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Broadband India Forum (BIF)
Consultation on Public Policy Consideration for OTTs - Executive Summary
Broadband India Forum in its response to this Open Consultation Process on OTTs has spelt out the impact of the App (OTT) Economy on India’s growth. A study carried out jointly by BIF & ICRIER has shown that a 10% increase in global Internet traffic, delivers on average a 1.3% increase in global GDP, a 10% increase in India’s total Internet traffic, delivers on average a 3.3% increase in India’s GDP. This is more than 2.5x of the Global average. Given the fact that we are currently at a broadband density of 20% and are a 1Tn USD Digital Economy, the opportunity and potential is absolutely immense. Besides, it has spelt out the huge socio-economic benefits that Apps have on other sectors. Also the Apps are acting as a driver for exploiting the potential of the latent demand in the 1Bn strong underserved rural economy which currently suffers due to unavailability of Rural Broadband Infrastructure.
The app economy and government initiatives in India have a symbiotic relationship. The ability of an app to provide localized solutions to market needs, in an accessible fashion reducing search and transaction costs for a consumer makes it a crucial element in realizing the vision of Digital India. OTTs drive a huge demand for data usage over the telcos infrastructure whilst the telcos infrastructure enables end-users to access innovative online services and content. BIF is for promoting this understanding between the telcos & the OTTs so that they embrace this symbiotic relationship. Since OTTs are contributing significantly to the Indian GDP and also driving socio-economic benefits, BIF advocates that the focus of policy & regulation should be to promote innovation and investment to ensure users are able to benefit from increased use of OTTs. Increasing the regulatory burden of OTTs will hamper innovation and growth. A regulatory framework that requires OTTs to be “licensed” in the jurisdiction in which they operate will fragment the Internet along national boundaries and negatively impact the startup economy currently booming in India.
BIF also wishes to bring out the contrasting difference between an OTT and conventional telecom service provider. To suggest that there is a natural parity or similarity between OTTs and Telecom Service Providers (TSPs) is perhaps flawed. The latter enjoy several exclusive rights conferred on them through their licenses that are not enjoyed by OTTs. In India, these include (i) the right to acquire spectrum, (ii) the right to obtain numbering resources, (iii) the right to interconnect with the PSTN, and (iv) the right of way (RoW) to set up infrastructure. BIF is all for promoting and encouraging growth of OTTs as it has a positive impact on each sector of the economy besides having an overall positive impact on the economy As already stated, the OTT ecosystem is in a nascent stage in terms of its development; therefore, any undue regulatory burden is bound to stifle growth and innovation. Apart from the above, regulatory framework for OTTs should be light touch as this would allow the natural evolution of this sector and will allow for creative innovation.
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