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Department of Telecom

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Seeking comments on TRAI’s Consultation Paper on Differential Pricing for Data Services

Start Date :

Dec 10, 2015

Last Date :

Jan 15, 2016

00:00 AM IST (GMT +5.30 Hrs)

Submission Closed

The past few years have witnessed tremendous growth in data usage and quite a large number of data tariff offers are made available by the service providers. The regulatory ...

The past few years have witnessed tremendous growth in data usage and quite a large number of data tariff offers are made available by the service providers. The regulatory guidelines till now on discrimination and transparency in tariff offers were more focused to address the regulatory concerns in voice telephony. The growth of data usage and the manner in which data schemes are being designed by service providers currently, calls for a re-look at the regulatory principles of non-discriminatory tariff and transparency measures in the context of data tariff offers.

It has come to the notice of TRAI that some service providers are offering differential data tariff with free or discounted tariffs to certain contents of certain websites/applications/platforms. The objective of offering such schemes is claimed to be the desire of various service providers/content providers or platform providers to enable the consumers, especially the poor, to access certain content on the internet free of charge.
Where reduced rates are tied to specific content, potentially, both positive and negative effects arise from an economic and regulatory perspective. On the one hand, it appears to make overall internet access more affordable by reducing costs of certain types of content. On the other hand, several negative effects might ensue. Differential tariffs results in classification of subscribers based on the content they want to access (those who want to access non-participating content will be charged at a higher rate than those who want to access participating content). This may potentially go against the principle of non-discriminatory tariff.
Therefore, the potential benefits and disadvantages of such practices have to be weighed in order to determine the regulatory approach.

In this background, TRAI has issued a consultation paper on the issue of differential pricing for data services seeking comments from stakeholders on certain issues as enumerated below:

i. Should the TSPs be allowed to have differential pricing for data usage for accessing different websites, applications or platforms?

ii. If differential pricing for data usage is permitted, what measures should be adopted to ensure that the principles of non-discrimination, transparency, affordable internet access, competition and market entry and innovation are addressed?

iii. Are there alternative methods/technologies/business models, other than differentiated tariff plans, available to achieve the objective of providing free internet access to the consumers? If yes, please suggest/describe these methods/technologies/business models. Also, describe the potential benefits and disadvantages associated with such methods/technologies/business models?

Through this forum of My Gov, TRAI invites the comments of the stakeholders on the above issues by 7th January, 2015.

Consultation Paper on Differential Pricing for Data Services

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Kapil Budhwani 10 years 8 months ago

Net neutrality is good but it will be much better if there is fair competition between the service providers. As it ultimately benefit all users. As about the TRAI it has to regulates that necessary or needful sites and content is available to all users at an affordable rates, like e-library sites.

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v madhu phani 10 years 8 months ago

Don’t allow Zero Rating, not even on a case-by-case basis Case-by-case approval of zero rating, as proposed in the report, is an invitation to lobbying and corruption. The government should make objective, unambiguous rules, not leave complex decisions affecting crores in profits to some corruptible bureaucrats. Remember that this is an industry that has already demonstrated that it has no qualms about paying huge bribes at the highest levels of government.

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Srikant Kuanar 10 years 8 months ago

By pushing for differential pricing, the operator would create artificial barrier for certain websites/applications who might not like to enroll for their program. They may also promote only those websites with whom they have a commercial agreement or some sort of stake. There is no doubt that this is discriminatory but in a long run would also prove detrimental to overall accessibility of information over internet and hence should not be allowed at all.

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umesh kumar_114 10 years 8 months ago

I support FULL NET NEUTRALITY Don’t allow Zero Rating, not even on a case-by-case basis Case-by-case approval of zero rating, as proposed in the report, is an invitation to lobbying and corruption. The government should make objective, unambiguous rules, not leave complex decisions affecting crores in profits to some corruptible bureaucrats. Remember that this is an industry that has already demonstrated that it has no qualms about paying huge bribes at the highest levels of government.

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Kshitij Rege 10 years 8 months ago

Don't allow telecom operators to change the definition of Net Neutrality. Net Neutrality means access to EVERYTHING on the Internet, without discrimination. Access for everyone is a different goal — universal access. We support universal access, but it must be to the public Internet, not some private walled garden. Don't allow telcos to split the internet and become gatekeepers of what the next 1 billion Indians can access.

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rahul sharma_276 10 years 8 months ago

#netneutrality should come in India so that students, farmers and "the range of population those can't afford the services of internet" would be able to use net services at reasonable price. Ultimately its #TRAI decision whether its want to help millions of people by providing #DataServices at reasonable rate or HELP some billionaire to make more billions of money by giving our country internet control in their hand to mess with as they wish.

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Srikant Kuanar 10 years 8 months ago

It's highly unlikely that the sole objective for differential pricing, as stated by the service provider, is to enable the consumer access content on the internet free of charge. If that is truly the case then they should gladly accept the proposal to offer free browsing limit of let's say 500 MB per month. They may decide the whom they want to offer this benefit. That way they will not lose out revenue from people who can afford it.

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swarnendu dutta 10 years 8 months ago

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Yogesh Tahiliani 10 years 8 months ago

I support Net Neutrality.

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ankit_458 10 years 8 months ago

in my view internet since its inception has been source of creativity, connectivity and originality.stratification of internet would pave way to giant highways rather than tiny webs. And as it is true in nature selective breeding leads to loss of characteristics.if companies like Facebook want to provide low cost internet let them do so through apps and not involve isps. net neutrality must be maintained despite the lure because the future shouldn't be dependent on a few to own.

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