The discussion over regulating the digital economy has regressed, according to the Internet and Mobile Association of India, and this has outraged them. Part of the telecom infrastructure sector has attempted to spark conversations that threaten to undo the advancements the Indian IT industry has made so far, which is far from the government's declared objective of building a USD 1 trillion digital economy.
The recently concluded consultation on the Draft Telecom Bill betrays either a wilful misinterpretation or a fundamental lack of understanding of how the digital economy works, IAMAI said.
An industry body representing the telecom infrastructure sector has championed the creation of revenue-sharing mechanisms for ‘Over the Top’ (OTT) Layer within the ambit of the Draft Telecom Bill.
IAMAI, in its letter to the DoT, expressed grave concern about the impact of these changes on India’s start-up ecosystem and the digital economy. It also sought to illustrate the success of the extant regulatory framework facilitated the creation of 100+ unicorns and 200+ billion dollars of growth, achievements which have enabled India to dream of a 1 trillion-dollar digital economy.
Considering this, IAMAI has recommended that the scope of telecommunication services be reviewed and be limited to only services which distribute spectrum in a utilisable form. The time-tested distinction between telecom spectrum-controlling entities and spectrum-using companies should be maintained as it has been the basis that has allowed innovation and deeper penetration of the internet in India.