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The government has kicked off the process of regulating over-the-top (OTT) communication apps such as WhatsApp, Telegram and Signal. As part of the move, the Department of Telecommunications (DoT) has reportedly sent a reference to the Telecom Regulatory Authority of India (TRAI) to begin the consultation process.

According to The Hindu BusinessLine, the proceedings are part of the wider deliberations undertaken by the DoT to regulate these apps to prevent the misuse of the technology in the evolving digital landscape.

The report also noted that the DoT will soon begin consultations with the Ministry of Information and Broadcasting (MIB) and the Ministry of Electronics and Information Technology (MeitY) on the matter. 

This comes nearly a month after multiple publications reported that the government was mulling introducing new rules to regulate the instant messaging apps. 

A Comeback Of Sorts 

The move is nothing new as the union government has previously also tried to regulate the instant messaging apps. In 2018, TRAI issued a consultation paper that sought to formulate a regulatory framework to oversee such apps. 

After multiple deliberations, the proposal was shelved by the authorities saying that such a hasty move would leave an adverse impact on the industry. The DoT then stated then that it would intervene at an ‘appropriate time’ and that the government was not averse to bringing a law again. 

At that time, all major industry associations, including NASSCOM and IAMAI, also vehemently opposed any such regulation.

The proposed regulatory framework is likely to cheer the telecom operators. Telcos have long demanded that OTT communication apps be subject to similar licensing rules as telcos.

For the longest time, voice and messaging services were key revenue generators for telecom players, but the advent of WhatsApp has hit these specific revenue streams badly. OTT communication apps provide free calling service and messaging, without having to apply for licensing and permits which other telcos have to undergo. 

The Regulatory Crackdown

Of late, the central government has been tightening regulatory scrutiny around digital platforms. Earlier this month, the government nixed the data protection and privacy bill that was in the works for the last three years. It now plans to bring a new draft bill on the matter in the next session of the Parliament. 

The government has also introduced other contentious rules such as mandating virtual private networks (VPNs) to store user data for five years. Many VPN providers called the move government’s attempt to ‘limit internet freedom’.

Besides, the contentious draft amendments to the new IT Act have also been criticised by many. One of the key criticisms has been establishing the union government as the final arbiter in complaints against content on social media and OTT platforms. Multiple US-based lobby groups as well as civil society organisations have slammed the proposed changes and called for its revocation.

This adds to a slew of draft laws, including the Digital India Act, that the government plans to institute to govern and regulate the India stack and the emerging digital landscape in the country. 

According to Statista, India is the largest market for WhatsApp and was home to more than 487 Mn users in 2021, a far cry from Brazil which came second at 118.5 Mn users. Indian users largely favour the OTT communication apps owing to larger personalisation and almost nil costs.