DTH and cable firms seek equal rules under India’s new telecom framework

MUMBAI: India’s TV distributors are tuning into the same message: one screen, one set of rules. Direct-to-Home (DTH) operators and cable companies are urging the Centre to adopt technology-neutral regulations that apply equally across satellite, cable and internet-based television services as the government prepares to roll out a new broadcasting authorisation regime under the Telecommunications Act.

The industry’s demand comes as the Ministry of Information and Broadcasting finalises the draft Telecommunications (Television, Radio and Associated Services) Rules, 2026, which were released for public consultation on 12 June.

While the draft framework has been welcomed for replacing multiple legacy licensing guidelines with a single authorisation regime, industry executives argue that it continues to create an uneven playing field by imposing different financial and compliance obligations on competing television distribution platforms.

Private DTH operators are currently required to pay annual authorisation fees, furnish bank guarantees, comply with mandatory carriage obligations and meet extensive regulatory requirements.

However, they point out that DD Free Dish, the public broadcaster’s free-to-air satellite platform, is not subject to comparable obligations. At the same time, newer internet-based distribution models such as Application-based Linear Television Distribution (ALTD) and Free Ad-supported Streaming Television (FAST) channels remain outside the scope of the proposed rules.

Cable operators, meanwhile, continue to operate under the separate Cable Television Networks Act, creating what the industry says is another layer of regulatory inconsistency.

Industry executives said DTH operators are expected to formally submit their response to the draft rules in the coming weeks, with their recommendations closely aligned with those already submitted by the All India Digital Cable Federation (AIDCF).

A key demand is the implementation of several long-pending recommendations from the Telecom Regulatory Authority of India (TRAI), which has already completed consultations on ALTD and FAST services and is expected to submit its recommendations to the ministry shortly.

Among the proposals likely to be reiterated are reducing the annual authorisation fee from 8 per cent to 3 per cent of adjusted gross revenue (AGR), lowering bank guarantee requirements, narrowing the definition of gross revenue used for fee calculations and providing greater clarity on the government’s audit powers.

The AIDCF has also sought uniform Programming and Advertisement Codes across all broadcasting platforms, phased encryption of DD Free Dish and the incorporation of TRAI’s recommendations relating to ground-based broadcasters into the final rules.

The industry’s push for regulatory parity comes against the backdrop of a rapidly shrinking pay television market.

According to the FICCI-EY Media & Entertainment Report 2026, India’s DTH subscriber base has declined to 49 million, down from more than 62 million just two years ago. During the same period, linear television distribution revenue fell 8 per cent to Rs 35,400 crore in 2025 from Rs 38,500 crore in 2024, primarily because around 11.5 million households stopped paying for television services. Average revenue per user (ARPU), however, increased 2.4 per cent to Rs 288.

Industry executives argue that viewers increasingly access the same linear television channels through satellite, cable and internet platforms, making platform-specific regulation outdated.

They contend that excluding ALTD services, FAST channels and DD Free Dish from comparable licensing and compliance requirements creates opportunities for regulatory arbitrage, allowing some platforms to avoid costs and obligations borne by licensed operators.

The final shape of the new rules will now be closely watched by broadcasters, distributors and investors alike. Whether the government incorporates TRAI’s recommendations and extends a common regulatory framework across traditional and digital television platforms could significantly influence the future competitiveness and profitability of India’s television distribution industry.