TRAI Shifts Focus To Satcom Spectrum Framework, Postpones OTT Communication App Regulation

Despite efforts by telecom companies to bring OTT communication apps like Google, WhatsApp, and Telegram under the Telecommunication Act 2023, the Telecom Regulatory Authority of India (TRAI) has decided to delay the plan for now. Instead, TRAI will prioritise the issue of satellite spectrum pricing, with a consultation paper expected to be released in the coming days, according to TRAI Chairman AK Lahoti on September 25.

This announcement follows a meeting between senior executives from Bharti Airtel, Reliance Jio, and Vodafone-Idea with Communications Minister Jyotiraditya Scindia, where they urged for OTT communication platforms to be regulated under the Telecom Act.

Telecom companies argue that OTT apps should be subject to the same licensing and taxation requirements as telecom operators, given their reliance on telecom infrastructure, to ensure a "level playing field."

On the other hand, organisations like the Broadband India Forum (BIF), NASSCOM, and the Internet and Mobile Association of India (IAMAI) argue that OTT apps are already regulated under the Information Technology Act 2000. In fact, former Telecom Minister Ashwini Vaishnaw clarified last year that OTTs fall under the IT Act, not the Telecom Act.

On September 18, TRAI released recommendations on the 'Framework for Service Authorisations to be Granted Under the Telecommunications Act 2023,' which excluded OTT communication apps from the new licensing rules. The recommendations introduced three broad categories of service authorisations: main service authorisations, auxiliary service authorisations, and captive service authorisations. A new 'Unified Service Authorisation' was also proposed to promote the goal of 'One Nation, One Authorisation' across services and regions.

Lahoti clarified that OTT regulation was not part of the current paper on service authorisations and is being discussed separately. For now, the focus will be on spectrum pricing, though TRAI may still explore whether OTT apps should eventually be regulated under the Telecommunications Act 2023.

He also mentioned that TRAI’s current recommendations only relate to the framework for service provisioning under the Telecom Act, and the authority will now shift its focus to spectrum pricing.