Summary:
India’s cable TV and DTH industry is urging the government to introduce a technology-neutral regulatory framework that ensures equal treatment for all television distribution platforms. Operators argue that licensed players face higher compliance costs than streaming services and DD Free Dish, placing them at a competitive disadvantage amid declining subscribers and revenue. The industry has also called for the implementation of TRAI’s pending recommendations, with the final telecom regulations expected to play a key role in shaping the future competitiveness and growth of the pay-TV sector.
India’s television distribution industry is seeking a uniform regulatory framework to address declining subscriber numbers and falling revenues. Cable TV and Direct-to-Home (DTH) operators contend that the draft rules proposed under the Telecommunications Act place licensed operators at a disadvantage compared to unregulated streaming platforms and government-operated broadcasting services.
As the Ministry of Information and Broadcasting (MIB) prepares to finalise the new authorisation framework under the Telecommunications Act, industry stakeholders are urging the government to adopt a technology-neutral regulatory approach. According to cable operators and DTH companies, the existing framework imposes several financial and compliance obligations on licensed broadcasters that are not applied equally to competing content distribution platforms, creating an uneven competitive environment in a contracting market.
Industry Raises Concerns Over Unequal Regulations
A key issue highlighted by the industry is the difference in regulatory treatment across television distribution platforms. Private DTH and cable operators are required to pay annual authorisation fees, maintain bank guarantees, and comply with mandatory channel carriage requirements. By comparison, stakeholders note that DD Free Dish, the public broadcaster’s free-to-air satellite platform, is not subject to the same financial and operational obligations. They also point out that internet-based linear television services and advertising-supported streaming channels remain largely outside the scope of the proposed 2026 regulations, allowing them to operate with comparatively lower compliance costs.
Industry organisations, including the All India Digital Cable Federation (AIDCF), have urged the government to implement long-pending recommendations made by the Telecom Regulatory Authority of India (TRAI). These proposals include reducing annual authorisation fees and easing bank guarantee requirements to lower the financial burden on licensed operators. The industry has also called for common programming and advertising standards across all content distribution platforms to ensure fair competition.
Pay-TV Industry Faces Ongoing Pressure
The industry’s appeal for regulatory parity comes as India’s traditional pay-TV market continues to experience declining subscriber numbers. Industry data shows that the DTH subscriber base has dropped to 49 million, down from more than 62 million recorded two years earlier.
The financial impact has also become evident, with revenue from linear television distribution reportedly declining by 8% to approximately ₹35,400 crore in 2025. Although operators have recorded a modest improvement in average revenue per user (ARPU), the continued decline in subscribers remains a major challenge to long-term growth.
Regulatory Outcome to Be Closely Watched
For investors, the final version of the Ministry of Information and Broadcasting’s regulations will be an important development. Particular attention is expected to focus on whether the government adopts TRAI’s recommendations on licence fees, bank guarantee requirements, and the possible inclusion of digital streaming platforms within the regulatory framework.
Market participants are also expected to monitor the government’s response to the industry’s proposal for phased encryption of DD Free Dish, as any changes to the regulatory environment could have a significant impact on the competitiveness, market share, and profitability of listed DTH and cable television companies.
