Telecom companies in India want tech firms to pay for network usage | TechCrunch
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Telecom operators in India, the second largest wireless market, would like internet companies to compensate for using their networks, a recommendation Telecom operators in India are urging internet companies to compensate for using their networks, a recommendation they've made to the local regulatory body.

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  • Indian telecom operators, including Jio, Airtel, and Vodafone-Idea, have recommended that internet companies contribute to telecom network costs.
  • They propose that these contributions should be based on factors like traffic consumption, turnover, and the number of users.
  • The telecom operators argue that this would create a level playing field and help boost their margins in a market with low average revenue per user.
  • Critics, however, raise concerns about potential violations of net neutrality and the possibility of shifting costs to consumers if internet companies are forced to cover network expenses.
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    Telecom operators in India are urging internet companies to compensate for using their networks, a recommendation they’ve made to the local regulatory body, echoing a viewpoint that is gaining some momentum in other parts of the world.

    “We suggest that TRAI [India’s telecom regulator] should recommend for OTT providers contributing in the network development and building a backbone for the country.

    In this effort, the Other OTT service providers should also be required to pay their fair share,” said the unit of Reliance, which is run by Asia’s richest man Mukesh Ambani.

    Airtel, has however, proposed that only the largest users of the internet infrastructure should bear the costs of network usage, allowing smaller startups to thrive unhindered.

    Nearly ten years ago, Pahwa was instrumental in raising awareness about potential violations of net neutrality when Meta tried to introduce Free Basics in the country.

    “A mandatory / mandated collaborative framework between OTT service providers and licensed TSPs may lead to the creation of a system where TSPs can demand compensation from OTT service providers in the form of revenue sharing or network usage fees,” said Asia Internet Coalition, an industry association group that represents some of the biggest tech companies including Apple, Amazon, Microsoft, Google, Meta and Netflix.

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