OTT under IT Rules, linear under TRAI poses fairness challenge: TRAI Chief Lahoti

Mumbai: At FICCI Frames 2025, TRAI Chairman Anil Kumar Lahoti said that OTT is governed by the IT (Intermediary Guidelines & Digital Media Ethics Code) Rules, 2021, while TRAI regulates linear TV and radio. 

Lahoti explained that while TRAI regulates linear TV and radio, online content falls under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. 

This dual structure, he said, creates challenges. “Unlike OTT, where the broadcaster’s content can be directly delivered to or accessed by consumers over the internet, linear TV has multiple players in the chain. This multi-player ecosystem throws its own challenges in facilitating a non-discriminatory and fair deal to all players, irrespective of their size or geography,” the TRAI Chairman told delegates at the 25th edition of FICCI Frames.

Calling for equilibrium between innovation and oversight, Lahoti said, “The key challenge is to strike the right balance between innovation and necessary regulation so the broadcasting ecosystem remains competitive, inclusive and responsive to emerging technologies and dynamic audience needs.” 

He reaffirmed TRAI’s role as an “enabler for the orderly growth” of broadcasting, adding that policy and regulation must facilitate innovation so the industry “reaps the fruits of technology.”

While underlining consumer protection, Lahoti stressed that the regulator is “conscious of protecting the interests of smaller players in the equipment industry from unfair or anti-competitive practices.” 

TRAI’s regulatory approach, he said, is “open, consultative and collaborative,” aimed at creating a win-win for all stakeholders.

Sector outlook and consumption shift

Lahoti described the M&E sector as “vibrant” and pivotal to India’s cultural discourse. 

He cited a Rs 2.5 trillion contribution to the economy in 2024, with a projected 7% CAGR to cross Rs 3 trillion by 2027; television and broadcasting accounted for nearly Rs 680 billion in 2024. Smart TVs, smartphones and high-speed broadband have multiplied consumer choice, with 600+ million OTT users (about 41% of the population). 

Even so, linear TV remains critical: India has ~190 million TV households, of which ~160 million have linear subscriptions, and 100+ million homes still don’t own a TV, when they do, many will enter via linear.

On the supply side, the ecosystem spans 300+ broadcasters, 900+ TV channels, 388 private FM stations, multiple national/international streamers, 800+ MSOs, 4 DTH operators, a HITS operator and 80,000+ LCOs, plus Doordarshan’s 35 free TV channels and AIR’s 591 stations.

Recent and upcoming reforms

Lahoti said TRAI in 2024 undertook extensive amendments to the Cable & TV Broadcasting framework, removing prescriptive rules and simplifying compliance to improve ease of doing business. He highlighted:

• A completely overhauled authorisation framework for broadcasting services under the Telecommunications Act, 2023, harmonising multiple licences into an authorisation-based, simplified regime.
  
  
• A new regulatory framework for ground-based broadcasters, allowing transmission through mediums beyond satellites.
  
  
• Inputs to MIB for a National Broadcasting Policy, post industry consultations, to accelerate growth and position India as a global hub.
  
  
• Relief measures for financially stressed FM radio, and a digital radio rollout beginning with 13 A+ and A-category cities.

Creativity, language and the ‘Orange Economy’

Pointing to rapid advances in broadband, cloud and AI, Lahoti said technology is reshaping how content is created, distributed and consumed. India’s 22+ major languages and hundreds of dialects, he noted, create vast opportunities. 

Recalling the Prime Minister’s remarks at the WAVES Summit, he underscored the Orange Economy powered by content, creativity and culture, urging creators to tell India’s untold stories and investors to “invest in people, not just platforms.”

Collaboration as the way forward

“The evolution of technology and India’s socio-economic momentum have opened enormous opportunities, and new challenges,” Lahoti concluded. “Collaboration among stakeholders is the best way forward to seize this moment and realise the Orange Economy.” As the sectoral regulator and policy enabler, TRAI will work with the industry to ensure orderly growth and a balanced, innovation-friendly market.