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TRAI favours Net neutrality, says no to discriminatory pricing
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SME Times News Bureau | 09 Feb, 2016
In a move seen as an endorsement
of net neutrality and a setback to offerings such as Facebook's Free
Basics and Airtel Zero, India's telecom watchdog on Monday said no to
discriminatory pricing of data content.
"No service provider
shall offer or charge discriminatory tariffs for data services on the
basis of content," the Telecom Regulatory Authority of India (TRAI) said
in a much-awaited regulatory order.
"No service provider shall
enter into any arrangement, agreement or contract, by whatever name
called, with any person, natural or legal, that has the effect of
discriminatory tariffs for data services being offered or charged to the
consumer on the basis of content," the watchdog said.
Facebook
said it was "disappointed with the outcome", but will continue its
"efforts to eliminate barriers and give the unconnected an easier path
to the Internet".
Addressing a news conference after calling for
the order to be published in the official Gazette, the watchdog chairman
R.S. Sharma said the basic premise based on which the new norm has been
notified is to make the Internet available to a large number of people.
Sharma
also sought to make a difference between the term "differential
pricing" or "zero rating" that is normally used vis-a-vis
"discriminatory pricing".
"We have used the term discriminatory
pricing. Essentially, we are saying that Internet pipe should be
agnostic to packets," he said.
"We have also kept provision for
exception in grave emergencies. We have also made exception in case of
closed networks, which are not Internet. Anything on Internet cannot be
differentially priced. That is the broad point we have made."
A
Facebook spokesperson said: "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."
The telecom service providers were also disappointed over the decision of TRAI.
"We
are disappointed that TRAI has upfront rejected differential pricing,
without defining net neutrality. We expected that they will see our
recommendations before coming out with the regulations. It (Free Basics)
was a tool to connect the billion of unconnected people in India,"
Rajan S Mathews, director general, Cellular Operators' Association of
India (COAI) told IANS.
Ironically, Facebook's Internet.org was launched a year back in India, which was later named Free Basics.
But
the Internet and Mobile Association of India (IAMAI) welcomed the
watchdog's move, saying: "In a very clear and transparent ruling, TRAI
has explicitly said 'no service provider shall offer or charge
discriminatory tariffs for data services on the basis of content'. This
move will ensure that the basic tenets of Net Neutrality are followed in
India."
Crucial to the issue of Net Neutrality, differential
pricing or zero-rating is a practice where Internet service providers do
not take into account the content downloaded by subscribers from some
platforms while computing their usage tariff. These become free or
differentially priced.
Those batting for Net Neutrality want a
uniformity in such tariff. But those on the other side of the debate
feel this may be impossible because service providers have to invest
huge amounts of money on infrastructure and different bandwidths call
for different level of investments.
This appears to have been addressed by the watchdog.
"No
service provider shall charge differential pricing on the basis of
source, destination, application and content," the TRAI chairman said.
The watchdog has also called for a fine of Rs.50,000 per day for each act of contravention, subject to a cap of Rs.50 lakh.
The
watchdog's stand was much awaited in the light of Free Basics service
and Airtel Zero, which are apps promising access to the Internet by
providing them a range of some basic services for free such as news,
health, travel, jobs, sports, communication and other information.
The
issue ran into a controversy as well when the major part of the
responses to a TRAI paper calling for comments on Net Neutrality only
spoke about differential pricing and support for Free Basics.
The
watchdog did not take kindly to it -- saying most of the responses did
not address the larger issue -- and shot a stern letter to Facebook.
The
watchdog tended to agree that differential pricing had the potential to
expand and accelerate Internet access, and said as much in its order.
"On
the other hand, differential tariffs result in classification of
subscribers based on content they want to access," it said, adding this
could go against the non-discriminatory tariff, disadvantage small
content providers, create entry barriers and and stifle innovation.
The
watchdog also said differential pricing violates the basic principles
of the Internet, turn the service providers into gatekeepers, which, in
turn, goes against the freedom of speech, expression and media
pluralism.
Applauding the TRAI's move, SFLC.in executive director
Mishi Choudhary said: "Differential pricing runs counter to this
fundamental premise, which has had no small role to play in the
Internet's explosive growth.
"In this context, 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."
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