TRAI regulation favours net neutrality but against differential pricing

Net neutrality means all internet sites to be treated equally without any discrimination in terms of speed and cost of access. The Telecom Regulatory Authority of India (TRAI) came out with the regulations in favour of net neutrality but it has banned differential pricing for data and imposed fine of Rs.50,000 a day for violators, subject to a maximum of Rs.50 lakhs. 

TRAI also imposed restrictions on service providers from entering into any arrangement or contract that has the effect of discriminatory tariffs for data services being offered or charged to the consumer on the basis of content. Provided that this regulation shall not apply to tariffs for data services over closed electronic communications networks, unless such tariffs are offered or charged by the service provider for the purpose of evading the prohibition in this regulation. These Regulations will come into effect immediately. The authority may review the regulations after a period of two years.  

In its regulations, TRAI has made it clear that "providing limited free data that enables a user to access the entire internet is not prohibited." Telecom operators have favoured differential pricing for data services while many continue to oppose any differential pricing regime, saying it would amount to curbs on freedom of choice to access Internet. 

Earlier, in July 2015 the Department of Telecom's panel on net neutrality has opposed projects like Facebook's Internet.org, which allow access to certain websites without mobile data charges. Latest TRAI regulation would have minimum impact on profitability of telecom service providers.