TRAI’s exception could give telcos a loophole

Though the telecom regulator has banned differential pricing, the exception to allow it in a closed user group could provide telecom operators an opportunity to create platforms that offers access to specific websites at a lower cost.

According to Internet experts, telecom operators could still come back with schemes that offer access to specific websites at a lower pricing. This, they say, can be done by creating a parallel network which each operator can then offer to its subscribers under a different tariff plan.

The Internet and Mobile Association of India (IAMAI) said it had concerns on the exception as to how this entire thing will pan out. “The association hopes that the exceptions to the rule will not be misused by the telecom.”

The exception given by TRAI states “...regulation shall not apply to tariffs for data services over closed electronic communication networks...”

“We are not clear why the regulator had to give this exception, It should have simply banned differential pricing across all platforms,” said an Internet activist.

But most of the stakeholders were happy with the overall move by the TRAI to ban differential pricing.

R Chandrashekhar, President, Nasscom, said, “Our submission highlighted the importance of net neutrality principles, non-discriminatory access and transparent business models aligned to the goal of enhancing internet penetration in the country. The TRAI announcement resounds with the submission made by Nasscom.”

Sanjeev Bhikchandani, Chairman, Internet Council, said, “this announcement will help address apprehensions for young start-ups on lack of a level playing field. Nasscom will continue to work with all stakeholders for a conducive regulatory environment that supports the growth of India’s start-up ecosystem”.

Telecom operators said they would contest the TRAI order, despite getting the exception. Hemant Joshi, Partner, Deloitte Haskins & Sells LLP, said, “Differential pricing for different level of services is a well-accepted principle across all industries from energy, Railways, airlines, buses, highways (tolls), etc. In the telecom sector, there are virtual highways that need to follow the same principle. EU is considering allowing “specialised services” with few priority services having fast lane internet connection.”

However, Mishi Choudhary, Executive Director, SFLC.in, said TRAI's latest regulations are a big step in the right direction, and secure India a position amongst the select few nations to have accorded legislative respect for the principle of network neutrality.

Arpita Pal Agrawal, Leader - Telecom, PwC India, said, “With this notification TRAI has decided that all citizens of India will get the same view of the Internet which is in line with the principle of non - discriminatory access. What remains to be done is to find innovative ways to actually get all citizens access to this internet as India’s ranking in universal broadband access is abysmally poor and the digital divide continues to widen.”

Facebook disappointed Social media giant Facebook today expressed disappointment over TRAI’s decision not to allow differential pricing of data, saying it adversely affects its free internet platform Free Basics.

“Our goal with Free Basics is to bring more people online with an open, non—exclusive and free platform. While disappointed with the outcome, we will continue our efforts to eliminate barriers and give the unconnected an easier path to the internet and the opportunities it brings,” Facebook spokesperson said in a statement.

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