Content Giants Oppose TRAI’s Proposal to Regulate CDNs
Leading content delivery networks (CDNs) such as Netflix, Amazon, Universal Studios, and Warner Bros have opposed the Telecom Regulatory Authority of India’s (TRAI) proposal to regulate them. Represented by industry bodies like the Motion Picture Association (MPA), Asia Video Industry Association (AVIA), and Broadband India Forum (BIF), these companies argued that CDNs primarily cache and deliver content rather than managing bandwidth or enabling end-to-end communication. They stated that CDNs are not telecom operators or internet service providers and therefore do not fall under TRAI’s jurisdiction.
Debashish Bhattacharya, deputy director-general of BIF, emphasized that CDNs function as private networks interconnected with telecom services through transit and peering arrangements. He warned that imposing telecom-specific regulations on CDNs could deter investments in India’s fast-growing CDN, cloud, and data center sectors, which are critical to economic growth. India’s CDN market is projected to grow from $435.2 million in 2018 to $2.85 billion by 2027, according to Nasscom.
While telecom operators supported market-driven governance for CDNs, companies like Bharti Airtel suggested minimum quality standards, compliance with content blocking orders, and infrastructure expansion to smaller cities. The open house discussion also explored whether CDNs should be brought under a network authorization regime, but the industry raised concerns over the potential impact on innovation and growth.
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