The way TV is viewed in India has changed recently. Smart TVs are now available in many homes and people increasingly rely on the internet for TV viewing. Recognizing this shift, TRAI (Telecom Regulatory Authority of India) is preparing to take a major step regarding internet-based TV services. Reports suggest that it may recommend bringing free ad-supported streaming TV (FAST) and application-based linear TV distribution (ALTD) under a single regulatory framework.
This initiative, initiated following a directive from the Ministry of Information and Broadcasting, has divided the TV and broadcasting industry. While cable and DTH operators are demanding equal rules, tech companies and OTT platforms are opposing it.
The Ministry of Information and Broadcasting had asked TRAI whether FAST and ALTD services, which provide free and scheduled TV channels online, should be subject to licensing. Reports indicate that TRAI’s position on this issue is that services providing TV-like services over the internet cannot be exempted from regulations.
It is being claimed that by 2028, the number of connected TVs in Indian homes could increase from 20 million to 40 million. This is also driving significant economic change in the sector.
Broadcasters argue that cable and DTH are subject to strict tariff, consumer protection, and content code regulations. However, those broadcasting TV channels over the internet are exempt from these regulations. Furthermore, people are now reluctant to pay for TV subscriptions.
OTT platforms and tech companies have opposed any regulation by TRAI. These companies argue that they merely use the internet and telecom networks and are not telecom operators themselves. Furthermore, OTT has already been exempted from the Telecommunications Act 2023.
Additionally, it is being argued that simply providing a channel-like format does not make a service traditional TV. These companies believe that it should be placed under existing IT rules rather than cable or DTH regulations.
If TRAI introduces regulations for Internet TV, similar to those for cable TV or DTH, then:
This will give viewers the right to file complaints in case of poor service or fraud.
This will also curb obscene or misleading advertisements and objectionable content on Internet channels, just like on TV.
Currently, many channels that are free to watch on the Internet can charge users after the licensing fee is imposed. This will make watching TV on the Internet no longer free.