Users of WhatsApp, Viber, Skype and other apps wont have to shell out any extra charges as the telecom regulator has decided against a proposal of carriers to make companies that offer these popular services share part of their revenue with them or the government. The Telecom Regulatory Authority of India (Trai) has also shelved plans to initiate a consultation process as it feels that operators are able to offset their losses through growth in data revenue, people familiar with the matter told ET. The industry had estimated a minimum annual loss of Rs 5,000 crore due to subscribers opting for free messenger services and voice over internet calls. One-third of the incremental revenue of the telecom industry is coming from data services itself. As far as the voice services are concerned, there is an upswing in the realisation rates, one of the Trai officials told ET, explaining the rationale for not intervening for now. There is no proposal for a consultation paper (on regulating companies offering free messaging and calling services), he added. Indian mobile phone service providers, that have invested billions of dollars in creating networks, want over-the-top-players (OTTPs) to be regulated so that both parties operate on a level playing field. OTTPs are all apps that users download onto their mobile devices. Telcos have a problem with those that provide free messaging and voice calls over the internet such as WhatsApp, Viber and Skype. Many subscribers use these apps rather than their telecom operators normal voice call and SMS services, eating into a carriers revenue. Operators want the OTTPs — which use their telecom networks — to pay all the fees that carriers pay to the government, which in turn will force the app makers to charge for what is currently free, bringing them on par with telcos. OTT players, however, say that any move to regulate and seek payment — either to the government or to the carriers — is against the concept of free internet or net neutrality.
Posted on: Tue, 19 Aug 2014 08:17:41 +0000