Recently, the release of the TRAI consultation paper on Regulatory Mechanisms for Over-The-Top (OTT) Communication Services ignited a contentious debate. The question at the heart of this debate is whether OTT communication service providers should contribute a portion of their revenues to the telecom operators.
The rationale behind this proposition lies in the substantial investments made by telecom companies in acquiring 5G spectrum and building the infrastructure upon which the OTT services not only thrive but also compete with the telecom industry’s offerings, thereby affecting their business. Therefore, as per the telecom operators, mandating the OTT players to share a portion of their revenues could alleviate this significant financial burden.