TRAI Favours Net Neutrality; Blow for Facebook's Free Basics

The Telecom Regulatory Authority of India has released the 'Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016', that disallows service providers to charge tariffs based on the content being accessed by the consumer.

The Telecom Regulatory Authority of India (TRAI) has issued 'Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016' which prohibits service providers to charge discriminatory tariffs for data services on the basis of content.

The announcement upholds net neutrality and allows users to access the internet without being charged extra depending on the content they are consuming. This is a big blow to Facebook's Free Basics and Airtel Zero which have been lobbying with the telecom authority to allow differential data pricing.

Subscribing to such plans, consumers will have access to a set of websites and apps for free, while for the others, there will be a specific data plan. This will deliver a big blow to small companies and start-ups which cannot afford to sign up for such plans.

"While formulating the regulations, the Authority has largely been guided by the principles of net neutrality seeking to ensure that consumers get unhindered and non-discriminatory access to the internet. These regulations intend to make data tariffs for access to the internet to be content agnostic," reads an official statement from the Authority.

It has therefore mandated the following:

1. No service provider shall offer or charge discriminatory tariffs for data services on the basis of content.

2. 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 by the service provider for the purpose of evading the prohibition in this regulation.

3. Reduced tariff for accessing or providing emergency services, or at times of public emergency, has been permitted.

4. Financial disincentives for contravention of the regulation have also been specified.

TRAI issued a Consultation Paper on 'Differential Pricing for Data Services' in December, 2015. It has sought the views of the stakeholders on whether the service providers should be allowed to charge differential tariffs based on the websites being accessed on the internet.

The Authority further stated that it will keep a close watch on the implementation of the mandate by the service providers and may undertake a review after two years.