Letter to Communication Minister Ravishankar Prasad on Net Neutrality
July 27, 2015.
The Hon. Minister for Communication and IT,
Government of India,
Sanchar Bhavan,
New Delhi,
110001.
Respected
Sir,
Sub : Net Neutrality
There is a
lot of speculation going on in the country on the subject. The vague and
confusing position taken by TRAI on the issue is further fuelling gossip and
consumers are absolutely confused.
Until now, as per popular perception, anyone could use the
internet data we paid for, to do anything on the internet. We hear that Vodafone, Airtel Idea are trying to
pressurise the Indian government to regulate certain Apps and services
like Whatsapp, Youtube, Skype etc.
This means that we will be charged separately for
using them even
if we have paid for the internet data packs. If telephone
companies get their way, they will dictate what, how and when to browse the
internet. And this could happen very soon. This
is really scary!
The big companies say they have invested a lot of money in
setting up internet infrastructure and they must get a share of the earning
that Internet firms like Facebook, WhatsApp etc generate.
The consultative paper
published by TRAI on March 27, 2015 titled "Regulatory Framework For
Over-the-Top (OTT) Services” has further confused the issue.
I am worried that this
consultation paper makes sweeping assumptions about the Internet, and does not
take a neutral and balanced view of the subject of Internet Licensing and Net
Neutrality. Any public consultation must be approached in a neutral manner by
the regulator, so that people can form an informed opinion.
I strongly support an open internet, for which I believe it is critical to uphold net neutrality and reject any moves towards licensing of Internet applications and Web services.
I urge TRAI to commit to outlining measures to protect and advance net neutrality for all Indians. Net neutrality requires that the Internet be maintained as an open platform, on which network providers treat all content, applications and services equally, without discrimination.
I strongly support an open internet, for which I believe it is critical to uphold net neutrality and reject any moves towards licensing of Internet applications and Web services.
I urge TRAI to commit to outlining measures to protect and advance net neutrality for all Indians. Net neutrality requires that the Internet be maintained as an open platform, on which network providers treat all content, applications and services equally, without discrimination.
The TRAI must give
importance to safeguarding the interests of our country’s citizens and the
national objective of Digital India and Make In India, over claims made by some
corporate interests.
In this connection, there are a few questions which have cropped up :
Question 1: Is it too early to establish a regulatory framework for Internet/OTT services, since internet penetration is still evolving, access speeds are generally low and there is limited coverage of high-speed broadband in the country? Or, should some beginning be made now with a regulatory framework that could be adapted to changes in the future?
In this connection, there are a few questions which have cropped up :
Question 1: Is it too early to establish a regulatory framework for Internet/OTT services, since internet penetration is still evolving, access speeds are generally low and there is limited coverage of high-speed broadband in the country? Or, should some beginning be made now with a regulatory framework that could be adapted to changes in the future?
No new regulatory
framework in the telecom sector is required for Internet services and apps -
and no such regulation should come into effect in future either.
This question incorrectly presumes that regulation of the Internet is absent and there is a need to create it. Additionally, the technical language of “Over-the-Top” applications used in the consultation paper fails to convey that it is truly referring to the online services and applications which make today’s Internet which we all use; Facebook, Paytm, WhatsApp, and Skype etc.
This question incorrectly presumes that regulation of the Internet is absent and there is a need to create it. Additionally, the technical language of “Over-the-Top” applications used in the consultation paper fails to convey that it is truly referring to the online services and applications which make today’s Internet which we all use; Facebook, Paytm, WhatsApp, and Skype etc.
The Internet is
already subject to existing law in India - any extra regulatory or licensing
regime will only be detrimental to the customer and to Indian firms developing
online services and apps.
Under the current regulatory framework, users can access the internet-based services and apps either for a low fee or for free where the application owners make money by selling advertisements based on user data. With additional regulations and licenses, it will make it expensive for these services to reach out to their customers eventually leading to higher prices and undesirable levels of advertising - which is against the public interest and counterproductive.
Many telecom companies have earlier argued in the consultation paper floated by TRAI on mobile value added services (MVAS) that it was not necessary to regulate these value
Under the current regulatory framework, users can access the internet-based services and apps either for a low fee or for free where the application owners make money by selling advertisements based on user data. With additional regulations and licenses, it will make it expensive for these services to reach out to their customers eventually leading to higher prices and undesirable levels of advertising - which is against the public interest and counterproductive.
