Telcos urge Trai to lift ban on discriminatory pricing of data services

Telecommunication companies have urged the Telecom Regulatory Authority of India (Trai) to lift its ban on discriminatory pricing of data services, stating that the clause that exempts products offered over closed electronic communication network (CECN), or intranet, has created confusion and can lead to futile investments for carriers. Cellular Operators Association of India (COAI), the GSM industry body has said that the regulator has failed to provide clarity over what a host of issues pertaining to CECN, including what exactly is CECN.

COAI has asked Trai to review its decision of the CECN network and allow differential tariffs on the basis of content irrespective of whether such content is provided through the closed network or open internet.  The request comes within three months of the telecom regulator disallowing discriminatory pricing of data services, effectively prohibiting controversial zero-rated products such as Facebook's Free Basics and Airtel Zero with a maximum Rs 50 lakh penalty for violators.

The COAI in its latest letter has sought clarity from regulator on two aspects. Firstly, whether a telecom service provider could share advertising revenue with a content provider who is providing 'exclusive' content to the telco's subscribers at a subsidized rate. Secondly, whether a content provider could offer subsidized subscription of its content to select or all subscribers of any telecom operator, will that constitute a CECN.