Points mentioned in the TRAI Paper(Pros cons and alternatives to current zero rating and different priced specialized data services like facebook pack,whats app pack,you tube pack etc.) What is differential pricing? In recent past, some plans have come to the notice of TRAI which amount to differential tariff plans of the TSPs who offer zero or discounted tariffs to certain contents of certain websites/applications/platforms. The objective of offering such schemes is claimed to be the desire of various service providers/content providers or platform providers to enable people of this country especially the poor to access certain content on the internet free of charge. There are a number of variations of these plans. • Under one design, an entity creates a platform wherein content providers and TSPs can register. Subject to the approval of the platform provider, the customers of the TSPs, registered on the platform, will be able to access those websites (either in full or only certain content of those websites) which are listed on this platform. • Another method is to provide discounted data offers by the TSPs for some identified websites/apps. The idea, as stated before, is to provide free internet service to the users of the TSPs. The net result of these offers is that it empowers/enables the TSPs to select certain content providers (either through the platforms or directly) and offer discounted access plans to these websites/applications/platforms. Issues as mentioned by TRAI It may be argued that while these preferential tariffs offers effectively result in easy access to these websites etc., it may also result in making the entry of certain websites through the pipes of the TSPs more difficult. For example, a TSP or a group 6 of TSPs could come up with such differentiated tariff offers wherein they disincentivize access to certain websites by putting higher tariffs for accessing them. In other words, accepting the principle that the TSPs should be able to provide differential and attractive tariff offers for different websites/content providers, whom they ‘like’, one is accepting the principle that service providers may also effectively prescribe nonattractive/prohibitive tariffs for some websites whom they may ‘not like’. Perceived positive as mentioned (Pros) On the one hand, 1.It appears to make overall internet access more affordable by reducing costs of certain types of content. In addition, it enables people who have so far not been able to use Internet services and content, to access at least part of the Internet. This could have the benefit of expanding and accelerating internet access, as first-time users of the free internet could experience its benefits and start paying for full access. Negatives mentioned by TRAI On the other hand, several negative effects might ensue. 1. Differential tariffs results in classification of subscribers based on the content they want to access (those who want to access non-participating content will be charged at a higher rate than those who want to access participating content). 2. Differential tariffs arguably disadvantage small content providers who may not be able to participate in such schemes. Such providers may have difficulty in attracting users, if there exist substitutes for free 3. Creates entry barriers and non-level playing field for these players stifling innovation. Therefore, the tariff offerings have to be studied from the perspective of whether it promotes or harms competition 4. Differential tariffs can be used as a tool by the TSPs to incentivize or disincentive access to different contents available on the internet by varying the price of access, upward or downward. This might entail providing certain content for free while making other content prohibitively expensive for subscribers to access 5. If above practice is permitted, TSPs may start promoting their own websites / apps/ services platforms by giving lower rates for accessing them. They may take advantage of owning the primary access of the consumer by offering better, unlimited connectivity, free or near free, when using their own service or service of their partner, while offering limited or capped connectivity at higher price when consumer accesses some other website/platform. This may be perceived to be an anticompetitive move that stifles innovation and competition, leaving absolute power in the hands of the TSPs Alternatives(better ones) suggested by TRAI 1. Delink free internet access from specific content, and instead limit it by volume or time Eg. a TSP could provide initial data consumption for free, without limiting it to any particular content. Current examples of this approach include allowing free browsing or discounted tariffs for specified time windows, or giving away a certain amount of data daily for free 2. Other approach of promoting access through the Internet could be initiated by the content providers wherein they could reimburse the cost of browsing or download to the customers directly irrespective of which TSP he/she has used to visit the website 3. Coupons, direct money transfers or other methods/technologies can be employed to reward the users for their visits to these websites. The direct money transfer approach has been adopted in some initiatives that offer mobile credit to all consumers, in exchange for viewing advertisements These are the main points mentioned by TRAI.Just see the only positive and so many negatives of specialized whats app pack etc(differential pricing) or the current form of zero rating. Just google zero rated platforms in india