Broadcast ecosystem may be headed for regulatory reset

Mumbai: India's broadcast sector could be headed for a sweeping regulatory reset, with the Telecom Regulatory Authority of India (TRAI) preparing a fresh consultation to overhaul pricing, distribution and platform-level rules, according to people familiar with the discussions.

After initiating a consultation on bringing application-based linear TV distribution, including free ad-supported television (FAST), under the regulatory framework, the regulator is now gearing up for a broader review of the entire broadcasting ecosystem.

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The exercise, which was delayed from last year, is expected to incorporate feedback from all stakeholders before a formal consultation process is initiated.

TRAI regulates the carriage side of broadcasting, while the Ministry of Information and Broadcasting oversees content. The Supreme Court has also upheld TRAI's authority over broadcast tariffs.

The move follows a year-long series of discussions with broadcasters, direct-to-home (DTH) providers and cable operators, which highlighted deep structural concerns within the sector. Industry stakeholders argue that the New Tariff Order (NTO) and its subsequent amendments have not fully delivered on affordability and transparency, while accelerating cord-cutting.



The sector has lost 40-50 million subscribers since the framework was introduced in 2019. As per industry estimates, the total pay-TV base across cable and DTH is 84 million.

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"There is some acknowledgement within TRAI that the NTO has not fully delivered as intended, which is why a holistic review is under way. The industry has undergone significant technological disruption and shifts in consumer behaviour, making a broader reset necessary," said a senior broadcasting executive.

The NTO, which was intended to provide more choice to consumers, has in many cases led to higher bills. Consumers now pay separately for content to broadcasters and a network capacity fee to distributors for delivering that content.

Channel, bouquet and carriage fees are largely subject to regulatory caps, while discounts that broadcasters can offer to distributors, as well as the revenue share between multi system operators and local cable operators, are also governed by regulations, though these have evolved over time.

Earlier, the industry largely functioned on negotiated lump-sum deals, allowing distributors to expand and tweak their offerings depending on market conditions.

Another executive said that TRAI is understood to be keen to ensure that the interests of consumers and all stakeholders are taken into account, even as the possibility of legal challenges is seen as a concern. "It may not be possible to keep everyone satisfied, given the conflicting interests at play," another broadcasting official said.

The proposed consultation is expected to revisit pricing, distribution norms and platform-level regulations to better align the sector with evolving consumption patterns and intensifying competition from streaming services and connected TV platforms.

Broadcasters have pushed for complete removal of economic regulations, including price caps, discount ceilings and bouquet restrictions, arguing that pricing should be market-driven and determined through commercial negotiations.

Distributors, on the other hand, are seeking greater flexibility in pricing and packaging, along with regulatory parity across platforms to restore competition and protect consumers.

In their submissions, most industry participants are learnt to have favoured a forbearance-led regime, with light-touch safeguards to ensure fair play.

The push for regulatory reform also comes as the sector undergoes rapid structural shifts. Linear pay TV continues to lose ground to both free television and digital platforms.

In 2025, pay TV subscriptions declined by around 11 million, while free TV added about 4.5 million users. Connected TV, driven by affordable smart devices and streaming adoption, grew by nearly 10 million users during the year.

The broadcasting sector is valued at ₹62,000 crore, including subscription revenue of over ₹32,000 crore, and reaches around 750 million viewers each week, with nearly 192,000 hours of content produced in 2025, excluding news bulletins, according to a FICCI-EY report.