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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
World Phone Internet Services Private Limited - Appellant
Versus
Union of India - Respondent
W.P.(C) 11173 of 2019
Decided On : 08-12-2022




The court recognized the need for a regulatory framework for Over-The-Top services and ordered stakeholder consultations with the petitioner for re-examination of existing recommendations.

Headnote:(A) Indian Telegraph Act, 1885 - Section 4 - Telecom Regulatory Authority of India Act, 1997 - Need for regulation of Over-The-Top services - The petitioner sought enforcement of regulations applicable to internet telephony services provided by platforms like Facebook and WhatsApp, claiming unfair competition. Issues regarding the regulatory framework for OTT services were referred back to TRAI for re-examination. (Paras 2-9)

(B) Stakeholder Consultation - The court ordered TRAI to conduct stakeholder consultations, allowing the petitioner to participate in the re-evaluation of OTT regulations. The case was disposed of without adjudicating the merits. (Para 8)

(C) Compliance and Accountability - The petitioner argued for accountability from OTT service providers consistent with the licensing framework of TSPs/ITSPs/ISP. The respondent noted the current recommendations suggest no immediate regulatory intervention for OTT services. (Paras 3-5)

Findings of Court:
The case was disposed of ordering TRAI to hold stakeholder consultations and reconsider recommendations without pronouncing on the substantive merits discussed.

Issues: The primary concerns were focused on regulatory compliance for OTT services and the appropriate framework for their governance.

Ratio Decidendi: The court recognized the necessity for a regulatory framework for OTTs while allowing representation from involved stakeholders during TRAI's re-evaluation process.

Result: Petition disposed of.

Table of Content
1. petition filed by itsp regarding regulatory compliance. (Para 2 , 3)
2. government's non-acceptance of trai recommendations. (Para 4 , 5)
3. petitioner seeks participation in trai consultations. (Para 6)
4. stakeholder consultations mandated for regulatory framework. (Para 7 , 8)
5. petition disposed without merit consideration. (Para 9)

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The Petitioner - World Phone Internet Services Pvt. Ltd. has filed the present petition seeking the following prayers:

"a) Pass an order directing the Respondents to enforce current regulations as applied to the Internet Telephony Services of Facebook messenger and WhatsApp to ensure that same are in compliance with the same regulatory/license framework as licensed TSPs/ITSPs/ISP's;

b) Pass an order directing the Respondents to enforce its regulations and make Facebook messenger and WhatsApp accountable for regulatory requirements as required under the UAS/ISP or Unified License granted under Section 4 of the Indian Telegraph Act 1885 and those issued by the Government from time to time;

c) Pass an order directing Respondent no 2 to forthwith immediately take steps to prevent services that are Licensed services as that of the Petitioner herein from being provided by Facebook messenger and WhatsApp;

d) Pass an order directing the Respondent no 2 to stop the unlicensed services of Facebook messenger and WhatsApp until they comply with the requirements as required under the UAS/ISP or Unified License granted under Section 4 of the Indian Telegraph Act 1885 and those issued by the Government from time to time;

e) Pass an order directing the Respondent no 2 to impose penalties for prior non compliance by Facebook and WhatsApp as required under the UAS/ISP or Unified License granted under Section 4 of the Indian Telegraph Act 1885 and those issued by the Government from time to time"

3. The case of the Petitioner is that it is an Internet Telephony Service Provider (hereinafter "ITSP"). It had entered into License Agreement bearing No.511/200-LR for category "A" Internet Service Providers for providing internet services (including internet telephony) in 2002, whereunder the Department of Telecommunication (hereinafter "DoT") imposed license fees of 6-8% of the Adjusted Gross Revenue earned from Internet Telephony. The license agreement has been renewed in 2019, by license agreement bearing no.DS-11/114/2015-DS-III. According to the Petitioner, the permissibility of internet telephony through various online communication channels such as Facebook and WhatsApp has worked to its detriment. While on the one hand, an ITSP pays the license fees per its license agreement (even for telephony services), such other companies and platforms are not regulated and do not pay any amounts to the Government. It was under these circumstances that the writ petition was filed seeking the above reliefs.

4. Notice was issued in this petition on 21st October, 2019. The affidavit of the DoT dated 25th November, 2022 has been filed on record. As per the said affidavit, which is sworn by the Assistant Director General, Department of Communication, Ministry of Communication and Information Technology, TRAI's recommendation suggesting that the regulatory framework for Over-The-Top (OTT) services is not required, has not been accepted. the Digital Communications Commission in its 19th meeting on 26th July, 2022, had referred the matter back to TRAI to suggest a suitable regulatory mechanism for OTT. Thus the Government has sent the said recommendations back to TRAI, and sought re-examination and re- consideration of the issue. Relevant paragraphs of the said affidavit are set out below:

"2. That the present Affidavit is being filed on behalf of Respondent No. 2 in view of the directions passed by this Hon'ble Court vide Order dated 08.09.2022, thereby, directing Respondent No. 2, to state on affidavit the status of

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