Internet and Mobile Association of India said that India’s separate regulation of content and carriage has allowed for the growth of both OTT and traditional telecommunication service providers. This is reflected in India’s digital economy, which generates over USD 200 billion each year.
IAMAI released a statement saying that creating licensing provisions for over-the top service providers is a grave threat to India’s start up ecosystem.
IAMAI claimed that India’s more than 100 unicorns have been created because of the current regulatory framework.
IAMAI stated, “Despite the astronomical growth that has enabled India to leapfrog into becoming an international start-up hub for global start ups, the recently concluded consultations on the Draft Telecom Bill betrays either or both a wilful missinterpretation and fundamental lack of understanding about how the digital economy operates.”
IAMAI criticized the view of a telecom infrastructure body to create a revenue sharing mechanism for OTT and telecom service provider.
“An Industry body representing the telecom sector has advocated the creation and sharing of revenue mechanisms for OTT Layer (Over the Top) within the scope of the Draft Telecom Bill. It added that the implications of such a move would be just as devastating as they were wide-ranging.”
On November 22, the COAI, a body representing telecom operators, made a strong case for OTT (overthe-top) communications services to compensate telcos directly for data traffic that they drive onto their networks. It also advocated a licensing system and light regulatory framework for such services.
In a letter addressed to the telecom department by IAMAI, it expressed serious concern about the effects of these changes on India’s startup ecosystem as well as the digital economy.