Many telecom companies have earlier argued in the consultation paper floated by TRAI on mobile value added services (MVAS) that it was not necessary to regulate these value
added services. They
said MVAS are already governed by general laws under the Indian legal system
and comply with the security interests as they operate on the networks of
legitimate telecom license holders.
As TRAI said previously in its recommendations after consulting on MVAS regulation:
“The Authority preferred least intrusive and minimal regulatory framework and thus no separate category of licence for value added services is envisaged. After second round of consultations, the Authority is also not favoring registration of Value Added Service Providers (VASPs) or content aggregators under the “Other Service Provider (OSP)” category.”
“Content shall be subject to relevant content regulation and compliance of prevailing copyrights including digital management rights and other laws on the subject (para 3.12.2). The content is subjected to content regulation/ guidelines of Ministry of Information and Broadcasting, Information Technology Act, 2000, Cable Television Networks (Regulation) Act, 1995, Indian Copyright Act etc., as amended from time to time. The content regulation shall be as per law in force from time to time. There should be consistency in the treatment of content across all kinds of media including print, digital/multimedia to avoid any discrimination. (para 3.13.3):”
Sir, we feel that imposing a licensing and regulation regime carry significant risks of destroying innovation. Launching new services and features will take more time and will make it difficult for new startups with low cash reserves to enter the market. It will basically ring the death knell for the country's fast-growing digital media sector.
Question 2: Should the Internet/OTT players offering communication services (voice, messaging and video call services through applications (resident either in the country or outside) be brought under the licensing regime?
There is no need to bring Internet platforms offering communication services under the telecom licensing regime. The way this question is framed gives an impression that there is a clear distinction between communication services and other non-communication services on the internet. This is an incorrect presumption. Many internet services incorporate real time chat and video services to improve their customer engagement. A licensing framework will, for sure, work against customer interest and will stifle innovation. The cost of entry to the market would increase many times over which will be extremely detrimental to newer startups who might have more innovative offerings for the market.
Question 3: Is the growth of Internet/OTT impacting the traditional revenue stream of Telecom operators/Telecom operators? If so, is the increase in data revenues of the Telecom Operators sufficient to compensate for this impact? Please comment with reasons.
There is no evidence of data revenues cannibalizing revenues from voice or SMS. In fact, data usage is soaring and it is driving the demand for telecom networks.
Services such as Skype and WhatsApp have specific use cases. They are not, and should not be, considered as substitutes to voice calling or SMS. For instance, calls made using VoIP don’t have the same clarity that we have on voice calls. Moreover, services such as WhatsApp are used for real-time chatting as opposed to SMS. Voice and SMS have their own benefits and use cases, so do VoIP and internet messaging. Customers should be free to pick and choose among these.
Question 4: Should the Internet/OTT players pay for use of the Telecom Operators network over and above data charges paid by consumers? If yes, what pricing options can be adopted? Could such options include prices based on bandwidth consumption? Can prices be used as a means of product/service differentiation?
As TRAI said previously in its recommendations after consulting on MVAS regulation:
“The Authority preferred least intrusive and minimal regulatory framework and thus no separate category of licence for value added services is envisaged. After second round of consultations, the Authority is also not favoring registration of Value Added Service Providers (VASPs) or content aggregators under the “Other Service Provider (OSP)” category.”
“Content shall be subject to relevant content regulation and compliance of prevailing copyrights including digital management rights and other laws on the subject (para 3.12.2). The content is subjected to content regulation/ guidelines of Ministry of Information and Broadcasting, Information Technology Act, 2000, Cable Television Networks (Regulation) Act, 1995, Indian Copyright Act etc., as amended from time to time. The content regulation shall be as per law in force from time to time. There should be consistency in the treatment of content across all kinds of media including print, digital/multimedia to avoid any discrimination. (para 3.13.3):”
Sir, we feel that imposing a licensing and regulation regime carry significant risks of destroying innovation. Launching new services and features will take more time and will make it difficult for new startups with low cash reserves to enter the market. It will basically ring the death knell for the country's fast-growing digital media sector.
