Net neutrality: Setback for FB, Trai bars differential pricing

In a boost to net neutrality and a blow to Facebook and other operators offering differential data tariffs, telecom regulator Trai on Monday barred them from charging discriminatory prices for web access.

In a far reaching recommendation, Trai provided for a penalty of Rs 50,000 for each day on service providers if they flout the order. This penalty would be subject to a maximum of Rs 50 lakh. “No service provider shall offer or charge discriminatory tariffs for data services on the basis of content,” Telecom Regulatory Authority of India (Trai) Chairman RS Sharma said unveiling the details of the regulations, effective on Monday, titled ‘Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016’.

The new rules come amid a long-running debate on net neutrality wherein Facebook has been facing flak for its ‘Free Basics’ platform, while operators like Airtel have been at the receiving end for similar plans announced earlier. The Trai order is seen as a setback to Facebook which had plans to roll out Free Basics, providing access to a limited set of websites for free. This was seen as undermining the equal-access precepts of net neutrality.

“Anything on Internet cannot be differently priced. This is the broad point that we have highlighted in regulation,” Sharma said.

Plans which are active in contravention of the new regulations should cease to exist in 6 months, he said, adding that the new regulations have been notified in Gazette and are effective from Monday.

“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,” Trai said. However, service providers have been allowed to reduce tariff for access in case of providing emergency services. “We have not defined emergency services. But in case of such services, operators have to inform Trai within 7 working days,” Sharma said.

Facebook launched an aggressive campaign to defend its Free Basics platform and advocated that zero rating plans can lead to increase in Internet adoption at no cost to the government, the content provider or the consumers. It was available in India only on Reliance Communications network but the same was put on hold after Trai’s order.

“Plans which are active in market, though may be in contravention of this regulation, have been allowed to continue for six months of their subscription. While framing this regulation, we kept in mind consumer protection,” Sharma said.