IAMAI Slammed the COAI for its ‘revenue sharing’ Demand

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The Internet and Mobile Association of India (IAMAI) on Thursday slammed the Cellular Operators Association of India (COAI) for its ‘revenue sharing’ demand which is “a covert attempt to dilute net neutrality in India”. The COAI has been advocating for a model where the sending party network pays (SPNP) model would allow telecom service providers to exploit internet businesses by formalising rent seeking.”The SPNP model would be a death knell for the digital economy and the creative ecosystem which it sustains,” IAMAI said.

“Bodies such as the Cellular Operators Association of India have been advocating for a model where the sending party network pays (SPNP) which would allow telecom service providers to exploit internet businesses by formalising rent seeking. The SPNP model would also be a death knell for the digital economy and the creative ecosystem which it sustains,” the IAMAI said in a statement.

The industry body, which represents digital companies and startups, said that levying additional costs on OTT platforms would have a ‘chilling effect’ on investments and entrepreneurship in the emerging space. The move would be akin to exacting tribute or imposing taxes on the space. Describing its rationale behind the stance, the IAMAI said that internet adoption in India has largely been driven by cheap data, and implementing a revenue sharing model would ‘effectively raise costs for users’ indirectly. This, it said, would have the same impact as increasing data tariffs.

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. This, in turn, has promoted internet adoption, economic activity, and added value to the data package products sold by telecom service providers, said the IAMAI. IT argued that installing a SPNP mechanism would effectively raise costs for users, albeit indirectly, and have the same impact as raising the cost of data itself.

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 stressed. The Internet and Mobile Association of India( IAMAI) on Thursday slammed the Cellular Operators Association of India( COAI) for its’  profit sharing’ demand which is” a covert attempt to adulterate net  impartiality in India”.   The COAI has been  championing for a model where the  transferring party network pays( SPNP) model would allow telecom service providers to exploit internet businesses by formalising rent dogging. 

” The SPNP model would be a death knell for the digital frugality and the creative ecosystem which it sustains,” IAMAI said.  “ Bodies  similar as the Cellular Operators Association of India have been  championing for a model where the  transferring party network pays( SPNP) which would allow telecom service providers to exploit internet businesses by formalising rent dogging. The SPNP model would also be a death knell for the digital frugality and the creative ecosystem which it sustains, ” the IAMAI said in a statement.   The assiduity body, which represents digital companies and startups, said that levying  fresh costs on OTT platforms would have a ‘  nipping effect ’ on investments and entrepreneurship in the arising space. The move would be akin to exacting  homage or assessing  levies on the space.  

Describing its  explanation behind the  station, the IAMAI said that internet relinquishment in India has largely been driven by cheap data, and  enforcing a  profit  participating model would ‘ effectively raise costs for  druggies ’ laterally. This, it said, would have the same impact as  adding  data tariffs. Over-the-top service providers have flourished in India’s current nonsupervisory  governance as they were empowered to distribute high quality content for little to no cost to  druggies.   This, in turn, has promoted internet relinquishment,  profitable  exertion, and added value to the data package products  vended by telecom service providers, said the IAMAI.   IT argued that installing a SPNP medium would effectively raise costs for  druggies, albeit laterally, and have the same impact as raising the cost of data itself.  This would affect in a  script where there may be no meaningful growth in the  profit of TSP, despite the massive price paid by the digital frugality,” the IAMAI stressed.