Trai to Issue Consultation Paper on Regulation of OTT Apps Streaming TV Channels

After bringing the new tariff regime to effect, the Trai is now thinking whether or not OTT Apps streaming TV channels should be regulated

Highlights
  • Telcos, cable operators and DTH providers are of the thought that OTTs should be regulated
  • Broadcasters and OTT platforms say that regulations would hinder innovation in the sector

After bringing rules to regulate the TV and broadcasting industry in India, the Telecom Regulatory Authority of India (Trai) is ideating on regulation for the Over-the-top (OTT) apps like Hotstar, Airtel TV and Sony Liv which stream TV channels, as per a new ET Telecom report. The idea is to bring these channels under a similar regulatory framework which has been recently implemented in the industry. It is worth noting that these applications currently remain unregulated and in some cases are offered for free to the users.

OTT Apps Creating Unlevel Playing Field in Industry

A senior official from Trai said about this, “Carriage of TV programming has been licensed out to registered broadcasters who are then allowed to give the content to cable operators or satellite players, under a licensing framework. If a third party, like an app, is showing the same channels without paying carriage charges and licence fee, it creates disparity.” He added to his words, “Either both should be under the ambit of the licence, or both should be exempted.”

It is possible that the sector regulator may issue a consultation paper around July or August. Another thing to note is that in India, the broadcasting license is valid for ten years, and the licensee must comply with the programming and advertising code under the cable TV (regulation) Act. The channels are also mandated to follow the guidelines set by the I&B ministry. However, these applications are governed by the IT Act and are not licensed. If Trai goes ahead with this move, then it is bound to face some resistance from these applications and also from the broadcasters who have their own apps like Star India, Sony, Zee and Times Network.

Telcos Also Supporting Regulation of OTTs As They Provide Same Service

Video streaming service MX Player’s CEO Karan Bedi said, “OTT platforms are only an additional medium for viewers to watch TV channels. TV channels by themselves are already sufficiently regulated. Any additional licensing framework is entirely unnecessary.”

Regarding this issue, broadcasters having their own OTT apps have already told Trai that OTT apps should not be regulated and they have sought forbearance from Trai. On the same lines, Star India in the consultation paper regarding OTT app regulation said, “Trai does not have the authority under the Act (Telecom Regulatory Authority of India Act, 1997) to regulate OTTs… the internet ecosystem, of which OTTs are an integral part, is governed and regulated by the Information Technology Act, 2000, and the rules notified thereunder.”

On the other hand, DTH companies and cable operators’ associations have asked the regulator to deal with the unfair playing field that these OTT players have developed. Trai is also going on with a consultation about whether or not apps like WhatsApp and Skype should be regulated since they provide communication services like voice and calls similar to telcos which, unlike these apps are regulated. Carriers in India have been in favour of regulating these applications, but the OTTs have said that regulating them would be a hurdle to innovation.

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Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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ravindraNiteshArenaBiswadeep, IndiaBharat Khanna Recent comment authors
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Bharat Khanna
Bharat Khanna

please focus first on the excessive pricing by tv channels and get them reduced. who pays 22 rs to watch a channel with a gazillion ads. regualte the price and number of ads

Rishi Roy
Rishi Roy

Isn’t that 4 months long drama enough to see and gobble the mess for all of us? Consultation papers should have been flooded with complaints regarding TV regime only. the OTT platform needs to remain unharmed . Also am paying for Hotstar premium and amazon prime. Why should there be any need to buckle things anymore? Everything already coming at a price.

City
Bankura, WB
Biswadeep, India
Biswadeep, India

Exactly I recently bought a fire TV stick now if they start poking nose in OTT platforms then it’s too much to handle

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