NEW DELHI : Social media apps akin to WhatsApp, Sign and Telegram might require licences to function in India, with the federal government proposing to broaden the definition of telecommunication providers to incorporate over-the-top (OTT) communication providers, internet-based communication providers and broadcasting providers within the draft telecom invoice.
Sector consultants mentioned the brand new definition might set off a debate as telecom service suppliers have insisted that the identical guidelines govern comparable providers. Furthermore, as licensed entities, the OTT communication providers suppliers can also should share income with the federal government.
“There may be nervousness concerning what the licensing can be since telecom firms argue for same-service, identical guidelines and even want for information localization. This may create challenges for smaller, impartial apps that aren’t as huge as WhatsApp and will exit India,” mentioned Apar Gupta, government director at Web Freedom Basis.
The draft invoice consists of OTT communication providers within the definition of telecom providers, which by extension means WhatsApp, Sign, Telegram and others may very well be introduced beneath a licensing framework, he added.
“OTT communication providers being included within the ambit of telecom signifies licensing, licence price, and share of income from AGR (adjusted gross income) with the federal government may very well be within the works,” mentioned Rohan Dhamija, managing associate, India and the Center East at Analysys Mason.
Some consultants mentioned the apps might additionally fall beneath the regulatory ambit of the Telecom Regulatory Authority of India (Trai), the autonomous physique tasked with regulating the sector, however some disagreed, stating that such apps have been already regulated beneath the IT middleman guidelines issued in 2021.
“Probably, Trai might come into the image once more for regulating such service suppliers or apps,” Dhamija added. The Trai Act empowers it to control telecom providers, together with broadcasting and cable providers.
Trai issued a session paper in 2018 for bringing a regulatory framework for OTT apps that permitted communication over voice or information. However in September 2020, it determined towards continuing with any rules after consultations with stakeholders. Nevertheless, it had famous that it might overview the choice later.
“The best way issues seem, there might probably be a licensing regime (or rules by Trai or DoT) for these providers, however it’s nonetheless early days,” mentioned Arun Prabhu, associate and head of telecom, media and know-how apply at legislation agency Cyril Amarchand Mangaldas.
The federal government has elevated the scope of telecom providers by together with OTT, internet-based and satellite-based communication providers moreover in-flight, maritime, broadcasting, web and broadband providers inside its ambit. “The brand new definitions are complete and related to current day realities,” the federal government mentioned within the explanatory be aware together with the invoice.
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