Reliance Jio Infocomm Ltd has joined a growing list of companies in the global entertainment and technology sector in opposing a proposal from India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), to bring Over-The-Top (OTT) content services under the ambit of the Indian Telecommunications Act, 2023.
In its counter-comments submitted to the regulator, Reliance Jio strongly argued that the regulatory principles outlined in the proposal do not apply to OTT platforms. The telecom giant asserted that OTT services, which deliver content via the internet without being tied to traditional telecommunication infrastructure, should not fall under the same regulatory framework that governs telecom operators.
This opposition from Jio is part of a broader resistance from major Content Delivery Network (CDN) companies, including global streaming platforms like Netflix, Amazon Prime Video, and entertainment conglomerates such as Universal Studios and Warner Bros. These companies have raised concerns that subjecting OTT content to telecom regulations could stifle innovation, increase operational costs, and negatively impact the user experience.
The proposal, put forward by TRAI, seeks to bring OTT services such as video streaming, social media platforms, and messaging apps under the regulatory oversight of the Indian Telecommunications Act, which is traditionally focused on telecom service providers. If implemented, the changes could potentially require OTT platforms to obtain licenses, adhere to content restrictions, and comply with stricter data protection laws, aligning them with traditional telecom operators.
The debate around the regulation of OTT platforms has been intensifying in India as the country continues to witness rapid growth in internet penetration and digital content consumption. Proponents of the new regulatory framework argue that it is necessary to level the playing field between traditional telecom providers and internet-based content platforms, ensuring fair competition and consumer protection. However, opponents, including Reliance Jio, contend that OTT platforms should remain unregulated to foster growth in the digital content ecosystem.
The outcome of this regulatory debate will have far-reaching implications for the future of India’s digital economy, as it could reshape the way OTT platforms operate in the country. As of now, the matter remains unresolved, with discussions between TRAI and stakeholders, including industry giants, expected to continue in the coming months.
