5G Causes Fight Between OTT & Telecos

The fight will indeed go on longer; OTT and telecom companies are showing no signs of toning it down. Before this incident, there was a fight regarding the banning of selective apps, and now they have another reason to prolong it.

The telecom companies are not demanding that they should be allowed to play the role of tollgate owners and charge internet companies for using their networks. During a conversation with TRAI, they have indicated that streaming platforms have put a strain on the networks, and tech companies should be asked for fees to serve them.

On the side of the telecom industry, it’s Jio, Airtel, and Vodafone-Idea who are fighting the OTT platforms such as Netflix and Prime. The former group states that streaming, gaming, and social media result in the usage of a lot of data.

As of now, these streaming platforms don’t contribute to the network maintenance cost, but the former group claims that the streaming platforms benefit from good network services.

Jio claims to create a model where these platforms will pay the telecom companies based on certain factors such as the total user base, total consumed data, and total income. This will, sort of, help the telecom companies focus on their network and meet the demands of those streaming companies.

The companies are now claiming that the 5G infrastructure has a very high cost, and if the platforms actually contribute something, the process will indeed be flawless. Meanwhile, the streaming companies aren’t on the same page regarding this, as they aren’t showing any concern about the development of network services.