TRAI sources: Free Basics was a problem, Zero Rating was a problem, Jio Phone is not a problem

Much like the launch of Reliance Jio’s telecom and internet services, Jio’s newly announced ‘smartish’ feature phone too is finding its way to the middle of a controversy. This time around the debate is whether the Jio phone violates the principles of Net Neutrality. At this point it’s important to mention that not all details of the new Jio Phone are out yet. However, sources in the Telecom Regulatory Authority of India (TRAI) say that, looking at the available details so far, the Jio phone does not violate the principles of Net Neutrality. The Net Neutrality debate saw its peek in India with Facebook's Free Basics and Airtel's Zero rating offerings both were shut down by TRAI stating they went against the principles of Net neutrality but Jio phone, as of now, seems to be in the clear.

The issue got triggered when India’s third largest telecom operator, Idea, recently commented on how the new Jio phone raise concerns about net neutrality, “It will not allow most of the apps which a customer prefers and the choice of apps may not work because it is forcing consumers to use an individual operator’s apps,” Himanshu Kapania, the managing director of Idea Cellular had said. Kapania also talked about working with handset makers to launch a new phone to counter Jio, targeting the 2G consumers in India. The company says even if the phone cannot compete with Jio’s pricing it will offer customers the freedom of choice.

Telecom Analyst (doesn’t wish to be named) believes that the consumer has a choice and that nothing can be fully neutral. Consumer has other means/devices for accessing the internet. There are plenty of alternative devices available in the market which he can fall back to (India being predominantly an open market for devices, alternatives will be many). If an operator steers the consumer to its own content by offering a device, it does not seem to violate the principles of "Net Neutrality" as laid out by the TRAI.”

TRAI seems to agree with this. Jio has talked about how the Jio phone will come packed with entire set of Jio apps but it’s still unclear if non-Jio apps will find a place in the Jio phone. TRAI believes that if Reliance is providing its services in its intranet then by providing their apps to the consumers, Jio is not doing anything wrong. Source also indicates that consumers will be aware about the product and they can choose not to buy it. TRAI says if Jio is not blocking any particular site then merely providing additional apps with its product do not violate the principles of Net Neutrality. TRAI will be looking into Jio Phone in detail once the company submits its tariff for the new plan/phone to TRAI.

Well with the launch of the Jio Phone, the company has managed to pique our interest but not without setting off yet another controversy. However, TRAI's Feb 8th order of 2016 prevents an operator to offer differentiated rates for accessing different content (by the operator tying up with a content player), but it has not prevented an operator from offering its own content in its intranet at a differentiated rate or even free. While we are still waiting for details that could either douse the ‘controversy’ fire or add fuel to it, it would be fair to say that the proposed phone by Jio will appeal to the predominantly voice usage customers BUT it will be extremely important to see how exactly Jio is planning to cater to consumers wanting to browse the Internet.