India's regulator faces industry backlash over FAST and internet TV proposals
India's Telecom Regulatory Authority (Trai) is proposing new regulations for internet TV services, including FAST platforms, which has elicited strong pushback from industry groups like IAMAI and JioStar. These groups argue that such services are already covered by existing IT Rules, 2021, and that new regulations could inappropriately extend broadcast-style licensing to OTTs, social media video services, and news websites with video content. They emphasize the structural differences between traditional television and internet streaming, which operates over the open internet rather than licensed infrastructure.
Key Takeaways
- Trai has coined the term Application-based Linear Television Distribution (ALTD) to classify apps and websites streaming scheduled TV channels.
- IAMAI warns the broad regulatory definition could inadvertently pull social media video services and digital news sites into a broadcast-style licensing regime.
- The PHD Chamber of Commerce argues that OTT delivery over open internet is structurally distinct from cable and DTH systems using licensed infrastructure.
- Stakeholder pushback emphasizes that OTT services are currently governed by the Information Technology Act, 2000, not telecom laws.
Why It Matters
The proposed shift represents a fundamental challenge to the 'open internet' model that has fueled India's streaming growth. If Trai successfully implements a broadcast-style licensing framework for FAST and ALTD services, platforms face increased compliance costs and potential content pre-certification requirements similar to linear TV. This move threatens the agility of digital-first players and could force a consolidation as smaller operators struggle with new regulatory overhead. Internally, it highlights a jurisdictional tension between telecom and IT regulators. Watch for the Ministry of Information and Broadcasting’s final stance on the Broadcasting Services (Regulation) Bill, which may override Trai's recommendations.
Additional Context
The regulatory push comes as India emerges as the world’s fourth-largest FAST market, with ad-supported models projected to drive over 70% of incremental streaming revenue through 2030, according to Media Partners Asia (MPA) in January 2026. This rapid growth has strained ties with legacy distributors; the All India Digital Cable Federation (AIDCF) reached out to the Ministry of Information and Broadcasting (MIB) in late 2025 to complain about the 'unregulated' expansion of FAST services that retransmit pay-TV channels for free, potentially violating pricing parity rules. Trai's consultation paper explicitly cited these concerns as a driver for the current inquiry. Technological and structural shifts are further complicating the debate. Per Apprupt (April 2026), Connected TV (CTV) penetration in India grew by 85% in 2025, reaching 45 million households. This shift toward large-screen, linear-style viewing on digital infrastructure has blurred the lines between 'broadcasting' and 'streaming' in the eyes of regulators. While the Ministry of Electronics and Information Technology (MeitY) currently oversees OTT via the IT Rules, 2021, the MIB has been steadily consolidating its own oversight, recently removing Trai from the television ratings ecosystem via the Television Ratings Policy, 2026. Concurrent with Trai’s efforts, the Indian government has been drafting the Broadcasting Services (Regulation) Bill, 2024. Per DataLeads (September 2024), earlier drafts of the bill sought to replace the 30-year-old Cable TV Networks Act and proposed mandatory Content Evaluation Committees (CECs) for OTT platforms. The withdrawal and subsequent redrafting of that bill in late 2024 followed widespread criticism regarding overreach into the digital economy. The current Trai consultation on ALTD services is widely viewed by stakeholders as a secondary attempt to establish the same level of control over the internet-delivered linear video market.
Read full article at m.economictimes.com
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