Telecom industry body COAI has defended its proposal to impose fair-share charges on Over the Top (OTT) service providers such as Disney Hotstar, Netflix, and Amazon Prime. This move has sparked a debate about net neutrality and the potential for double charges for customers. The COAI argues that Large Traffic Generators (LTGs), responsible for 70% of total internet traffic, should make a contribution to telcos.
LTGs utilize Telecom Service Provider (TSP) networks to deliver their services but do not contribute to the development and maintenance of reliable and high-quality telecom networks in the country. To address this issue, COAI suggests levying fair-share charges. Lt Gen Dr. S. P. Kochhar, the Director General of COAI, highlights the need for robust networks to handle the increasing internet traffic load.
However, COAI’s proposal has faced criticism from organizations such as the Broadband India Forum, who believe that excessive regulation of OTTs could have counterproductive effects. The Broadband Forum argues that this move could stifle innovation, discriminate against smaller entities and startups, and violate net neutrality guidelines. Net neutrality ensures equal access to all online content without preferential treatment internet service providers.
In response to the concerns, COAI affirms that its fair-share charge proposal will not hinder access to an open and free internet. The content and services for consumers will remain fully accessible without any traffic management or differentiation. The pricing for the traffic paid end-users will not depend on whether the traffic generator is subject to fair share payments. COAI claims that the fair-share approach will incentivize efficient data handling without compromising the customer experience.
COAI also points out that OTTs have control over traffic volumes and compression techniques, including video quality options like standard definition, high definition, and ultra-high definition. In cases of network congestion, they can reduce streaming quality. Additionally, features like auto-play, continuous-play, and advertising contribute significantly to the traffic volumes. COAI’s proposal intends to exempt startups, MSMEs, and small enterprises, focusing solely on LTGs that generate disproportionately high traffic volumes.