TRAI Is Open to Free Data, If Differential Pricing Can Be Avoided

The latest consultation paper asks for a fair ground to offer free data without flouting the logic of Net Neutrality.

The Telecom Regulatory Authority of India (TRAI) has floated its latest consultation paper on the matter of Differential Tariff pricing covered under the subject of Net Neutrality.

Andn we get a feeling that their stance has definitely softened in favour of free data being offered to consumers. However, they want to make sure that the regulation doesn’t hamper its strong disapproval against models like Facebook’s Free Basics.

This consultation paper is being issued to explore model(s) that could achieve the benefits of offering free data while avoiding the ingenuity that the Differential Tariff Regulation is meant to prevent. The model should facilitate the un-connected and under-connected consumer to become better connected and should not allow any TSP or large company playing gatekeeper or having a biased role. 

TRAI Paper

The consultation paper has further prescribed a set of questions that are expected to be answered by stakeholders by 16 June.

Just in case you don’t agree with TRAI’s opinion, counter arguments can be shared with TRAI by sending them an email at [e-mail] before 30 June.

TRAI Consultation Paper

• 
  Q1: Is there a need to have TSP agnostic platform to provide free data or suitable reimbursement to users, without violating the principles of Differential Pricing for Data laid down in TRAI Regulation? Please suggest the most suitable model to achieve the objective.
• Q2: Whether such platforms need to be regulated by the TRAI or market be allowed to develop these platforms?
• Q3: Whether free data or suitable reimbursement to users should be limited to mobile data users only or could it be extended through technical means to subscribers of fixed line broadband or leased line?
• Q4: Any other issue related to the matter of Consultation.
  

The regulatory body goes on to state that a toll-free model for data pricing is essential so that every user gets a fair chance to use the internet.

Also Read: Here’s What the TRAI Verdict on Net Neutrality Tells Us

For example, suppose Person A is on 1GB data pack costing Rs 250, and Person B is on the tariff of 10 paise per 10 Kb. If the data consumed in one session of Internet surfing is 50 MB, Person A incurs Rs 12.20 whereas Person B incurs Rs 512. This is nearly 42 times the cost incurred by Person A. In the toll-free model, given the data used is not getting billed to the mobile subscriber, true cost of data is covered without any confusion. 

So, basically, what TRAI wants to adopt is add another layer of regulation without depriving providers of the chance to offer free data. However, they also don’t want any company to act as the gatekeeper, which directly flouts the logic of having Net Neutrality in place.

It’s good to see that the body has taken a closer look at the growing m-commerce space in India, and by providing free data to users with a fair practice in place, the sector can grow exponentially in the future.

We kind of agree with what TRAI hopes to achieve, but their aspiration of ending up in a win-win situation might not bear fruit. Either way, we’ll wait to see if TRAI gets its way on 16 June with the stakeholders or not.