Broadcasters flag ‘regulatory arbitrage’ in TRAI’s FAST consultation paper

Broadcasters have raised strong concerns over regulatory gaps in the Telecom Regulatory Authority of India’s (TRAI) latest consultation paper on Application-based Linear Television Distribution (ALTD) services, warning that the rapid rise of Free Ad-Supported Streaming Television (FAST) platforms is distorting the level playing field and undermining the existing pay-TV ecosystem.

The consultation paper, released on April 6, seeks stakeholder views on framing a regulatory structure for FAST platforms, which deliver linear television channels over the internet without a licensing framework.

Regulatory arbitrage and level playing field concerns

A key contention flagged by broadcasters is that FAST platforms are effectively functioning like traditional distribution platforms but without being subject to the same regulatory obligations. According to stakeholder submissions cited in the paper, several OTT and application-based platforms are offering live television channels directly to consumers while remaining outside the ambit of uplinking, downlinking and IPTV regulations.

This, broadcasters argue, creates a regulatory imbalance, as traditional distribution platform operators (DPOs)—including cable, DTH and IPTV—are subject to stringent licensing, compliance and pricing norms.

Industry stakeholders have pointed out that such platforms are “circumventing the present regulatory mechanism” by slightly altering programming formats while continuing to offer linear channels, thereby avoiding regulatory scrutiny.

“Today, anyone with an app can effectively become a distributor of television channels without adhering to even a fraction of the regulatory obligations that licensed players must follow. This is not innovation—it is regulatory arbitrage,” said a senior executive at a leading broadcast network, requesting anonymity.

Free availability of pay channels raises red flags

One of the sharpest concerns raised relates to the availability of pay television channels for free on FAST platforms. The consultation paper notes that several channels, which are monetised as pay channels on regulated platforms, are being retransmitted without subscription fees on unregulated digital platforms.

Broadcasters and distribution players argue that this violates TRAI’s tariff framework, which mandates clear classification of channels as either pay or free-to-air. Offering pay channels free of cost, they contend, distorts pricing structures and undermines the principle of uniform pricing across platforms.

Stakeholders have further warned that such practices erode subscription revenues and disrupt long-standing business models in the television broadcasting ecosystem.

“If a pay channel can be made available for free on digital platforms, it completely breaks the pricing architecture of the industry. It disincentivises content investment and creates an uneven playing field,” said another broadcaster executive, also declining to be named.

Unregulated growth of FAST platforms

Broadcasters have also flagged the rapid and largely unregulated proliferation of FAST services as a major concern. The consultation paper acknowledges that the growth of such platforms is creating “regulatory disparity” with the traditional broadcasting ecosystem.

Industry participants believe that if left unchecked, this regulatory arbitrage could tilt the competitive balance in favour of free, ad-supported platforms, potentially impacting investments in content creation and distribution infrastructure.

TRAI itself has previously observed that FAST services perform functions similar to distribution service providers but operate without regulatory oversight, raising concerns about market distortion.

Content compliance and accountability issues

Another major issue highlighted by broadcasters is the lack of clarity around content regulation on FAST platforms. Stakeholder representations cited in the consultation paper point out that many channels available on such platforms may not adhere to Programme Code and Advertising Code requirements, especially in the absence of licensing and monitoring mechanisms.

There are also concerns that some channels may be distributed without proper downlinking permissions, raising questions around legality and content accountability.

Push for regulatory parity

Broadcasters have consistently argued that FAST platforms, given their similarity to traditional linear TV distribution, should be brought under a comparable regulatory framework.

They have suggested that such platforms should be classified as distribution service providers and be subject to authorisation, compliance norms and content accountability requirements similar to cable, DTH and IPTV operators.

The consultation paper also reflects this thinking, noting that ALTD services may warrant regulatory oversight as distributors of linear television over the internet.

Call for comprehensive framework

Overall, broadcasters are pushing for a comprehensive regulatory framework that ensures parity across platforms, safeguards content standards, and prevents revenue leakage from the traditional TV ecosystem.

They argue that without timely regulatory intervention, the unchecked growth of FAST services could disrupt the economics of broadcasting and create long-term structural imbalances in the industry.

TRAI has invited stakeholder comments on the consultation paper by May 4, with counter-comments due by May 18, as it moves towards finalising a regulatory approach for this fast-evolving segment.