Why free IPL on Jio vs paid on Disney? Airtel seeks Trai intervention

The free telecast of IPL matches by Reliance on JioCinema is the reason behind this move by Airtel

Bharti Airtel has approached the Telecom Regulatory Authority of India (Trai) for a one-service-one rate system that prohibits differential pricing by telecom operators for content on their apps if the same content is available on DTH and Cable TV channels, the Financial Express reported. 

The free telecast of Indian Premier League (IPL) matches by Reliance Jio on JioCinema is the reason behind this move by Airtel. 

Airtel is seeking a regulatory mechanism that puts in place a one-service-one-rate mechanism to get a level playing field with its competitor Jio.

Why the need for a regulatory mechanism?

JioCinema owns the digital rights for IPL matches and Disney-Star has the broadcasting rights. 

Viewers with JioCinema can watch the IPL matches for free. However, Disney-Star have to charge customers as they have to follow Trai's order of a fixed channel rate of Rs 19.

So, if a customer purchases an entry-level cable TV bouquet it costs around Rs 325 per month whereas if the bouquet does not include Disney-Star, the customer has to again pay Rs 19.

To counter this differential tarrif, Airtel has written to Trai to bring in a one-rate-one-service system that is currently applicable to telecom service providers for their apps for broadcasting content available on DTH and cable TV

In its letter to Trai, Airtel has demanded a regulatory framework that is inclusive of all modes of delivery of broadcast content across all platforms irrespective of the underlying technology used. 

It further added that the same content must be available across all platforms at same price and there should be pricing parity irrespective of technology. 

The telecom operator has also sought the application of legal framework of cross-media ownership (vertical integration) to all platforms (including the digital platforms) irrespective of underlying technology. 

The differential tarrif regulation for the telecom sector stops a telecom service provider from charging different rates to subscribers and non-subscribers if the app is available on the web.

What is Reliance's take?

Reliance Jio has written to Trai against Airtel's stand saying that amid growing convergence such a regulation is not possible and will hinder technology convergence in the future. 

Reliance wrote to Trai that there seems to be no need to re-engineer the existing regulatory and administration processes.

Trai is carrying out a consultative process to regulate converged digital technologies and services.