Explained: Why TRAI has an issue with premium plans that offer priority
Plans offered by Operators:
- Vodafone and Idea is offering the RedX plan for Rs 1,099 a month under which among other benefits, it has claimed that these post-paid subscribers will get 50% faster data speeds.
- Airtel has launched a Platinum category of customers comprising anyone subscribing to a post-paid mobile plan of over Rs 499 a month, under which faster 4G speeds are being offered.
- Giving preference to high paying subscribers.
Challenge by TRAI:
- Not possible to give preference to certain customers without deteriorating the network quality for the remaining customers.
- How would they ensure that speeds are guaranteed to the customers of RedX and Platinum plans?
Operators Comment:
- Deploy “advanced technologies” to give their premium customers preference on the network.
Challenges for regulators:
- Ensure fair competition: but, such plans are anti to the fair competition as it gives edge to certain company.
- Maintain customer interest: poor class will be severely hurt as their speeds might be disrupted. Claims of high speed are also misleading in nature.
- Maintain private participation: Given the poor balance sheet of most of the telecom companies, such plans are necessary to ensure that Indian telecom industry is not monopolised.
- Serve the national interest: Program of digital India can be hurt, as people of lower strata leave the digital platforms.
- Adhering to the basic principle of sector: Such practices affect net neutrality as they create artificial segment between groups who can get good internet vs. who can’t get good internet.
About TRAI:
- Established by TRAI Act 1997.
- An independent regulator for telecom sector
- Appellate organisation: TDSAT
- The primary objective of TDSAT's establishment was to release TRAI from adjudicatory and dispute settlement functions in order to strengthen the regulatory framework.
Functions:
- Promotion of Digital Addressable systems to improve the quality of service to the consumers.
- Ensure technical compatibility and inter-connect between different service providers
- Ensure compliance with terms of license
- Facilitate competition and promote efficiency
- Maintain quality of services
- Protect consumers’ interest