Messaging application providers such as WhatsApp, Facebook and Blackberry will be subject to licence conditions applicable to traditional telecom companies if they want to continue offering voice calling facility on their platform.

A committee set up by the Department of Telecom has said that existing internet-based applications, called Over-The-Top (OTT), offering voice telephony have an advantage compared to traditional telecom companies as the latter are subject to a number of regulatory controls.

“Under existing telecom licensing conditions, Internet Telephony is permitted under restricted conditions. However, pricing arbitrage of OTT domestic voice communication services has the potential of significantly disrupting existing telecom revenue models. This may decelerate the pace of telecom infrastructure expansion, whereas the need is to boost investment in telecom infrastructure to increase broadband reach, speeds, bandwidth capacity and enhanced quality of service,’ the committee said in its report.

“In case of domestic calls (local and national), communication services by telecom service providers and OTT communication services may be treated similarly from a regulatory angle for the present,” the committee said.

The nature of regulatory similarity, the calibration of regulatory response and its phasing can be appropriately determined after public consultations and TRAI’s recommendations.

The committee’s stand is in line with the demands of telecom companies such as Airtel and Reliance Jio, which had written to the TRAI seeking a level playing field with OTT players. In a recent interview with Business Line, Airtel CEO Gopal Vittal had said that voice telephony is subject to regulatory rules like spectrum charges and USO fund contribution whereas players like WhatsApp are offering voice chat without any such rules governing them.

Overall, the DoT panel has recommended adherence to core principles of Net Neutrality.

“The primary goals of public policy in the context of Net Neutrality should be directed towards achievement of developmental aims of the country by facilitating “Affordable Broadband”, “Quality Broadband” and “Universal Broadband” for its citizens. Over-The-Top (OTT) application services should be actively encouraged and any impediments in expansion and growth of OTT application services should be removed,’ it said.

( COURTESY: THE BUSINESS LINE.)