Dear Sir/Madam
Here is an internet user's perspective on the Regulation for OTT services whitepaper.
Thank you for publishing the whitepaper and inviting end-users to participate. It is a sign of a healthy democracy and very appreciated.
Question 1: Is it too early to establish a regulatory framework for
OTT services, since internet penetration is still evolving, access
speeds are generally low and there is limited coverage of high-speed
broadband in the country? Or, should some beginning be made now
with a regulatory framework that could be adapted to changes in the
future? Please comment with justifications.
-- It is always better to build general guiding principles very early on so that they can be selectively modified in case of new developments. In any case, we have seen enough developments and directions taken by countries who have been on the same path. In a way we can build a robust policy framework and guiding principles that should last us for the next 10 years.
Question 2: Should the OTT players offering communication
services (voice, messaging and video call services) through
applications (resident either in the country or outside) be brought
under the licensing regime? Please comment with justifications.
-- Players who strive to offer services in India must ultimately be beholden to the law as it exists in India. We must be careful that we have robust laws that do not allow individuals / politicians / malevolent actors to harass providers who might not be directly responsible for content flowing through. Standard safe-harbor provisions need to be extended to TSPs or other communication providers and aggregators.
Question 3: Is the growth of OTT impacting the traditional revenue
stream of TSPs? If so, is the increase in data revenues of the TSPs
sufficient to compensate for this impact? Please comment with
reasons.
-- TSPs are seeing tremendous growth in data volumes and this is going to increase with time. OTT services are a global phenomenon and as such TSPs need to redefine the core sector that they serve. Today, many people take a landline just to get an address proof.
Question 4: Should the OTT players pay for use of the TSPs network
over and above data charges paid by consumers? If yes, what pricing
options can be adopted? Could such options include prices based on
bandwidth consumption? Can prices be used as a means of
product/service differentiation? Please comment with justifications.
-- As a consumer, I pay for bandwidth. What lies inside the bandwidth is not for my TSP to evaluate. The fact that they are in competing businesses is incidental. This is especially more so given the fact that we have many corporate business houses who own parts of many utility businesses. Let us take an example: tomorrow, if Airtel owns a food franchise, should it be to Airtel to let me order food only from a particular website? My using WhatsApp and order pizza are two examples of the same pie,
Question 5: Do you agree that imbalances exist in the regulatory
environment in the operation of OTT players? If so, what should be
the framework to address these issues? How can the prevailing laws
and regulations be applied to OTT players (who operate in the
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virtual world) and compliance enforced? What could be the impact
on the economy? Please comment with justifications.
-- Ultimately, all OTTs that service consumers in India have to comply with the laws of the land. I believe offering safe-harbor and net neutrality provisions will offer them a level playing field. Innovation in OTT services should not be dependent on a few providers as that ultimately leads to an oligopoly -- lack of innovation and reduced consumer surplus.
Question 6: How should the security concerns be addressed with
regard to OTT players providing communication services? What
security conditions such as maintaining data records, logs etc. need
to be mandated for such OTT players? And, how can compliance
with these conditions be ensured if the applications of such OTT
players reside outside the country? Please comment with
justifications.
-- OTT players that reside outside the country are ultimately bound by the laws of the local geography they service. Ultimately, the regulator should intervene if it believes there is significant threat to security that outweighs the benefits to many. A simple example is that while it is relatively painless for one person to mandate 'Shoes must be removed during flight check-in screening', it causes millions of man-hours to be lost in waiting time. Every extra bit of security theater is painless for a few but painful for many. Similarly, a reduction in the profits made by one player are ultimately shared by billions of consumers who benefit a small amount each.
Question 7: How should the OTT players offering app services
ensure security, safety and privacy of the consumer? How should
they ensure protection of consumer interest? Please comment with
justifications.
-- OTT players should enjoy the benefit of safe-harbor and 3rd party distance from possible adverse effects. No-one expects MTNL to compensate them if their data link is used to hack into a bank account.
