TRAI rules in favour of Net neutrality

TRAI has ruled against differential pricing for data services in a major support to Net Neutrality.

The TRAI ruling can be seen as a blow to Facebook’s Free Basics, Airtel Zero and other similar data services which offered access to some websites and content for free.

TRAI has ruled against differential pricing in order to keep the Internet open and non-discriminatory for users.

Major Highlights of the order:

TRAI has ruled that no service provider shall offer or allow discriminatory pricing for data services based on content.

It has ruled against any arrangement or agreement between any service provider or any person that adheres to differential pricing for data services.

TRAI has allowed for special reduction of tariff for accessing or providing emergency services during times of public emergency. The authority has asked for the same to be reported within seven working days.

The telecom regulator has ruled that if a service provider is found violating the regulation, there will be a penalty of Rs 50,000 for each day of contravention, subject to a maximum of Rs 50 Lakhs.

TRAI has also exempted intranets or closed communication networks from this regulation, but has added a caveat saying if a closed network is used for the purpose of evading these regulations then the prohibition will definitely apply.

TRAI has stated that it may review the regulation after two years.

Previous debate on NET Neutrality :-

The regulator and Facebook have been at loggerheads over the issue with the authority terming the social networking giant’s attempt to lobby for its Free Basics initiative a “crude” attempt at turning the consultation over differential pricing of data services into an “orchestrated opinion poll” on Free Basics.

Facebook had partnered with Reliance Communications in India to offer Free Basics service.

However, the services were put in abeyance, post a TRAI order to this effect.

Critics had argued that allowing access to a select few apps and web services for free violates the principle of net neutrality – the principle that all websites and data on the Internet should be treated as equal.

What is the significance of TRAI ORDER ?

The TRAI notification favoring net-neutrality is in line with what was seen in the US in 2010 when FCC favoured an ‘Open Internet’ and then came up with an ‘Open Internet order’ in early 2015.

The European Union also ruled in favor of treating all Internet traffic equally. Though some of their amendments allowed for differentiation and have been a subject of intense criticism.

Way ahead 

for the government:

Now, it is up to the government to find innovative ways to actually get all citizens access to this Internet as India’s ranking in universal broadband access is abysmally poor and the digital divide continues to widen.


for the Telecom Service Providers:

Telecom service providers may not be happy with this notification. However, they still have the ability and freedom to create different kind of Internet access packages; as long as content is not a parameter to provide or bar access to anyone.

Such practices have already started elsewhere with products such as bandwidth on demand, bandwidth calendaring etc. to create premium products.

Obviously, it will require changes in network and operations but that’s where the telecom roadmap goes.