COAI has presented key takeaways from Indian Mobile Congress 2024 (IMC 2024) which include:

  • Regulation of over-the-top (OTT) communication services– COAI appreciated the positive approach from Anil Kumar Lahoti, chairperson, Telecom Regulatory Authority of India (TRAI) wherein he has called for structured regulation of OTT communication platforms. His acknowledgement of regulatory issues which are ailing the law enforcement agencies as well as traditional telecom service providers (TSPs). COAI appreciated TRAI’s call for regulators globally to maintain a balance between fostering innovation and ensuring a fair and competitive market, given the cross-border nature of OTT services. This is especially relevant in the context of spam/online scams or unsolicited commercial communications (UCC) rising highly on these OTT platforms, and with TSPs complying with latest and stringent guidelines aimed at curbing the same. According to COAI, a significant volume of commercial traffic is shifting to OTT communication services, which are not subject to same regulatory framework as applicable to TSPs, thereby creating an imbalanced situation for regulation and requisite checks. It is evident that the exponential growth of OTT services and unregulated proliferation of communication services is creating a heady mix of security threats while also creating an uneven level playing field from regulated and law-abiding service providers. COAI also emphasised that national security is paramount and calls for all communication service providers, including OTT-based communication services, should adhere to same regulations as applicable to TSPs, including Telecom Commercial Communications Customer Preference Regulations (TCCCPR), quality of service (QoS) and lawful interception rules/regulations.
  • Fair share contribution from large traffic generator (LTGs)– COAI was encouraged with discussions that took place during sessions held on third and fourth days of IMC 2024 on ‘Balancing digital demand: Ensuring level play for telecom networks’ and ‘Spectrum for $ 1 trillion digital economy’, wherein constructive and positive discussions took place in the panel along with LTG players. As per COAI, it was encouraging to have Manish Sinha, member (F), Department of Telecommunications (DoT)’s supporting views on issue being faced due to insufficiency in revenues of TSPs from growth of data services. Further, representatives from LTGs also seemingly agreed to explore possibilities in consumer interest, setting alight hopes for a workable solution to come forth in future towards resolution of fair share issue. It was heartening to see LTG’s panellists agreeing to TSP’s concept of increased network expenses with further advancements of network, going forward. COAI also pointed out the need to recognise the fact that for telecom industry to flourish and roll out networks sufficiently geared up to meet demands of collaborative players and future modernisation, LTG players need to contribute adequately/proportionately, based on a dynamic model. Presently, when COAI needs to roll out 5G and create a robust future network, the deficit between expenditure and earnings needs to be filled in. Since roughly 70-80 per cent of network traffic today is OTT traffic, COAI suggested to come to a unanimous decision of sharing a fair share of infrastructure cost with LTGs, which can be regularly reviewed and revised. As per COAI, it is clearly visible, tariff increases would not be sufficient to cater for the ever-increasing investment requirement. Simultaneously, COAI also made it abundantly clear that a supportive framework needs to be provided to nurture start-ups, micro, small and medium sized enterprises (MSMEs) and small enterprises in OTT ecosystem and therefore, such smaller players with low usage need not be required to pay the usage charge, thus safeguarding innovation and entrepreneurship. COAI stated that India is not looking at an isolated case in this regard, as across the world, demand for fair share is a key issue of contention today, with major economies like USA, EU, South Korea, Brazil and South Africa exploring solutions to tackle the issue. Further, an analysis by COAI shows that TSPs invested an additional Rs 100 billion in 2023, to upgrade network infrastructure, primarily to handle the surge in data traffic from top LTGs. But the revenue generated from this increased data traffic has been inadequate to cover the rising infrastructure costs. This is besides the fact that government lost an estimated Rs 8 billion in adjusted gross revenue (AGR) dues and taxes, such as goods and services tax (GST), due to revenue loss caused by top four to five LTG apps.
  • Spectrum issues and price reduction– COAI highlighted that the other way is to reduce base price of spectrum for which it has been asking government to look into this. Currently, COAI pays almost 38 per cent of its earnings in tax, making it the highest taxed sector in India. COAI also highlighted that being an essential sector, which is an enabler for other sectors, telecom should be considered more rationally by the government, especially looking at its emerging important role in future for enabling other industries to perform more efficiently. COAI also appreciated the views of D Manoj, principal advisor (F & EA), TRAI, whereby he acknowledged the lack of spectrum with TSPs in India, especially with humongous number of connections we have compared to USA, as well as huge debt faced by the TSPs in India today (more than Rs 6 trillion) whereby they do not even get bank interest for their investments. COAI further appreciated his open views regarding the pricing of spectrum and hopes for reconsideration in same based on manifold use of 5G applications across all other sectors as well.
  • 6 GHz spectrum demand- With the subscriber base COAI has in India, they need 2 GHz of spectrum to provide 5G at full efficiency. However, COAI got only 800 MHz in the last auction. So, there is a deficit of 1200 MHz that needs to be fulfilled to offer true flavour of 5G at optimum costs. COAI noted that 6 GHz spectrum band is the optimum solution to do so presently and its demand for the same to be allocated accordingly. Moreover, Wi-Fi proponents demanding for the same spectrum would need to utilise the present spectrum allocated, besides preparing for Wi-Fi 7, which is spectrum agnostic.
  • Cybersecurity- COAI mentioned that complexities of cybersecurity are no longer an overlay but an integral part of our digital fabric. With machines, sensors and cross-border networks blurring boundaries, securing telecom networks is crucial for national security and economic stability. Policy, regulation and technology must converge to address this challenge. The evolving threat landscape demands innovative solutions, from deep packet inspection to enterprise security operation centres. On a wider debate of digital infrastructure, adoption of technologies like quantum computing and blockchain would be required. Further, challenges such as data sovereignty and global personal taxation which are not inherently supported by technology, also need to be addressed. While these concepts are alien to digital infrastructure, legislation continues to enforce policies that do not align with technical capabilities of systems in place. Holistic solutions would need to be adopted to address these challenges.
  • Sustainability- COAI stated that trust and sustainability are two sides of a coin; when one side is flipped, the other side suffers. For example, data centres and blockchain technologies are important for the growth of a country, but are notorious for their energy consumption. Ideally, to ensure sustainable growth, data centres should be strategically located where infrastructure is available, renewable energy sources like solar or wind are accessible, and at locations close to users. Sustainability policies, such as green open access for renewable energy, should be prioritised and incentivised. While these regulations exist in India, the implementation has been slow, and continue to rely on diesel generators (DG), working against sustainability efforts. With the rise of large-scale data flows, driven by technological advancements, the country needs innovative solutions that can balance energy efficiency with sustainability.
  • Technological evolution- As per COAI, the country is currently in the midst of a metamorphic change, technology is changing lifestyles, including working. Everyone must embrace and adapt to it, to derive maximum benefit out of this telecom revolution. The cycle of technology change is so short that policy and regulation find it difficult to catch up. Hence, policy engines need to be used, powered by technology itself, to keep pace with rapidly changing technology waves. Physical highways must be compared with digital highways. This will bring clarity to many ideas. We build physical highways for ease of movement and to aid economic development. Similarly, digital highways are meant for ease of movement of data, which has become the currency of today. COAI noted that having telecom is no longer a luxury. It is an essential ingredient flavouring our lives. Therefore, it has to be made robust. IMC 2024 is expected to be a turning point for the telecom industry; as it has been an eye-opener for the imperativeness of coming together of all players and discussing certain issues. COAI believes that the way ahead will be carved out better through understanding and cooperation between the requisite stakeholders.