NEW DELHI: Premium mobile data plans offering higher speeds to higher paying customers have hit a regulatory wall, and Tuesday's proceedings at the apex telecom tribunal did not result in any relief to impacted telecom firms.
The Telecom Disputes Settelement and Appellate Tribunal (TDSAT) refused to direct a stay on the Telecom Regulatory Authority of India's (TRAI) July order to Vodafone Idea (VIL) and Bharti Airtel to put such plans on hold with immediate effect, sources confirmed.
While existing customers of these plans -- VIL’s RedX and Airtel's Priority 4G Network for Platinum postpaid users -- will not be affected by TRAI's order, the companies will not be able to onboard new customers until the regulator says otherwise, sources said. Neither company have released any official statement on the issue.
TRAI's primary concern over these plans lies in whether prioritising one set of higher-paying customers would lead to service and internet speeds deteriorating for the rest.
Analysts note that fixed-line broadband plans offering better services for customers willing to pay more already exist, and these do not, as such, violate net neutrality conditions. However, industry sources also admit that fixed-line broadband internet providers are to maintain a dedicated bandwidth where minimum speeds are non-negotiable and fixed.
Whether this is the case in wireless needs to be examined, an official said on condition of anonymity.
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Consequently, the TRAI order asks both VIL and Airtel to respond within a week on how they plan to assure that service quality for other customers remains unaffected. The plans are to be put on hold until the regulator examines the issue in detail, officials added.
However, VIL on Monday moved the TDSAT seeking an immediate stay on TRAI’s directive and sought an early hearing. Airtel too is said to be examining possible legal action. Sources confirmed, however, the TDSAT has allowed the order to stand and given TRAI until tomorrow to respond to VIL’s petition. The next hearing has been scheduled for July 16.
Both preferential data speeds for plans priced at a premium are new items on the menu for India's mobile internet users. VIL had launched the RedX plan in November last year at Rs 999 a month, only for postpaid customers. The plan offers up to 50 per cent faster internet speeds and other special services. With telcos desperate to ramp up profitability, May had seen the firm hike prices for the plan by Rs 100.
Meanwhile, Airtel had only last week launched its Priority 4G Network service for Platinum postpaid plan users starting at Rs 499 per month.
On the new plan, an Airtel spokesperson while the company was "passionate about delivering the best network and service experience to all our customers... At the same time, we want to keep raising the bar for our post-paid customers in terms of service and responsiveness. This is an ongoing effort at our end".
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