COAI contests Trai clamp on differential data pricing

The Cellular Operators Association of India (COAI) has written to the telecom regulator, asking it to reconsider the ban on differential data pricing rules.

The lobby group argues differential data pricing was allowed for years and there is no evidence to suggest any harm to anyone by offering these.

COAI’S TAKE

• The lobby group argues differential data pricing was allowed for years
• It says there is no evidence to suggest any harm to anyone by offering these
• It also contends pricing innovation has played a key role in sector's evolution

COAI has also said the Telecom Regulatory Authority of India (Trai) had "inadvertently mixed up unrestricted physical  or technical access with non-discriminatory commercial access".

In February, Trai had banned operators from offering data at differential prices. The ruling was in response to the criticism on Airtel Zero and Facebook's FreeBasics, which offered free access to select websites for subscribers of Airtel and Reliance Communications, respectively. Net neutrality activists had rallied against the move.

The department of telecom has asked Trai for a pre-consultation paper on net neutrality that encompasses all the principles.

COAI says Trai assumed differential data pricing is equivalent to denying access to the internet or any website to end-consumers.

Net neutrality activists say by creating a platform offering free access to select websites, telcos would be shaping consumer preferences and behaviour towards free data.

COAI also contends pricing innovation has played a key role in the sector's evolution and allowed rates to stay low.

As differential pricing is allowed in voice, messaging and value added services, these should be allowed for data as well. Pricing flexibility is a core tenet of marketing and innovation.

Citing the need to give consumers lower prices for products/services of their choice, COAI has argued that customers do not understand megabytes and gigabytes. Therefore, to offer data prices only around megabytes and gigabytes is not consumer friendly.

Also, says COAI, even globally, forbearance on rates has been considered the best regulation.

“There is no direct or indirect evidence that any of the regulatory principles of non-discrimination, transparency, non-predatory, non-ambiguous, not-misleading are being violated. Therefore, disallowing  disallowing differential data tariffs (rates) is an unnecessary and unfair measure, when market forces have been working fine.”