In a significant move, more than 100 Indian startups, with notable names like Paytm, PhonePe, and Zerodha, have come together to appeal to the Telecom Regulatory Authority of India (TRAI). Their collective message? To stand firm on the principles of net neutrality.
This plea comes in the wake of telecom service providers (TSPs) pushing for over-the-top (OTT) platforms to be charged a network fee. Responding to this, a total of 128 startups penned a letter to TRAI’s chairman, P.D. Vaghela, sounding an alarm about the potential dangers of overregulating internet services.
Central to their argument is the belief that internet services shouldn’t be lumped together with TSPs under the same regulatory umbrella. They contend that the idea that internet services can replace traditional ones is a misconception. The letter goes on to underline the diverse and complex nature of internet applications and services, emphasizing that it’s an oversimplification to label them merely as substitutes or to pigeonhole them into categories like messaging or video.
The startups further highlighted the distinct differences between TSPs and internet service providers. They argued that meddling with the current regulatory setup is unwarranted. The letter elaborates, “A specific TSP providing data services doesn’t control the entire internet infrastructure. It relies on multiple networks to deliver its services. Allowing such a TSP to charge differently for data it doesn’t solely handle could jeopardize the internet’s very structure.”
Moreover, the startups warned against price differentiation based on content type, stating it goes against the internet’s foundational principles. They expressed, “Such a move would undermine the very essence of how the internet has revolutionized our connections.”
The startups also voiced concerns about potential discrimination, uneven playing fields, barriers to entry, and heightened compliance burdens that might arise from the proposed regulations. They cautioned, “These rules might benefit large global corporations that can navigate such regulations, potentially harming the flourishing Indian startup ecosystem.”
Among the signatories were industry leaders like Razorpay’s Harshil Mathur and Shashank Kumar, IndiaMART’s Dinesh Agarwal, and Rapido’s Rishikesh SR.
This collective stance was a response to TRAI’s consultation paper on OTT app regulation. Notably, TRAI had earlier shared feedback from various stakeholders. Among the submissions, Jio, owned by Reliance Industries, suggested that OTT platforms contribute towards network costs to level the playing field. Similarly, Bharti Airtel, a key player in India’s telecom sector, championed direct financial contributions from OTT platforms to telecom companies.
