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Telcos support net neutrality but root for checks on OTT platforms
NEW DELHI: While supporting net neutrality and firmly holding that access should be made available to all on a non-discriminatory manner, the Cellular Operators Association of India (COAI) has said that there is a need to evolve the regulatory framework for Over The Top (OTT) communication services to prevent various regulatory imbalances between the Telecom Service Providers (TSPs) and the OTT communication players.
It is response to the Telecom Regulatory Authority of India’s (TRAI) consultation paper on OTT, COAI has said a “common regulatory framework for businesses providing the same services is the need of the hour and will benefit all players as it will reduce legal ambiguity and prevent unnecessary litigations.”
At the outset, COAI said it welcomed the entry of OTT players and believes that they play an important role and offer many new services. However, the body added that, “it is pertinent to note that some of the services that are offered by the OTT players such as messaging/instant messaging and VOIP telephony are perfect substitutes of the services that can be offered by the telcos. These OTT players have rightly been classified by the Authority as “OTT Communication Services” players and their services are in direct competition with the licensed communication services offered by the TSPs.”
The COAI wants not only net neutrality, but also net equality – the need to connect the one billion citizens of India, who are still not connected to the internet, by facilitating an open, inclusive and affordable access to the Internet, and with the same rules being made applicable to the same services.
There is a need to review the regulatory framework and “we submit that the time is ripe for a comprehensive review to build a regulatory neutral, forward looking and transparent framework that ensures that the principles of “net equality” and “same service, same rules” are implemented.”
“The need of the hour is to connect the 80 per cent of India’s population, which is still unconnected; and our campaign “Sabka Internet, Sabka Vikas” reaffirms our commitment to the Government’s vision for “Broadband for All” and Digital India, for socio-economic inclusion of all strata of the society. We believe a customer should be free to choose the device, technology and access platform – paid or subsidized, as long as the Internet is always open in terms of access in a non-discriminatory manner. Also, we offer choice and do not block or provide preferential access to any website or application, thereby safeguarding Net Neutrality,” COAI said.
Some stakeholders have suggested that there are already adequate laws controlling the operations of OTT players such as Information Technology Act, Indian Penal Code, the Criminal Procedure Code etc. It is pertinent to point out here that such laws are general laws, which in its terms and effect apply to the entire country irrespective of the sector and framework in which they operate. While these laws are important and useful in a general context, they cannot be said to be a substitute of a common regulatory framework, which would govern and regulate similarly placed service providers and give them a common platform for the provision of services on common terms, which would ensure a level playing field.
The telecom industry has already invested over Rs 7,50,000 crore in setting up world class mobile networks over the last 20 years and is looking at investing another Rs 5,00,000 crore in the next five years to roll-out into rural areas and also upgrade existing networks to connect one billion Indians to the internet. Moreover, going by the Government’s commitments, the Digital India Programme itself will require investments to the tune of Rs 113,000 crore. Additionally, the Planning Commission’s 12th Five Year Plan requires an investment of Rs 943,899 crore with 93 per cent of the total investment expected to come from the private sector.
The Indian mobile telephony industry today, is in dire financial straits with a cumulative debt of over Rs 300,000 crore, and a one per cent return on investments, with many operators even making negative returns on their investments. This situation puts at risk the nation’s agenda of “Broadband for All”, as private operators will be unable to attract additional investments in the sector, required to support the ambitions of the government.
COAI said there were various regulatory imbalances that existed between the telecom operators and OTT communication players. “We would like to submit that the TSPs bear the cost of infrastructure, spectrum, and payment of license fees and spectrum usage charges, which are not applicable to the OTT communication players. The TSPs also have the obligations related to roll-out, meeting quality of service parameters and security related obligations. Many of these do not apply to OTT communication players, which result in an arbitrage opportunity. The National Security and consumer security, safety and privacy are of paramount importance, and should not be compromised at any cost. The security framework has evolved over the years along with the growth and proliferation of telecom services and all the telecom operators provide these services under a strict licensing framework, including compliances with the security conditions and service standards. The extensive and stringent security conditions laid down and required to be met by the licensed TSPs are not applicable to the OTT Communication players. Most of the OTT players do not meet the encryption and decryption requirements of the Law Enforcement Agencies (LEA).”
In response to a Parliamentary question on security threats from OTT applications, COAI said that the Telecom Ministry has acknowledged the fact that security/LEAs are facing difficulty while dealing with encrypted communication services provided by OTT service providers and the same may also be used by anti-national and criminal elements, posing a security threat. Lack of regulation on communication related application services could lead to serious national security and data privacy implications because they bypass the regulatory regime enforced on licensed service providers. Therefore, it is essential to ensure that the principles of “Same service, Same rules” are implemented.
Referring to claims by some stakeholders that Internet Based Services (IBS) players should not pay for use of the TSPs network over and above data charges paid by customers, COAI highlighted that increased data usage fails to compensate for loss of revenues to TSPs arising due to OTT services. Further, these services demand high-speed networks that require substantial investment in infrastructure, particularly for the development of the broadband infrastructure both from the fixed and mobile perspective. “We hereby advocate for the Open and Pro-innovation Environment wherein pricing flexibility is provided to the operators and the choice is provided to the customers.”
