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Telecom operators face financial pressure from OTT firms

"We (telecom operators, social media and over-the-top players) are good for each other but they, regulators and politicians must understand that networks' investment must be on reasonable terms. Gone are the days when telecom companies were making large amounts of money," Mittal said.

March 09, 2015 / 08:55 IST
     
     
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    Telecom operators have been facing pressure on their financials from the emergence of a number of Over-The-Top (OTT) firms like Facebook (through its WhatsApp messaging service), Skype and Viber, which on their part claim to be helping telecom operators grow business.

    "We (telecom operators, social media and over-the-top players) are good for each other but they, regulators and politicians must understand that networks' investment must be on reasonable terms. Gone are the days when telecom companies were making large amounts of money," Mittal said.

    "OTT players must understand pains of the mobile industry. Sometimes we are seeing as gatekeeper, bad guys. The fact of matter is spectrum - there is cost, network there is cost and tariff has gone up by only 3 paise in last three years," he added.

    In December, Airtel had announced separate charges for Internet based calling services but withdrew it after an outcry on social media.

    "The rate that we announced was exactly the same rate as a voice call. If you do one minute VoIP (internet based calls) in kilobyte terms it would be exactly the same as voice call.

    It was exactly the same as one minute call," Mittal said.

    first published: Mar 8, 2015 11:45 am

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