Responding to a TRAI consultation paper, major telecom service providers (TSPs) have come out in support of ‘Differential Pricing for Data Services’.
According to telecom regulator, only a few have opposed it. TRAI will review all the comments on January 14.
A raging debate over net neutrality arose nationwide after Bharti Airtel decided to impose separate charges for internet-based calls, launching a platform called ‘Airtel Zero’. However, the TSP shut it down following protests.
The debate intensified after Facebook announced the launch of its internet.org platform, now renamed ‘Free Basics’. While a publicity blitz by the social networking giant has been claiming that Free Basics’ intention is ‘free internet for all’, critics and some industry bodies are against the idea of a ‘controlled’ platform.
According to comments shared by TRAI, companies like Airtel have argued in favour of ‘differential pricing’, calling it marketing innovation that is critical to the growth of data services.
“Customers find differential offerings a great value proposition as these enable them to use various products/ services of their choice at a much lower price. Thus, TSPs should continue to have the flexibility to offer a variety of packages to consumers,” it said.
State-run BSNL also said TSPs should be allowed differential pricing. “Allowing TSPs to provide different pricing for few appealing services will help in increasing data adoption in the country. The existing regulation framework, if required, may be suitably amended to facilitate the above,” it said.
With differential pricing, TSPs can accurately predict what a customer wants and can offer as per their needs/ requirement, it added.
The nay-sayers However, industry associations like Internet and Mobile Association of India (IAMAI), Internet Service Providers Association of India (ISPAI) and Nasscom have opposed the move, saying any pricing mechanism that allows paid or unpaid prioritisation or other discriminatory practices will seriously limit competition. It will throttle innovation and fundamentally lead to fragmentation of the internet, said IAMAI. “Creating walled internet with select services and content can also potentially drive up the cost of the internet outside of the set of select services/ content / products,” Nasscom said.