NEW DELHI: Over-the-top (OTT) players such as WhatsApp, Facebook, Signal and Telegram must be taxed and pay towards the license fee as well as facilitate India in preventing Jamtara-like cyber frauds and strengthen national security, a telco group said.
“OTT communication services must be taxed. They should bear some burden like licensing fee as despite earning from Indian users and networks, their revenue is going outside the country,” SP Kochhar, director-general, Cellular Operators Association of India (COAI) told ETTelecom.
Kochhar added that such platforms earn money by offering directed advertisements using artificial intelligence, and market data of Indian users hosted at their US-based servers.
“Telecom service providers pay as much as 38% in taxes and levies as compared to 0% contribution by OTT players,” he said.
Delhi-based COAI represents Indian telecom carriers — Reliance Jio, Bharti Airtel and Vodafone Idea.
Besides the same-service-same-rules principle, the OTT landscape should be looked at in a national security context, he said, adding that Jaamtara-kind of cyber frauds can be prevented if they adhere to KYC (know your customers) as telecom service providers already comply.
Jamtara, a city in the Indian state of Jharkhand has earned a dubious distinction for being a hub of cyber fraudsters.
“We have no aim to curtail innovation, but they come up with a bogus argument as with user identification, innovation will only be strengthened and intellectual property rights (IPR) may be safeguarded,” Kochhar said.
OTT players say that regulation may stifle entrepreneurial innovation.
The telecom operators group said that if OTT players pay towards license fees, the Universal Service Obligation Fund (USOF) levy contribution by carriers may be eased, and by this way, they (OTT companies) would be able to contribute towards network deployments and expansion.
COAI, however, would be submitting a comprehensive response to the draft Indian Telecommunication Bill – 2022 on November 10.
In September, the Centre unveiled a draft bill that aims to bring in reforms in existing laws that govern the telecom sector, and also seeks to expand the definition of telecom services to include OTT communications players, or apps under the legal ambit.
The new law which is likely to come into force by mid of next year aims to replace the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950.
The government has maintained that it wants to bring in light-touch regulatory regime for OTT players to prevent rampant cyber frauds, while the move is being opposed by lobby groups such as NASSCOM, IAMAI, ITU-APT Foundation of India, and The Internet Freedom Foundation (IFF).
Further, Kochhar added that the OTT players’ only fear is that India’s move to bring them into a regulatory fold may be replicated by other developed and developing countries.
The telco body also argued that entire telecom services ride on the application layer, and the OTT companies contribution towards government remain nil even as consumers pay for data packs.
Back in 2018, the Telecom Regulatory Authority of India (Trai) also issued a consultation paper that sought to formulate a regulatory framework for mobile apps.
“In bringing a draft telecom bill, the minister has taken a bold step which none has done earlier,” he said, adding that the telcos have been asking since long that policies would have little binding on states unless a law is brought in.
With the new draft, the right-of-way (RoW) issues are addressed which was a pressing demand in a federal structure, and help in expanding telecom infrastructure including fiberisation, Kochhar added.
The law, according to the Delhi-based group, is also expected to bring in ease of doing business as the draft paper recognises telecom as an essential service.
Following the comments from stakeholders, the Centre is likely to bring in a final draft bill, and after the due processes, it is expected to be tabled in the Parliament.