TRAIs recommendations on net neutrality may hit telecom cos
As per the latest TRAI recommendations, telecom companies are expected to provide open internet without any restrictions on speed. The companies have to treat all internet traffic equally without any discriminatory treatment based on type, origin, or destination of the content or the means of its transmission. However, no decision has been taken on licensing rules for app-based calling and messaging services or over the top (OTT) players such as YouTube and WhatsApp.
Telecom companies face intense competition from these players and stringent rules regarding net neutrality will further impact their business. However, TRAI has indicated that separate consultation process may start for OTT players.
TRAI has been advocating net neutrality in order to ensure an open and transparent internet access in India. The regulator has recommended the creation of a body for monitoring and enforcement of net neutrality violations. In lieu of net neutrality, TRAI had banned Facebook’s Free Basics and Airtel Zero in February 2016.
It has also urged to focus more on content availability in the local language and digital literacy.
BSE Telecom Index is trading flat today, while Bharti Airtel and Idea are down 0.36% and 0.64% respectively.
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Via:: Stock – India Infoline