Indian Telcos Push for OTT Apps to Contribute to 5G Network Infrastructure Costs

Strategic Insights -

Indian telecommunications companies plan to push the government and regulator to make over-the-top (OTT) apps, including Netflix, Amazon Prime, and Disney Hotstar, contribute to the cost of building 5G digital network infrastructure in the country. The telcos argue that OTT apps generate the most data internet traffic and should pay a fair share for the use of telecom networks worth billions of dollars.

The move comes as the European Commission and Brazil's Anatel regulator are also debating the need for OTT apps to contribute to the cost of building mobile broadband connectivity infrastructure. Indian telcos plan to point to these global consultations and argue that OTT apps should contribute to the infrastructure investments based on a fair share principle. According to a senior executive at one of India's biggest telcos, the government and regulator will be asked to explore ways to create a fair share mechanism to ensure continued investments in next-gen connectivity infrastructure in India.

Key Takeaways:

  • Indian telecom companies plan to push the government and regulator to make OTT apps contribute to the cost of building 5G digital network infrastructure.
  • OTT apps, including Netflix, Amazon Prime, and Disney Hotstar, generate the most data internet traffic in India.
  • The European Commission and Brazil's Anatel regulator are also debating the need for OTT apps to contribute to the cost of building mobile broadband connectivity infrastructure.
  • Indian telcos plan to underline the need for OTTs generating maximum traffic on Indian telecom networks to make a contribution to the required infrastructure investments based on a fair share principle.
  • The European Commission's consultation paper has proposed establishing rules to oblige content and application providers to contribute to the electronic communications network deployment costs.
  • Brazil's Anatel is also conducting a consultation to address the future regulation of digital platforms and the need for fair share.

Statistics:

  • Indian telecom networks have an estimated worth of billions of dollars.
  • OTT apps generate a significant portion of the data internet traffic in India.
  • The European Commission has set a deadline of May 19, 2023, for comments on its discussion paper on the future of the electronic communications sector and its infrastructure.
  • Brazil's Anatel has set a deadline of June 30, 2023, for stakeholder comments on its consultation paper on the regulation of digital platforms and the need for fair share.

Sources:

  • A report by ET (exact date and timestamp not provided)
  • European Commission (exact date and timestamp not provided)
  • Anatel's consultation paper (exact date and timestamp not provided)