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TRAI bars telcos from applying different data prices to different OTT services.
India’s telco regulator on Monday outlawed subsidised data tariffs that offer low-cost or free access to a select number of online services, dealing a blow to Facebook’s Free Basics service.
The Telecom Regulatory Authority of India (TRAI) also banned telcos from applying different data prices to different over-the-top (OTT) services, making it illegal to offer zero-rated services, for example.
"No service provider shall offer or charge discriminatory tariffs for data services on the basis of content," the TRAI said in a document outlining what it calls its Prohibition of Discriminatory Tariffs for Data Services regulations.
"No service provider shall enter into any arrangement, agreement or contract…that has the effect of discriminatory tariffs for data services being offered or charged to the consumer on the basis of content."
The TRAI will have the final say on whether a data tariff complies with its new rules. Emergency services traffic is exempt.
The decision will come as a blow to Facebook, which has been lobbying the government to allow it to continue offering Free Basics service, which provides free access to a limited selection of Websites.
Facebook insists Free Basics benefits millions of people who would otherwise not be able to get online. However, critics argue that it undermines net neutrality by encouraging consumers to only access services that are free to use.
The TRAI’s decision follows a consultation launched by the regulator in late 2015 that sought input on whether services like Free Basics should be permitted.
The debate took an acrimonious turn when Facebook launched a publicity campaign calling on the public to file responses supporting Free Basics to the TRAI’s consultation.
Facebook was accused of trying to turn a consultation into an opinion poll, and the TRAI warned that responses amounting to a vote in favour of Free Basics would be considered invalid.
