Tag Archives: TRAI CONSULTAION PAPER ON NET NEUTRALITY

NET NEUTRALITY:I DON’T WANT TO KILL YOU.BUT YOU ARE STILL ON THE LIST.

Kudos to Bharti Airtel for doing what common national interest could not manage. It got Saffronistas, Ra Ga retards and the AAP –clowns to unite on one common issue and unintentionally pitch forked “net neutraliy” into the national mindscape. This set in motion the toughest battle to date that the netizens in India have had to wage for a free and neutral internet!

In December 2014, Airtel had come up with a scheme to charge separately for VOIP services such as Skype, Viber and apps such as WhataApp,as these services were riding on its infrastructure and not paying for the same. By this it hoped to offset the telco’s “revenues foregone” (for calls and data/ messaging which otherwise would have been made on the telco’s services). Post a consumer back lash Airtel grudgingly stepped back.But maintained that these services / apps needed to share the revenues and if the consumers won’t pay then the VOIP types should.or they risk being blocked altogether!!! Goonda gardi, hafta vasooli…call it what you may!

Not one to give up easily, Airtel came up with a data usage plan – Airtel Zero – wherein apps and sites forming part of the platform paid for the customer’s usage of data while accessing them. Termed as a “zero rating” scheme, it’s virtually a toll free proposition but consumers would have to pay for anything not part of this scheme. Airtel positioned the scheme as one which would make universal internet accessibility a reality. It was supposedly the cyber equivalent of the eradication of hunger. There were khushi ke aansu all around, and just as Sunil Mittal almost announced “let there be light”, Satan descended upon earth and ushered in the clamour for scrapping Airtel Zero as it was against “net neutrality”. The controversy gained momentum when Flipkart made an exit from Airtel Zero as angry netizens penalized it en masse for being affiliated to it. This gave a rocket boost to the fight for maintaining net neutrality and the fire raged ever bigger. Kejriwal, Rahul Gandhi, Naveen Patnaik, Ravi Shankar Prasad and Shah Rukh Khan too joined in in favour of net neutrality.

Net neutrality?????

In a land where even water and air have colour most were confused about the concept. Finally it dawned that “net neutrality” is the de facto governing principle of the internet and implies that the customers have access to all sites and apps without discrimination, at the same speed and at the same costs. That is exactly how you have been getting internet up to now. But the “Satan-archists” were alleging that Airtel was going to jeopardise the concept forever.

This Amul ad/ topical on net neutrality depicts the controversy generated by Airtel Zero and its impact on the internet as well as the consumer. It shows the Amul Girl sitting with an annoyed expression wherein a hand from the internet browser is making away with additional data charges. A reflection of the potential disruptive effect of the zero rating scheme.

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The Tag Line…. Tum com ho interfere karne waale?.. is a direct statement on the telcos attempting to subvert the nature of the internet in India and literally translates into “who are you to interfere?”

The Punch Line … TRAI this nutralicious snack…. Is a reference to the ball being in the regulators court and is also a play on the Amul butter and its much preferred taste.

Airtel swiftly came out with its rebuttal and claimed it supported net neutrality.It also asserted that Airtel Zero was non-discriminatory and was simply a marketing tool and not a tarrif plan (confusing isn’t it? ) which essentially encourages innovation. It averred that all the “satan-archists” objecting to the concept should preferably “ja ke apni bhains charayein” as they did not quite understand what net neutrality meant. And Sunil Mittal did. Period.

To counter this, firstly an app can only be on Airtel Zero if it had enough cash to cough up the fees.If this isn’t discriminatory then I am George Clooney!!!Based on the previous attempts at “hafta vasooli” and due to financial incentives Airtel could be expected to indulge in paid prioritization and providing better data speed to its partners.It could also resort to blocking a competing app, eg WhatsApp for Airtel’s very own Hike. So where’s the elbow room for innovation? And will this not strangulate a low budget start up? So if I want to start “CHH-ITTER” an app which not only allows you to “poke” but even slap (doesn’t matter if you don’t need it, but then that’s the beauty of the internet!) then I can’t as I just don’t have the cash to outspend my rivals Twitter and Facebook.Moreover, if Airtel Zero is not about tarrif then why all sites/apps on it are toll free and other sites arent? And why is Airtel silent on the modalities of payment and whether all on the platform are paying the same amount?

