Mobile apps exploit regulatory gap, fuel scams, spam: Telco group

Time of India

20 hours ago

NEW DELHI: The
Cellular Operators Association of India
(
COAI
) reiterated that mobile apps or over-the-top communication players have been exploiting the regulatory gap, and widely becoming lucrative for spammers and scammers, and said that a uniformly-implemented unified consent management framework would be critical to protect consumers against rising mobile frauds and pesky communication.
"The concerns persist regarding the use of OTT communication services for increasing spam and fraud messages. This regulatory gap is increasingly being exploited, with a growing share of scams and unsolicited promotions now originating on mobile apps, adding to customer woes," COAI director general SP Kochhar told ETTelecom.
Delhi-based telco group represents incumbent telcos --
Reliance Jio
,
Bharti Airtel
and
Vodafone Idea
as well as technology vendors such as Ericsson, Nokia, Cisco and Ciena.
Further, Kochhar said that it has created an uneven playing field between telecom service providers and the OTT communication service players, raising privacy, traceability and national security concerns.
COAI, however, maintains that bridging this loophole by bringing mobile apps under the unified consent management framework purview would be critical to protect consumers and ensure consistency across the ecosystem.
Telecom carriers and mobile app providers such as Meta's WhatsApp, Google Meet, Telegram, and Viber are at odds following the absence of a regulatory and policy regime, with the former advocating a fair share from those generating large traffic for using mobile networks. On the contrary, OTT providers argue against it.
Telecom operators - Jio, Airtel, Vodafone Idea - also say that OTT apps should be included under the licensing regime of the Telecommunications Act, 2023, as such constitute access service.
READ MORE | Mandate binding of OTT communications apps with mobile SIMs to prevent cyber fraud: Telcos
"We believe a level-playing field should be created between licensed telecom operators and these unregulated app-based communication service providers by bringing them under the service authorization framework."
OTT providers are a direct substitute for the services provided by the traditional telcos, and have eroded into the business of telcos by providing voice, video and messaging services while riding on the network created by the telecom carriers, according to the body.
Nearly 70% of the mobile data traffic is driven by large OTT players.
Recently, a London-based top telco group said that regulators should ensure a level playing field to ensure the sustainability of network investment.
App service providers are not required to hold a wireless license and operate with minimal oversight, despite their growing influence. However, governments worldwide are scrambling to bring them into regulatory ambit, but are facing stiff resistance from Big Tech as well as consumer groups.