Question 2: Should the Internet/OTT players offering communication services (voice, messaging and video call services through applications (resident either in the country or outside) be brought under the licensing regime?
There is no need to bring Internet platforms offering communication services under the telecom licensing regime. The way this question is framed gives an impression that there is a clear distinction between communication services and other non-communication services on the internet. This is an incorrect presumption. Many internet services incorporate real time chat and video services to improve their customer engagement. A licensing framework will, for sure, work against customer interest and will stifle innovation. The cost of entry to the market would increase many times over which will be extremely detrimental to newer startups who might have more innovative offerings for the market.
Question 3: Is the growth of Internet/OTT impacting the traditional revenue stream of Telecom operators/Telecom operators? If so, is the increase in data revenues of the Telecom Operators sufficient to compensate for this impact? Please comment with reasons.
There is no evidence of data revenues cannibalizing revenues from voice or SMS. In fact, data usage is soaring and it is driving the demand for telecom networks.
Services such as Skype and WhatsApp have specific use cases. They are not, and should not be, considered as substitutes to voice calling or SMS. For instance, calls made using VoIP don’t have the same clarity that we have on voice calls. Moreover, services such as WhatsApp are used for real-time chatting as opposed to SMS. Voice and SMS have their own benefits and use cases, so do VoIP and internet messaging. Customers should be free to pick and choose among these.
Question 4: Should the Internet/OTT players pay for use of the Telecom Operators network over and above data charges paid by consumers? If yes, what pricing options can be adopted? Could such options include prices based on bandwidth consumption? Can prices be used as a means of product/service differentiation?
Internet-based services and apps don’t pay for telecom operators for using the network, and it should remain the same going forward. Forcing Internet-based services to pay extra for using a particular network negatively impact consumers and harm the Indian digital ecosystem. As mentioned in the above answer, data revenues of Indian telecom operators is already on an upswing and is slated to increase rapidly over the next few years, hence the argument for creating a new revenue source is not justified.
Charging users extra for specific apps or services will overburden them, which in turn will lead to them not using the services at all. It is also akin to breaking up the Internet into pieces, which is fundamentally against what Net Neutrality stands for.
Question 5: Do you agree that imbalances exist in the regulatory environment in the operation of Internet/OTT players? If so, what should be the framework to address these issues? How can the prevailing laws and regulations be applied to Internet/OTT
players (who operate
in the virtual world) and compliance enforced? What could be the impact on the
economy?
Firstly, there is no regulatory imbalance in regards to Internet-based services and apps. It is the telecom operators who own spectrum, which is a public resource, and hence need to be licensed. Internet services don’t need licenses. Telecom operators provided the pipe or network on top of which Internet services exist. So, there’s a clear distinction between the two.
It also needs to be pointed out that Internet services are already covered by the Information Technology Act, 2008 and the Indian Penal Code. So, there’s no need for a separate regulatory framework or licensing. In fact, this was the exact argument telecom operators had earlier made while stating their case for not regulating mobile value added services (MVAS), which in essence is quite similar Internet-based services.
Question 6: How should the security concerns be addressed with regard to OTT players providing communication services? What security conditions such as maintaining data records, logs etc. need to be mandated for such OTT players? And, how can compliance with these conditions be ensured if the applications of such OTT players reside outside the country?
The internet services and apps are well-covered under the existing laws and regulations. These include the Code of Criminal Procedure, Indian Telegraph Act, Indian Telegraph Rules, and the Information Technology Act and its different rules pertaining to intermediaries and interception. These different regulations allow the Indian government and law enforcement agencies to access the data stored by internet platforms when deemed legally necessary. Any additional regulations carry grave risk of breaching user privacy and would also require constitutional review - especially since the Government is still working on a proposed Privacy Bill.
The government and courts also have the power to block access to websites on the grounds of national security and public order. It has taken similar steps in the past and has been widely reported by the media. The transparency reports periodically published by major internet companies suggests Indian government routinely requests for user data and blocking of user accounts. Between July 2014 and December 2014, Indian authorities had 5,473 requests for data, covering 7,281 user accounts from Facebook and the company had a compliance rate of 44.69%. Google had a compliance rate of 61% with respect to the requests made by different government agencies across India.
