New Delhi : The Telecom Regulatory Authority of India (TRAI) has started the process to prepare regulatory framework for Internet-based calling and messaging applications like Skype, Viber, WhatsApp and Google Talk, known as over-the-top (OTT) players.
“OTT (over-the-top) providers make use of TSPs’ (telecom service providers’) infrastructure to reach their customers and offer products/services that not only make money for
them but also compete with the traditional services offered by TSPs,” TRAI Secretary Sudhir Gupta said in a statement.
At present, consumers get to make phone calls and send messages using Internet connection through mobile applications and their computers. They are required to pay only Internet bandwidth consumed but nothing on per call or message basis.
Telecom operators and VoIP service providers or OTT players have been at loggerheads over this issue. Telecom operators have said that OTT players like Skype, WhatsApp, Viber etc are eating up their main revenue without investing
On the other hand, OTT players defend themselves by demanding access to Internet or web-based services without hurdle for growth of communities and nations.
‘net-neutrality’
TRAI Chairman Rahul Khullar had earlier indicated about starting the process to frame regulation on OTT services after Airtel earned huge criticism from public for its plan to charge separately for VoIP calls, against principles of Net-neutrality.
The regulator said that characteristics of OTT services are such that TSPs realise revenues solely from the increased data usage of the Internet-connected customers and do not realise any other revenues. “On the other hand, OTT providers make use of the TSPs’ infrastructure to reach their customers… that not only makes money for
them but also compete with the traditional services offered by TSPs,” TRAI said. The regulator has sought views of people interested in the matter by April 24 and counter comments by May 8.
Citing industry reports, TRAI said that in 2013, Skype carried an estimated 214 billion minutes of international calls within its app network. Skype’s traffic was almost 40 per cent of the size of the entire conventional international telecom market and in growth terms, it now far out-paces the combined growth in the voice minutes of the global telecom industry, TRAI said.
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Telcos’ Finances Will Be Under Pressure: Fitch
New Delhi : Finances
of telcos will be under pressure and their ability to invest
in building networks will be restricted after paying for spectrum won in recent auction, Fitch Ratings said in a report.
“We believe that telcos are likely to raise headline voice tariffs in response to high spectrum prices… However, the extent of tariff increases is likely to be affected by the impending entry of Reliance Jio,” Fitch said.
Meanwhile, global industry body GSMA said that high spectrum prices in the just concluded auctions are likely to put financial pressure on the Indian telecom operators who will eventually pass on the impact in form of rise in tariffs to consumers.
This comes a day after after Telecom Minister Ravi Shankar Prasad said as per an analysis,”the yearly load on telecom operators is going to be about Rs 5,300 crore…and 1.3 paise per minute (mobile phone) call.”
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