Hello Net Neutrality, Goodbye Free Basics
After a lot of furore, TRAI is finally out with it’s verdict. It will not allow private players to practice differential pricing. This move will prohibit likes of Airtel Zero and Facebook’s Free Basics to charge differential rate for their data services. TRAI has announced that it will levy financial disincentives for contravention of the law. TRAI said a fine of 50, 000 would be levied per day, subject to a maximum of 50 lakh for any violation.
The bill, named the Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016, states that the internet must be kept free and non discriminatory. The TRAI regulation means that the tariff for data services could not vary basis the website, the content or the platform. However, the judgement makes an exception in case wherein an entity wants to provide limited free data which is non discriminatory. Another exception has been made for public services, or at the time of emergency.
Opponents of Free Basic had emphasized that, had the scheme been allowed, it would have allowed a private player gatekeeping powers. Further, differential pricing would put start ups and small content creators at a disadvantage. Proponents of Free Basics argue that differential pricing is an economic concept which would have aided the growth of Modi’s “Digital India”. Successfully functional in other countries, they argue that the concept is similar to having differential prices basis the berths in railway tickets.
This has come as a major setback to the technology giant Facebook, which had been lobbying for Free Basic. Facebook’s free basic has been running successfully in about three dozen countries of the world. This project has been successful in developing countries , Facebook had partnered with Reliance in India with an aim to let users access Facebook with no charge along with content of it’s partner sites.
Though the judgement has been hailed by prestigious institution and experts, what remains to be seen is how India finds innovative ways to tackle the issue of abysmally low ranking in broadband access.
