TRAI can’t regulate OTT platforms

Why in the News?

India’s telecom appellate panel has held that Over the top (OTT) platforms like Hotstar are not in the jurisdiction of the Telecom Regulatory Authority of India (TRAI).

• This was passed as an interim order by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
• They shall be governed by the Information Technology Rules, 2021, notified by the Ministry of Electronics and Information Technology (MeitY).

In what context did TDSAT pass this order?

1. A petition was filed by the All-India Digital Cable Federation (AIDCF), which alleged that free streaming of matches of the ICC Cricket World Cup on mobile devices by Star India through its platform Disney+Hotstar is discriminatory under TRAI regulations.
2. Such allegation was made as the matches can be watched on Star Sports TV channel only if the viewer has subscribed by making a monthly payment.
3. In this context, such an order was passed.

Why is this order significant?

1. The Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT)  rejection of AIDC’s plea is significant as it has kept OTT from outside the purview of TRAI.
2. The order comes on the background that TRAI, the statutory telecom regulator, and the Department of Telecommunications (DoT) under the Union Ministry of Communications, are attempting to regulate OTT services, which has been challenged by the Ministry of Electronics and Information Technology.
3. The DoT had released a draft telecom Bill which classified OTT platforms as telecommunications services, and sought to regulate them like telecom operators.
4. The TRAI, separately, has issued a consultation paper on how to regulate OTT platforms.

Why is the IT Ministry disagreeing with DoT over OTT regulation?

1. The IT Ministry believes that under the Allocation of Business Rules, Internet-based communications services are not part of DoT’s jurisdiction, with specific focus on OTT communications.
2. DoT has also been made clear by MeiTY that it can only regulate the telephony, wireless communications, and private sector licences.

What is TRAI’s attempt at regulating OTT services?

1. It formerly recommended against creating a specific regulatory framework for OTT communication services like WhatsApp, Zoom, and Google Meet.
2. TRAI has revisited its stance, and started consultations on how these services can be regulated.
3. It has sent suggestions that whether a selective banning of OTT services could be done as opposed to entirely shutting down the Internet.
4. TRAI had recommended against regulatory intervention for OTT platforms, saying that it should be left to market forces. However, it had also said that the sector should be monitored, and intervention should be done at an “appropriate time”.