---
abstract: |
  TRAI has fixed the problem but over-regulated in the process
archive-url: "https://web.archive.org/web/20230909090107/https://indianexpress.com/article/opinion/columns/net-neutrality-debate-trai-facebook-free-basics-campaign/"
author:
- Pranesh Prakash
authors:
- Pranesh Prakash
categories:
- Net neutrality
- Internet governance
citation:
  abstract: TRAI has fixed the problem but over-regulated in the process
  accessed: 2019-01-12
  archive: "https://web.archive.org/web/20230909090107/https://indianexpress.com/article/opinion/columns/net-neutrality-debate-trai-facebook-free-basics-campaign/"
  author: Pranesh Prakash
  available-date:
    date-parts:
    - - 2016
      - 2
      - 11
    iso-8601: 2016-02-11
    literal: 2016-02-11
    raw: 2016-02-11
  citation-key: prakashTRAIOrder2016
  container-title: Indian Express
  issued:
    date-parts:
    - - 2016
      - 2
      - 11
    iso-8601: 2016-02-11
    literal: 2016-02-11
    raw: 2016-02-11
  language: en_IN
  license: Creative Commons Attribution-NonCommercial-ShareAlike 4.0
    International License (CC-BY-NC-SA)
  title: "TRAI order: a sledgehammer, not a scalpel"
  title-short: TRAI order
  type: article-newspaper
  URL: "https://indianexpress.com/article/opinion/columns/net-neutrality-debate-trai-facebook-free-basics-campaign/"
comments:
  hypothesis:
    theme: clean
date: 2016-02-11
engines:
- path: /opt/quarto/share/extension-subtrees/julia-engine/\_extensions/julia-engine/julia-engine.js
keywords:
- net neutrality
- TRAI
- telecom
license:
  text: CC BY-NC 4.0
  type: creative-commons
  url: "https://creativecommons.org/licenses/by-nc/4.0/"
listing-page: ../press.html
original-url: "https://indianexpress.com/article/opinion/columns/net-neutrality-debate-trai-facebook-free-basics-campaign/"
publication: Indian Express
title: "TRAI order: A sledgehammer, not a scalpel"
title-block-categories: true
toc-title: Table of contents
---

# TRAI order: A sledgehammer, not a scalpel

------------------------------------------------------------------------

Through this order, TRAI has put in place the most stringent regulations
on differential pricing that exist anywhere in the world.

The Telecom Regulatory Authority of India (Trai) has heeded the call of
the Save the Internet campaign and its millions of supporters who called
for a ban on zero-rating. Digital rights activists across the world have
been putting out jubilant tweets. Many civil society organisations
abroad had been keeping a keen eye on the Indian regulator in order to
bolster their own activism with their regulators and governments.

Trai rightly recognised the harmful potential of differential pricing
(of which "zero-rating" is one form) on the basis of content/
applications/ services ("content" for short) and has, in record time,
come out with a forceful order. It is also momentous that in the
explanation for its decision, Trai has used net neutrality principles,
despite not explicitly using that term, thus paving the way for
much-needed regulation of internet service providers (ISPs) on quality
of service issues. Despite welcoming the order for all these reasons, I
have some reservations: The order allows some tariff schemes that may be
harmful and bans some that may be beneficial, and has some unintended
consequences. I won't focus on the potential negative effects on
pro-consumer innovation here.

Through this order, Trai has put in place the most stringent regulations
on differential pricing that exist anywhere in the world. It has barred
all telecom service providers from having discriminatory tariffs for
data services, termed all charging of differential tariffs on the basis
of content as "discriminatory", even though in the past, it has noted
that differential pricing and discriminatory pricing aren't the same.
Thus, while the regulator had the option of banning only
anti-competitive or discriminatory forms of differential pricing, it
chose to use a sledgehammer rather than a scalpel. It has fixed the
problem it identified but has over-regulated in the process.

Some forms of unpaid zero-rating, which were providing access to limited
services to people who can't afford access to the internet, now stand
banned. Thus, insofar as this order reduces access to technologies of
expression and communication, and decreases the diversity of accessible
information, it has negative consequences on freedom of expression
guaranteed under Article 19(1)(a) of the Constitution. To counter this,
it is incumbent on the government to ensure that those whose rights have
been negatively affected because of Trai's order are provided access in
a manner that is compliant with it. If that doesn't happen, and soon, we
are excluding a class of people from being equal to the rest of us ---
richer people with access to the internet. One way forward would be to
view the internet as critical infrastructure for freedom of opinion and
expression, and work out ways to provide open internet to all for free.
The government has Rs 40,840 crore (\$6 billion) in the universal
service obligation fund (USOF) that it has collected from telecom
companies --- this money ultimately comes from consumers. It could study
the feasibility of incentivising telcos to provide access to the full
internet at a low speed to all by lessening the USO burden of those who
do so.

Trai has also provided two exceptions: For "closed electronic
communications network", and for emergency services or in times of grave
public emergencies. The first exception leads to an absurd and
counter-intuitive position: Reliance Communications will be allowed to
charge less for Reliance Entertainment traffic as long as it isn't over
the internet but is separately provided within an intranet. And if
Facebook's Free Basics, instead of providing access to mobile-optimised
low-bandwidth internet content based on technical criteria, provided
only limited content over an intranet, that would be fine. So, closed
networks are okay, but partially or even almost-open networks are not.
Some would note that the order also states that if the service provider
is doing so "for the purpose of evading the prohibition in this
regulation", that is not allowed. If only the Income Tax Act included
such language, we wouldn't need to fret about the difference between
legal tax avoidance and illegal tax evasion, since even tax avoidance
would be prohibited.

Lastly, there are many unintended consequences. Pro-consumer services
like having a "gaming-optimised" package with lower latency for gamers
will now stand prohibited. ISPs are banned from providing hospitals
"telemedicine-optimised" services over the internet. And since the order
covers all telecom licensees, even some non-consumer networks --- like
enterprise virtual private networks (for example, MPLS networks), which
work atop the internet, and on which service providers charge
differentially for high-quality video conferencing versus other traffic
--- might get covered, despite Trai not intending that.

All in all, there are reasons both to cheer this order and to be
cautious. Most importantly, if these regulations end up furthering
digital exclusion, increasing barriers to access, reducing speech
diversity and harming freedom of expression, we might claim victory in
the net neutrality battle, but we would have lost the war for an open
internet that empowers all.
