India’s Telecommunications Regulatory Authority of India is creating rules allowing “free mobile data” offers in rural India, after having already ruled that zero rating of some content and sites is impermissible for such purposes, and with an eye to preventing mobile internet access providers from acting as “gatekeepers” when free data is supplied.
TRAI seems to suggest that one way of doing so is to separate the ability to offer free data plans (prepaid, for the most part) to third parties, effectively eliminating any ability of the leading mobile ISPs to gain direct benefit from doing so.
As part of its policy research, TRAI asked specifically for stakeholder opinions on three different business models. A reward model would reward consumers by offering a recharge for data usage or for voice usage.
Alternatively, a “toll free” approach might be taken, allowing free access to certain websites.
Finally, a direct money transfer model would allow for the payment of a usage subsidy by the ISP directly into the mobile account.
Perhaps predictabiy, service providers argued that they should be allowed to offer free data, and that standard business deals should be allowed between content and access providers to do so.
ISPs also argued that the market will function, and that no ex-ante regulations are required. TRAI has the ability to regulate if needed if distortions develop.
After hearing those arguments, TRAI believes a new third party aggregator role is the best way to prevent potential business abuses (larger ISPs being able to benefit from free data to the detriment of smaller providers).
TRAI recommends 100 MB “free data” packages would be sufficient for rural users.
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