With over 477 million users, India’s largest telecom service provider – Reliance Jio – has reportedly joined the list of companies (including Netflix, Amazon, Universal Studios, and Warner Bros) opposing the proposed OTT regulation in the country. The telecom giant said that OTT content services should not be brought under the authorization of the Indian Telecommunications Act, 2023 – a proposal by the Telecom Regulatory Authority of India (TRAI) – as reported by BusinessLine. Notably, these companies have also continuously argued that, as OTT service providers, they do not act as telecom operators and hence do not fall under TRAI’s jurisdiction.
Jio, which recorded a profit of ₹6,536 crore for the second quarter of the fiscal year 2024-25 (Q2 FY25), has stated in its letter that OTT content services are already regulated under the Information Technology Act, 2000, and Rules in India. Additionally, the company highlights the difference between OTTs and Distribution Platform Operators (DPOs). As per the report, Jio claimed that OTT content providers deliver content over the public internet, which means their services are provided directly to users through the internet without the need for a dedicated network infrastructure. While DPOs (such as cable TV, IPTV, and DTH) operate by providing broadcasting services through dedicated broadcasting networks that they own or operate. These services are typically delivered through specific hardware – including cable boxes or satellite dishes – and use specialized infrastructure to transmit content.
The company — which recently declared a merger with Walt Disney and Viacom 18 — is seen to be actively opposing some government moves in recent times. For example, Mukesh Ambani-owned Reliance Jio is not in favor of the government’s decision to allocate satellite internet spectrum, instead of ‘auctioning’ it the way mobile spectrum is auctioned in the country. However, Elon Musk’s Starlink and other global companies like Amazon-owned Project Kuiper and Airtel-owned OneWeb support an administrative allocation.
This development comes at a time when there is strong speculation about the arrival of a new ‘JioStar’ platform after the merger of Reliance-owned JioCinema and Disney+ Hotstar. Launched in 2016, JioCinema’s website states that, as of September 30, 2023, the platform had 237 million monthly active users and 33 million daily active users. Speaking about the market itself, according to data from Statista, the OTT video market in India is expected to generate $4.08 billion in revenue in 2024. The market is projected to grow at a compound annual growth rate (CAGR) of 7.73% from 2024 to 2029 – reaching a total volume of $5.92 billion by 2029.
Jio’s recent move regarding OTT regulation becomes more interesting as its main competitor in the Indian telecom market, Bharti Airtel Ltd, along with other stakeholders, has long advocated for bringing OTTs delivering broadcast content over broadband or mobile under the authorization framework and the ‘same service, same rules’ principle.
