NEW DELHI: Revenue of Telecom Operators Voice calling has declined by about 80 percent and texting by 94 percent over the past 10 years as use of internet-based calling and messaging apps has increased, according to a study trai paper.
According to the paper, however, revenue per user from data usage increased more than 10-fold between the June quarter of 2013 and the December quarter of 2022.
In its latest paper, the telecommunications regulator Trai presents the regulation of Internet messaging and calls such as apps Whatsapp, Google Meet, face time etc said that the increasing use of over-the-top (OTT) applications for messaging and voice communications has led to a shift from voice and SMS to data as the main revenue stream for telecom service providers worldwide.
“In India, the composition of the revenue basket of wireless access service providers has fundamentally changed over the period 2013-2022,” said the Indian Telecoms Regulatory Authority (Trai) in its consultation paper on the “Regulatory Mechanism for Over-The-Top (OTT) Communications Services and selective ban of OTT services”.
All major components of average revenue per user (ARPU) – a key matrix measuring telecom operator growth – except data revenue share declined between the June quarter of 2013 and the December quarter of 2022.
According to the paper, the share of data revenue has increased more than 10-fold to 85.1 percent in the December quarter of 2022, from 8.1 in the June quarter of 2013 per subscriber, while the ARPU for the year has increased only about 41 percent from Rs. 123.77 rose to 146.96 rupees over the same period.
Data in the paper shows that between the December 2022 quarter and the June 2013 quarter, the share of revenue calling fell to Rs.14.79 or 10.1 percent at the ARPU of Rs.146.96 from Rs.72.53 or 58.6 percent .
Likewise, SMS revenue share fell from 3.99 rupees or 3.22 percent to 23 paise or 20 percent of ARPU.
In the paper, Trai examines whether OTT players can be brought under a licensing framework that results in them paying entrance fees, paying royalties, facilitating lawful wiretapping, providing call data recording, paying for regulatory compliance, etc. for the provision of services
The regulator, in its previous recommendations, has allowed OTTs to operate in the country without obtaining a license. However, a parliamentary panel on communications and IT recommended examining a selective ban on internet calling services and messaging apps to mitigate the impact of a full internet shutdown in a disrupted area.
Trai, reviewing various recommendations, orders and studies, said that shutting down telecommunications or the internet can have a significant impact on a country’s economy, and also affect important services such as education and healthcare.
“For these reasons, a selective ban on certain OTT applications and websites, etc. that are likely to be used by terrorists or anti-national elements to foment unrest in the indicated regions seems preferable to a complete internet shutdown,” Trai said.
According to the paper, however, revenue per user from data usage increased more than 10-fold between the June quarter of 2013 and the December quarter of 2022.
In its latest paper, the telecommunications regulator Trai presents the regulation of Internet messaging and calls such as apps Whatsapp, Google Meet, face time etc said that the increasing use of over-the-top (OTT) applications for messaging and voice communications has led to a shift from voice and SMS to data as the main revenue stream for telecom service providers worldwide.
“In India, the composition of the revenue basket of wireless access service providers has fundamentally changed over the period 2013-2022,” said the Indian Telecoms Regulatory Authority (Trai) in its consultation paper on the “Regulatory Mechanism for Over-The-Top (OTT) Communications Services and selective ban of OTT services”.
All major components of average revenue per user (ARPU) – a key matrix measuring telecom operator growth – except data revenue share declined between the June quarter of 2013 and the December quarter of 2022.
According to the paper, the share of data revenue has increased more than 10-fold to 85.1 percent in the December quarter of 2022, from 8.1 in the June quarter of 2013 per subscriber, while the ARPU for the year has increased only about 41 percent from Rs. 123.77 rose to 146.96 rupees over the same period.
Data in the paper shows that between the December 2022 quarter and the June 2013 quarter, the share of revenue calling fell to Rs.14.79 or 10.1 percent at the ARPU of Rs.146.96 from Rs.72.53 or 58.6 percent .
Likewise, SMS revenue share fell from 3.99 rupees or 3.22 percent to 23 paise or 20 percent of ARPU.
In the paper, Trai examines whether OTT players can be brought under a licensing framework that results in them paying entrance fees, paying royalties, facilitating lawful wiretapping, providing call data recording, paying for regulatory compliance, etc. for the provision of services
The regulator, in its previous recommendations, has allowed OTTs to operate in the country without obtaining a license. However, a parliamentary panel on communications and IT recommended examining a selective ban on internet calling services and messaging apps to mitigate the impact of a full internet shutdown in a disrupted area.
Trai, reviewing various recommendations, orders and studies, said that shutting down telecommunications or the internet can have a significant impact on a country’s economy, and also affect important services such as education and healthcare.
“For these reasons, a selective ban on certain OTT applications and websites, etc. that are likely to be used by terrorists or anti-national elements to foment unrest in the indicated regions seems preferable to a complete internet shutdown,” Trai said.
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