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After failing to get regulatory approvals for its zero rating plans, Airtel has now embarked on creating a new platform that will enable content providers and application developers offer services at differential pricing.
The telecom operator has sought TRAI’s approval for partnering with video content providers to offer services exclusively to Airtel’s subscribers over a closed network. This follows the regulator’s order that banned telecom operators from differentiated pricing over the Internet but allowed such arrangements in a closed network.
The basic difference between the open internet and a closed network is that in the latter, the service will be available only to the operator’s subscriber base. In this case, Airtel will be able to offer the content offered by its undisclosed partner at lower data rates than what a user might be paying for accessing video over YouTube. This will be made possible if the content provider decides to locate the videos at a local server on Airtel’s network instead of the world wide web.
Airtel’s application will be a test case in knowing whether TRAI will allow such partnerships or not. “Though the prohibition on discriminatory pricing of data services does not apply to such networks, which are not accessing the internet, if such a closed network is used for the purpose of evading these regulations, the prohibition will nonetheless apply,” TRAI had said in February.
Therefore, Airtel said it wants to take TRAI’s permission before going ahead on any business decision on such an arrangement.
The company had earlier faced criticisms against its ‘zero’ rated plan where it was offering free internet access to some applications and services. However, this was shut down after TRAI termed it as being against net neutrality.
“While such an arrangement with the global content provider over a closed electronic communication network along with its exclusive offerings to our customers would be compliant (with) the regulations, it may well be viewed by some stakeholders in violation of principles of net neutrality,” Ravi P Gandhi, Chief Regulatory Officer, Airtel, said in the letter to TRAI.
If allowed, Airtel and other operators, including Reliance Jio, can provide other content through similar arrangements.
Market watchers said this could make the TRAI regulation on differential pricing redundant.
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