Explained: Why TRAI has an issue with premium plans that offer priority
21st July, 2020
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