OTT Players Urged to Compensate for Network Usage by Telecom Service Providers: COAI.

COAI emphasizes the need for telecom operators to earn revenue from OTT players. The telecoms invest in networks, enabling OTT platforms to deliver quality services. COAI asserts that sharing a portion of revenues with telecom providers is essential for OTT service providers.

COAI highlights that OTT service providers generate revenue from advertisers and consumers, yet they must share it with telcos investing in network infrastructure. Moreover, Drawing parallels from other industries, COAI underscores the telecoms’ disadvantaged position in the B2B sector.

What did COAI say about OTT Players?

COAI highlights an interesting parallel in the broadcasting sector, where Content Providers (CPs) earning from subscriptions and advertising share a segment of their subscription revenues as port charges with Network Service Providers. This means that when a subscriber pays ZEE TV for content, a portion of that sum is reciprocally shared with the network provider.

For premium or HD channels, CPs incur higher port charges, aligning with the elevated fees imposed on consumers for accessing these specialized channels. This practice ensures a fair and reciprocal arrangement between content and network service providers in the broadcasting domain.

Will this impact OTT Platforms?

COAI asserts that those investing in infrastructure deserve fair usage charges from those commercially utilizing the property. With OTT players offering high-definition streaming, the burden on mobile service providers’ networks intensifies. Telcos consistently invest in network enhancements, yet the returns from consumers are minimal due to low tariffs in India.

Highlighting this issue, COAI urges the government to establish a legal framework. This framework ensures that significant traffic generators contribute somewhat to telcos for the services provided. This request emphasizes the need for a balanced system where the heavy demand on networks is met with equitable compensation. Moreover, It enables telcos to sustain and enhance service quality.

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