Telecom Disputes Panel Asserts Lack of TRAI Jurisdiction Over OTT Platforms

06 Oct, 2023

Telecom Disputes Panel Asserts Lack of TRAI Jurisdiction Over OTT Platforms

In a recent decision, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has confirmed that Over-the-Top (OTT) streaming platforms, including popular services like Disney+Hotstar, do not fall within the jurisdiction of the Telecom Regulatory Authority of India (TRAI). Instead, they are governed by the Information Technology Rules of 2021, as notified by the Ministry of Information Technology.

The ruling, issued on a Wednesday, asserts that OTT platforms such as Disney+Hotstar are not subject to the TRAI Act because they do not require any form of permission or licensing from the Union government. This decision carries significant weight, especially considering the ongoing efforts by both TRAI and the Department of Telecommunications (DoT) to regulate OTT services. These regulatory attempts have faced opposition from the Ministry of Information Technology, as previously reported by The Indian Express.

The case leading to TDSAT's verdict stemmed from a petition filed by the All India Digital Cable Federation (AIDCF). AIDCF alleged that Star India's practice of streaming ICC Cricket World Cup matches for free on mobile devices through its Disney+Hotstar platform was discriminatory under TRAI regulations. This claim was based on the argument that viewers could only watch these matches on the Star Sports TV channel if they subscribed by making monthly payments for channels.

TDSAT, however, rejected AIDCF's interim plea, which sought to restrain Star India from offering Star Sports on mobile devices free of charge or providing free access to Star Sports to AIDCF's cable operator members.

The DoT had previously released a draft telecom Bill with the intention of categorizing OTT platforms as telecommunication services and subjecting them to regulation similar to telecom operators. Simultaneously, TRAI had issued a consultation paper on the regulation of OTT platforms.

However, the Ministry of Information Technology maintains the position that, according to the Allocation of Business Rules, internet-based communication services do not fall within the jurisdiction of the DoT. This ongoing debate highlights the complex and evolving nature of regulatory oversight in the digital era.