WhatsApp, Skype to be regulated? India crackdown in offing

Telecom Regulatory Authority of India (Trai) will soon issue a consultation paper on whether over-the-top (OTT) players such as WhatsApp and Skype should come under the ambit of regulation similar to telecom service providers.

“We will soon issue a paper on regulation for OTT players. It is almost ready. The issue is the same whether such applications should be regulated or not. Though such apps use the network of a telecom service player and are increasing the data consumption, we have to decide if there is any regulatory imbalance,” a senior official from Trai told DNA Money.

WhatsApp and Skype offer voice call which has made a dent in the voice revenues of telecom players. The telcos have been demanding a regulatory regime for OTT applications since last few years.

Back in 2015, a consultation paper was issued on the same subject. But only the issue of net neutrality and differential pricing access of data was addressed by the telecom regulator, leaving OTT aspect outside of it. Though OTT was related to the net neutrality issue, it was not central to it, the official said.

“This is why there is a need to issue a fresh consultation paper on OTT.”

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Voice revenues, which contributed 70% to the revenues of telecom players, have been on a decline majorly because consumers have shifted to messaging on apps and voice calls and a simultaneous consumer shift towards data services.

Not many are in favour of any regulation for OTT apps, as experts say it would stifle the innovation in the industry where content and these applications are the future.

Source: DNA Money