Are OTT channels having free ride atop the infrastructure created and paid for by telcos? Telcos want OTT firms to part with a portion of their revenue for using their platform. OTT channels have not to acquire spectrum at a price. Telcos have revenue outgo, as they spend for spectrum and license fees, and for building the infrastructure.

The counter-agreement from OTT channels is that OTT content drives the data usage of the telcos. It generates substantial ARPUs or average revenue per user per month. They feel that telcos must pay OTTs in return for higher data traffic across telecom networks.

A distinction can be made between content OTTs and communication OTTs. Communication OTTs compete with telecom carrier. Thus there could be a case for revenue sharing.

Such communication OTTs are Zoom, MS Teams and Google Meet.

In the absence of high tariffs in India, it is natural for telcos to demand some revenue sharing from OTTs, at least the communication OTTs.

The issue has engaged the TRAI and DoT for the last many years.

There is an apprehension that insistence of payment to telcos should not cross the clearly drawn net neutrality line. In a month’s time, say by January, 2023, a revised Telecom Draft is likely to be out. It is likely to state that its aim is to regulate only communication apps. It will remove the ambiguity. The streaming platforms and food aggregators are likely to be excluded from regulation.