Trai to float a consultation paper on regulations for OTT players soon

The Telecom Regulatory Authority of India (Trai) is expected to float a consultation paper on regulations for over-the-top (OTT) video platforms like Netflix, Prime Video, Disney+ Hotstar, and JioCinema, The Economic Times (ET) reported on Thursday.

OTT content regulation is under the Ministry of Information and Broadcasting's (MIB) purview. The Ministry of Electronics and Information Technology (MeitY) controls the carriage part. These issues are looked into by Trai.

One major issue that is expected to be covered in the consultation paper is the price parity between OTT video platforms and traditional platforms like cable TV and DTH services. The report added that another is the application of some content regulations for TV on ITT platforms.

Currently, broadcasting companies have to follow a number of rules, but there are no such boundaries for OTT companies. The consultation paper is expected to specify some red lines when it comes to content and moderation.

The consultation process is the first step in formulating rules for a segment making massive losses due to cut-throat competition among over 40 OTT platforms in the country. There have been calls from different stakeholders in the telecom and broadcasting sectors to ensure a level-playing field between broadcasting and OTT segments.

On Wednesday, Trai reduced audit compliance of licensed service areas to once a year from four times earlier. However, it will cover maximum tariff offerings, including those related to international roaming, according to the new regulations on quality of service.

The new regulations on Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulations, 2023, dated September 11, 2023, will result in a reduction of audit burden by almost 75 per cent and enhance Ease of Doing Business (EODB), Trai said in a release.

"Each LSA shall be audited only once in a financial year, unlike four times as per old regulations, thereby reducing the audit burden by almost 75 per cent," Trai said.

"However, while simplifying the audit process, it is also ensured to cover maximum tariff offerings under audit unlike in previous regulation which has the provision for audit of 15 most popular tariff offerings only leaving aside a good number of tariff offerings with less number of subscriptions," the regulator said.