In a move that will have significant bearing on the country’s internet landscape, the Telecom Regulatory Authority of India (TRAI) has barred telecom operators from charging discriminatory data prices on the basis of content.
TRAI’s regulations uphold the principles of net neutrality and have been lauded for ensuring equitable internet access for all. They are conducive to the innovation and start-up ecosystem in the country, protecting the internet from possible monopolisation by telecom operators. However, the regulator’s move comes as a major blow to social media giant Facebook’s Rs 3 billion Free Basics programme, which aimed to offer users free access to select content.
The regulations have received severe criticism from telecom operators, who had been eyeing higher revenues through tie-ups with content providers. They are now likely to offer their own applications through intranets at a lower cost or for free: a loophole that TRAI has overlooked while formulating the rules.
The bigger discussion at hand, however, relates to the impact of these regulations on the existing level of internet adoption. India features very low on the universal broadband index, and closing the growing rural-urban divide is the need of the hour. Affordable or free access can prove to be an effective tool for drawing in first-time internet users, who can later proceed to the paid version of the internet.
It is debatable as to whether the initial subsidised usage should be limited to select content. It could result in operators dictating consumer access to content, a practice that can have a serious diversionary effect with regard to first-time internet users and overall internet usage trends in the long run.
For now, the probable impact of TRAI’s regulations on the Digital India project and internet connectivity in the country remains unclear. However, TRAI’s bold stance on not compromising with the neutrality and openness of the internet is a step forward for India’s changing telecom regulatory scenario.
