The government has been urged by the Cellular Operators Association of India (COAI) to establish a formal regulatory framework for over-the-top (OTT) communication platforms like Signal, Telegram, and WhatsApp. COAI claimed in a statement that these platforms are the “weakest link” in the nation’s communication security, providing message and voice services akin to those of telcos but functioning outside of the regulatory framework.
COAI emphasised the significance of controlling all communication channels to improve national security, citing a recent event in Pahalgam where satellite phone signals assisted in the capture of three terrorists.
OTT Apps Like WhatsApp & Signal Bypassing Compliance Norms
Since OTT players currently evade compliance obligations like lawful interception, subscriber verification, anti-spam protocols, and domestic infrastructure investment rules that telcos must follow, the industry body, which represents private telcos Reliance Jio, Bharti Airtel, and Vodafone Idea, said the regulatory gap presents difficulties for law enforcement.
Unified License System Suggested for OTT Communication Players
The DoT’s security directives under this act require authorised interception capabilities, local infrastructure, and the retention of domestic traffic—all crucial components for safeguarding user privacy for satellite communication services while guaranteeing national security. COAI suggested creating a specific OTT authorisation under the Unified License framework in order to close the gap.
Telecom Act 2023: Regulatory Gap Leaves Telcos at a Disadvantage
A specific OTT authorisation under the Unified License, according to COAI Director General SP Kochhar, will guarantee fairness, improve security, balance innovation with the nation’s security requirements, and establish uniformity across platforms. In order to alleviate the existing regulatory disparity, it was also suggested that OTT regulations be brought into compliance with the Indian Telecommunications Act, 2023.
OTT platforms that operate via the internet are not constrained by the infrastructure and interception constraints that apply to traditional telecom services. The Telecommunications Act 2023’s final text does not specifically place OTT platforms under licensing, despite telecom players’ calls for a “same service, same rules” approach.
OTT providers and tech groups contend that the IT Act 2000 already regulates them and that further regulation will impede privacy rights and innovation.
TRAI vs COAI: Spectrum Pricing Dispute Over Satcom Market
There is also a dispute between TRAI and COAI on the suggested satellite spectrum. Many satcom companies, including Starlink, Amazon’s Project Kuiper, and Airtel’s Eutelsat, are preparing to enter the Indian market.
However, Indian telcos are concerned about their entry into the global satcom market, particularly with regard to regulatory recommendations on satellite spectrum. Telcos criticised TRAI’s spectrum pricing strategy as “unfairly low” and predicated on “flawed assumptions” after the agency had suggested that satellite spectrum be priced at 4% of adjusted gross revenue (AGR).
Additionally, the COAI requested a second review. However, TRAI allegedly denied COAI’s request to reconsider its suggestions for satcom spectrum, claiming that the consultation process was exhaustive and open.
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