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Allow cash backs to promote apps and websites, says PayTM to TRAI
Posted on: 08/Jul/2016 10:18:43 AM
PayTM has asked the Telecom Regulatory Authority of India, or the TRAI, to allow cash backs instead of free data to promote apps and websites. In an official communication to TRAI, PayTM said, Incentives to promote usage of internet are welcome. However, they should not directly or indirectly violate one of the core principles of net neutrality, which is the cost of access must be the same for all sites: there must be no discriminatory pricing for data services.
In may this year, TRAI had released a new consultation paper to look at ways to provide consumers free internet service within the net neutrality framework. In its paper, the telecom regulator had said that there was a need to have a telecom operator agnostic platform which can facilitate app developer to promote their website by providing some incentive to user for accessing their websites. It had proposed various models to do so including a telecom service provider agnostic platform where consumers are directly paid for data consumed in accessing the website in the form of a recharge for data usage or for voice usage to the user.
PayTM feels that telecom service providers, or TSPs,have an undue advantage compared to others if award is provided in the form of free data. In its communication, PayTM said, Award in the form of free data can be used to replicate the effect of zero cost of access for selected sites, an outcome that is against the principle of net neutrality. If free data is given as reward to consumers then TSPs will be able to promote their apps and websites as we are producer of data and hence incur a very low incremental cost. While other apps which are not from telecom operators will need to purchase data from telecom companies which will definitely cost much more than the incremental cost incurred by a telecom company. We believe that reward should be given in a neutral currency and free data is not a neutral currency. We wish to propose cash as an incentive mechanism because it is the most neutral currency.
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