TRAI can’t regulate OTT platforms

Subject: Science and tech

Section: Computer & IT

Context: TRAI can’t regulate OTT platforms like Hotstar, says tribunal.

More about the news:

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in India ruled that Over the Top (OTT) platforms like Hotstar fall outside the jurisdiction of the Telecom Regulatory Authority of India (TRAI) and are instead governed by the Information Technology Rules, 2021.
This decision came in response to a petition by the All India Digital Cable Federation (AIDCF) claiming that free streaming of ICC Cricket World Cup matches on Disney+Hotstar was discriminatory under TRAI regulations.
TDSAT’s rejection of AIDCF’s plea is significant as it intersects with ongoing efforts by TRAI and the Department of Telecommunications to regulate OTT services.

What is the Significance of this order:

TDSAT’s rejection of the plea has broader implications in the ongoing debate over the regulation of OTT services.
At the heart of the matter is the clash between the TRAI and the Ministry of Electronics and Information Technology over who should oversee these platforms.
The Department of Telecommunications (DoT) had proposed a draft telecom Bill classifying OTT platforms as telecommunications services and seeking to regulate them like telecom operators.
TRAI, on the other hand, issued a consultation paper on regulating OTT platforms.
This difference in approach has led to a contentious disagreement between two key government bodies.

Why is the IT Ministry disagreeing with DoT over OTT regulation:

The IT Ministry believes that under the Allocation of Business Rules, Internet-based communications services are not part of DoT’s jurisdiction.
However, in this case, the conversation is centered around OTT communications services like WhatsApp.
Time and again, MeitY made it clear that the DoT can only regulate the carriage layer, that is telephony, wireless communications, and private sector licenses, etc.

What is TRAI’s attempt at regulating OTT services:

After initially opposing specific regulations for OTT communication services like WhatsApp and Zoom, TRAI has begun consultations on potential regulations for these services.
In June, it sought input on regulating them, including the possibility of selective bans rather than total shutdowns.
Telecom operators have long advocated for consistent rules.
In September 2020, TRAI recommended against immediate regulation but suggested monitoring and intervention when deemed appropriate.

What is Telecom Regulatory Authority of India(TRAI):

The Telecom Regulatory Authority of India (TRAI) was established in 1997 by the Telecom Regulatory Authority of India Act, 1997.
The head office of the Telecom Regulatory Authority of India (TRAI) is located at New Delhi.
The TRAI consists of a Chairperson, two whole-time members and two part-time members, all of which are appointed by the Government of India.

What is the power of TRAI

It can call upon any service provider to furnish in writing the information or explanation relating to its affairs as the Authority may require.
The Authority may appoint one or more persons to make an inquiry in relation to the affairs of any service provider.
It is empowered to direct any of its officers or employees to inspect the books of accounts or other documents of any service provider.
The Authority shall have the power to issue such directions to service providers as it may consider necessary for proper functioning by service providers.

What is Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT):

The TRAI Act was amended by an ordinance, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
TDSAT was set up to adjudicate any dispute –
- Between a licensor and a licensee,
- Between two or more service providers,
- Between a service provider and a group of consumers, and
- To hear and dispose of appeals against any direction, decision or order of TRAI.