The Ministry of Information and Broadcasting (MIB) has asked TRAI to examine whether FAST and ALTD services should be brought under the licensing ambit. The implementation of new regulations could somewhat curtail the availability of free channels on smart TVs. However, these are not yet final rules.
TRAI Free Internet TV Regulation Rules: TRAI is considering a new rule that could deal a significant blow to those who watch free TV over the internet. According to sources, TRAI may recommend bringing Application-based Linear Television Distribution (ALTD) and Free Ad-supported Streaming Television (FAST) services under a formal regulatory framework. The implementation of these new rules could somewhat curtail the availability of free channels on smart TVs. However, these are not yet final rules; currently, only suggestions are being sought. Therefore, until the rules are implemented, free channels will continue to operate on smart TVs, and there will be no immediate impact on consumers.
This issue arose after the Ministry of Information and Broadcasting (MIB) asked TRAI to examine whether FAST and ALTD services should be brought under a licensing regime. Sources indicate that TRAI is expected to maintain its stance that open-internet television services offering linear, scheduled channels should not be entirely excluded from a formal regulatory framework.
Industry Divided into Two Camps
Following the emergence of this issue, the TV and broadcasting industry has split into two factions. Traditional distribution platforms—such as cable and DTH operators—argue that FAST services mimic television distribution while operating without adhering to the various conditions imposed on licensed distributors. Conversely, technology companies, OTT platforms, smart-TV manufacturers, and FAST operators argue that internet-based services are fundamentally different from traditional broadcasting and should not be subject to outdated licensing regulations.
Cable and DTH operators contend that free internet TV is eroding their subscriber base, necessitating regulation. Meanwhile, digital and OTT players argue that legacy broadcasting rules should not be imposed on internet-based services. Consequently, the regulatory debate is now primarily centering on whether the nature of a service should be defined by the technology used to deliver it or by the television-like experience it offers to consumers.
What is this free internet TV?
These are apps or platforms available on smart TVs, such as Samsung TV Plus, LG Channels, Pluto TV, and Xiaomi. They offer free access to linear TV channels (which operate on a schedule, much like traditional TV). Revenue is generated through advertisements, so no subscription fee is charged. They run via the internet on smart TVs, apps, or browsers. While they function similarly to traditional cable, DTH, or IPTV services, they have not previously been subject to strict licensing or registration regulations.
What will be the impact on consumers?
If TRAI’s proposed rule is implemented, viewers will gain the right to lodge complaints regarding poor service or instances of fraud. This measure will also curb the broadcasting of obscene or misleading advertisements and objectionable content on internet-based channels, just as it does for traditional TV. Channels currently available for free on the internet might begin charging users once licensing fees are imposed. In other words, the implementation of these new rules could curtail the availability of free channels on smart TVs, meaning that watching TV over the internet may no longer be free.