The Cellular Operators Association of India (COAI) has asserted that over-the-top (OTT) applications should compensate the carriers for rolling out networks as the industry body believes that OTT players utilise most of the infrastructure. Additionally, COAI emphasised on bringing communication OTTs under a light-touch licensing regime.
Meanwhile, COAI has requested the government to provide clarity on the definition of communication services in order to remove any ambiguity on the concept. The demand for a clear definition for communication services comes in the backdrop of technology players’ assertion that OTTs ought not be brought under the purview of telecommunications.
Separately, in its budget wishlist to the Ministry of Finance, COAI has urged the government for a cut in licence fee to 1 per cent, and has sought waiver of customs duty on network equipment for 5G rollout. The association has also pushed for abolition of the Universal Service Obligation Fund (USOF). Other demands put forth by COAI includes refund of accumulated input tax credit of goods and service tax (GST) (Rs 320 billion) and clarification regarding availability of input tax credit on critical equipment installed on telecom towers. Also, COAI has noted that it is working on a possible revenue sharing model with OTTs, which will be shared with the Department of Telecommunications (DoT) when required.
As per preliminary calculations by COAI, the government’s adjusted gross revenue (AGR) from telecom can rise by around Rs 8 billion annually if the OTT’s start compensating the telecom operators. The industry body suggests that telecom operators and OTTs can work on mutually agreeable models of revenue sharing. Moreover, COAI has sought budgetary support or allocations as may be necessary for implementation of national security measures by telecom firms.