Question 8: In what manner can the proposals for a regulatory
framework for OTTs in India draw from those of ETNO, referred to in
para 4.23 or the best practices summarised in para 4.29? And, what
practices should be proscribed by regulatory fiat? Please comment
with justifications.
-- I do not believe I have enough background to answer this question.
Question 9: What are your views on net-neutrality in the Indian
context? How should the various principles discussed in para 5.47
be dealt with? Please comment with justifications.
-- The Indian consumer context is very similar to growth scenarios. I believe the consumer is knowledgable enough and is seeking to learn from the best in the world and innovate on their own.
Question 10: What forms of discrimination or traffic management
practices are reasonable and consistent with a pragmatic approach?
What should or can be permitted? Please comment with
justifications.
-- I believe in traffic shaping if it affects significantly consumer experience. However, singling out a single player in the ecosystem and taking it out should not be at the discretion of the TSP.
Question 11: Should the TSPs be mandated to publish various traffic
management techniques used for different OTT applications? Is this
a sufficient condition to ensure transparency and a fair regulatory
regime?
-- Given that in many scenarios, consumers have limited choice of TSPs, I believe that this will not be enough. Additionally, there is the problem of trusting a TSP to comment on their own practices, which leads to elements of FUD (fear, uncertainty, doubt).
Question 12: How should the conducive and balanced environment
be created such that TSPs are able to invest in network
infrastructure and CAPs are able to innovate and grow? Who should
bear the network upgradation costs? Please comment with
justifications.
-- TSPs have tremendous pricing capture mechanisms and their bandwidth and carrier fees should be enough to justify the increase in investment in infrastructure.
Question 13: Should TSPs be allowed to implement non-price based
discrimination of services? If so, under what circumstances are
such practices acceptable? What restrictions, if any, need to be
placed so that such measures are not abused? What measures
should be adopted to ensure transparency to consumers? Please
comment with justifications.
-- Price-based baskets that allow consumers choice and more options can be trialed. However, given that options baskets will be made by the same people who stand to benefit from particular choices would lead to skepticism.
Question 14: Is there a justification for allowing differential pricing
for data access and OTT communication services? If so, what
changes need to be brought about in the present tariff and
regulatory framework for telecommunication services in the
country? Please comment with justifications.
-- Given the above answers, I believe there is no justification to allow differential pricing for data and OTT.
Question 15: Should OTT communication service players be treated
as Bulk User of Telecom Services (BuTS)? How should the framework
be structured to prevent any discrimination and protect stakeholder
interest? Please comment with justification.
-- The problem with this approach is that it will increase barriers to entry. A new OTT player will need significant cash reserves to even start a new service. An existing TSP with interests of their own (chat apps owned by TSP, for example) can provide differential speeds thereby killing any competitor.
Question 16: What framework should be adopted to encourage India specific
OTT apps? Please comment with justifications.
-- India-specific OTT apps will come with the market opening up, more open regulatory structure, and most important, the freedom to start small. If any OTT has to pay a price premium to multiple players, there is no reason for them to start in India.
Question 17: If the OTT communication service players are to be
licensed, should they be categorised as ASP or CSP? If so, what
should be the framework? Please comment with justifications.
-- I believe it should not be a licensed mechanism.
Question 18: Is there a need to regulate subscription charges for
OTT communication services? Please comment with justifications.
-- OTTs will live in the marketplace. Any OTT that is not responding to the market in terms of features/price/value will automatically die a natural death. Regulating charges will only serve to lower innovation in the sector.
Question 19: What steps should be taken by the Government for
regulation of non-communication OTT players? Please comment
with justifications.
-- There are many non-OTT players that will enter the market. I believe the above frameworks discussed will be enough to sustain that ecosystem.
Question 20: Are there any other issues that have a bearing on the
subject discussed?
-- This is a crucial phase in the internet evolution of the Indian ecosystem. I believe that a free and fair internet is the way to massively increase efficiency of the average Indian. Controlling of this superhighway should not be dependent on a few gatekeepers.
Thank you for your time to read this.
Sameer Bora