Analysts divided over validity of Jio's pre-installed apps

NEW DELHI/KOLKATA: Analysts are divided over whether pre-loaded Reliance Jio and other apps on the JioPhone flout rules on nondiscriminatory internet access, known as net neutrality.

"Jio's pre-installed apps on the JioPhone can be seen as a violation of net neutrality principles, and we believe this aspect would be highlighted by competitors to the regulator," brokerage Kotak Institutional Equities said in a note to clients, a copy of which was seen by ET.

According to Kotak, any set of pre-installed apps on a device - whether they are Jio's or not - that prevents consumers from installing competing apps “flirts with the boundaries of net neutrality“.

Deutsche Bank raised similar concerns on the grounds that apps on the JioPhone are from its own store, which has apps spanning social, content and payments verticals.

Reliance Jio Infocomm declined to comment on the issue, although a person close to the company said JioPhone will support both Jio and non-Jio apps. "There is absolutely no question of the JioPhone violating net neutrality principles as users of the device will enjoy unrestricted access to the internet," the person said.

Net neutrality backers said although on first look the model did not appear to be violating internet access rules, there wasn't enough immediate clarity on whether the just-announced device will limit usage to select apps chosen by Jio.

Trai has backed net neutrality and banned discriminatory pricing of data services.