Telco body warns of investor risk concerns over unequal rules for telecom, satcom, and OTT service providers

Telecom

Private telecom operators have voiced concerns that the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) have failed to address their concerns regarding a level playing field for over-the-top (OTT) communication services and satellite communication in the proposed service authorisation framework. They warn that these unresolved issues could negatively affect investor confidence in the telecom sector.

“COAI has long advocated that satellite communication should primarily be used to improve coverage in underserved rural areas, while ensuring fair competition with terrestrial service providers in other regions. Unfortunately, DoT and TRAI have yet to address this important issue. This inaction could undermine investor sentiment,” stated SP Kochhar, Director General of COAI.

These remarks come shortly after Telecom Minister Jyotiraditya Scindia's comments at the Mobile World Congress 2025 in Barcelona, where he highlighted India’s openness to global space broadband providers.

COAI, representing major telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea, has been advocating for a ‘same service, same rules’ framework for satellite communication providers. The association argues that preferential treatment for satcom players could undermine telecom carriers' investments over the past two decades, jeopardizing investor confidence in India’s telecom market.

The association also expressed dissatisfaction with the new Telecom Act's exclusion of OTT-based communication services, such as WhatsApp and Telegram, as access services.

"To address the non-level playing field and uphold the principle of ‘Same Service, Same Rule,’ we had proposed that these competing and substitutable services be included under Access Services authorisation in the new framework. However, our concerns regarding OTT/App-based Communication Services have yet to be addressed by either the telecom regulator or the Licensor [DoT]," Kochhar explained.

In its statement, COAI emphasized the importance of maintaining the contractual nature of the existing licensing regime to ensure policy and regulatory certainty, which it believes is vital for attracting investment in the industry.

"While our request for this has not been addressed, we are concerned that the role of TRAI may be diluted, as noted in the backreference to DoT issued by TRAI on 28th February 2025. It indicates that for minor or procedural amendments, the Licensor may not need to seek recommendations from the Regulator," Kochhar remarked.

Last week, TRAI reiterated that its recommendations are essential before making substantive changes to the terms and conditions of the proposed authorisation regime.

“For any substantive changes to the terms and conditions of the Authorisation, except when related to national security, the Central Government should seek TRAI's recommendations. It may not be necessary to seek the Authority’s recommendations on minor, routine, or procedural amendments that do not significantly impact authorised entities,” the modified recommendation from TRAI noted.

This development follows TRAI’s recommendation to shift telecom services from a licensing regime to an authorisation regime, in line with the Telecommunications Act 2023.

The new authorisation regime aims to simplify the permission process, reduce service permit timelines, offer lighter regulation to foster competition, speed up service deployment, and encourage investment in the sector.