Differential data pricing: All you need to know

Social media giant Facebook is agressively pushing its Free Basics scheme, which some say violates the principles of net neutrality. TRAI has issued a consultation draft on differential data pricing. Here is a rundown on the issue.

The Telecom Regulatory Authority of India (TRAI) on Wednesday extended the last date for submission of comments on its paper on differential data pricing to January 7 from December 30.

Similarly, the last date for counter-comments has been pushed to January 14.

This is the second time the regulatory body has sought views and comments on for framing policies on internet services.

Earlier this year, TRAI released a draft consultation paper seeking views from the industry and the general public on the need for regulations for over-the-top (OTT) players such as Whatsapp, Skype, Viber etc, security concerns and net neutrality. The objective of this consultation paper, the regulator said, was to analyse the implications of the growth of OTTs and consider whether or not changes were required in the current regulatory framework.

This time, the consultation paper is about differential data pricing or zero rated applications and websites — especially as social media giant Facebook is agressively pushing its Free Basics scheme.

Internet activists, on the other hand, have once again put together responses to TRAI's questions, making it easy for internet users to submit their suggestions on differential data pricing.

Here is a rundown on the issue.

What is net neutrality?

Net neutrality is a principle that says Internet Service Providers (ISPs) should treat all traffic and content on their networks equally.

How does net neutrality affect you?

The internet is now a level-playing field. Anybody can start up a website, stream music or use social media with the same amount of data that they have purchased with a particular ISP. But in the absence of neutrality, your ISP might favour certain websites over others for which you might have to pay extra. Website A might load at a faster speed than Website B because your ISP has a deal with Website A that Website B cannot afford. It’s like your electricity company charging you extra for using the washing machine, television and microwave oven above and beyond what you are already paying. This includes the concept of differential pricing or zero rating.

What’s the deal with Differential pricing/Zero rating?

Differential pricing or zero rating is a practice where service providers offer free data to users for select applications and websites, for example,Facebook's Free Basics. You can access a select number of websites for free, but if you want to browse more or different websites are not part of the pool, you will be asked to pay for it.

What is Facebook’s Free Basics?

Social media giant, Facebook, formalised a partnership with Reliance Communicationsthat enabled the Indian company to provide access to over 30 different websites, without any charge on mobile data accruing to the ultimate user. The platform, originally known as “Internet.org,” has now been rebranded as “Free Basics,” Facebook announced last month. Its fundamental ethos, though, remains unchanged. It allows Reliance’s subscribers to surf completely free of cost a bouquet of websites covered within the scheme, which includes, quite naturally, facebook.com.

What does Facebook have to say?

Mark Zuckerberg, Facebook’s founder, views this supposed initiative as a philanthropic gesture, as part of a purported, larger aim to bring access to the Internet to those people who find the costs of using generally available mobile data prohibitive.

What do internet activists say?

1. Differential pricing would create a ‘walled garden’ restricting access to a majority of the websites and mobile application. The internet service provider will be, in effect, determining what content one should and should not access.
2. Being able to access some websites/mobile apps for free while having to pay for others will turn customers towards the free platforms. This will restrict growth of new products and services that may not have the resources to be a part of the walled garden.
3. Organisations like the Internet and Mobile Association of India (IAMAI) and faculty of premier universities in India like the IITshave opposed the concept of differential pricing - more specifically, Free Basics - saying it violated net neutrality norms.

What is TRAI doing?

The Telecom Regulatory Authority of India (TRAI) is still in the process of bringing in the regulations for internet services. It earlier releasing a draft consultation paper seeking views from the industry and the general public on the need for regulations for over-the-top (OTT) players. Read about the report of the government panel on net neutrality here. It has now issued another consultation paper about differential pricing. The original deadline, of December 30, has been pushed back to January 7.