The Cellular Operators Association of India (COAI) has called for lower entry barriers to hardware imports and higher incentives for augmented reality/virtual reality (AR/VR) device manufacturing in India, specifically for the metaverse. The industry body has suggested that a regulatory framework for the metaverse is unnecessary as creating a new legal framework could lead to uncertainties and overlaps with existing laws.
In its counter-comment on the Telecom Regulatory Authority of India’s (TRAI) consultation paper titled ‘Digital Transformation through 5G Ecosystem’, COAI suggested including extended reality (XR) technology and related products in the production linked incentive (PLI) scheme and other incentives in the form of tax benefits to attract XR-related hardware manufacturers to the country.
COAI stated in its submission that the lack of affordable hardware in India impacts the ability of the Indian ecosystem to reap the benefits of the metaverse economy and underlying futuristic technologies. Many companies are working to make XR devices more affordable over time. It added that there are several things the government could consider doing now that would have an immediate effect on the price of devices, including lowering tariffs. The industry body said that the authorities could also explore easing the requirement of multiple certifications for selling devices in India.
Further, COAI noted that presently, testing and certification for telecom and related IT equipment is broadly under the purview of several agencies across different ministries. These include the Bureau of Indian Standards and the Telecommunication Engineering Centre, which administers the Mandatory Testing and Certificate of Telecom Equipment (MTCTE) requirements. COAI believes that due to this complex administrative structure, it is likely that certain types of devices, like VR/AR devices, would have to adhere to multiple standards, testing and certification requirements. Harmonising the testing and certification functions will ensure that the overlap between different administrative agencies is limited. It added that the collaborative implementation of regulatory sandboxes between various regulators could also be one of the ways to address entry barriers for specific use cases.
As per COAI, there is no separate need for a regulatory framework to govern the development and use of the metaverse as the metaverse does not exist in a regulatory vacuum. The current legislative framework goes a long way in effectively governing the industry and adequately addressing issues arising out of or in connection with the metaverse. Any contemplation of a fresh legislative framework to govern the metaverse could create regulatory uncertainty arising from overlaps with existing laws, it added. The industry body said that policymakers might consider creating a central multi-stakeholder agency to coordinate and build a consensus on domestic priorities and interests concerning metaverse standards and guidelines.
COAI stated that the metaverse will reach its full potential only if built on a foundation of common technical standards and protocols. The development of technical standards in specific areas is, therefore, crucial to a baseline level of interoperability that mirrors the kind of open internet protocols, lowering barriers to entry and facilitating market access by small firms and developers.
