TRAI’s fresh thoughts on net neutrality

BY SMARIKA KUMAR| IN Law and Policy | 28/05/2016
It tries to make its earlier regulation more nuanced by proposing three models of zero-rating without discriminatory tariffs.
SMARIKA KUMAR finds problems with all three

 

In its series of consultations and policymaking efforts around net neutrality in India, TRAI has issued yet another Consultation Paper last week, on May 19, 2016. This time, the paper focuses on the construction of models for the provision, distribution and use of free data (in other words, zero-rated data or zero rating) in digitally connected India.

This consultation comes in the wake of the Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016 in February. That TRAI-developed Regulation had in essence, issued a ban on the offer or charging of data services “on the basis of content” through “discriminatory tariffs” (see Section 3.(1) of the Regulation). This move effectively put an end to projects like Internet.org/Free Basics and Airtel Zero in the country. And for a while, it looked as if a regulation designed with this wording would spell the death knell for zero-rated services.

So it is quite exciting that this new Consultation Paper from TRAI is seeking to think about working models whereby zero-rated services, can, in fact be offered, without of course violating the said prohibition on “discriminatory tariffs.”

Broadly, the Consultation Paper seeks responses to the question of how models incorporating  zero-rating services or free data for Indian citizens can be designed while also being wary of giving unlimited internet content gatekeeping power to Telecom Service Providers (TSPs). In other words, as the Paper puts it: “Is there a need to have TSP agnostic platform to provide free data or suitable reimbursement to users, without violating the principles of Differential Pricing for Data laid down in TRAI Regulation? Please suggest the most suitable model to achieve the objective.” (see page 7, Question 1, Consultation Paper.)

This need to imagine different models for the provision of zero-rated services, while circumventing a scenario of “discriminatory tariffs”, constitutes the central concern of the Consultation Paper. The paper sees such a provision of zero-rated services as crucial to giving “consumers more choices for accessing the internet” (see para 9, Consultation Paper.)

In continuing this discussion on pushing the boundaries of zero-rating imagination, the Consultation Paper suggests three models that offer alternatives to “discriminatory tariffs”:

 

Model 1: The Incentives-to-Consumer Model

The first model consists of rewarding the users of a particular application or website with a recharge for data or voice usage, irrespective of the TSP they get their internet services from. The paper quotes some examples of such Incentives-to-Consumer models in India as mCent, Gigato, Taskbucks, Ladoo, EarnTalktime, and Pokkt. It outlines a second kind of consumer-rewards models in internet platforms which tie up with other apps to offer mobile data rewards in exchange for activities like paying one’s electricity bill on time or for checking out, say, out of a hotel on time (see para 12, Consultation Paper.)

 

Significance of Model 1:       

 

Limitations of Model 1:

 

Model 2: The Toll-Free API Model

The second model suggested in the Consultation Paper is that of a “toll-free” API (Application Programme Interface, see para 13, Consultation Paper.) The paper seems to suggest that this would operate on similar lines to the Incentives-to-Consumer model, except instead of “rewarding” the user of the app/website, the model would enable no charging for data while the consumer is using the website in question. And of course, it also outlines that such an arrangement would be functional irrespective of the TSP service the internet user-citizen chooses to use to access the app/website.

 

Significance of Model 2:       

 

 

 

Limitations of Model 2:

 

Model 3: The Consumer-Subsidies Model

The third model discussed by TRAI in the Consultation Paper lays out a scenario where a citizen pays for getting a basic internet connection, and then he/she is offered subsidies for data through relevant sources for his browsing needs. This is envisioned as similar to the subsidies provided for domestic LPG connections currently to eligible citizens: “The direct money transfer approach could be similar to the subsidy payment, for the domestic LPG connections, wherein the user pays for the connection like any other normal connection, and then the Oil Company/Government pays the subsidy directly into his/her bank account” (see para 14, Consultation Paper.) In other words, this Model 3 seeks to offer reimbursements to citizen-internet users for data already consumed by them.

 

Significance of Model 3:

Limitations of Model 3:

The new Consultation Paper certainly indicates a desire to create nuances in the design of the regulatory framework for internet access, infrastructure and net neutrality. In this, TRAI has been ambitious. However, the three models suggested in the paper fail to live up to this ambition. There is a lot of work and a lot of gaps still to be filled if any of these models - improved versions of them - are to cater to the public interest in this country comprehensively (see point 5/last, here.)

TRAI is asking us for our help for reimagining this design for the internet. How can we help? The deadline for comments is 16 June 2016 and comments should be sent to broadbandtrai@gmail.com.

 

Smarika Kumar is an independent legal researcher and was formerly with the Alternative Law Forum, Bangalore.