, Telegram

In contrast to Trai’s regulatory push, the Department of Telecommunications (DoT), in August this year, clarified that it does not intend to regulate OTT communication platforms such as WhatsApp and Telegram, The Economic Times had reported. This came as telecom operators continue to lobby for the “same-service, same-rule” principle, arguing that communication apps should be regulated in the same manner as traditional telecom services.

Officials indicated that the new Telecommunications Act 2023 does not apply to OTT services. However, there is ongoing debate about whether the definition of “telecommunication” in the Act includes OTT communication platforms, with operators interpreting it as such. OTT service providers, on the other hand, contend that they are already governed by the IT Act and should not be subject to additional regulation.

How is telecommunication defined under the 2023 Act?

According to the Telecommunications Act 2023, “telecommunication” involves the transmission or reception of messages through wire, radio, optical, or electromagnetic systems. Officials have explained that for a service to fall under this definition, a switch independent of the network must be involved in the message transmission.

In the case of OTT platforms, however, messages are sent through data packets, and the switching of these packets is managed by telecom companies, for which users already pay. Therefore, officials have argued that OTT platforms do not meet the technical requirements for regulation under the Act.