Regulating OTT apps may turn out to be a non-issue, says Trai

The telecom watchdog believes the contentious matter of regulating over-the-top (OTT) applications may turn out to be a non-issue, given that apps such as WhatsApp and Viber, which allow people to make calls over the internet, have contributed substantially to the data revenue of telcos.

App usage and the associated data consumption have surged since March 2015, when the Telecom Regulatory Authority of India (Trai) floated a discussion paper to assess whether OTT apps were eating into the revenue streams of mobile phone operators. However, with carriers likely to start offering voice services through apps in the future, the cost arbitrage will be taken out of the equation and the issue could become largely irrelevant, a person familiar with the matter said.

"In a year down the line, voice will become an app riding on top of data.So, if WhatsApp can provide a call of 2 minutes at 1 MB, why can't a telco provide a 2 minute or 3 minute call at 1 MB... So why should there be a cost arbitrage? Telcos will be happy to compete with apps," the person said, asking not to be identified.

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Taking into account the developments since the discussion paper was issued in 2015, Trai will now consult telcos on how to proceed - whether the existing paper should be revised or a supplementary paper should be brought out, the per son said, adding that the issue may be looked at afresh.

Wireless internet data consumption in India surged to about 1,300 million GB a month from about 100 million GB a month in March 2015, according to the Mary Meeker Internet Trends 2017 report.

Trai is likely to take up this exercise after it issues recommendations on net neutrality, a related contentious issue that's been under consultation for more than a year, stemming from the discussion on regulating OTT entities. Another person said the regulator would also have to examine whether it has the jurisdiction to regulate OTT apps, which ride on the networks of telcos.

Telecom firms have argued that OTT communication apps should be brought under the same rules that bind them because WhatsApp and Viber offer the same calling services that they do.