The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) recently held that Over the Top (OTT) platforms are not governed by the Telecom Regulatory Authority of India (TRAI) Act, 1997 and would be covered by the Information Technology Act, 2000 and IT Rules, 2021.
Factual Background
The order was passed on October 04, 2023 in a Broadcasting Petition, in the matter of All India Digital Cable Federation (AIDCF) v. Star India Pvt. Ltd., wherein AIDCF contended that Star India’s practice of charging them for their channel while allowing free streaming of ICC World Cup cricket matches on mobile devices via their OTT platform is in violation of Regulation 3(2) of The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017.
TDSAT held:- OTT services are not classified as TV channels since they do not necessitate permission or a license from the Central Government. Hence, they are outside the regulatory framework of the TRAI Act, 1997.
- OTT platform is not covered under “Distributive Platforms” defined under Section 2(r) read with “Distribution of Television Channels or Distributor” defined under Section 2(s), and “Television Channel” defined under Section 2(pp) of Telecom Regulations 2017.
- AIDCF has the option to maintain a separate list of consumers who have subscribed to Star Sports channel on their platform, considering the same content is accessible through video streaming on the OTT Platform which can be presented before this Tribunal by way of an affidavit, before the final hearing of the Broadcasting Petition.
This interim order weighs in favour of OTT platforms, keeping their operations outside the purview of the TRAI Act, 1997. However, this arrangement is subject to the final outcome of the matter.