At least 128 startup founders have suggested to TRAI that it reconsider any measure aimed at over-regulating the web described as OTTArray, which could have discriminatory consequences.
Among the 128 startup founders who have written to the Telecom Regulatory Authority of India (TRAI) are Nithin Kamath of Zerodha, Vijay Shekhar Sharma of Paytm, Sameer Nigam of PhonePe, Harshil Mathur of Razorpay, Ajay Kaushal, Director of Billdesk, Nitin Saluja, Founder of Chaayos, Ritesh. Malik, Founder of Innov8 and Rohan Verma, CEO of MapmyIndia, among others.
Expressing their considerations on TRAI’s proposed regulation to selectively ban over-the-top (OTT) platforms, the founders of the startups said they were generally opposed to attacking those in a regulatory framework equal to or similar to that of telecommunications service providers (TSPs).
“We believe that the assumption widely invoked in the consultation paper, as well as in some comments submitted through TSPs (given that Internet services are intended to be direct substitutes for classical services and thus derive revenue and benefits from classical services), as well as lifestyles from a market failure, in which there are no sufficiently good monetary incentives for giant TSPs to invest in infrastructure due to lack of compensation) is unfounded,” they argued.
TRAI introduced the procedure in July to read about the regulation factor of OTT communication applications.
Earlier this month, 11 client teams said the proposal would lead to excessive regulation and create regulatory uncertainty in the domestic market.
The startup’s founders also suggested that TRAI perceive that “regulatory differences between TSP and ISP/ISP require intervention, at least because there are inherent structural and functional differences between the two. “
“Our Internet is demanded by consumers and is provided through a complex network of networks called the Internet, not value-added provided through telecom operators. We host our content and pay to send and receive content over the Internet to our edge ISP, just like anyone else. another Internet user,” they explained.
However, a specific TSP that provides customer insight services does not cover the entire Internet infrastructure. It relies on several other networks to facilitate this task.
“Therefore, allowing a TSP at one end of the Internet to qualify knowledge that it does not process on its own can compromise the entire architecture of the Internet. If other multi-level TSPs were allowed to do so, the openness of the Internet as we know it would be disrupted,” the founders noted.
They stated that the form of the regulatory framework, in which TSPs necessarily have the strength to tip the balance in favor of one website/app/service or another, would inevitably lead to discrimination, an uneven playing field, barriers to entry, and increased enforcement. . load.
In addition, the recommended strategies for classifying an application as “significant traffic generators” and deciding on “fair and proportionate participation/contribution” are arbitrary and unclear, possibly leading to such decisions being made on a case-by-case basis. base. .
Earlier, the Broadband Forum of India (BIF) also stated that OTTs are well regulated through the existing IT Act 2000 and other similar rules.
The OFI argued that existing laws, adding the Data Protection Act and the Consumer Protection Act of 2019, sufficiently address the regulatory, economic, security, privacy, protection and customer complaints facets of OTT services.
The founders of the startup called for the web to be maintained as an open platform on which network providers treat all content, applications equally, without discrimination.
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