OTT and paid peering
Yesterday there was an article in the Indian paper Financial Express with the title “OTTs may have to pay access charge to telcos”.
Quoting a few points from the article:
- Social media intermediaries like WhatsApp, Facebook and Twitter, and over-the-top (OTT) players like Netflix, Prime Video and Disney+Hotstar may have to pay a carriage charge to telecom service providers
- Data, particularly video, comprises 70% of the overall traffic flow on telecom networks, and this would grow further with the rollout of 5G services
- Upon reference from the DoT, Trai is currently studying various possible models under which OTTs can be brought within the purview of some form of regulation
- According to sources, an interconnect regime is a must between OTTs and telcos because as 5G services grow, there would be immense data/ video load on networks, which may lead to them getting clogged or even crashing at times.
This concept of “OTTs must pay” is not new. This has been argued a few times in past. Exactly ten years ago in 2012 I wrote a blog post about Bharti Airtel expecting Google/YouTube to pay. At that time they could not convince OTTs to pay. Why is this renewed interest now? Well, that has to do with the first SK Telecom (South Kore telecom) Vs Netflix court case in South Korea where SK Telecom claimed that a large part of bandwidth utilization was because of Netflix and hence they should pay a “fair share” of their traffic which they lost. Soon around this multiple of large telecom monopolies in Europe started this discussion in their respective geography. Four of the top EU players - Deutsche Telekom, Orange, Vodafone and Telefonica are of opinion that OTTs should share the burden (news here). And hence Indian telcos possibly looking to renew this debate.