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Telcos to TRAI: Differential tariffs enhance consumer welfare, cause no harm

Part II: In this three part series (Parts I & III here), we take a look at the TRAI's ruling on differential pricing in India. Yesterday, TRAI, India’s telecom and internet regulator, prohibited discriminatory tariffs for data services under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997). Here are the key takeaways of the paper (pdf): Stakeholder comments to TRAI’s consultation paper: Question 1: Should the TSPs be allowed to have differential pricing for data usage for accessing different websites, applications or platforms? - TSPs and their associations supported differential tariffs on the ground that it was allowed in other segments and industries, it helps product innovation and competition and brings more customers on the internet, thus enhancing consumer welfare. They added that there’s no evidence of harm to stakeholders and it helps in getting investments to build networks. - Some suggested that differential pricing be allowed only in specific cases like for example accessing essential services (no definition provided). - Some service providers vehemently opposed differential pricing by TSPs on grounds that it is anti-competitive, non-transparent, discriminatory and against content innovation. TSPs are custodians of public resource infrastructure which should be made available without discrimination. - Differential pricing violates net neutrality, and makes the TSPs gatekeepers, thus restricting consumer choice and against freedom of speech/expression and media pluralism. - Some also raised privacy concerns. - Some who took middle ground suggested that differential pricing should be allowed on a case to case basis. They added that with time, differential…

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I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

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