Question 7: How should the OTT players offering app services ensure security, safety and privacy of the consumer? How should they ensure protection of consumer interest?
Although user privacy and security is of paramount importance, additional regulation carries the inherent risk of breaching user privacy which is not in the consumer’s interest. The Information Technology Act, 2000 already addresses the security concerns of the user. But more importantly, any criminal act committed using these platforms can be tried under the Indian Penal Code. So, there is no need to burden the internet platforms with additional regulations.
Also, it is worth noting that many telecom companies in India have not made information publicly available as to whether and how they comply with regulations that guarantee security, privacy and safety of the customer. TRAI’s current paper fails to articulate why the internet services and apps should be brought under similar regulations.
Sir, Net Neutrality, by definition, means no discrimination of traffic flowing on the internet with respect to speed, access and price. Chile and Brazil, which are developing countries just like India, have passed laws supporting net neutrality. This is in addition to government commitments to implement net neutrality legislation in the United States and European Union.
India has 1 billion people without internet access and it is imperative for our democracy to have an open and free internet where users are free to choose the services they want to access—instead of a telecom operator deciding what information they can access.
Internet apps and services are expected to contribute 5% to India’s GDP by 2020. That will only happen of entrepreneurs, big and small, have a level playing field that encourages innovation and non-preferential treatment—something that net neutrality ensures.
Assuming there is no net neutrality, only the big players will be able to strike deals with telcos while the smaller players remain inaccessible, which will go against the principles of net neutrality as listed below:
1) No blocking by TSPs and ISPs on specific forms of internet traffic, services and applications.
2) No slowing or “throttling” internet speeds by TSPs and ISPs on specific forms of internet traffic, services and applications.
3) No preferential treatment of services and platforms by TSPs and ISPs.
4) It is also worth noting that the proposed framework will give too much power in the hands of the telecom companies, which is not healthy for the ecosystem.
Earlier this year, Airtel India CEO Gopal Vittal had clearly said during the company’s earnings conference call that there’s no evidence of VoIP cannibalisation of voice services. Last year, Idea Cellular MD Himanshu Kapania had also said that OTT apps like Viber have had some impact on their International calling business, but on regular voice calls, there was no impact.
Firstly, there is no regulatory imbalance in regards to Internet-based services and apps. It is the telecom operators who own spectrum, which is a public resource, and hence need to be licensed. Internet services don’t need licenses. Telecom operators provided the pipe or network on top of which Internet services exist. So, there’s a clear distinction between the two.
It also needs to be pointed out that Internet services are already covered by the Information Technology Act, 2008 and the Indian Penal Code. So, there’s no need for a separate regulatory framework or licensing. In fact, this was the exact argument telecom operators had earlier made while stating their case for not regulating mobile value added services (MVAS), which in essence is quite similar Internet-based services.
Question 6: How should the security concerns be addressed with regard to OTT players providing communication services? What security conditions such as maintaining data records, logs etc. need to be mandated for such OTT players? And, how can compliance with these conditions be ensured if the applications of such OTT players reside outside the country?
The internet services and apps are well-covered under the existing laws and regulations. These include the Code of Criminal Procedure, Indian Telegraph Act, Indian Telegraph Rules, and the Information Technology Act and its different rules pertaining to intermediaries and interception. These different regulations allow the Indian government and law enforcement agencies to access the data stored by internet platforms when deemed legally necessary. Any additional regulations carry grave risk of breaching user privacy and would also require constitutional review - especially since the Government is still working on a proposed Privacy Bill.
The government and courts also have the power to block access to websites on the grounds of national security and public order. It has taken similar steps in the past and has been widely reported by the media. The transparency reports periodically published by major internet companies suggests Indian government routinely requests for user data and blocking of user accounts. Between July 2014 and December 2014, Indian authorities had 5,473 requests for data, covering 7,281 user accounts from Facebook and the company had a compliance rate of 44.69%. Google had a compliance rate of 61% with respect to the requests made by different government agencies across India.
Question 7: How should the OTT players offering app services ensure security, safety and privacy of the consumer? How should they ensure protection of consumer interest?
Although user privacy and security is of paramount importance, additional regulation carries the inherent risk of breaching user privacy which is not in the consumer’s interest. The Information Technology Act, 2000 already addresses the security concerns of the user. But more importantly, any criminal act committed using these platforms can be tried under the Indian Penal Code. So, there is no need to burden the internet platforms with additional regulations.
