The telecom industry players have urged the Department of Telecommunications (DoT) to regulate over-the-top (OTT) communication services to ensure a level playing field. In their submissions to the DoT for the proposed new telecom regulatory framework, the players reiterated that the law should be forward-looking and should address the needs of convergence of various digital services, including telecommunication connectivity, carriage of broadcasting content and OTT communication services.
Further, most industry associations, including the Cellular Operators Association of India (COAI), Associated Chambers of Commerce and Industry of India (ASSOCHAM), and Internet and Mobile Association of India (IAMAI), have sought the abolition of the universal service obligation (USO) levy, which currently stands at 5 per cent of the adjusted gross revenue (AGR). The industry highlighted that an analysis of USO fund disbursals indicates that only around half of the accrued amount has been disbursed for enabling connectivity in rural India. IAMAI recommended that the USO levy should be scrapped especially since the private sector continues to be instrumental in achieving the objectives of rural connectivity over the years by constantly rolling out telecom networks in rural and unconnected areas. Further, COAI recommended that the licence fee should be changed only towards administrative expenses and be brought down from 3 per cent to 0.5-1 per cent of the AGR. At present, telcos pay 5 per cent USO levy and a 3 per cent licence fee. It emphasized that a reduction in licence fee is necessary to facilitate investments required to complete the Digital India vision and 5G rollouts.
Moreover, the industry has sought converged law for various technologies and platforms as the lines between broadcasting and telecom networks are fast disappearing with digital technologies evolving a rapid speed. According to COAI, the deployment of digital technologies has led to market convergence and intermodal competition.
