India has one of the lowest average revenue per user (ARPU) in the world, both in mobile and fixed line services. Fixed line service providers are looking at IPTV services as a saviour for them. They believe that IPTV services will be able to increase their revenues.

However, the cable industry views IPTV services by telecom operators as an encroachment on their area of operations and a threat to their business model. The advantage of IPTV over cable TV is that it is a two-way medium and, therefore, more interactive in nature.

Since telecom service providers with UASL licences are permitted to provide triple-play services, questions have repeatedly been raised on whether these operators need further regulatory clearances.