Foreign apps generating large volumes of data should contribute to the building of telecom networks as it will create the right structure in the market, a senior official of think tank C-DEP said.

He emphasised the importance of creating a fair market structure, suggesting that these data-heavy apps, primarily from the US and China, should financially support the networks they heavily rely on, PTI reported from New Delhi.

Bhattacharya highlighted the imbalance where heavy data consumers, mostly non-Indian entities, generate significant revenue without adequately contributing to the network’s financial sustainability.

Telecom operators have been advocating for revenue sharing from these data-intensive over-the-top (OTT) services, arguing that they should pay for utilizing network resources akin to building motorways for smoother services. However, industry bodies representing major apps like Google, Facebook, and Netflix have opposed this, citing concerns about violating net neutrality principles.

Bhattacharya emphasized the critical role of telecom companies in India’s digital infrastructure and national security. He stressed the need to prevent foreign control over these essential sectors and underscored the increasing capital demands for technological advancements, from 2G to the present 5G.

The telecom sector’s capital requirements have escalated dramatically with each technological leap, leading to concerns about insufficient returns on the capital employed. Despite the rollout of 5G services, telecom operators like Bharti Airtel and Reliance Jio have struggled to translate this into revenue.

Bhattacharya highlighted the urgency to embrace new technology waves while addressing the investment challenges faced by telecom companies, whose profitability margins in comparison to capital employed remain low.

He proposed that foreign companies generating substantial data should negotiate and contribute to the network’s financial stability. He emphasised the importance of ensuring democratic participation in these contributions, allowing for innovation at telecom companies while safeguarding the resilience of India’s critical infrastructure.

According to Bhattacharya, this approach would secure investments in telecom without constraining local startups and Indian companies, promoting a more equitable and resilient infrastructure.