The free television streaming model on smart TVs is likely to face regulatory scrutiny, with the Telecom Regulatory Authority of India (TRAI) proposing a formal framework to regulate such platforms, while pointing to concerns around licensing, content accountability and fair competition.

In a consultation paper, the regulator has evaluated the rise of Free Ad-Supported Streaming Television (FAST) services that includes platforms such as Samsung TV Plus, LG Channels and Pluto TV which offer scheduled television channels over the internet without subscription fees, funded by advertising.

The regulator has responded to a reference from the Ministry of Information and Broadcasting (MIB), which flagged that such services are currently being offered without any licensing or registration framework despite distributing television channels to the public. 

TRAI on these concerns said that FAST services are a lot similar to traditional broadcasting and are performing functions similar to that of a Distribution Service Provider but without the regulatory oversight. In response, TRAI has chosen not to regulate only FAST but has introduced a wider category-Application-based Linear Television Distribution (ALTD) services.

Reasoning behind the move

The reasoning behind the same is that these platforms may evolve beyond ad-supported models and could include subscription or hybrid offerings. By defining ALTD as a broader category encompassing FAST, TRAI seeks to cover all platforms that distribute linear television channels over the internet, regardless of business model.

To understand better, there are multiple operating models in the FAST ecosystem. In one model, smart TV manufacturers such as Samsung and LG run their own integrated FAST platforms with preloaded apps and direct advertising revenue sharing. In another, services are delivered via third-party or overseas-operated apps, such as Pluto TV, with content aggregation and compliance handled externally.

A third model involves operating system-led ecosystems, such as Google TV or Amazon Fire TV where the OS provider aggregates channels across multiple brands and performs limited content checks. TRAI also flagged a fourth, less structured model where websites or apps stream channels via links, sometimes without proper permissions.

The underlying problem

The underlining problem raised by traditional distributors is that FAST platforms may be bypassing the country’s uplinking and downlinking guidelines, which require government permission for any television channel to be broadcast in the country. Some stakeholders also flagged that pay television channels are being made available for free on these platforms, potentially violating tariff regulations. 

The current system lacks uniform mechanisms to ensure compliance with Programme Code and Advertising Codes, as per TRAI. While inviting stakeholder comments until May 4 and counter-comments by May 18, the regulator has asked for opinion on integral questions, including how ALTD services should be defined, who should be held responsible for compliance in a multi-layered ecosystem, and whether application providers should be designated as the primary accountable entity.

It has also asked whether such platforms should be brought under a formal authorisation regime, what types of channels should be allowed, how to address the issue of pay channels being offered free, and what consumer protection safeguards and audience measurement standards should apply.

What did TRAI say?

TRAI has indicated that FAST/ALTD platforms may be brought under a licensing framework similar to traditional distribution services. This could require platforms to obtain government authorisation, comply with content and advertising codes, and establish standardised grievance redress mechanisms.

The regulator has also reiterated its earlier recommendation that a separate authorisation category for FAST channel distribution may be introduced under television channel distribution services. Such a move shall align internet-based TV platforms with existing broadcasting regulations.

TRAI has quoted Muvi, global OTT SaaS platform’s which estimated the FAST market in India at $63.69 million (around ₹590 crore) in 2023, projected to reach $104.10 million (₹965 crore) by 2027, with users expected to grow from 116.4 million to 148.6 million.

This parallel expansion is happening alongside a much larger, tightly regulated television ecosystem that generated ₹617 billion in revenue in 2025. These traditional players including DTH operators, cable networks and IPTV providers have had a firm stance that FAST platforms are offering similar services without complying with licensing norms, tariff rules or content regulations.