Telcos urge govt to levy fair-share fee on OTT platforms

The telecom companies have reportedly asked the Department of Telecommunications to introduce a levy, similar to the Universal Service Obligation (USO) fee, targeted at OTT platforms

by e4m Staff
Published: May 27, 2025 4:27 PM | 2 min read

Telecom service providers like Reliance Jio, Bharti Airtel, and Vodafone Idea, are pushing for a new regulatory framework that would require major over-the-top (OTT) platforms to contribute to the country’s telecom infrastructure costs.

The telecom companies have reportedly asked the Department of Telecommunications (DoT) to introduce a levy, similar to the Universal Service Obligation (USO) fee, targeted at OTT platforms like Netflix, WhatsApp, Amazon Prime, Facebook, Instagram, and Zoom.

The telecom operators argue that these platforms generate massive internet traffic and significantly strain network resources, which necessitates continuous investment in infrastructure upgrades and expansion.

Despite this heavy reliance on telecom networks, OTT platforms currently do not share the financial burden of maintaining or enhancing these systems.

To address this imbalance, the operators propose that a portion of the revenue earned by OTT players in India be taxed or levied. The proceeds could be directed to the Consolidated Fund of India or possibly a specialized fund such as the Digital Nidhi Fund. Additionally, they are advocating for OTTs to be brought under the scope of corporate taxation and the Goods and Services Tax (GST).

The Cellular Operators Association of India (COAI), which represents these telecom companies, insists that a fair-share contribution from OTTs would not breach net neutrality rules. Instead, they believe it would improve overall service quality for consumers by enabling more robust and reliable networks.

On the other hand, industry associations like the Internet and Mobile Association of India (IAMAI) and the Broadband India Forum (BIF) have expressed strong opposition. They warn that such levies could hinder digital innovation, increase costs for users, and potentially infringe on the principles of net neutrality.

As data consumption surges and telecom operators seek ways to sustain their networks, the government faces the complex task of balancing innovation, consumer interest, and infrastructure sustainability. The conversation around a revenue-sharing model for OTT platforms remains ongoing.