#NetNeutrality: TRAI rules that differential pricing will not be allowed

“TRAI has today issued the ‘Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016′ that disallow service providers to offer or charge discriminatory tariffs for data services on the basis of content being accessed by a consumer”, Sudhir Gupta, TRAI secretary, said in a statement.

TRAI has barred service providers from charging or offering data traffic on discriminatory basis.

But now the regulator has ruled that operators can not enter into any arrangement that is based on discriminatory pricing, unless they want to face a significant daily fine.

The regulations would be immediately enforced. However, the regulation will not apply to tariffs for data services over closed communication networks, unless tariffs offered evade prohibition of this regulation.

The policy may be reviewed every two years or sooner, TRAI said.

The ruling essential clamps down on data plans such as Airtel Zero and Facebook’s Free Basics. A service provider may reduce tariff for accessing or providing emergency services at times of grave public emergency. “By way of financial disincentive, an amount of rupees fifty thousand for each day of contravention, subject to a maximum of rupees fifty lakh”, according to the TRAI press release. “Differential prices can be offered in case of “emergencies”, he said.

While the full details of what TRAI’s decision entails will become clearer in the coming days, it seems zero-rated plans, which led to a heated debate in Indian’s web ecosystem, will not be allowed in India. “Anything on the internet can not be differentially priced”. On January 1, Trai asked the company to alert its users to send revised responses to the questions on the consultation paper as a vote for Free Basics did not hold up as a valid response.

“The people who live in cities and are aggressive users of the internet said: “You can’t dictate the terms, give free internet to villagers and then tell them how to use it”, he said.