Content delivery companies, including Netflix, Amazon, Universal Studios, and Warner Bros, have reportedly opposed the Telecom Regulatory Authority of India’s (Trai) proposal to regulate them. They argued that they are not telecom operators and therefore should not fall under the regulator’s jurisdiction,
A coalition of content delivery network (CDN) companies, represented by global industry bodies such as the Motion Picture Association (MPA), Asia Video Industry Association (AVIA), Broadband India Forum (BIF), and advisory groups like Deepstrat and Koan Advisory, presented their case during a Trai open house discussion. The coalition stated that CDNs primarily cache and deliver content, rather than enabling end-to-end communication.
The report quoted Debashish Bhattacharya, deputy director-general at BIF, which includes members such as Amazon, Google, Meta, Netflix, and Disney Star, stating that CDNs are neither telecom operators nor internet service providers. Bhattacharya explained that CDNs function as customers or private networks interconnected with telecom services through transit and peering arrangements. As they do not manage bandwidth delivery or provisioning, telecom-specific regulations do not apply to them, he added.
Telecom operators argued that CDNs should remain governed by market dynamics rather than regulatory frameworks, though some, like Bharti Airtel, suggested that CDNs should adhere to specific obligations. Airtel’s written submission recommended that CDNs maintain minimum quality standards, comply with content blocking orders, and expand infrastructure to Tier-II and Tier-III cities, the report said.
According to Nasscom, India’s CDN market is expected to grow from $435.2 million in 2018 to $2.85 billion by 2027. CDNs play a crucial role in reducing latency, mitigating network congestion, and enhancing internet traffic delivery.
Bhattacharya of BIF cautioned that misinformation regarding regulation could deter investments in India’s growing CDN, cloud, and data centre sectors, potentially hindering economic growth, the report said. The discussions at Trai’s open house centred on whether CDNs should be brought under a network authorisation regime and the conditions this would entail.
