Netflix, Amazon And Other Content Delivery Platforms Challenge TRAI's Proposed Regulatory Framework

Leading content delivery platforms, including Netflix, Amazon, Universal Studios, and Warner Bros, have objected to the Telecom Regulatory Authority of India's (TRAI) proposed regulatory measures. The content providers argue that their operational model as content delivery networks (CDNs) distinctly differs from traditional telecom operators, positioning them outside the regulator's direct jurisdiction, says a report by ETTech.

What CDNs Have To Say

A coalition of global industry bodies, including the Motion Picture Association, Asia Video Industry Association, and Broadband India Forum, presented a unified stance during TRAI's open house discussion. 

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Their primary argument centres on the technical distinction between content delivery networks and telecommunications infrastructure.

Debashish Bhattacharya, deputy director-general at Broadband India Forum, emphasised that these networks function as customer-side private networks, interconnected with telecom services through specialised transit and peering arrangements, according to the report. 

CDNs do not manage bandwidth delivery or provisioning, which separates them from traditional telecom service models.

Telecom Operators' Perspective

Telecom operators have presented a mixed response to potential CDN governance. While advocating for market-driven regulations, some operators like Bharti Airtel have proposed specific compliance expectations. Airtel's recommendations include maintaining minimum quality standards, adhering to content blocking protocols, and expanding infrastructure to secondary and tertiary urban markets.

Meanwhile, according to Nasscom projections, India's CDN market demonstrates significant growth potential, expanding from $435.2 million in 2018 to an anticipated $2.85 billion by 2027. These networks play a critical role in optimizing internet traffic delivery, reducing latency, and mitigating network congestion.

Industry experts caution that premature or inappropriate regulation could discourage investments in emerging digital infrastructure sectors. 

The ongoing discussions at TRAI's open house primarily focus on determining whether CDNs should be integrated into a network authorisation regime and defining associated regulatory conditions.