Comment on the OTT platform vs telecom sector debate in India. How can the government ensure a level playing field?

Over-the-Top (OTT) platforms have registered an exponential growth in the past few years in India. The factors that have contributed to its growth include increased penetration of faster & cheaper internet and cheaper smartphones.

OTT Platforms:

• These are audio and video hosting and streaming services.
• OTT platforms started out as content hosting platforms, but now they have entered into the field of production and release of short movies, feature films and web series.
• India is the world’s fastest growing OTT market, owing to growing urbanization and westernization.
• They provide the flexibility to stream media content anywhere anytime.
• Voice call and instant messaging service providers like WhatsApp are also included in the definition of OTT.

Its impact on telecom sector:

• OTT platforms like WhatsApp and telegram negatively affect the revenue of telecom service providers.
• These OTT platforms use the network infrastructure provided by telecom service providers and provide the facility of free voice calls and instant messages.
• The consumers hence rely more on free services provided by OTT platforms rather than per service by telecom providers.
• Telecom sector is already under pressure and OTT platforms are burning a hole into their pockets by providing free services.
• The telecom sector helps to invest a massive amount on infrastructure building and spectrum licenses. So, their profit margin is already reduced.
• Whereas the OTT platforms do not have to invest in network infrastructure.

Way forward:

The new telecom policy aims to provide a level playing field to both telecom service providers and OTT platforms. The aim of Digital India and inclusive growth can only be achieved with a sustainable telecom landscape. Hence, the genuine concerns of telecom operators should be looked into.

Topics: GS-III: Changes in Industrial Policy and Their Effects On Industrial Growth