“GSMA advocates for a 'fair share' model on development and maintenance of networks”

Spotlight on Policy and Regulation | TelecomDrive.com

There is a growing debate between telecom operators and over-the-top (OTT) service providers, such as social media platforms today - this reflects the increasing burden on networks due to surging data traffic created by large traffic consumer companies. As a result - telecom operators have no option but to invest heavily in infrastructure in order to meet this growing demand. GSMA feels that this imbalance is underscoring the need for a more equitable approach to cost-sharing.

GSMA advocates for a 'fair share' model, where all players in the digital ecosystem – both telecom operators and the largest content providers – contribute to the development and maintenance of the networks they rely on. By ensuring that OTT service providers contribute their fair share, we can avoid conflicts and promote sustainable growth.

John Giusti, Chief Regulatory Officer, GSMA speaks with Zia Askari from TelecomDrive.com about the changing dynamics of the regulatory environment in today’s mobile industry and how can the industry move in a positive direction.

Please share your opinion on the changing dynamics of the regulatory environment, its impact on the mobile industry, and the necessary measures to adapt to these changes?

The regulatory environment is shifting rapidly, driven by advances in technology and growing demand for mobile connectivity. While these changes offer opportunities for innovation, they also present significant challenges for the mobile industry.

One key challenge is ensuring operators have affordable access to spectrum, which is essential for expanding 5G networks and preparing for 6G. Without timely access to spectrum, meeting rising connectivity demands becomes difficult.

Another major challenge is the substantial investment required to develop and maintain the infrastructure for next-generation networks. High regulatory costs, such as taxes and fees, can discourage these necessary investments. To address these challenges, governments and regulators must collaborate closely with operators to create streamlined, investment-friendly frameworks that encourage long-term development while ensuring fair competition.

How do you look at TRAI's new policy for network availability information on telecom websites?

TRAI’s new policy for increased transparency on network availability is a positive step towards enhancing consumer awareness and trust. Providing more detailed information on telecom websites can empower users to make informed choices regarding their network providers.

However, it’s important that this policy also accounts for factors outside of operators’ control, such as device compatibility, power supply, and network load. As long as these external influences are considered, this policy could foster greater accountability while promoting a consumer-centric approach to service quality.

Today there is a growing trend of Social Media companies clashing with telecom operators over the connectivity turf. Recently, Telekom and Meta are engaged in a legal battle over data traffic. How do you look at this trend and what can be done to avoid such situations ahead?

The growing debate between telecom operators and over-the-top (OTT) service providers, such as social media platforms, reflects the increasing burden on networks due to surging data traffic created by this handful of large companies. Telecom operators invest heavily in infrastructure to meet this demand, but what role should OTTs play in the infrastructure investment required to respond to the significant share of traffic generated by them. This imbalance underscores the need for a more equitable approach to cost-sharing.

GSMA advocates for a 'fair share' model, where all players in the digital ecosystem – both telecom operators and the largest content providers – contribute to the development and maintenance of the networks they rely on. By ensuring that OTT service providers contribute their fair share, we can avoid conflicts and promote sustainable growth. Collaboration between all stakeholders, including regulators, is essential to establish frameworks that support both innovation and infrastructure investment.

What is your opinion on the role of regulatory policies in promoting innovation?

Regulatory policies play a crucial role in fostering innovation, particularly in fast-evolving industries like telecommunications. By creating a supportive framework that encourages investment in new technologies, regulators can drive the development of next-generation networks, such as 5G and 6G. Additionally, policies that promote competition and fair access to resources like spectrum are essential for enabling smaller players to innovate alongside established firms. Ultimately, forward-looking regulation should aim to strike a balance between encouraging innovation and protecting consumer interests.

Please share GSMA's views on the potential impact of 6G for consumers, businesses, and the Indian economy?

6G will bring faster speeds and greater connectivity, transforming sectors like healthcare, agriculture, and manufacturing with innovations in IoT and AI. For consumers, it will enable advanced applications such as immersive virtual reality and real-time interactions.

India is well-positioned to benefit from 6G, given its focus on digitalisation and a growing tech ecosystem. However, early preparation is essential – India should engage in global standards discussions and invest in infrastructure to fully capture 6G’s potential. For now, the focus remains on maximising 5G’s value and exploring 5G-Advanced technology as a bridge to 6G.

How regulatory policies can play a pivotal role in promoting digital inclusion, particularly in developing countries like India?

Regulatory policies are fundamental to advancing digital inclusion, especially in developing countries where barriers to connectivity remain high. Policies that prioritise affordable access to mobile services, encourage investment in rural infrastructure, and reduce the cost of mobile devices can make a significant impact.

In India, initiatives like the Universal Service Obligation Fund (USOF) have already played a role in expanding connectivity. Going forward, regulators must continue to focus on creating an enabling environment for mobile operators, ensuring that spectrum allocation, licensing, and taxation policies do not inhibit progress toward universal access to digital services.