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HomeArticlesRegulationsTRAI bans Differential Pricing for Internet
Thursday, 10 March 2016 12:43

TRAI bans Differential Pricing for Internet

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The controvercy over differential pricing for data services by the telecom operators has been raging since last year when Airtel announced its zero rating services followed by Facebook announcing the launch of Free Basics (earlier Internet.org).

The regulator has already issued its consultation process getting millions of responces from the public not only from India but all across the world. Finally it has come out with the undermentioned regulations on the subject prohibiting any type of differential prices for data services.

The Regulations:

Prohibition of discriminatory tariffs:

  • No service provider shall offer or charge discriminatory tariffs for data services on the basis of content.

  • No service provider shall enter into any arrangement, agreement or contract, by whatever name called, with any person, natural or legal, that has the effect of discriminatory tariffs for data services being offered or charged to the consumer on the basis of content:

Provided that this regulation shall not apply to tariffs for data services over closed electronic communications networks, unless such tariffs are offered or charged by the service provider for the purpose of evadin  g the prohibition in this regulation.

  • The decision of the Authority as to whether a service provider is in contravention of this regulation shall be final and binding.

Exemption for certain content: -Notwithstanding anything contained in regulation 3, a service provider may reduce tariff for accessing or providing emergency services, or at times of grave public emergency:

Provided that such tariff shall be reported to the Authority within seven working days from the date of implementation of the reduced tariff and the decision of the Authority as to whether such reduced tariff qualifies under this regulation shall be final and binding.

Consequences of contravention of these regulations:

  • If a service provider is in contravention of these regulations, the Authority may, without prejudice to the terms and conditions of licence, or the Act or rules or regulations or orders made, or directions issued, thereunder, direct the service provider to withdraw such tariff and also order such service provider to pay, by way of financial disincentive, an amount of rupees fifty thousand for each day of contravention, subject to a maximum of rupees fifty lakh:

Provided that no order for payment of any amount by way of financial disincentive shall be made by the Authority unless the service provider has been given a reasonable opportunity of representing against the contravention of the regulation.

  • The amount payable by way of financial disincentive under theseregulations shall be remitted to such head of account as may be specified bythe Authority.

Review:-The Authority may review these regulations after the expiry of a period of two years from the date on which these regulations come into effect, or on any earlier date as it may deem fit.

Interpretation:-In case of any doubt regarding interpretation of any of the provisions of these regulations, the decision of the Authority shall be final and binding.

Savings: - Nothing contained in these regulations shall affect any packs, plans or vouchers with unexpired validity subscribed by a consumer before the date of commencement of these regulations:

Provided that no such pack, plan or voucher shall be valid beyond a period of six months from the date of commencement of these regulations:

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