India's TRAI Proposes Internet TV Regulation, Challenging OTT Light-Touch Status
India's TRAI is exploring a regulatory framework for internet-based television services, including FAST channels, which could significantly impact the economics and obligations for telecom operators and OTT platforms. This initiative aims to address the convergence of traditional broadcasting and internet services, where linear TV increasingly functions as a data service over broadband. The framework could redefine carriage deals, CDN arrangements, and content monetization for streaming services, challenging the current light-touch regulation for OTT players.
Key Takeaways
- TRAI's proposed framework aims to regulate internet-based television services, including FAST channels.
- The initiative addresses the shift of linear TV to a data service over broadband, impacting telecom operator obligations and OTT economics.
- The framework could redefine carriage deals, CDN arrangements, and content monetization for streaming services.
- The proposal directly challenges the current light-touch regulatory approach for OTT platforms in India.
Why It Matters
TRAI's push to regulate internet TV services in India creates a direct tension between established telecom and broadcasting regulations and the largely unregulated OTT sector. If implemented, this framework could significantly increase operational costs and compliance burdens for streaming providers, reshaping the competitive landscape for content delivery and monetization in one of the world's largest streaming markets. Watch how industry stakeholders respond to the consultation, particularly regarding specific proposals for licensing and parity with traditional distributors.
Additional Context
The Telecom Regulatory Authority of India's (TRAI) proposal for regulating internet TV services has elicited considerable pushback from various industry groups. The Internet and Mobile Association of India (IAMAI), along with Jio Platforms and JioStar, argue that the proposed definitions for "application-based linear television distribution" (ALTD) and FAST platforms are too broad, potentially subjecting OTT platforms, social media video services, and news websites with video sections to broadcast-style licensing, despite already being governed by the IT Rules, 2021 (The Economic Times, June 2026). They emphasize that internet TV services operate on an open internet model, not on scarce spectrum or dedicated infrastructure like traditional broadcasting, making traditional broadcast regulations unsuitable. Similarly, smart TV manufacturers like LG and industry body MAIT urge TRAI to exclude device makers from the regulatory scope, asserting that TVs are merely hardware platforms and not content distributors with editorial control (Medianama, June 2026; Convergence Now, June 2026). They contend that content curation and monetization responsibilities lie with application providers. Conversely, traditional distribution players, including the All India Digital Cable Federation (AIDCF) and Zee Entertainment Enterprises Limited (ZEEL), advocate for a "same service, same rules" principle, arguing that internet TV distributors should face similar obligations to licensed cable and DTH operators to ensure competitive neutrality (The Economic Times, May 2026). The consultation paper from TRAI references a notable decline in DTH subscribers, from 66.62 million in December 2022 to 50.99 million in December 2025, a 23% drop, while connected TV households exceeded 68 million, highlighting the shift driving TRAI's concerns (The Economic Times, May 2026).
Read full article at communicationstoday.co.in
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