The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) recently clarified that Over-the-Top (OTT) platforms do not fall under the Telecom Regulatory Authority of India (TRAI) Act, 1997. Instead, their operations are governed by the Information Technology Act, 2000 and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. This clarification is significant for stakeholders in the media and broadcasting industry, as it defines the regulatory boundaries between telecom and digital media frameworks.
Factual Background
The order, delivered on October 4, 2023, arose from a Broadcasting Petition in All India Digital Cable Federation (AIDCF) v. Star India Pvt. Ltd. AIDCF argued that Star India was engaging in discriminatory practices by charging cable operators for access to its channels, while simultaneously offering free streaming of ICC World Cup cricket matches via its OTT platform. AIDCF alleged this practice violated Regulation 3(2) of the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017, which governs fairness and non-discrimination in broadcasting services.
Key Findings of TDSAT:
- OTT platforms not TV channels: Since OTT services do not require a license or approval from the Central Government, they are outside the purview of the TRAI Act, 1997.
- Not classified as distributive platforms: OTT platforms are distinct from “Distributive Platforms,” “Distribution of Television Channels,” or “Television Channels” as defined under the 2017 TRAI Regulations.
- Scope for consumer evidence: AIDCF may submit a verified list of subscribers who have opted for Star Sports on their platforms. This can be presented before the Tribunal through an affidavit during the final hearing.
While the interim order tilts in favour of OTT platforms, excluding them from TRAI’s regulatory framework, the Tribunal stressed that the final outcome will depend on the full hearing of the case.
Business & Legal Implications
This ruling highlights the regulatory complexities at the intersection of traditional broadcasting and digital media. For startups, digital service providers, and established media businesses, clarity in jurisdiction is crucial for compliance planning, investment decisions, and content distribution strategies.
At Seraphic Advisors, our Technology, Media & Telecom practice works closely with clients to navigate TRAI regulations, digital compliance under the IT Act, and cross-platform disputes. Our team also supports businesses in corporate structuring and intellectual property protection to help them stay compliant in India’s evolving regulatory environment.