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TRAI rejects differential pricing, Facebook says 'disappointed'
09 Feb 2016
  • Backing Net neutrality, telecom watchdog Trai has barred operators from charging different rates for Internet access based on content, dealing a blow to Facebook's controversial Free Basics and other such plans, reported the Press Trust of India.
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  • Ruling against discriminatory pricing for different data platforms or content, the Telecom Regulatory Authority of India (Trai) said operators cannot enter into pacts with Internet companies to subsidise access to some websites.
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  • Companies violating the rules will be fined Rs 50,000 per day for the duration of contravention, subject to a maximum of Rs 50 lakh.
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  • "No service provider shall offer or charge discriminatory tariffs for data services on the basis of content," Trai said in its regulations for Discriminatory Tariffs for Data Services. It gave six months to operators to wind down existing differential pricing services.
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  • "Anything on Internet cannot be differently priced. This is the broad point that we have highlighted in regulation," Trai Chairman R S Sharma told reporters issuing the regulations.
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  • However, services providers have been allowed to reduce tariff for access of providing emergency services.
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  • "We have not defined emergency services. But in the case of such services, operators have to inform Trai within 7 working days," he said.
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  • The move dealt a blow to Facebook's plans to offer Free Basics service that allows free access to certain websites in partnership with a telecom operator. Zero tariff plans of other operators like Airtel would also be impacted.
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  • The plans were seen as violation of the principle of Net neutrality that calls for all websites being equally accessible.
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  • Facebook expressed disappointment at the Trai move, saying its "goal with Free Basics is to bring more people online with an open, non-exclusive and free platform".
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  • "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," a Facebook spokesperson said in a statement.
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  • Congress Vice-President Rahul Gandhi, who had championed the cause of Net neutrality, hailed the move. "Welcome Trais ruling in support of #NetNeutrality. Big win for Internet users in India. Congratulations to all those who campaigned tirelessly and fought hard to ensure that our Internet remains free and equal for all," his office tweeted.

 

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