Amid ongoing clashes between OTT players and incumbents in the telecom and DTH sector, Telecom Regulatory Authority of India (TRAI) Chairman PD Vaghela has called for creating a level-playing field when it comes to licensing content delivery technologies.
Vaghela argued for a simpler licensing regime across content delivery technologies, stating that instead of regulating new entrants in the OTT space, a simple regulatory regime for licensing and cross-holding would be more advisable.
Read: Can OTT platforms displace cable TV and DTH?
“When it comes to OTT, there is no licensing regime, no cross-holding restrictions. As far as TRAI is considered, we have limited mandate, we can regulate those service providers whom government is giving licence to. OTT services have not been given licensing, therefore, we do not have a mandate there,” said Vaghela at FICCI Frames 2023, which is the annual flagship event for media and entertainment sector.
While Vaghela added that the TRAI is set to introduce consultation paper to ascertain whether the OTT sector should come under the regulatorily ambit, he hinted that a simpler regulatory framework for the incumbents is much more prudent than increasing the barriers of entry for new technologies in the content distribution space.
Earlier in the day, Bharti Airtel CEO, Gopal Vittal, highlighted that new content distribution technologies that utilise the Internet (such as Reliance’s JioCinema) are the “wild west” that are “breaking the back of the subscription industry”. Especially as these technologies are under no regulatory purview, such as, a licensing regime or cross holding restrictions. Last month, Airtel had written to the TRAI asking them to level the playing field between traditional DTH technologies and content distribution through broadband. Airtel has a DTH business, Airtel Digital TV.
Vaghela also weighed in on TRAI’s controversial tariff policy for broadcasting content, NTO 2.0. “Personally, I believe that there should be complete forbearance. The regulator has no onus of controlling the tariff, there should not such complex pricing regime,” he said. “But we have to protect the local cable operators in the transition phase,” Vaghela added, justifying the TRAI’s pricing policy.
However, Vaghela asked the industry to come together to provide recommendations so that complete forbearance can be achieved.
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Published on May 3, 2023
