The great broadcast vs telecom showdown at TRAI OHD

New Delhi: The open house discussion organised by the Telecom Regulatory Authority of India (TRAI), on Wednesday, stood dissonant with stakeholders putting conflicting views on the table. 

A clear tussle was visible between broadcasters, who strongly opposed being put under the purview of the Department of Telecom (DoT), Ministry of Communications, and telecom players, who urged the regulatory authority to abide by the principle of ‘same service, same rules.’

Content vs carriage

Sanjay Agarwal, Vice President, Times Network, representing the News Broadcasters & Digital Association (NBDA) expressed his concerns over broadcasting “losing its identity. 

Agarwal began by saying, “The telecommunication services are basically infrastructure based, as in, in no manner it controls what two individuals converse or exchange. It is just a medium which enables conversation or communication and does not interfere with the content. Whereas broadcasting services are a creative and expressive media, and the main emphasis is on the content which appeals to the target audience.” 

According to Agarwal, broadcasting has a “separate identity” which, if combined with telecom services, is prone to diminishing. He further substantiated, “Sectors like medical, tourism, retail, banking extensively use telecom services, but it does not mean that these sectors will, going further, be converged and brought under the Telecom Act.”

In tune with the view of Agarwal, Siboney Sagar, General Counsel, Indian Broadcasting and Digital Foundation (IBDF), said, “Broadcasting content is not merely a utility service, it's a creative and expressive medium protected by constitutional rights. And this distinction would underscore the need for a separate regulatory framework, as well as approach for broadcasting outside the telecommunication act.” 

License fee

Reliance Jio Infocomm and Bharti Airtel had their horns locked on the licence fee waiver that was proposed by TRAI in its consultation paper on the framework for service authorisations for the provision of Broadcasting Services under the Telecommunications Act, 2023. 

Waiving off the license fee for DTH operators, according to Reliance, was a violation of Article 14 of the constitution enshrining ‘Equality before Law.’ 

The operator mentioned, “The proposal to waive the license fee for DTH services disregards the need for a balanced regulatory approach across competing platforms and services.”  

Bharti Airtel is running parallel with TRAI recommendation of reducing the license fee for DTH operators from the existing 8% to 3% and then subsequently waiving it off. 

Offering a polar opposite view, Reliance Jio Infocomm opposed the recommendation citing “competitive advantages granted to DTH over fixed-line, Cable TV services and mobile services, particularly due to the allocation of free spectrum to DTH.” 

On the subject matter, Rahul Vatts, Chief Regulatory Officer, Bharti Airtel, submitted, “Reducing license fees, as recommended by the TRAI, will enhance the viability for the operators, particularly in a market which is completely impacted by declining pay TV subscriptions due to unregulated competitors like OTTs and DD Free Dish.”

Lokesh Kewal Ramani, representing Reliance Jio Infocomm, during the discussion, targeted the “level playing field” narrative and stated that the field is tilted in favour of DTH. 

“It is unfair to drop comparisons between the wireline networks and DTH. The latter is assigned spectrum almost free of cost and on administrative terms. The former on the other hand has to win spectrums in an auction and then additionally invest in terrestrial infrastructure to maintain the network,” Ramani said. 

“The regulatory framework must ensure that spectrum assignments for wireless services are done through auctions, ensuring transparency and discovery of market prices. The assignment of the spectrum at market-determined prices would also ensure a level playing field and protect the National Exchequer’s revenue,” he added.

The OTT feud

Bharti Airtel's Vatts opined strongly that OTT platforms should be included under the regulatory framework. “The OTT platforms are delivering broadcast content via broadband or mobile, and they must be brought under the authorisation framework based on the simple principle of ‘ same service, same rules.’ These platforms currently operate without any obligations, without any license, creating an unfair competitive advantage over heavily regulated services like DTH and cable operators,” he said. 

Countering this, Debashish Bhattacharya, Senior DDG, Broadband India Forum said, “The OTT content is transmitted over the internet, whereas the traditional broadcasters use cable television, cable networks, satellite networks, radio networks, to deliver content. So the method of disbursement of content, or delivery of content is different between them.” 

Further clarifying the difference, he added, “Broadcasting follows a push model. They deliver content to the mass public or audience at a predetermined time. OTT platforms make content available to subscribers over the public internet and operate on a pull model, wherein the subscribers choose and request for the content which they wish to watch from an online library.”

TRAI released the consultation paper following a request from the Ministry of Information and Broadcasting (MIB), as detailed in a letter to TRAI dated July 25, 2024, notifying the publication of the Telecommunications Act in the Official Gazette.

The consultation paper aims to establish guidelines for obtaining authorisations for broadcasting services, covering platforms like DTH, HITS, IPTV, community radio, FM radio, and others currently licensed under the outdated Indian Telegraph Act, 1885. 

With the Telecommunications Act replacing this older legislation, TRAI is tasked with recommending updated terms and conditions, including fees for authorisations, to ensure consistency across service providers.

The consultation paper attracted 13 comments and 3 counter comments from associations, service providers, and consulting firms. 

Following the Wednesday discussions, TRAI sought some additional views and suggestions from stakeholders by December 24, 2024.