Delhi High Court directs TRAI to expedite consultations with stakeholders & give recommendations to Centre on proposed OTT services framework

Justice Prathiba M. Singh of the Delhi High Court has recently directed the Telecom Regulatory Authority of India (TRAI) to expeditiously hold stakeholder consultations and give recommendations to the Centre on the proposed Over the Top (OTT) services like Facebook and WhatsApp.

“Considering the extensive prevalence and use of internet telephony, TRAI would expeditiously conduct this stakeholders’ consultation and give its recommendations accordingly”, Justice Singh said.

The single-judge bench was hearing a plea filed by World Phone Internet Services Pvt. Ltd. seeking directions to enforce the current regulations as applied to Facebook Messenger and WhatsApp Internet Telephony Services to ensure that they comply with the same regulatory/license framework as licensed Technology Service Providers (TSPs) or Internet Technology Service Providers (ITSPs) or Internet Service Providers (ISPs).

The petitioner company alleged that while similar platforms pay license fees by their license agreement (even for telephony services), such other companies and platforms like Facebook and WhatsApp are “unregulated” and “do not pay any amounts to the government”.

An affidavit was filed by the Department of Technology on November 25, sworn by the Assistant Director General, Department of Communication, Ministry of Communication and Information Technology, that the TRAI’s recommendation suggesting that the regulatory framework for Over-The-Top (OTT) services is not required, has not been accepted.

The court was also informed that in the 19th meeting of Digital Communications held on July 22, it had referred the matter back to TRAI to suggest a suitable regulatory mechanism for OTT. Subsequently, the government returned the recommendations to TRAI and requested that the issue be re-examined and reconsidered.

Furthermore, in the letter on September 7, the Centre stated, “In view of the humongous growth of OTT services in the recent past and these services having reached a matured stage, there is a need to holistically look into the various aspects of these services including regulatory, economic, security, privacy, and safety aspects.”

In view of the stand of the MEITY, Senior Advocate Sanjoy Ghose appearing for the petitioner company, submitted that the company may be allowed to participate both by means of written representation and oral submissions and if the need arises, the petition may be disposed of on the basis.

Taking note of the submissions, the court said, “the entire matter is to be reconsidered by TRAI, it shall now hold stakeholder consultations including from the Petitioner, Respondent Nos.3 & 4, and any other stakeholders, concerning the recommendations to be given”. Accordingly, disposed of the petition.

While disposing of, the court made it clear that “the issues raised by the parties has not been considered on merits or adjudicated, by this Court.”

Case Title: World Phone Internet Services Private Limited v. Union of India & Ors.