TRAI Proposes ₹1 Lakh License Fee for Internet TV Apps

SEBIEXCHANGE
Whalesbook Logo
AuthorVihaan Mehta|Published at:
TRAI Proposes ₹1 Lakh License Fee for Internet TV Apps

The Telecom Regulatory Authority of India has introduced a new framework for application-based linear television services, requiring a ₹1 lakh entry fee. This move aims to bring internet-based TV channels under a formal 20-year licensing structure while standardizing viewership data measurement. The regulation targets third-party aggregators, potentially impacting how Smart TV manufacturers manage app access on their devices.

The Telecom Regulatory Authority of India (TRAI) has released a new framework to bring internet-based television distribution under a formal regulatory umbrella. The proposal introduces a structured system for Application-based Linear Television Distribution (ALTD) services, which are essentially internet-native channels and aggregator platforms that mimic traditional television.

Regulatory Framework and Fees

Under the new plan, service providers must obtain a license valid for 20 years. The entry barrier is set at a nominal one-time entry fee of ₹1 lakh and a processing fee of ₹10,000. This is a significant development for the broadcasting and digital media landscape, as it attempts to treat internet-based linear TV services similar to traditional cable and DTH (Direct-to-Home) operators. For investors and companies in the media space, this move aims to create a level playing field. Traditional DTH and cable operators have often argued that internet-based services operated with fewer regulations, creating an uneven competitive environment. By formalizing this, the regulator is moving toward a structure where all linear television services—regardless of whether they come via satellite or the internet—follow similar operational guidelines.

Compliance for Device Manufacturers

A major part of the new mandate focuses on hardware and device manufacturers. Smart TV makers and operating system providers will now have clear compliance obligations. Specifically, they will be required to ensure that only authorized ALTD applications are accessible on their devices, likely through a repository system managed by the Ministry of Information and Broadcasting. This could change how manufacturers manage their app stores and partnerships, as they will now be held accountable for the applications pre-installed or accessible on their smart devices.

Integration of Viewership Data

Another critical aspect is the integration of viewership data. Currently, traditional TV viewership is measured by specific agencies using established methods. The new framework opens the door for authorized internet-based TV providers to publish their viewership data, which could eventually be integrated into the national television audience measurement framework. For media companies and advertisers, this is a long-awaited shift that could allow for a more accurate understanding of content reach across different platforms. The framework excludes broadcaster-owned platforms that stream only their own content, as well as social media platforms providing live streams, focusing instead on third-party aggregators.

The key monitorable for stakeholders will be the implementation process. Manufacturers and app providers will need to track the final guidelines from the Ministry of Information and Broadcasting regarding the app repository and compliance filings. As this regulation matures, it could influence how media companies distribute content, how device manufacturers partner with apps, and how advertising revenue is allocated between traditional and digital broadcast channels.

Disclaimer: This article is published for informational purposes only. This is not a buy sell recommendation.