Wednesday, 19 November 2014

ERA OF SMARTPHONES AND MOBILE INTERNET

"The Internet has changed the digital economy in India". Earlier, VAS customers used to be charged by carriers. Now, consumers are charged by the app makers. The revenue share proportion between VAS providers and Telcos has changed dramatically. It's gone from being skewed towards the Telcos to favoring the app makers or content providers, creating a flutter among mobile phone operators, which are demanding a greater share, citing their investments in telecom networks. 

The relationship between Telcos and content providers has changed in the process to the off-net model. Telcos have begun to offer billing, collection and customer care to Internet companies that provide technology and platforms.

Telcos now want a share of the revenue from over-the-top (OTT) players, or app makers- Facebook, Google, Whatsapp - that use their networks to reach consumers. Telecom operators the world over have been pushing for a regulatory framework around OTT players or a mechanism for differential pricing - pay for better access to a Telco’s network. However, Internet companies globally have opposed such moves, saying that it would lean toward censorship. The Internet should be free for all, they reason, saying Telcos anyway charge consumers for using data. India's telecom regulator has said that while it continues to watch developments in this area, it has no intention of regulating OTT players as of now. 

"There has to be something more than data usage that customers are paying for, since it is in their interest too that customers experience is always optimum.


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