The proposed regulatory sandbox and OTT comms apps

The proposed regulatory sandbox and OTT comms apps

According to the latest draft version of the Indian Telecommunications Bill 2023, the government wants to come out with a regulatory sandbox for all new and existing OTT communication apps, such as WhatsApp, Telegram and Signal.?

The sandbox will test features in a “live but safe environment” before they are allowed to be rolled out to all users. This way, platforms can receive feedback from users and the government, especially on features that are potentially harmful with room for misuse.

The earlier proposed licensing regime had raised the hackles of several tech companies, which had warned that multiple regulations would be disproportionate and stall the growth of the OTT communications industry.

However, the final version of the telecom bill is likely to stipulate an ‘authorisation regime’ for OTT communication apps instead. The final version of the bill may also do away with any sort of permit system for service layer apps such as fintech, food delivery, e-commerce or gaming, in which telecommunications is a "merely incidental or ancillary feature".

The authorisation regime will consist of dos and don’ts for apps, so there is adequate regulation. Another benefit of such an environment is that MSMEs can test their apps or services with a wider audience before launching them.

Frameworks like this aim to encourage the participation of startups and MSMEs while protecting consumer interests at the same time.

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