Net Neutrality Wins As TRAI Prohibits Discriminatory Tariffs For Data Services: 10 Highlights

On Monday, the Telecom Regulator of India or TRAI, came out strongly in favor of net neutrality. They announced new rules that would govern the delivery of internet related services in the country. They have ruled in favor of Net Neutrality with a landmark judgement. TRAI, who is the country’s telecommunications watchdog, introduced a news release on Monday called the ‘Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016’.

TRAI’s take on Net Neutrality

1. TRAI published new rules and regulations

On 8th January, 2016, TRAI published the PROHIBITION OF DISCRIMINATORY TARIFFS FOR DATA SERVICES REGULATIONS, 2016. These are the new rules which enforce the idea of net neutrality, and mandates that there would be no discriminatory and destructive pricing related to internet services in India. This new rule was rolled out post 2-month long debate over differential pricing.

2. Service Providers cannot enter into any natural or legal agreement

TRAI said that,

“no service provider shall enter into any arrangement, agreement or contract, by whatever name called, with any person, natural or legal, that has the effect of discriminatory tariffs for data services being offered or charged to the consumer on the basis of content.”

3. New rules not applicable on closed networks

This rule will not be applicable on closed network, like a LAN network inside an organisation.

4. Banned free basics and Airtel’s short-lived Airtel Zero

The new rules imposed by TRAI will be taken more broadly and minutely in the coming days. But it seems like TRAI has banned programs like Free Basics of Facebook and Airtel’s short-lived Airtel Zero from the first reading.

5. End to discounted data packs

It is expected that TRAI’s decision will also put an end to discounted data packs that telecom companies offer. The services included free WhatsApp, Facebook, Wynk music app etc. TRAI said that the currently running data packs would stay active for 6 months or unless their validly expires whichever comes before, this was said to ensure that consumers aren’t hurt due to the ban on services for which they are already paying.

6. Exemption for emergency services

With the end on differential pricing, the service providers or web service provider will be allowed to bypass the rule in case of emergency. But again this will be just for a limited period.

7. Emergency needs to be reported within 7 days

In case of any emergency if a service provider offers differential pricing during that period, it has to be reported within 7 days.

8. Rs. 50,000 penalty if there is breach of order

If a company breaks TRAI new rule, it will be directly liable to pay penalty of Rs. 50,000 per day. This can go to a maximum fine limited of Rs 50 lakh.

9. Rule will be reviewed after 2 years

The rule will be looked over by TRAI after 2 years, they will then see if any modification is needed.

10. Rule safeguards the Internet users and content providers

The number of internet users and content providers are exponentially growing, TRAI has taken a has taken a view that ban of biased tariff for data services is very important to ensure that service providers continue to fulfill their commitments in keeping the internet open and non-discriminatory.

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