Regulation of OTTs

Regulation of Over-the-Top (OTT) services under Telecom Regulations versus Information Technology (IT) laws has been a subject of significant debate globally, particularly in countries like India where the digital landscape is rapidly evolving. Through this article, let's explore the nuances and implications of regulating OTT platforms under both of these two regulatory frameworks of India.

Regulatory impact: Telecom regulations

Telecommunications laws (under the Ministry of Communications, Department of Telecommunications) traditionally govern services that involve the transmission of voice, data, or multimedia content over networks. These regulations primarily focus on ensuring fair competition, consumer protection, privacy, and national security.

Regulating OTT services under telecommunications laws implies treating them as similar to traditional telecommunication services like voice calls or SMS. This approach may involve subjecting OTT platforms to licensing requirements, interconnection obligations, quality of service standards, and tariff regulations.

Regulatory impact: Information Technology ?regulations

The Information Technology laws (under the Ministry of Electronics and Information Technology) typically govern the use of electronic devices, networks, and digital data. These regulations aim to promote electronic commerce, protect intellectual property rights, ensure cybersecurity, and safeguard privacy.

Regulating OTT services under IT laws involves treating them as digital content and service providers, similar to websites, online marketplaces, or social media platforms. This approach may focus on issues such as data protection, content moderation, cybersecurity, and intellectual property rights enforcement.

Discord amongst various parties:

The debate over regulating OTT services under telecommunications versus IT laws amongst various relevant stakeholders including OTT platform provider, Telecom Service Providers (TSPs), IT Ministry and the Ministry of Communications. The advocates of telecommunication regulations emphasize on ensuring a level playing field for all the service providers in terms appropriate distribution of revenue generated by the industries.

The Department of Telecommunications (DoT) had sought to classify OTT platforms as telecommunications services, and regulate them like telecom operators. For which the Telecom Regulatory Authority of India (TRAI) had issued a consultation paper on how to regulate OTT platforms. However, IT Ministry believed that internet based communications services should not be a part of DoT’s jurisdiction. As per the current status, the newly rolled out Telecommunications Act (after several consultations from the industry) does not include OTT services under the umbrella of the definition of telecommunication services.

Conclusion:

This dispute reflects the complexities of the digital era, where traditional regulatory frameworks often struggle to keep pace with technological advancements and changing market dynamics. Finding the right balance between promoting innovation, protecting consumers, and ensuring a level playing field remains a key challenge for policymakers worldwide. Ultimately, any regulatory approach should strive to foster a vibrant and inclusive digital ecosystem that benefits both businesses and users alike.

Foreseeing the developments in the industry, we can expect some drastic changes in the current mechanism.

Stay tuned with us for future updates!