Net Neutrality

Soumya Mishra

Objective

The objective is to provide the following in Indian context:

• Understanding Net Neutrality

• Analysing TRAI Guidelines for differential tariff and OTT products

• SWOT analysis of Net Neutrality

• Future Scope for Internet

Introduction

• The Internet has transformed the world and society like

never before. It has provided a platform for new

opportunities through innovation. Internet has fostered the

supremacy of ideas rather than capital.

• It is a universal platform that uses the same standards in

every country, so that every user can connect to every

other user with physical distances becoming irrelevant in

the networked world.

• The Internet is a public resource that has no ownership, but

is available to all those who are digitally connected.

Net Neutrality

• Net neutrality is the principle, that internet service

providers and governments should treat all the data on

the internet equally without discriminating or charging the

users on the basis of the content, site, platform, application,

type of attached equipment, or mode of communication.

• Professor Tim Wu, who coined the word “Net Neutrality”,

stated : “Network neutrality is best defined as a network

design principle. The idea is that a maximally useful public

information network aspires to treat all content, sites and

platforms equally. This allows the network to carry every

form of information and support every kind of application”.

Contd.

• This means, all websites can co-exist without hampering others.

• All websites are accessible at the same speed and no particular website of

application is favoured. For instance – like electricity, common for all.

• Net neutrality also means all web sites and content creators are treated equal, and

one does not have to pay extra for faster Internet speed to a particular

site/service.

• Web users are free to connect to whatever website or service they want.

• ISPs(Internet Service Providers) do not bother with what kind of content is flowing

from their servers.

• It has allowed the internet to grow into a global network and has allowed people

to freely express themselves.

Without Net Neutrality

Without Net Neutrality…

• It will mean Internet Service Providers (ISP) will be able to charge companies like YouTube or Netflix as they consume more bandwidth, and eventually the load of the extra sum will be pushed to the consumers.

• Similarly, ISPs can then create slow as well as fast Internet lanes, which will mean all websites cannot be accessed at the same speed and one can do so only on paying an additional sum. For instance, currently, you have a standard data package and access all the content at the same speed, irrespective of whether its an international website or National.

• Similarly, ISPs can also charge extra for the free calls you make using services like WhatsApp, Skype and others, and eventually the load of additional payable sum by the OTT players will be pushed onto consumers.

Indian Scenario

• The debate on net neutrality in India gathered public attention after Airtel, announced in December 2014 to levy additional charges for making voice calls (VoIP) from its network using apps like WhatsApp, Skype etc.

• Soon after Facebook launched Internet.org in India with Reliance Communications.

• TRAI on 27th March,2015 Consultation Paper on Regulatory Framework for Over-the-top (OTT) services.

• Prohibition of Discriminatory Tariffs for Data Services Regulations, 08 Feb 2016 by TRAI

Airtel Zero

1. Mobile app makers register with ‘Airtel Zero’ to give customers free access to their apps

2. Airtel informs customers about these free apps

3. Customers download and access these apps at zero data charges – and enjoy their favorite online tasks (e.g. entertainment, shopping) for free – even with zero mobile balance.

Free Basic or Internet.org

• Before ‘Airtel Zero’-On 10 February 2015, Facebook launched Internet.org in India with Reliance Communications. It aims to provide free access to 38 websites through an app.

Freedom of Speech and Internet Neutrality

• India being a democratic country have certain rights ensured to its citizens of 132crore.

• Right to equality and freedom of speech are fundamental of these.

• Internet has emerged as a public space where people can freely speak, share, communicate and advocate. It is a vibrant platform for discussion, debate and dialogue where many voices can speak at the same time without one intruding into the other

• In any democratic country that values basic human rights, the need to preserve the Internet as a free space for expression becomes an important element of public policy.

This Side of The Coin

A graph from the TRAI policy paper showing dropping growth of voice calls over mobile & increasing growth

of VoIP.

TRAI recently published a consultation paper that

almost exclusively focuses on how many VoIP

services, apps and websites are taking undue

advantage of the infrastructure set up by telcos who

spent bucket loads of money setting it all up.

ISPs argue that they can increase the overall

efficiency of their networks if they are allowed to

‘actively’ manage them.

ISPs also argue that adopting a blanket net

neutrality policy will give rise to security risks and

increase piracy and cyber crime.

One of the more ideological arguments against net

neutrality is that it will give too much power to the

government organization that will be responsible for

enforcing net neutrality.

TRIA Guidelines on 8th Feb,2016

1. No service provider can offer or charge discriminatory tariffs for data services on the basis of content.

2. No service provider shall enter into any arrangement, agreement or contract, by whatever name called, with any person, natural or legal, that the effect of discriminatory tariffs for data services being offered or charged by the service provider for the purpose of evading the prohibition in this regulation.

3. Reduced tariff for accessing or providing emergency services, or at times of public emergency has been permitted.

4. Financial disincentives for contravention of the regulation have also been specified

5. TRAI may review these regulations after a period of two years.

SWOT Analysis

Strength

1.Right to access all websites at same speed

2.TSPs/ISPs do not restrict the ability of the user to send, receive, display

3.Reducing digital divide

4.Right to expression over internet

Weakness

1.No Concrete law for Net Neutrality

2.Chances of throttling

3.OTT services Data type

4.Bandwidth is limited and shared.

Opportunity

1. Digital India Campaign

2. Make in India Campaign

3.DoT support

4.Start ups

Threat

1. Bandwidth allocation

2. Telcos supporting differential rates.

3.Free service Favoritism mentality

4.Services like Freebasics.

INDIA: Population Statistics

INDIA: Citizens vs. Netizens - Now and Then

Netizens in India

Indian Smart Phone users

Conclusion The primary goals of public policy in the context of Net Neutrality should be directed towards achievement of developmental aims of the country by facilitating “Affordable Broadband”, “Quality Broadband” & “Universal Broadband” for its citizens. The approach accordingly should be

• Expand access to broadband;

• Endeavour through Digital India, to bridge the digital divide, promote social inclusion;

• Enable investment , directly or indirectly, to facilitate broadband expansion;

• Ensure the functioning of competitive markets in network, content and applications by prohibiting and preventing practices that distort competitive markets;

• Recognize unbridled right of users to access lawful content of their choice without discrimination;

• Support the Investment-Innovation Virtuous Cycle and development of applications relevant and customized for users.