5 Key takeaways from TRAI's differential pricing verdict

By banning differential pricing , and implementing some stringent rules, TRAI has set the record straight about no discrimination of the Internet and equal access to all. TRAI’s ‘Prohibition of Discriminatory Tariffs for data services regulations, 2016’ jots down the new rules in the backdrop of the ongoing net neutrality debate in India. While the decision is commendable and loks great on paper, it isn’t free of possible loopholes. Here are five key takeaways from the TRAI verdict on banning differential pricing. No discriminatory pricing for online content TRAI has taken a side! Putting an end to the ongoing debate over net neutrality, at least for now, the regulator has barred differential pricing. This means no operator shall charge discriminatory pricing on content, source and application. This means initiatives like Facebook’s Free Basics are booted out of the country and Internet will remain as we’ve known it. So, companies with big money as well as startups will stay on the same platform, ensuring fair play and equal opportunity for all. The regulator body will When does all of it begin TRAI Chairman RS Sharma on February 8 said that the new regulations will come in effect immediately. The existing operations, such as data packs offering more access to a certain app like WhatsApp or likewise, won’t be available after six months. This means such services are termed illegal and only have six months of usage. Hefty penalty to violators TRAI has not just inked the rules, but also made provision that they are followed. It will determine in case attempts are made to violate the regulations. So, a hefty fine starting at Rs 50,000 up to Rs 5 lakhs per day will be imposed on anyone not adhering to the rules. There are exceptions TRAI does make some exceptions in case of emergency. So, in case of a calamity or similar emergency situation, reduced tariff will be permitted to offer services to public. But. the provider has to inform TRAI within seven days and the regulator will take a call on it. Besides, intranets and closed communication networks are also exempted. Watch out for loopholes The decision to exempt closed, private networks from differential pricing ban is being seen as a major loophole by many. Many experts believe that telcos can take advantage of this loophole to offer their own services at low to no cost. It should be noted that these orders will be reviewed after two years. So, expect TRAI to sit back and renew/make changes to these orders in 2018. However, a timely intervention is also required to ensure the rules aren’t violated. Here is the complete TRAI release: