Central Idea

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has issued an interim order clarifying that Over the Top (OTT) platforms, such as Hotstar, fall outside the jurisdiction of the Telecom Regulatory Authority of India (TRAI).
Instead, they are governed by the Information Technology Rules, 2021, established by the Ministry of Electronics and Information Technology (MeitY).

Context for TDSAT’s Decision

The All India Digital Cable Federation (AIDCF) initiated the petition, alleging that Star India’s free streaming of ICC Cricket World Cup matches on mobile devices through Disney+ Hotstar is discriminatory under TRAI regulations.
This is because viewers can only access matches on Star Sports TV channels by subscribing and making monthly payments.

IT Ministry vs. DoT: The IT Ministry contends that internet-based communication services, including OTT platforms, do not fall under the jurisdiction of the DoT, citing the Allocation of Business Rules.
DoT’s Draft Telecom Bill: The DoT proposed a draft telecom Bill that classifies OTT platforms as telecommunications services and seeks to regulate them as telecom operators. This move has encountered objections from MeitY.

Changing Stance: TRAI, after three years of maintaining that no specific regulatory framework was required for OTT communication services, began consultations on regulating these services.
Consultation Paper: In June, TRAI released a consultation paper seeking input on regulating OTT services and exploring whether selective banning of OTT services could be considered as an alternative to complete Internet shutdowns.
Telecom Operators’ Demand: Telecom operators have long advocated for “same service, same rules” and have pushed for regulatory intervention for OTT platforms.

TDSAT decision holds significance due to ongoing debates over the regulation of OTT services.
TRAI and the Department of Telecommunications (DoT) have been attempting to regulate OTT platforms, while the Ministry of Electronics and Information Technology opposes these efforts.

In September 2020, TRAI recommended against regulatory intervention for OTT platforms, suggesting that market forces should govern the sector.
However, it also emphasized the need for monitoring and intervention at an “appropriate time.”

The recent TDSAT ruling on OTT platform jurisdiction adds complexity to the ongoing debate over the regulation of these services in India.
While TRAI and the DoT seek regulatory measures, the IT Ministry contends that such services fall outside the purview of telecommunications regulation.
The evolving landscape highlights the need for a nuanced approach to balance the interests of various stakeholders, including telecom operators, government authorities, and the broader public.