All this is definitely not in line with net neutrality as the world comprehends it. But then you and I don’t have the slightest comprehension of the concept. Sunil Mittal has.

Importantly, if Airtel Zero is allowed to operate then Airtel will be the de facto gate keeper of the internet. The telco has roped in Google and Twitter by not charging them any fees as of now, because today it needs them both. But tomorrow they will need Airtel and will then have to pay a “hafta”. And from whom would they as well as the others recover these costs from???And what about the consumer; how does he get guaranteed services for the sites/services /apps not on Airtel Zero?

Is this how we want the internet to function?

Facebook too has tied up with Reliance to offer “internet.org”, another zero rating plan for a collection of mostly content based sites with Facebook as its centre piece.Mark Zuckerburg, wrote a piece in its defence recently and has alluded to how it brings “internet” free to the next great innovator who otherwise may not be able to afford it.He pitches strongly for the coexistence of “universal accessibility” with “net neutrality to “alleviate poverty”. (Khushi ke annsu….remember…)

What “Mr Poke-you- anywhere” isn’t saying is this that Facebook becomes the gateway and “forces” millions to sign up for it if they want to access the free “internet”! And it also gets to control web content. Seeing this the advertisers will “poke” back harder. So everyone is happy poking while Mr Zuckerburg gets away with the cash. Voila! Poverty gone!!! And we are made to look like Pokémon!

So, Zuckerburg sahib watch “Dabbang” and you will realise “ki humein pyaar se darr lagta hai”.And that too the unsolicitef type.So,it’s not about accessibility it’s about money. The “young innovators” get to see a warped and limited version of the “internet” which shuts out the thousands of sites that can’t afford to be on “internet.org”. He would then be a captive netizen in a cyber-colony, based on Pokerburg’s and Sunil Net-eresa’s vision of the web.

And don’t be surprised that Zuckerburg wrote that piece. He is in a partnership with Airtel in Africa. Ek hi thaili ke…

It’s given that telcos and Internet Service Providers (ISPs) will eventually resort to negative business practices.Comcast and Verizon in the US did this by blocking and resorting to paid prioritization of peer-to-peer apps.In another instance US ISPs ganged up against Netflix, a video service, to block it till it coughed up the requisite cash/ fees (hafta !!!). These incidents prompted the US Federal Communication Commission (FCC) to revamp its laws in April 2015 and to classify the internet as a public utility. It deemed net neutrality to be sacrosanct and a guaranteed right that will be safeguarded by regulatory protocols. Even President Barack Obama has spoken in favour of the same.

There are some other players too and their fallacious arguments that we need to shred ,amongst them are the Telecom Regulatory Authority of India (TRAI) and the Cellular Operators Association of India (COAI).

TRAI – the “watchdog” – has come up with its consultation paper on net neutrality and other issues titled Regulatory Framework for Over-the-top (OTT) Services which was true to its title as it went over the top of most trying to make head or tail of the jargon ridden paper. Simply translated, asking the public for its opinion on 20 questions, on regulating the internet and net neutrality. TRAI’s contentions in the paper are straight from the heart – the bleeding heart of the telcos!According to an editorial in The Hindu, it “appears to propose only two choices: that we either accept licensing of Internet services or compromise on net neutrality. If TRAI’s claims are accepted, any business that uses the Internet — e-retail, media or health care — can potentially be regulated by TRAI as an OTT service. This is indeed regulatory overreach on a grand scale.”TRAI is also convinced of the telco’s “revenue foregone” theory! Isnt TRAI on our side???

