Trai feels net neutrality ruling quite clear, having second thoughts about issuing clarification

NEW DELHI: The telecom regulator is having second thoughts about issuing a clarification of its recent rule on discriminatory pricing of data services, with one person saying it may want to avoid further misunderstandings given that it feels the pronouncement is quite clear.

“While we want to sort out any confusion, we need to be careful that our clarification doesn’t lead to further requests for clarifications, as this can be a never-ending process,” a top official told ET.
The Telecom Regulatory Authority of India ( Trai) had recently weighed in on the side of net neutrality and barred discriminatory pricing of data services. It, however, exempted data services offered on a closed user network, or intranet, from the regulation, leading to calls for clarification.

Net neutrality backers and advocates of a free Internet say the exemption is a loophole that could be used by telcos to offer data services at differential rates.

They say this may undo Trai’s objective of disallowing discriminatory pricing of Internet services.

The decision led to Facebook withdrawing its Free Basics programme, which offered free Internet access to a limited number of websites.

The person cited above said there was an overarching clause in the regulation that allowed Trai to intervene if it finds that a structure has been designed to violate its rule.

He further said that Trai’s regulation on data pricing was quite clear: whatever isn’t a part of the Internet, or intranet, won’t fall under the new regulation. And whatever is, will be covered.

“We don’t want to be in a situation where we are seen to be interpreting our own regulation. That shouldn’t be our job,” the person said, adding that the regulator also didn’t want to set a precedent. He, however, added that Trai hadn’t taken a final view on releasing a list of frequently asked questions (FAQs) to clarify doubts.

The intranet, termed as a closed electronic communication network (CECN) by Trai, can be created without directly connecting to the Internet.

The exemption allowed for data services in such closed networks has not only raised the hackles of backers of net neutrality — the concept that everyone is guaranteed equal access to the Internet — it’s also drawn the attention of telcos seeking ways to hold on to data customers and reduce the impact of the regulation but not wanting to be wrong-footed later.

Mobile phone operators had, in a representation, asked the regulator to clarify “the concept and scope of a CECN, and how it intends to operationalise it.”

They have also sought clarity on whether they can tie up with Internet apps to offer content to subscribers at differential rates over closed networks, and on whether an Internet-based app provider can offer content for free or at discounted rates to all customers of a mobile carrier, so long as it’s non-discriminatory and delivered over closed communication networks.

Net neutrality backers, such as Paytm founder Vijay Shekhar Sharma, have urged the telecom regulator to bar any apps available on the Internet from being offered on intranets to prevent the misuse of the potential loophole.

“To clarify any doubts, we may need to give some examples,” the person said, explaining that a stakeholder could again seek clarification on those examples.