Lack of contribution to network costs from LTG platforms a major challenge, says COAI

According to the Cellular Operators Association of India (COAI), the lack of contribution to network costs from large traffic-generating (LTG) digital platforms/players continues to be a major challenge for the telecom industry. However, it added that the telecom industry expects to collaboratively work with LTGs in 2024 to develop high-quality networks and a responsible fair-sharing model.

Telcos have been demanding a fair share from the LTGs, emphasising the need for equitable cost distribution amid rising infrastructure expenses and increasing costs of network deployment and maintenance by the telcos. They reason that LTGs, despite earning both from subscription fees and advertising revenues, do not contribute to network costs financially which places an undue burden on telcos, hindering their financial sustainability and impeding further investments.

Meanwhile, the technology companies represented by the Broadband India Forum (BIF) have alleged that telcos’ contention to mandate over-the-top (OTT) players to pay network usage fees coupled with the government’s intent to impose a licensing framework would lead to a violation of the Net Neutrality principles and guidelines of 2016.

COAI further noted pending issues such as the second phase of 5G spectrum allocation, Right of Way (RoW) permissions, high levies and taxes, among major challenges to the sector.