It’s a fine mix isn’t it…telcos…regulators…big business…hapless consumers…

Firstly, telcos have done no favour as they have been given a license to develop a nation’s resource on the terms and conditions meant to safeguard the people’s interest. Secondly, they are mere pipe layers and cannot control what flows through the pipes. For example a water distributing company can’t crib about the profit margins of a soft drink company and consequently seek to charge the soft drink maker or the consumer arbitrarily and irrespective of water usage. Why??? Because the distributing company (read telcos) didn’t think of innovating (read VOIP and messaging apps)! And now TRAI wants us to be sympathetic towards these crocs and help in making good their fictitious “revenue foregone” by making the consumer pay for it!!!

COAI has been trumpeting fallacious assertions to justify zero rating and to debunk net neutrality by talking about the negative financial viability of the sector, high spectrum and operating costs (7.5 lac crores) high debts (3 lac crores), prohibitive technology and binding security protocols.And says that while the OTT services are simply riding piggyback on the telcos and rake in millions while using 99% of the infrastructure of the telcos.The poor telcos get no share of the pie amidst falling revenues!But who’s pie is it – telco’s or the innovators ? And what falling revenues are we talking of?Excuse me… the Q3 fig for Airtel alone shows an overall increase of 30.5% year on year (YOY) in its net profit and 70% in its profit for mobile data revenue YOY with a 41% increase in data users.COAI… Naughty boy….you didn’t tell us this…did you?

And if the business prospects were so poor under the present unregulated and unenforced net neutrality concept, then why was more than 1 lac crore spent in the recent spectrum auction??? Quoting The Hindu, “In fact, when telecom companies want to raise money from investors, they present a rosy picture of a booming data business and rising revenues. Companies that prepare reports for investors — such as Morgan Stanley or PricewaterhouseCoopers — say much the same things. In fact, even voice and SMS traffic in India is growing.” Then why the campaign against OTT services???Also, even Telcos are using VOIP for transferring voice calls to and from their network, so is it only for the OTT services that they are laying and modernizing the infrastructure?

COAI says that if telcos are not allowed to dip into the OTT revnue share then data costs will zoom to x5 or x6 of the present level.And make it unaffordable for the masses.Okay..i am scared and can we no have the facts !!!.This is bunkum since the bandwidth rates are falling the world over as it is an infinite resource. And why have the telcos kept the data package charges so low as to hurt them when TRAI isn’t governing the rates? Then let there be a comprehensive study of the revenue model to arrive at the actual facts..Quoting alarmist figures, raising bogeys such as universal accessibility, alleviating poverty and financial viability is a common tactic by these greedy and avarice driven telcos.

Innovation drives investments. If we penalize innovation today (OTT services) then the telcos have no incentive to upgrade their services. At the same time banning zero rating isn’t a good idea at all. While allowing this let there be strict regulations and safeguards to thwart telcos and ISPs from violating net neutrality. OTT services too need to conform to certain standards so as not to have a free run but licensing of apps and services though is uncalled for.

The Internet has to be kept free from manipulation and monopoly, especially when the likes of Facebook has been found to have generated content to manipulate the mood of its customers. It needs to be declared as a public utility and TRAI needs to have the statuatory authority to enforce regulations safeguarding consumer interests. For this restructuring of the IT Act, 2000 and the Telecommunications Act, 1895 is urgently needed to align them with the advancements and realities of the sector, just as the US recently removed 700 parts from its archaic Communications Act.

And all of the above cannot be at the expense of net neutrality, which too needs to be defined and defined in line with international standards and not based on some Pokerburg’s theory!TRAI would have done well to extend the opinion period on its paper, like it was made 90 days in the US ( 1/6 our population).And by segregating the period into specific pros and cons window it again demonstrated myopic tendencies or was it intentionally done to taper the “referendum” in favour of the telcos?The “pros” camp has managed 1 million votes or mails and the cons (the telcos) then ran a counter campaign (bite this) backed by their deep wallets and mustered in 4 million votes !

In the end, we must take a cue from what Tom Wheeler, the US FCC Chairman, when he says, “the internet is too important to let service providers make the rules”. Because, though right now big business doesn’t want to kill the geese laying the golden eggs, but it’s always on their list!!!!

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