Net Neutrality around the globe and what India can learn

By February 23rd, 2015 AT 2:38 PM

Net Neutrality is the current topic of discussion in India and a lot has been said by different stakeholders in this regard. Off late we have seen different forms of flouting of Net Neutrality be it Facebook tying up with RCom to launch Internet.org or operators launching differential charging packs and likewise which are a smack in the face for Net Neutrality.

telecom-india

While Net Neutrality has recently caught heat in India, it is a hot topic of debate globally and has been so for some time now. Let us take a look at what the scenario is in other parts of the world.

Till date, 3 countries globally have implemented Net Neutrality, Chile being the first country followed by Netherlands and recently Brazil joined the league. Intense debates are happening in other parts of the world including Europe and North America.  It remains to be seen how these debates shape up.

Chile:

Chile became the first country to implement Net Neutrality way back in 2010. This was mostly achieved through the persistent efforts of the citizen-organised group ‘Neutralidad Si’ which strongly demonstrated that the public voice raised in an organized manner does matter. The legislation prohibits the ISPs from meddling with the internet both during content delivery or consumption in any form. Further strengthening this law, in mid-2014 Chile put an end to Zero Rating plans where striped down version of the service were provided to the customers at zero data charges. Zero Rating plan is generally used as a penetration strategy by Telcos where they try to piggyback on the popularity of the OTT apps.

Netherlands:

Netherlands in 2011 adopted a legal framework to support net neutrality. The story unfolded in a manner very similar to what just started in India. Dutch Telecom Player, KPN, launched a plan which required the mobile users to pay extra for using Over-The-Top (OTT) services like Whatsapp and Skype. Usage of these services was eating up the voice revenues and bringing down the profitability. Hence, KPN saw it fit to charge differentially for using different apps and thereby increase its ARPU.

This did not go well with the lawmakers who immediately added net neutrality to the telecommunications law provisions thereby barring KPN from differential charging plans. In reaction to the law, KPN increased its data prices which were followed by the competitors including Vodafone and T-Mobile.

However it remains to be seen, how long this law can sustain in Netherlands as European Union wants to consolidate telecom policies across member states and has placed an amended set of regulations under review for all the member states. ISPs in EU argue against it saying most OTT players are based in US. Striking deals and making the OTT players pay a fee will ultimately help European economy. Final verdict is awaited.

Brazil:  

Another country which followed the path of Net Neutrality is Brazil. In mid-2014, Brazil passed a monumental ‘Internet Bill of Rights’ which basically encompasses Net Neutrality and security of Brazilian users of the internet. The law bans telecom companies from charging differentially or for striking deals with different content players for preferential or fast lane data channels. This makes all players equal there by perfectly upholding Net Neutrality.

READ:  Reliance Jio Postpaid Plan of Rs 199 Falling Short as Compared to Postpaid Offerings from Other Telcos

Unique Situation in Americas:

The case in United States is a little unique when it comes to Net Neutrality. In US, the Internet Service providers are also the cable service providers who have invested a great deal in the network but now find their network clogged by the heavy usage of the content from start-ups like Netflix and Hulu who directly affect the revenues of the cable companies. Hence, ISPs want to be able to charge these OTT content companies for their disproportionate usage of network. Similar is the case with the voice service providers who have eaten their voice revenue shares.

In May 2014, FCC chairman released a plan that would have allowed companies to discriminate and charge/block the content and create fast lanes and priority lanes. This was fought back by millions of outspoken users who forced FCC to rollback its proposal. The new proposal from FCC is to be presented in February 26th. The proposal will be monumental and will set in motion the future course of net neutrality.

Learning for India:

Currently, there are no laws in India which governs Net Neutrality. When Airtel had rolled out differential charging, TRAI chief made it clear that Airtel cannot be held responsible as there is no regulation in India. This clearly points out the need to have in place regulations which can keep in check the telecom operators and prevent them from carrying out any kind of exploitation.

In this regard, TRAI is expected to release a draft paper by the end of February but this is more from the perspective of regulating OTT players. The question that still remains unanswered is will regulating OTT players solve the purpose? Will it uphold the Net Neutrality? Will it make all content on Internet equal and all delivery channels of Internet equal? The next time, one of the operator decides to bring out funny plans, it will still get away with it since there will be no regulation in place.

What we need is a strong Regulatory body which is just and impartial and which works for the betterment of the industry and all stakeholders including the consumers instead of acting as an agent of telcos.

As seen in two of the above cases, organized voices do work and we the informed and responsible users can bring about a change. Let us be vigilant and play an active role in shaping up Net Neutrality in our country.

Sonali is a Marketer by profession and a blogger by choice.

8
Leave a Reply

avatar
Photo and Image Files
 
 
 
5 Comment threads
3 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
7 Comment authors
Maaz KalimBatmanRamaSSMatthew George Recent comment authors
newest oldest most voted
Batman
Batman

Walk in to McDonald’s and ask for 4 burgers. What would happen next is the cashier would print the bill and end the transaction and turn the order over to kitchen – all normal until now. Imagine if the cashier asked you who all would eat the burger and that the charges for the burger would vary based on the person who will consume it say x INR if a guy consumes it, x+y INR if a gal consumes it, x-z INR if a kid consumes it – are you freaking kidding me!?!??!?!?! is what you’d ask – right? Fair… Read more »

SS
SS

Someone somewhere in this country have a feeling “hey, india sucks, i wouldn’t live here when i turn 20/get a job/etc/etc” but in they never look the other way. In USA, and Canada, if you calculate the average phone bills, you would expect to pay, it would blow your mind and expectations. India has a really good telecom market but not the best. It certainly has a room for lots of new and necessary changes that would be beneficial to both operators and customers. In india the “net neutrality” concept though of great importance, was not needed in the first… Read more »

Rama
Rama

*Net Neutrality covers more than just whatsapp in my opinion. Net Neutrality laws are needed,in fact more so in countries like India where more than 50% of the population doesn’t even know what the Internet looks or feels like. Anyhow many people have different views on Net Neutrality. Its best not to argue on this topic. In my opinion the value of Net Neutrality to a particular person depends on how he/she has seen the internet. For someone who has only been to say Facebook or Google or IRCTC or some other big websites on the internet Net Neutrality might… Read more »

Maaz Kalim
Maaz Kalim

BTW, the international news TV channels you mentioned aren’t “FTA[sic]” (Free-To-Air) [lawfully/legally]!!! 😛

[Much inconveniently] Posted from my Sony C5303 via Chrome browser.

Recent Posts

Trai Consultation Paper on Tariff Regime Correction Could Hurt Small Niche Channels and Broadcasters

It has not been a lot of time since the Telecom Regulatory Authority of India (Trai) implemented the new tariff...

New BSNL STVs Offering 10GB 4G Data Per Day Starting at Rs 96

There is no doubt about the fact that currently Bharat Sanchar Nigam Limited (BSNL) is shipping some of the most...

Xiaomi Redmi Note 8 to Come With Snapdragon 665 and 48MP Quad Rear Camera Setup

Xiaomi Redmi Note 8 will be launching alongside the Redmi Note 8 Pro in China on August 29. Redmi has...