IAMAI against platforms like Free Basics, differential data

The IAMAI said that different pricing models mentioned in the consultation paper of Trai are not only violating the core principles of pricing regulation but also the principles of Net neutrality

Industry body IAMAI, whose members include Facebook, Google and other Internet companies, today voiced against platforms like Free Basics that can lead to creation of different prices of Net based on content or websites people want to access.

The Internet and Mobile Association of India (IAMAI) said that different pricing models mentioned in the consultation paper of Telecom Regulatory Authority of India (Trai) are not only violating the core principles of Trai's pricing regulation but also the principles of Net neutrality.

"No, the TSPs (telecom service providers) should not be allowed to have differential pricing for data usage for accessing different websites, applications or platforms," IAMAI said in its comment over Trai's 'Consultation Paper on Differential Pricing for Data Services'.

IAMAI said as per Trai's paper there are three different models identified that have differential pricing for data or Internet services.

The first one being "when the service provider selects the content, which is offered free or bundled together at reduced rates," similar to zero rating platform like Airtel Zero. Under such plans telecom consumers don't pay for accessing websites or any content on such platform but the owner of content pay for joining it.

"In another form, one content provider creates a platform where other content providers can apply, and be selected. The platform creator then partners with service provider(s) to provide free Internet access to participating content providers, for the subscribers of those service providers," which is similar to Free Basics.

"Such models come at a cost of lowering consumer choice and giving rise to oligopolistic competition. Under privileged and non Internet-savvy users will never know the whole of Internet under such limitations," IAMAI said.

IAMAI also mentioned third model where Internet charges are differentiated on the basis of specific set of applications and opposed it. There have been instances where telecom operators decided to levy higher charges for making Internet based calls and messages.

"We have serious issues with the models that are proposed by Trai to do so. Foremost is our contention that the models raised by the Authority do not pass the muster of its own principles of price intervention," IAMAI said.

It said that the Internet should have equal access to all the content or applications at an equal rate to consumers and free Internet should be on the basis of free data not free specific content.

"Any pricing mechanism that allows paid or unpaid prioritisation or other discriminatory practices will seriously limit competition, throttle innovation and fundamentally lead to fragmentation of the Internet. Such measures should not be allowed in any case," IAMAI said.

IAMAI said that charging differently for different Internet apps will be anti-competitive, it will break the Internet and stifle innovation.

The industry body has suggested as part of corporate social responsibility (CSR) Internet companies should be allowed to provide free Net packs to users.

"The Company Act can be revised to include such services as CSR activities," IAMAI said.