Analysts say they will use the content delivery network exemption and offer platform content at lower prices to drive their subscriber base
Business News India : Recommendations of the Telecom Regulatory Authority of India (Trai) on Net neutrality are broadly in line with its February 2016 regulation prohibiting discriminatory tariffs for data services.
They also bar differential speeds for various offerings by internet service providers. However, the telecom regulator has kept content delivery networks out of the regulation. This means that cellular service providers who have their own content platform and are offering these services on their own network (content delivery networks) can charge differential pricing.
Mayuresh Joshi of Angel Broking says the reason content delivery networks have been kept out of the regulation is that they will not impact competition and are not considered discriminatory.
According to analysts at Edelweiss Securities, the proposed rules are likely to give integrated operators an upper hand versus pure-play connectivity providers. They expect telcos such as Reliance Jio and Bharti Airtel to be key beneficiaries as they have a presence in content platforms. Reliance Jio (JioTV and JioCinema, among others) and Airtel (Wynk Movies, Music & Games) have been creating their own content ecosystem to retain and increase subscribers.
Analysts say they will use the content delivery network exemption and offer platform content at lower prices to drive their subscriber base.
Most analysts believe that rules are in place but Trai has now recommended that licence conditions related to the issue needs to be amended to cover all other types of discrimination.
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