AIDC flags ‘unregulated’ OTT television boom, urges stricter norms from TRAI

The cable television industry has intensified its demand for stricter oversight of internet-based TV services, cautioning that the rapid expansion of app-driven television platforms could hasten the decline of India’s cable and DTH ecosystem.

In detailed responses to the Telecom Regulatory Authority of India’s (Telecom Regulatory Authority of India) consultation paper on Application-based Linear Television Distribution (ALTD) and Free Ad-Supported Streaming Television (FAST) channels, industry participants including the All India Digital Cable Federation and Siti Networks Limited argued that OTT-based linear TV services are increasingly operating like traditional broadcasters while remaining outside the regulatory structure governing cable and DTH operators.

Industry associations have called on Telecom Regulatory Authority of India to establish a “technology-neutral” regulatory framework, stating that current distribution platform operators (DPOs) face licensing rules, tariff controls, infrastructure spending and compliance obligations that streaming-based television services currently bypass.

The cable TV sector is pushing for classification of ALTD services. While streaming players position themselves as internet-native services separate from broadcast TV, industry stakeholders argued that regulation should depend on the nature of content delivery rather than the device or screen used by viewers.

Siti Networks, in its submission, said scheduled linear TV channels delivered via the internet should be regulated in the same way as conventional television distribution systems. It added that the current gap between cable and app-based television has created an uneven regulatory field that disadvantages licensed operators.

The All India Digital Cable Federation (AIDCF) took a stronger stance, alleging that several OTT-based TV services function as digital distribution networks while presenting themselves as streaming apps to avoid regulatory scrutiny.

According to the federation, many such services originated as extensions of traditional TV distribution and later shifted to internet-based delivery without matching compliance requirements.

The federation cited Ditto TV, launched by Zee in 2012, as one of the earliest examples of linear television replicated over internet delivery. Industry executives said such platforms have expanded quickly within what they termed a “regulatory void,” allowing them to avoid heavy capital costs borne by licensed multi-system operators and DTH providers.

To ensure parity with existing DPO rules, the federation suggested a financial and compliance structure for ALTD operators. The proposal includes a Rs 10 crore entry fee, Rs 10 crore minimum net worth requirement, an authorisation fee of 8% of adjusted gross revenue, and a Rs 1 crore security deposit.

Stakeholders said these steps are needed to ensure accountability and establish a level playing field between traditional broadcasters and internet-based TV services.

One of the most disputed issues raised in the submissions concerns the carriage of allegedly unregistered TV channels on streaming-based platforms. Under current Ministry of Information and Broadcasting norms, television channels must be registered and approved before being distributed in India.

However, industry bodies claimed several FAST and ALTD platforms are carrying hundreds of unregistered channels.

The AIDCF specifically named platforms such as DistroTV, YuppTV, Samsung TV Plus and LG Channels. The federation estimated that over half the channels on some platforms reportedly lack valid registration. To strengthen its case, industry bodies cited global regulatory examples, referring to laws such as the Online Streaming Act and Media Act 2024, which expanded broadcasting rules to include certain online streaming services.

The AIDCF argued that global regulators are increasingly treating online TV services as part of the wider broadcasting ecosystem, regardless of transmission technology. It added that India should adopt a similar approach to prevent long-term disruption in the licensed TV distribution sector.

Telecom Regulatory Authority of India is currently reviewing stakeholder feedback on the consultation paper before finalising recommendations on the regulatory framework for ALTD and FAST services.

The outcome is expected to significantly impact India’s broadcasting landscape. Pitchonnet