By Tapanjana Rudra
The Internet and Mobile Association of India (IAMAI) said in a statement on Friday (November 25) that the recently concluded consultation on the country’s Draft Telecom Bill is either a ‘wilful misinterpretation’ of how the digital economy works or lacks the fundamental understanding of it.
The Draft Telecom Bill, introduced in September this year, has already received ample criticism from various stakeholders for the kind of reforms it aims to bring into the industries that are under the Department of Telecommunications’ (DoT) purview.
After suggesting the government to keep OTT and DTH services out of the Bill’s purview, IAMAI has now said that by creating room for licencing provisions applicable to OTT service providers, the government is creating an ‘existential threat’ to India’s startup ecosystem as they will be hindered by great barriers to entering into the sector.
“Not only would this mean that aspiring Indian startups, which are still evolving and developing their business and monetisation models, will risk massive compliance costs in their infancy, but also would mean that foreign investors bullish on Indian startups may experience a chilling effect owing to the drastic policy uncertainty,” IAMAI said in its statement.
IAMAI represents various technology sectors including digital advertising, digital entertainment, traveltech, online gaming, digital payments, fintech, digital commerce, blockchain, and big data, and hence, companies such as Amazon, Twitter, Microsoft, and several Indian tech startups.
The industry body said that it was appalled at the ‘regression’ and ‘denigration’ of the discussion around regulating the digital economy, particularly at a time when India is leapfrogging into becoming a global startup hub. https://inc42.com
