TRAI announces ban on differential data pricing, no more Free Basics
In a landmark win for those who support Net Neutrality, the Telecom Regulatory Authority of India (TRAI) has announced ban on differential pricing on data. This means that Facebook’s Free Basics a.k.a Internet.org and Airtel’s Zero will be banned. If any service provider tries to continue with differential pricing on data, TRAI will apply a fine of Rs.50,000 per day. The only exception to this is providing emergency services at a reduced cost or at times of grave public emergency. In such cases, service provider will have to report the tariff detail to TRAI within seven working days (from the date of implementation of reduced tariff).
Though TRAI did acknowledge that differential tariff can make internet access more affordable and provide access to those who couldnt afford internet, they did agress that the negatives far outweigh the advantages.
“Differential tariffs result in classification of subscribers based on the content they want to access (those who want to access non-participating content will be charged at a higher rate than those who want to access participating content). This may potentially go against the principle of non-discriminatory tariff. Secondly, differential tariffs arguably disadvantage small content providers who may not be able to participate in such schemes. This may thus, create entry barriers and non-level playing field for these players stifling innovation. In addition, TSPs may start promoting their own websites j appsj services platforms by giving lower rates for accessing them. The CP also touched upon the subject of offering alternate models for accessing the internet without resorting to differential tariffs.”, said TRAI in a statement.
