Telecom Regulatory Authority of India (TRAI) said, on Monday, that it will soon issue a regulation on the differential pricing of data traffic that will make zero-rated products illegal. This means that Facebook Free Basics and Airtel Zero will soon become illegal in India.
Facebook, which recently started advertising about its Free Basic campaign, is disappointed with the decision.
Read More: Facebook Alleges TRAI Unsubscribed to its Mail on Net Neutrality
Our goal with Free Basics is to bring more people online with an open, non-exclusive and free platform. While disappointed with the outcome, we will continue our efforts to eliminate barriers and give the unconnected an easier path to the internet and the opportunities it brings.Facebook Spokesperson
Service providers will no longer be allowed to partner with content providers to offer their applications at a low cost.
We have come out with a regulation which will essentially mandate that no service provider shall charge differential pricing.RS Sharma, TRAI
TRAI may levy Rs 50,000 per day penalty for each day of contravention up to Rs 50 lakh for discriminatory tariffs charged by service providers. Additionally, tie-ups existing between telecom companies and content providers will also become null and void.
The TRAI chairman added that the regulation will have a few exceptions in case of grave emergencies where differential pricing could be offered. A service provider may reduce tariff for accessing or providing emergency services at times of grave public emergency. Read the full announcement from TRAI here.
The ruling has created a uproar on social media with people welcoming the decision with open hands.
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