Can TV OTT Apps be Licensed Under Same Terms as Others?

On May 18th ET carried out a story that TRAI is mulling to license TV enabling OTT apps so that they can be brought to a level playing field with other platforms. But the real question is can these apps be licensed under the same terms as other? In my view, they cannot be unless the rules are modified and the wireless networks are upgraded to deliver significantly higher capacity.

IPTV QoS is Managed

As per clause 43 of the Annexure I of the UL, the IPTV service (the operators need an IPTV license to carry TV channels) has to QoS controlled and managed for reliable delivery as described under.

"IPTV (Internet Protocol Television) service (or technology) is a convergence service (or technology) of the telecommunications and broadcasting through QoS controlled Broadband Convergence IP Network including wire and wireless for the managed, controlled and secured delivery of a considerable number of multimedia contents such as Video, Audio, data and applications processed by platform to a customer via Television, PDA, Cellular, and Mobile TV terminal with STB module or similar device."

But the mobile apps aggregating the satellite TV channels are not managed for QoS and have to compete with other services running in the same pipe and therefore cannot be described as an IPTV service. Hence, they do not qualify to get anchored under the current licensing framework.

TV OTT Ineligible for Content

The TRAI's tariff order dated 3rd March 2017 is applicable to both the broadcaster and the distributor. Clause 2(1)(f) defines a broadcaster under.

“broadcaster” means a person or a group of persons, or body corporate, or any organization or body who, after having obtained, in its name, downlinking permission for its channels, from the Central Government, is providing programming services;

Now the clause 5.6 of the downlinking guidelines restrict the broadcaster to share the satellite TV Channels to only to licensed entities mentioned in the clause reproduced as under.

"The applicant company shall provide Satellite TV Channel signal reception decoders only to MSO/Cable Operators registered under the Cable Television Networks (Regulation) Act 1995 or to a DTH operator registered under the DTH guidelines issued by Government of India or to an Internet Protocol Television (IPTV) Service Provider duly permitted under their existing Telecom License or authorized by Department of Telecommunications or to a HITS operator duly permitted under the policy guidelines for HITS operators issued by Ministry of Information and Broadcasting, Government of India to provide such service."

Therefore (as per the current rules), a telecom operator offering these live TV channels via mobile apps has to obtain at least an IPTV registration to qualify it to obtain TV signals from the broadcaster. But they can't as they cannot offer QoS. So the real question is are these TV enabling OTT apps illegal?

Conclusion

TV OTT Apps need a license for it to get TV content from the broadcasters. But the current licensing rules require the licensee to manage the QoS (quality of service) of the services offered to the consumers. But net neutrality rules prevent the operators from doing that unless these services are declared as specialised services. Also, the current wireless networks do not have a sufficient bandwidth for the operators to support QoS on TV OTT without clogging internet services. Hence, TV OTT apps cannot be licensed under the same regulatory framework as other platforms, unless the wireless networks are upgraded to 5G, and the IPTV services are declared as specialised services.

(Views expressed are of my own and do not reflect that of my employer)

PS: Find the list of other relevant articles in the embedded link.