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Trai Drops Plans to Impose Extra Fees on WhatsApp, Skype: Report

Trai Drops Plans to Impose Extra Fees on WhatsApp, Skype: Report

By NDTV Correspondent | Updated: 19 August 2014 10:58 IST

In a victory for network neutrality, fair play and common sense, the Telecom Regulatory Authority of India (Trai) has decided not to entertain demands from cellular service providers to impose revenue-sharing rules on apps and services which allow users to route calls and messages via the Internet. The proposal would have affected users of several popular apps including WhatsApp, Skype, Viber, Hike, WeChat, and Facebook Messenger

As reported by the Economic Times, Trai has now rejected the idea and even cancelled plans to hold a consultation on the matter. According to the report, Trai feels that revenue losses can be offset by growth in the usage of data services and that there is no need to intervene at this time.

The proposal was made by mobile service providers earlier this month on the basis that they were suffering a loss of revenue due to declining use of cellular voice and SMS services. The move sparked widespread criticism and was seen as a grab for money, since the carriers already charge for Internet connectivity and it should not matter what users do with their services.

The demand for a "level playing field" with free apps, would have actually created a distinction between types of data sent and received by users, in effect restricting usage of apps and services, and giving operators control over what users do with their Internet connections.

Several consumers raised objections to the very idea of imposing fees on specific apps, pointing out that Internet services are already overpriced and are way too slow, by global standards. Such rules would also have set dangerous precedents as to who can potentially claim compensation for loss of revenue from any new player or service provider that disrupts their revenue model in the future.

Trai had held a seminar titled "Regulatory Framework for OTT Services" on August 5, during which various industry stakeholders had put forward their viewpoints. This would have been the first step in a consultation process, which has now reportedly been called off.

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