Iamai: Here’s what IAMAI has to say on revenue sharing demand between OTTs, telecos – Times of India

The Internet and Mobile Association of India (IAMAI), which represents the interests of the online and mobile value-added services industry, has slammed the Cellular Operators Association of India (COAI) for its ‘revenue sharing’ demand saying it is “a covert attempt to dilute net neutrality in India”.
The telecom industry advocacy group had previously sought a framework which includes carriage fees payment to telcos by OTTs. However, IAMAI said that the sending party network pays (SPNP) model would allow telecom service providers to exploit internet businesses by formalising rent-seeking.
“Calls for a SPNP mechanism have re-emerged even though the demand for telecom services is entirely dependent on the ability of OTT services to attract users. Levying additional cost on OTTs, without providing any additional services, would be akin to exacting tribute,” IAMAI said in a statement.

“The SPNP model would be a death knell for the digital economy and the creative ecosystem which it sustains,” it added.
Revenue sharing may deter OTT development
The association claims that a revenue share regime may deter entrepreneurs from developing OTT services.
“Over-the-top service providers have flourished in India’s current regulatory regime as they were empowered to distribute high quality content for little to no cost to users,” the association said, adding that the established framework has led to increased “internet adoption, economic activity, and added value to the data package products sold by telecom service providers”.

SPNP model to raise data cost
As per IAMAI, an SPNP model will effectively, though indirectly, raise costs for users and have the same impact as raising the cost of data itself.
“A higher cost associated with internet usage would lower overall revenues of internet businesses and may even reduce the amount of data consumers would use. This would result in a scenario where there may be no meaningful growth in the revenue of TSP, despite the massive price paid by the digital economy,” the IAMAI claimed.