There is no correlation between reducing digital divide & differential pricing: R S Sharma

Interview with Chairman, Trai

The Telecom Regulatory Authority of India (Trai) has received a record number of comments (1.8 million) on its paper on differential pricing of data services by operators. This paper will determine the future of zero-rating plans as well as Facebook’s Free Basics project. However, about 1.4 million comments have come from Facebook users in a standard template. These will not be considered in the current form as the consultation paper is not an opinion poll, said Trai Chairman R S Sharma in an interview with Mansi Taneja. Edited excerpts:

There is so much debate over net neutrality. Start-ups, entrepreneurs and an internet association have opposed offering free internet through Facebook’s Free Basics. Isn’t Free Basics helping to bridge the digital divide?
 
There is really no correlation between reducing the digital divide and differential pricing. Our main issue is whether or not telecom operators can charge different prices for offering data services. After our directive, Reliance Communications (Facebook’s India partner for Free Basics) has put on hold the commercial launch of Free Basics till we finalise our recommendations on the issue. The issue here is some sites are being offered to one person free of cost while another is paying for it. Is this a good thing and can operators can have such powers? We will decide this through our recommendations by the end of January.

But, how would make sure that people who are not online are offered affordable, or rather free, internet?

Free internet is not a problem, but the issue is it is free for some not for everyone; and that too, for specific content, not all. Operators have a lot of leverage in providing various plans but whether or not there should be any linkage between the destination and the pipes have to be decided. Cost is not an issue here. We have to create the infrastructure first; then, the cost will come. Of course, affordability is also a big factor.

What are your comments on  Free Basics?

I don’t have any comments on Free Basics. We have not mentioned it in our consultation paper. We are deciding on the issue of differential pricing. Free Basics uses differential pricing as one of the means to offer the product. This is just one product. Multiple products can be developed using this architecture and we will decide whether should be allowed or not.

Will there be another extension to the deadline for sending comments on your paper for differential pricing, as you have received a large number of comments, mostly from Facebook users?

We have already extended the last date for sending comments by a week to January 7. The Facebook users’ comments (1.4 million out of the total 1.8 million till Thursday) are in a standard language and template and do not answer the queries in the paper.

These comments can’t be used as inputs for formulating the recommendations, which is why we will respond to these users and ask them to send answers to our specific queries.  Facebook users’ comments mainly support a product, Free Basics, which is not a part of the questions in the consultation paper. We did not want to ignore such a large number of comments and extended the deadline so that people can send proper responses — logical answers to the questions in the paper. Our consultation paper is not an opinion poll.

Operators have gone to court challenging your compensation policy of one rupee for every call drop, maximum three per day. Your views?

I shall not comment on a court order.

When will you come out with your final views on the reserve price for spectrum for the next round of auction and regulation of over-the-top players?

We expect the final recommendations on reserve price and net neutrality by the end of January.