Also, it is worth noting that many telecom companies in India have not made information publicly available as to whether and how they comply with regulations that guarantee security, privacy and safety of the customer. TRAI’s current paper fails to articulate why the internet services and apps should be brought under similar regulations.
Sir, Net Neutrality, by definition, means no discrimination of traffic flowing on the internet with respect to speed, access and price. Chile and Brazil, which are developing countries just like India, have passed laws supporting net neutrality. This is in addition to government commitments to implement net neutrality legislation in the United States and European Union.
India has 1 billion people without internet access and it is imperative for our democracy to have an open and free internet where users are free to choose the services they want to access—instead of a telecom operator deciding what information they can access.
Internet apps and services are expected to contribute 5% to India’s GDP by 2020. That will only happen of entrepreneurs, big and small, have a level playing field that encourages innovation and non-preferential treatment—something that net neutrality ensures.
Assuming there is no net neutrality, only the big players will be able to strike deals with telcos while the smaller players remain inaccessible, which will go against the principles of net neutrality as listed below:
1) No blocking by TSPs and ISPs on specific forms of internet traffic, services and applications.
2) No slowing or “throttling” internet speeds by TSPs and ISPs on specific forms of internet traffic, services and applications.
3) No preferential treatment of services and platforms by TSPs and ISPs.
4) It is also worth noting that the proposed framework will give too much power in the hands of the telecom companies, which is not healthy for the ecosystem.
Earlier this year, Airtel India CEO Gopal Vittal had clearly said during the company’s earnings conference call that there’s no evidence of VoIP cannibalisation of voice services. Last year, Idea Cellular MD Himanshu Kapania had also said that OTT apps like Viber have had some impact on their International calling business, but on regular voice calls, there was no impact.
The Department of
Communications (DoT) has come out with recommendations on the future of
"net neutrality" in India.
Here are a few key points from the report-
Positives:-
India should not allow blocking, throttling or prioritisation of data on networks.
No licence required by over the top players (OTTs) for instant messaging services and international VOIP calls.
Content and application providers like Internet.org should not be permitted to act as a "gatekeeper".
Negatives:-
Zero-rated plans by telcos to be vetted on a case to case basis. Prone to legal tussle and still not clear as to if it leans towards allowing telco zero rated plans. The paper doesn't specifically target telco zero rated plans like it did for internet.org.
Local VOIP calls like local Watsapp to Watsapp and other VOIP app calls will have to get license under "same service,same rules". This differentiation cannot possibly be made without deep packet inspection that compromises our privacy. Secondly the same service rules sets a bad precedent as tomorrow cable cum ISPs could argue that video
Here are a few key points from the report-
Positives:-
India should not allow blocking, throttling or prioritisation of data on networks.
No licence required by over the top players (OTTs) for instant messaging services and international VOIP calls.
Content and application providers like Internet.org should not be permitted to act as a "gatekeeper".
Negatives:-
Zero-rated plans by telcos to be vetted on a case to case basis. Prone to legal tussle and still not clear as to if it leans towards allowing telco zero rated plans. The paper doesn't specifically target telco zero rated plans like it did for internet.org.
Local VOIP calls like local Watsapp to Watsapp and other VOIP app calls will have to get license under "same service,same rules". This differentiation cannot possibly be made without deep packet inspection that compromises our privacy. Secondly the same service rules sets a bad precedent as tomorrow cable cum ISPs could argue that video
streaming apps are
bleeding their business or cannibalising their revenues and ask for regulating
the same and this logic could be used then to slowly regulate various apps on
the internet.
The fight for net neutrality is not over. Though there are some positives in the recommendations of the DoT committee, a lot needs to be done to ensure Internet is an open and fair space.
The fight for net neutrality is not over. Though there are some positives in the recommendations of the DoT committee, a lot needs to be done to ensure Internet is an open and fair space.
We request you to ensure
that the Internet remains free, open and a fair space for people to surf and
that the big telecom companies don’t pressure the government at the cost of the
common consumer.
Regards,
Dayanand Nene
National Secretary,
Consumer Protection Service Council
8879528575
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