The eyes of the world are on India right now.
How?
It’s not that serious. There are far bigger issues in the world. However, the telecom and OTT platforms are certainly eyeing the developments in India. If the Indian model gets implemented then it will cause relief to the telecom industry but at the same time, the OTT platforms might become more expensive.
Telecom operators argue that these OTT platforms generate massive data traffic but don’t contribute to maintaining the telecom networks they use. The telecom companies invest heavily in building digital infrastructure, and they believe that OTT players should pay a “fair share” to help cover these costs.
Julian Gorman, head of Asia-Pacific at GSMA, a global group representing mobile operators, said that India’s growing digital market could set an important example for the rest of the world. The idea is to find a fair system that works for both telecom companies and OTT platforms. Other countries, like South Korea, have already made steps toward such revenue-sharing models, and now the focus is on India’s approach.
In India, telecom companies are facing increasing pressure. They are investing billions in their networks but aren’t seeing any direct investment from OTT platforms, even though these platforms are heavy users of their services. Currently, the burden of this cost is passed on to consumers through higher tariffs. However, raising consumer prices alone is not a sustainable solution.
If OTT platforms are asked to pay telecom companies, it could lead to a rise in their operating costs, which would likely make streaming subscriptions more expensive. Which the subscribers would never want.
No company ever makes things cheaper. Let’s say that OTT platforms are made to pay a certain share to the telecom industry then what?
It would just make OTT more expensive. It would never make telecom operators reduce their prices.
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