Hyderabad: India’s leading telecom players, Bharti Airtel Ltd and Vodafone Idea Ltd, found themselves in a spot over the weekend when the Telecom Regulatory Authority of India (TRAI) abruptly told the two operators to suspend their premium plans that promised faster 4G data speeds to certain users paying higher monthly tariffs.
According to media reports, the telecom regulator has written letters to both Bharti Airtel and Vodafone Idea asking them to stop offering Airtel Platinum and RedX postpaid plans, respectively for interim period, raising concerns that priority to high-paying customers might come at the cost of service deterioration for other subscribers.
The development came after Bharti Airtel last week announced the launch of ‘Priority 4G Network’ for its Platinum mobile customers. In a communication to its customers, the company said: “Airtel has deployed advanced technologies that give its Platinum mobile customers preference on the network. As a result, all Platinum customers will experience faster 4G speeds.”
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Airtel added that all postpaid mobile customers on Rs 499 and above plans will automatically be designated as Platinum members and enjoy a range of exclusive benefits besides higher data speed.
At a time when the Covid-19 pandemic has restricted people at home and made them heavily dependent on Internet for both work and entertainment, the launch of such a plan was seen as an interesting move by Airtel to make people pay more for higher 4G speed, thereby helping the telco raise its average revenue per user (Arpu).
Vodafone Idea, meanwhile, has been running the RedX premium postpaid plan for over eight months now. In November last year, the company had launched the offer at a cost of Rs 999 per month, where subscribers were promised 50% higher 4G speed with other add-ons. The plan was later modified in May 2020 and the tariff was revised to Rs 1,099 per month.
Veteran telecom expert Dr. T.H. Chowdary, who wrote the draft National Telecom Policy (NTP) in 1989 and also drafted the TRAI Bill which later became the basis for the final TRAI Act, condemned TRAI’s decision.
“In the times of coronavirus, it is common business sense that companies are enticing people to use their phone as much as possible. The business has got the freedom, and the customer has got the choice, so nobody should stop them,” he said.
The ‘Net Neutrality’ debate
Classifying 4G customers on the basis of their monthly tariffs and offering priority network usage to higher-paying subscribers has now raised the net neutrality debate once again in the country. Net neutrality essentially means service providers must treat all traffic equally, and not charge differently based on content.
The current set of India’s Net neutrality guidelines also prevent “blocking, degrading, slowing down, or granting preferential speeds or treatment to any content.” As can be noticed, the focus here is on ‘content’, so it is not yet clear whether ‘higher tariffs for higher speed’ can come under the purview of Net neutrality guidelines.
“Speeds are going up and up… There was 4G, then amended 4G and then will come 5G… some companies are offering these services and charging accordingly… so nobody should stop them,” said Dr. Chowdary.
He also said that the regulator’s interference most of the times becomes negative and counterproductive for the sector as a whole, and the market should be given a free hand in coming up with such promotional plans.
“TRAI is overacting… moralizing from the government is not good…let the companies compete, let the customers choose…it should be left to the market dynamics.”
“Let them (regulator or the government) educate the people and not stop the business completely. If TRAI wants, it can explain that this plan is exploitative and advise customers to be careful. (But) The offer should not be stopped,” he added.
(ETV Bharat Report)
