Government Explores Regulatory Sandbox For OTT Communication Apps
In a significant development outlined in the latest iteration of the draft Indian Telecommunications Bill 2023, the government is contemplating the establishment of a regulatory sandbox designed to formulate specific administrative rules and eligibility criteria for testing OTT communication apps like WhatsApp and Signal.
Under this proposed regulatory framework, both existing and new over-the-top (OTT) communication apps could undergo testing in a “live but safe environment” before their widespread release to users. The draft bill outlines the government”s intention to devise precise administrative regulations and eligibility standards, ensuring OTT communication apps can be effectively tested within these regulatory sandboxes.
According to a senior government official, this approach aims to enable companies, both new entrants and established players, to test features and garner feedback from users and government authorities, particularly concerning features that may pose potential harm or misuse risks. Another official emphasised the advantage for Micro, Small, and Medium Enterprises (MSMEs), stating that this environment allows them to test apps or services with a broader audience before the official launch.
While praising the innovative concept, the officials acknowledged the need to establish clear rules and evaluate the extent of government involvement from a legal perspective. The Telecom Regulatory Authority of India (Trai) had previously sought stakeholder comments on eligibility criteria for companies to participate in a regulatory sandbox, emphasising that such frameworks support startups and MSMEs while safeguarding consumer interests.
The concept of a regulatory sandbox was initially introduced in the 2022 draft telecom bill for public consultation, with provisions aimed at fostering tech innovation. In March 2023, the telecom department (DoT) directed Trai to solicit stakeholder suggestions on the matter. The final version of the telecom bill is expected to introduce an “authorisation regime” for OTT communication apps, a departure from the licensing regime proposed in earlier versions. This adjustment addresses concerns raised by tech companies, which argued that excessive regulations could impede the growth of the OTT communications industry.
The forthcoming regulatory framework aligns with the evolving nature of the telecommunications industry, emphasising flexibility and adaptability. By steering away from a licensing regime in favour of an “authorisation regime” for OTT communication apps, the final version of the telecom bill is set to strike a balance between regulatory oversight and industry growth. As stakeholders eagerly await the implementation of these innovative measures, the regulatory sandbox emerges as a promising arena for technological experimentation, ultimately contributing to the continued evolution and advancement of India”s telecommunications sector.