On traffic management for different OTT services, COAI said traffic management allows operators to secure their networks, prioritize time-critical services and match scarce network resources to service requirements. It is an essential function of networks to meet the performance expectations of different types of traffic to ensure better customer experience. Traffic management is a tool for consumer benefit not consumer harm as it provides a number of clear benefits to end users in terms of improved performance, innovation, consumer protection and efficiency.
On the contention that TSPs should not be allowed to implement non price based differentiation as it would be grossly uncompetitive and would kill competition leading to all traffic being cornered by a few, the Association said there is a need to look at the internet as a two sided market, which involves the consumer and the content app provider. The TSP is the platform that market together and needs to be given the flexibility of implementing based differentiation.
iWorld
WhatsApp emerges as key commerce channel in India: Meta report
Whitepaper shows 77 per cent of purchases influenced by social media and shoppers spend 2.5 times more across channels
MUMBAI: If shopping once meant a stroll down the high street, today it begins with a scroll on a smartphone. India’s retail journey is being rewritten in real time, as consumers glide between Instagram Reels, WhatsApp chats and physical stores with barely a pause for thought. A new whitepaper by Meta in collaboration with the Retailers Association of India argues that this shift is not cosmetic but structural, powered by artificial intelligence, short form video, creators and conversational commerce.
The numbers underline the scale of the change.
Social media now influences 77 per cent of retail purchase decisions in India, with Meta’s platforms accounting for 96 per cent of social driven discovery. Discovery itself is increasingly passive and visual rather than deliberate and search led. As much as 97 per cent of consumers watch short form video daily, and 60 per cent of time spent on Facebook and Instagram is devoted to video content.
In other words, the shop window has moved to the feed.
The report highlights the growing dominance of the omnichannel shopper, a consumer who researches and buys fluidly across online and offline environments. More than 50 per cent of retail consumers research products online before purchasing in store. Equally, over 50 per cent browse in store before completing their purchase online.
This blended behaviour is lucrative. Shoppers who buy across channels spend 2.5 times more than single channel shoppers. When customers engage across multiple touchpoints, spending rises by as much as 73 per cent. For retailers, unified commerce is no longer a strategy slide. It is a revenue imperative.
Meta India director of E commerce and retail Meghna Apparao, urged brands to focus on three pillars: Reels and creators for authentic storytelling, omnichannel performance marketing to connect platforms, and WhatsApp as a personalised commerce channel. Hitesh Bhatt of RAI noted that the challenge is no longer adopting digital tools but integrating them to deliver measurable outcomes.
Artificial intelligence sits at the heart of this integration. Indian retailers using Meta’s omnichannel optimisation have recorded more than fourfold improvements in omnichannel return on ad spend. Businesses that integrated in store sales data through Meta’s Conversions API have reported Roas uplift ranging from 2 times to 5 times or more, alongside incremental sales growth of up to 9 times depending on category and market.
Integrated data strategies have also delivered revenue growth of up to 15 per cent, suggesting that when digital signals are tied to offline outcomes, marketing efficiency sharpens considerably.
Retailers are already putting this into practice. Reliance Digital has leaned into a Reels first strategy, working with regional creators to drive engagement and measurable business impact. Croma says Meta’s AI powered tools have enabled it to integrate offline data and activate performance marketing across touchpoints, strengthening both footfall and revenue across online and physical stores.
Trust is increasingly creator led. The report finds that 71 per cent of consumers make a purchase within a couple of days of seeing creator content on Meta’s technologies. Campaigns that leverage reels and creators have delivered 71 per cent higher brand intent lift and 19 per cent lower acquisition costs.
Micro and nano creators, in particular, are accelerating purchase decisions by embedding products into relatable, local narratives. Influence is no longer confined to celebrity endorsements. It is distributed, conversational and continuous.
If Instagram and Facebook drive discovery, WhatsApp is emerging as the conversion engine. According to the report, 72 per cent of product discovery now happens on WhatsApp. Retailers using business messaging and click to WhatsApp campaigns are seeing a 61 per cent average improvement in return on ad spend, a 62 per cent increase in leads and 22 per cent higher order values.
The implication is clear. Commerce is shifting from clicks to conversations. Discovery, purchase and post purchase support increasingly unfold within a single chat thread.
The whitepaper argues that omnichannel maturity will define competitiveness in Indian retail. Consumers no longer toggle between online and offline modes. They operate across both simultaneously, often within the same buying journey.
For brands, the task is no longer about being present on digital platforms. It is about stitching together discovery, data, conversation and store experience into a unified loop that can be measured in footfall, revenue and repeat purchase.
As India’s shoppers continue to scroll before they stroll, the retailers who align AI, creators and messaging into one seamless experience may find that the path to growth is less about adding new channels and more about connecting the ones they already have.
