Nasscom says customers should have right to opt for tariff plans

The industry body was talking about issues concerning differential pricing for data services

In the wake of rising debate on net neutrality, industry body Nasscom has said any tariff plan, offered by telecom operators, should ensure unrestricted right for the customer to choose and there should not be differential data charges for different apps.

“Differential pricing should not become a tool that facilitates market dominance or enables anti-competitive behaviour by either telecom service provider or platform provider. It should not offer direct or indirect commercial benefit, including leveraging the value of customer data generated in the process,” Sanjiv Bikhchandani, chairman, Nasscom, said.

Also, it should not offer lower prices for own or partner content/service. Instead of differential pricing for select data services for wide access, transparent business models should be adopted without segmenting the internet or skewing competition.
 

He was talking about Nasscom’s views on issues concerning differential pricing for data services.

Apart from low internet and broadband penetration, there are challenges of low levels of digital literacy and limited local language support/content in a country wherein less than 10 per cent of the population speak English. “These monumental challenges require continuous innovation, both in technology solutions and business models,” he said.

Telecom regulator TRAI is in the process of framing recommendations on differential data pricing by operators, which will decide the future of zero rated plans and Facebook’s Free Basics. Experts claim such plans violate principles of net neutrality.

R Chandrashekhar, President, Nasscom, said, “We strongly oppose any model where TSPs or their partners have a say or discretion in choosing content that is made available at favourable rates, speed. The regulator should have the power to allow differential pricing for certain types/ classes of services that are deemed to be in public interest and based on mandatory prior approvals. Any such programs should abide by the principles of net neutrality and not constrain innovation in any way.”

Nasscom also recommended establishment of an independent not-for-profit entity with an independent board, who would own and manage proposed differential pricing programs that are deemed to be in the public interest and are philanthropic in nature.