In an interim ruling, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) made it clear that Overthe-Top (OTT) services like Hotstar are not under the purview of the Telecom Regulatory Authority of India (TRAI). Rather, the Ministry of Electronics and Information Technology (MeitY) issued the Information Technology Rules, 2021, which control them.
Context for TDSAT’s Decision
- The petition was started by the All India Digital Cable Federation (AIDCF), which claims that Star India’s free mobile device streaming of ICC Cricket World Cup matches via Disney+ Hotstar violates TRAI regulations.
- This is because fans must subscribe and pay a monthly fee in order to watch matches on Star Sports TV networks.
Diverging Opinions on OTT Regulation
- IT Ministry v. DoT: Citing the Allocation of Business Rules, the IT Ministry argues that internet-based communication services, including over-the-top (OTT) platforms, are not subject to DoT jurisdiction.
- DoT’s Draft Telecom Bill: The DoT put up a draft telecom bill that aims to regulate OTT platforms like telecom operators and categorizes them as telecommunications services. MeitY has voiced opposition to this approach.
TRAI’s Attempt at OTT Regulation
- TRAI has changed its position and started consulting on regulating over-the-top (OTT) communication services after arguing for three years that no particular regulatory framework was needed for these services.
- Consultation Paper: In June, TRAI published a consultation paper asking for suggestions on how to regulate over-the-top (OTT) services and whether prohibiting certain OTT services could be a better option than completely shutting down the Internet.
- Demand from Telecom Operators: Telecom companies have long campaigned for regulatory action against over-the-top (OTT) platforms and for “same service, same rules.”
Significance of TDSAT’s Order
- 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.
Recommendations and Monitoring
- 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.”
Conclusion
- The ongoing discussion about the regulation of these services in India is made more complex by the recent TDSAT verdict on the jurisdiction of OTT platforms.
- The IT Ministry argues that these services are not covered by telecom regulations, even as TRAI and the DoT pursue regulatory actions.
- The changing environment emphasizes the necessity of using a sophisticated strategy to balance the interests of many parties, such as government agencies, telecom companies, and the general people.
