Bharti Airtel has approached the Telecom Regulatory Authority of India (TRAI) with a proposal for a uniform pricing policy for telecom operators. The policy aims to prevent differential pricing for content on telecom operator apps if the same content is available on DTH and Cable TV channels.
Airtel’s proposal is for a one-service-one rate system, which will ensure that telecom companies cannot charge varying rates for content on their apps if the same content is available on DTH and Cable TV channels. The proposal aims to prevent anti-competitive behavior and promote fair competition among all players in the industry.
The proposed uniform pricing policy would provide equal opportunities for all telecom operators to offer content to their customers. By introducing a level playing field, Airtel aims to create a fair environment for all players and ensure that no player has an undue advantage over the others. The policy is expected to encourage healthy competition and promote innovation in the industry, ultimately benefiting the customers.
Airtel’s Perspective on the Regulatory Mechanism
The step came as a result of free IPL streaming by JioCinema. Reliance Jio has acquired the digital rights to Indian Premier League (IPL) matches, which can be viewed for free on JioCinema. However, Disney-Star has the broadcasting rights for the same matches, and they are unable to offer the same content for free due to the Telecom Regulatory Authority of India’s (TRAI) tariff order, which has fixed the channel price at Rs 19.
In order to view IPL matches through cable TV, a consumer needs to pay a minimum of Rs 325 per month for an entry-level bouquet. The pricing disparity has led to Bharti Airtel approaching TRAI for a one-service-one rate system that would prevent differential pricing.
It aims to create a level playing field for all players in the industry and prevent anti-competitive behavior. It would ensure that telecom companies cannot charge varying rates for content on their apps if the same content is available on DTH and Cable TV channels. The uniform pricing policy is expected to promote fair competition and innovation in the industry while benefiting the customers.
Why is Airtel seeking the regulation?
Bharti Airtel is looking for a regulation that would require telecom service providers to adhere to the same pricing as DTH and cable TV providers for the same content. The aim of the proposed regulation is to promote fair competition and innovation in the industry while benefiting the customers. A uniform pricing policy would provide equal opportunities for all telecom operators to offer content to their customers, without giving any undue advantage to a particular player. It would also prevent anti-competitive behavior and promote a fair environment for all players in the industry.
Currently, there is differential tariff regulation for telecom service providers for their apps. Airtel wants this regulation to apply if telecom service providers choose to broadcast content that is also available on DTH and cable TV platforms.
Why differential tariff regulation?
Differential tariff regulation for the telecom sector mandates that a telecom service provider cannot charge different rates for its own subscribers and users of other service providers if an app is available on the web.
The differential tariff regulation also serves to benefit customers by preventing any telecom operator from monopolizing the market and charging higher rates for its content. It ensures that customers have access to the same content at the same rates, regardless of their service provider. Ultimately, the regulation promotes a fair environment for all players in the industry, benefiting both the telecom companies and their customers.
Reliance Jio’s Perspective on the Regulatory Mechanism
Reliance Jio disagrees with Airtel’s proposal to regulate the pricing of telecom operators’ content to align with that of DTH and cable TV providers. The company argues that such a regulation would impede the convergence of different technologies in the future.
Jio officials have cited examples such as the YouTube model, where all kinds of content are available for free. They believe that any such regulation could cause the collapse of the entire YouTube model.
Jio maintains that the convergence of technologies is an essential aspect of the telecom industry and any regulation that hinders it could negatively impact innovation and growth. The company advocates for a flexible and adaptable regulatory framework that encourages fair competition while fostering innovation and growth in the industry.
TRAI is currently engaged in a consultative process aimed at regulating converged digital technologies and services. As part of this process, TRAI plans to release a consultation paper on the regulation of communication-based over-the-top (OTT) service providers, including popular messaging service WhatsApp.
The consultative process aims to address the challenges posed by the convergence of different technologies and services. TRAI is exploring ways to promote fair competition and innovation while ensuring that consumers are protected from anti-competitive practices.
