Net neutrality: Telcos ask TRAI to reject startups' submission

The COAI has said that the proposed fair share charge does not affect access to an open internet

The Cellular Operators Association of India (COAI), which represents Indian telecom companies have urged the Telecom Regulatory Authority of India (TRAI) to dismiss the submission made by over 130 startups on net neutrality terming its contents as being "based on false pretence and misinformed views".

Over the past few weeks, startups and telcos have locked horns over the latter's proposal of charging a network fee from over-the-top (OTT) companies. Startups and many Indian companies have criticised the proposal, alleging that it goes against the principles of net neutrality.

In the startups' letter to TRAI, whose signatories included Paytm's Vijay Shekhar Sharma, PhonePe's Sameer Nigam, Zerodha's Nithin Kamath, Razorpay's Harshil Mathur and People Group's Anupam Mittal said that the telcos' demand of charging a network fee can drive out smaller players out of the market, limit user choice and so on.

In their letter, the startups had also urged TRAI to strengthen net neutrality regulations, which were brought in in 2016.

A letter by COAI's Director General Lt Gen (retd) SP Kochhar addressed to the TRAI Chairman on October 4 countered this argument saying that the network fee will not be applicable to startups or smaller OTT players.

As a counter, the COAI said that network charge/fair charge demand by the telcos will have no bearing on the principle of net neutrality. "We would like to place on record that all provisions of net neutrality, as enunciated in the license conditions, are being and shall be followed by our member TSPs," the letter read.

COAI, whose members include Bharti Airtel, Reliance Jio and Vodafone Idea, termed the letter by startups' as "propaganda activism" and "fear-mongering".

"Internet companies or startups (as termed in the media stories) have been grossly misled in order to sign the aforementioned submission. In view of the same, we urge the Authority not to consider the submission and the signatures gathered as credible or valid, as its entire premise is based on false pretence and misinformed views," the COAI said.

On October 12, Save The Internet issued a statement dismissing COAI's accusations, and alleged that the industry body was trying to 'misdirect' the regulator.

"We reject the COAI's claim that the letter was misleading, and believe that this is an attempt to misdirect the TRAI. We urge the TRAI to read the letter for the principles outlined in the letter, signed by 132 founders, and uphold principles of net neutrality. In addition, and mentioned in the letter, we urge the TRAI to reject the idea of licensing of online communications services," the statement read.