Trai: Discounts on intranet against principles of net neutrality

The Telecom Regulatory Authority of India (Trai) is not likely to allow mobile companies to use their private networks -or intranet -to offer popular content for free or at hugely discounted rates. Trai is of the view that distribution of popular content -films, music, sports, videos -at a discounted price over private networks will be in breach of its February order, which prohibited differential tariffs, top government sources told TOI. “Any private architecture that will be designed to evade the regulation on differential tariffs will be rejected,“ the sources added.

Trai feels that making content available through private networks -at discounted rates or free of cost -could give unfair advantage to subscribers of one operator over others. “This will create layers in the pricing mechanism and therefore cannot be allowed,“ a source said.


The matter assumes significance as Bharti Airtel, the country's largest telecom service provider, has asked Trai whether it can offer video content through a private net work, exclusively for its customers. The plan is to offer videos through closed electronic communications network (CECN) or a private network. Trai's February order, that banned differential tariffs, was silent on the issue of popular content over intranets.

While seeking Trai's permission over the issue, Airtel had expressed fear that it may be in violation of net neutrality. “...while such an arrangement with the global content provider over CECN along with exclusive offerings to our customers would be compliant to the regulations, it may well be viewed by some stakeholders in violation of principles of net neutrality ,“ the telecom company had said in its application to Trai. said the exception for private networks had been made in the February order to ensure that enterprise users are not affected. “There are a large number of enterprise users and companies who use private networks for internal purposes. It would not have made any sense to make such usage come under the purview of the order,“ a source said.


The decision of Trai on the subject is expected to have huge implications for the telecom industry as some of the big operators have been amassing large amounts of popular content. The speculation is that this content may be offered over private networks at dirt-cheap price to woo customers from rival mobile operators.