‘Over the top’ (OTT) players like Face Time, WhatsApp, Viber and Hike should be charged taxes by the government to achieve a level-playing field for all platforms according to Vodafone. CEO Marten Pieters of the Mumbai telecommunications company said that he’s concerned about the increasing number of OTT players who are gaining a lot of revenue while free riding on the internet networks of mobile operators.
There is no denying that the OTT players mentioned are enjoying a fast increase in their subscribers amid the growing popularity of internet-based mobile applications. Now many of the subscribers of such services are actually counting India as one of their biggest markets.
India is believed to be the second top market of Facebook in the world which follows the 100 million subscribers in the U.S. For WhatsApp, there are almost 60 million subscribers that are from India but this company, just like the other over the top players, do not shoulder any cost amid their growing strength. What’s even alarming for Vodafone is that the strength of the OTT players is negatively impacting its business by cutting its revenues for SMS and voice calls because of the availability of free to use mobile applications.
India’s Association of Unified Telecom Service Providers President CS Ra commented that the over the top players in the market doesn’t follow any rule to make sure that they offer quality service to their subscribers yet they are the ones enjoying more revenues that those who are working hard to provide its users with the best service possible. The providers of telecom services like Vodafone are now requesting for a discussion regarding the proper treatment of Skype, Viber, Facebook, WhatsApp and other OTT services. They will find a way to come up with an even-playing field for all providers so that they don’t continue experiencing cuts in their revenues.
According to Pieters, mobile operators should be held responsible in terms of sensitive matters for services such as legal interception which the government authorities can ask from them.
With the ever-changing and continuously improving technology, there must be a way to have a level-playing field for both telecommunications providers and mobile app operators, said Vodafone. The company is highly suggesting that the government requires the sharing of both revenues and taxes instead of only some paying for licensing fees while others are just enjoying free rides with more revenues.