WhatsApp, Telegram, Signal to need licence to operate: Why there may be good and bad news coming – Times of India

The draft telecom Bill has raised some concerns about instant messaging apps like WhatsApp, Telegram, Signal and others requiring licence to operate in India. However, the government has denied any such plan. As per the Department of Telecom (DoT), the purpose to regulate OTT (over-the-top) apps is due to security concerns and not for licensing purposes. While the department stands by its stand that OTT needs to be regulated, it is for the security purpose. The intent, the government says, is to protect consumers from falling prey to cyber frauds as well as national security.
According to a senior DoT official, 60-70% of voice calls are currently taking place over these apps, which is hard to track compared with traditional voice calls and messages. For example, messaging app WhatsApp counts India as its largest market, with more than half a billion users. WhatsApp accounts for the bulk of the calls made over communication apps in India, say experts.

KYC may be coming for WhatsApp and other calling apps
Telecom operators are mandated to store call details record (CDR) of all voice calls for at least a year. CDR data comes in handy when required by security agencies. There is no such requirement for OTT calls at present. But going forward, all OTT platforms offering communication services would have to ensure user verification through the know-your-customer (KYC) process. This means that while WhatsApp and other companies may not need a licence to operate in India, they are likely to be required to undertake KYC of their users similar to the telecom companies.
Telecom companies want same rules for WhatsApp and as for them
India’s top telecom operators have demanded that OTT communication services be clearly defined in the draft telecom Bill in order to “bring comprehensiveness and avoid any possible ambiguity”. They have also reiterated the need for a level playing field with respect to OTT communication services, calling for uniform regulatory conditions and treatment for similarly placed operators. In a statement issued recently, the Cellular Operators Association of India (COAI) said, “It has been erroneously suggested that telecom services and OTT applications do not operate on the same layer, when in fact services such as calls (voice/video) whether provided by the TSPs (telecom service providers) or the OTT apps, operate on the same layer, essentially riding on the network layer.”

The association represents India’s top telcos Reliance Jio, Bharti Airtel and Vodafone Idea. The lobby body said OTT communication services currently are free to enjoy the privileges of delivering the same services, without having to bear any of the regulatory obligations that bind telecom operators for their right to spectrum, numbering resources, right of way (RoW) for settling infrastructure, etc.
The draft telecom Bill was put up for public consultation last month. Among other things, the bill seeks to enlarge the scope of telecommunication services by bringing OTT communication services under the ambit. The government is aiming to get the bill passed in the monsoon session of parliament next year. DoT officials as well as communications minister Ashwini Vaishnaw have held meetings with stakeholders including telecom operators, technology companies and others. During such meetings, DoT has assured the industry that their views would be considered in the revised Bill that is likely to come in November for consultation.