The Telecom Regulatory Authority of India (TRAI) ruled against differential pricing for Internet services in February, and said it would ask service providers to withdraw such tariff.
“No service provider shall offer or charge discriminatory tariffs for data services on the basis of content,” the regulator ruled in its Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016. TRAI said this prohibition was necessary to keep the Internet open and non-discriminatory.
The regulator said that tariff for data services could not vary depending on the website/application/ platform/ or type of content that was being accessed. For example, a consumer could not be charged differently based on whether she was browsing social media site A or B, or on whether she was watching streaming videos or shopping on the Internet, it added.
TRAI’s ruling is a major setback to Facebook’s plan to roll out free Internet to the masses under its Free Basics programme. TRAI and Facebook have been at loggerheads over the issue and TRAI even called Facebook’s attempt to lobby for its Free Basics initiative a “crude” lobbying attempt.
In an emailed statement, Facebook said, “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.”
Rajan Mathews, Director-General of the Cellular Operators’Association of India (COAI), told reporters: “We are very disappointed with the ruling. Differential pricing is an effective marketing tool and would have helped in bringing online the next one billion people. We are confused as the decision comes at a time when the government is pushing adoption of Internet.”
However, TRAI’s decision was cheered by Net Neutrality activists and industry bodies such as Nasscom and IAMAI.
TRAI added that a service provider could reduce tariff for providing emergency services or at times of any grave emergency, but said this would have to be reported to the authority within seven working days.