Floor pricing of telecom services and the controversial net neutrality issue were among several points discussed between the industry watchdogs of India and the US at a recent meeting.
Telecom Regulatory Authority of India (TRAI) chairman R S Sharma told ET that he and US Federal Communications Commission chief Ajit Pai also discussed their action plans on spectrum bands, including upcoming technologies like 5G.
At their meeting earlier this week in Sweden, the two regulatory heads decided to continue their collaboration as per a broad pact signed earlier this year on mutually beneficial exchange of ideas under topics of shared interest, including accelerating broadband deployment and aligning spectrum policy to meet increasing mobile broadband demand. Sharma also presented India’s view point on in a seminar on ‘Broadband for All’, after which he met Sweden’s minister for digital development Peter Eriksson.
The Indian regulator discussed the basic tariff principles that Trai is going to decide for which consultations are ongoing, but Sharma said the floor pricing issue would not be decided alongside any existing consultations.
Trai said last week that it will consider a proposal from India’s top telcos for creating a floor price for voice, text messaging and data services, one which was opposed by Jio. Operators such as Bharti Airtel, Vodafone India and Idea Cellular have argued that no carrier should be allowed to offer tariff which is lower than the cost of services, a model that Jio is using to lure customers – one which incumbents term as ‘predatory pricing’.
Trai has issued a number of consultation papers, including tariff regime, ease of doing business, interconnect user charges and net neutrality, most of which are closely watched by the FCC, Sharma said.
He said the view that the FCC under Pai has taken on net neutrality — of light touch regulation — to replace the existing one which it feels is a heavy-handed framework, should be seen in the context of what is happening in that country, but India need not borrow directly from their decisions as market situations and regulations were market specific.
India is in the middle of a consultation process on net neutrality and Trai expects to put forth its views by September.
By Baishakhi Dutta
