DoT panel aims to create parity between telcos & net telephony

NEW DELHI: The recommendation of a high-powered committee on net neutrality to licence domestic internet telephony like WhatsApp, Viber and Skype is widely seen as a fair step to create a level-playing ground between these services and domestic telecom operators as it adheres to the principle of "same service, same rules."

A regulatory and licensing regime on internet telephony in the domestic market is expected to help telecom operators provide legitimate revenue from voice and allow them to provide affordable internet as well as invest in mobile infrastructure and spectrum.

Consequently, the recommendation has been welcomed by the telecom industry. Cellular Operators of India (COAI), the industry body representing GSM mobile companies such as Bharti Airtel, Vodafone and Idea Cellular, said the move is in the right direction.

"It is indeed what is required. Voice-based OTT service players should be subjected to the same regulations and licensing regime as those which have been mandated for telecom operators as they are providing the same services," a COAI functionary said, requesting anonymity. The industry body is yet to give its official reaction to the over 100-page report and says it is still studying it.

The six-member DoT panel had said VoIP players enjoy a pricing and regulatory arbitrage, which needs to be addressed as it is a "matter of serious concern" for policy makers. "The committee reiterates its view that domestic OTT communication services should be regulated through exercise of licensing powers available under section 4 of the Indian Telegraph Act to ensure a level-playing field," says the report.

V Umashankar, a key member of the government committee, said the intention of the panel is to ensure that data prices do not move up and mobile infrastructure and internet subscribers grow.

"There is an arbitrage that internet telephony enjoys. If the telecom operators continue to lose voice business, which is nearly 85% of their revenues, their capacity to invest in telecom network will be impacted. Also, if they hike data tariffs to make up for the loss of voice business, people may not adopt internet as rapidly as we see now. This will have an effect on the government's Digital India programme," Umashankar told TOI.

However, he refused to clarify whether the committee is of view for a license fee regime for voice-based OTT players.

Top telecom players said the committee should have also specified a tax structure for voice-based OTT players. "We have to pay a license fee, apart from all the regulatory obligations. I feel that the DoT committee should have specified that there should be a licence fee on VoIP players, rather just making hints towards such a move," said a top official with a leading telecom operator.