Dear Sirs,
I am writing this to convey my thoughts and suggestions on the recent net neutrality debate and licensing of Internet services.
At the outset let me convey my displeasure with this move by the industry. We all know that a certain member of the COAI sought to flex its market dominance, and introduce VOIP package very recently. It met with immense criticism and the move was given a quiet burial. We had all hoped this was for the best. But here we are again. The Telecom Regulator has sought suggestions of the subscribers on this vexed issue. My good sirs, I would request you to actually compare our data penetration in percentage terms with other major economies. We stand at an abysmal 19% of the population. When our ministers make comments that our internet users have crossed that of America, and are next only to China's, they forget to mention one hard fact - the 19% penetration fact.
This one number makes it amply clear that data isn't democratic yet. Most people don't know what data connectivity is. This move to even think of regulating the internet, while discriminating with the various services provided on it will kill the hen that will lay the golden egg. Do we really care about Digital India dream of the Prime Minister if we are going to have such differentiation among services offered over the Internet? Or have our telecom companies who have been living off scarce spectrum for free, been suddenly asked to do business the right way scared for future profits? It is definitely not in the interest of Digital India to kill the Internet so early in its nascent stage in our country.
Telecom companies haven't reached the maturity level of the U.S. where there might have been legitimate interests for such a move. But even after such interests, this move was rejected. Mind you this is a country with 80 % Internet penetration. We at not even 20% penetration are trying to kill a medium which hasn't even blossomed yet. It's as if the telecom industry in its interest of making lazy profits, want to scuttle the Internet revolution in our country.
What has the Internet given to us as a country? Let me think.
1) It has put the most distant parts of the country in direct communication with the more developed parts.
2) It has led to increase in trade and commerce. This has led to not only private profits, but public profits as well. India Post is seeing higher growth than ever, due to the flourishing e-commerce industry.
3) Farmers are and will be more connected because of increasing use of Internet technology in communicating the latest farming methods and coupling it with scientific intervention in their farming patterns - This is the PM's pet project. Per drop more crop
4) New entrepreneurial freedom has been unleashed onto this country. We need more service providers to compete so that the market place will be more tuned to hat the customers want.
5) Employment. Free internet is helping new enterprises come up which is leading to more hiring. This is directly related with the govt's objective of providing employment to the youth.
Now let's compare this with a less free and regulated Internet services.
1) The ISP decides what speed I get based on the usage I seek.
2)The service provider tells me that I can't access a certain service faster because I didn't let his cash counter ring a little louder.
3) Broadband access is contingent on how much money I can pay. The dream of broadband access to all Indians remains just that. A figment of everyone's imagination.
4) We kill creative enterprise so that ISPs can squeeze the life out of them by overcharging them for differentiated services.
5) Employment growth sinks. We don't have manufacturing growth anyway. Hence, we don't create employment because entrepreneurs don't only have to run around for money to fund their idea, they also need to run around money to fund their business model. God forbid if the differentiated pricing of the ISPs goes to such an extent, that I get a higher bandwidth when an ad appears obtrusively on my screen, but website doesn't load at all. This is not a distinct policy. Telcos can get more creative.
In the interest of freedom, don't give ownership of the Internet to anybody. Internet is a service. It shouldn't be owned. You give license to the service provider to 'provide the service'. We don't receive the service anyway now. The frequent blackout of Internet services, the unavailability of 3G services uniformly, and the low penetration of the Internet. This is a recipe for disaster.
For combating the onslaught of OTTs we want to kill neutrality of the Internet? And that too only after a recent upsurge in the demand for Internet? You are meant to regulate in the industry in the interest of the consumers and the industry. Why are we even thinking of such a drastic move in an under-penetrated market? I understand that constructing high speed internet infrastructure requires a lot of funds, but this kind of lobbying from the industry can't be allowed to kill all Internet related industries. Imagine the cost this nation will have to play in terms of growth in national income if we let one industry's whims ruin many others.
With respect to OTTs I have to say this- the more we get used to them, the more we will use them. Increased data usage leads to profit to whom? The telecom companies. The increase in user penetration because of the undifferentiated offering of the Internet and the resultant increase in data consumption leads increase in profit for whom? The telecom companies. Increase in bandwidth leads to higher usage of Internet. Higher usage leads to higher profits for whom? The telecom companies.
These companies have invested a lot on their infrastructure. But they have also enjoyed tax benefits of these. The telecom license fees (however meagre) was allowed as a tax deduction from their taxable profits for over 15 years. We haven't had these people paying the true value of spectrum for years now. At the first sign of stress they want to rip apart an ecosystem that they helped create because they've become nervous that they paid market price for once.
Allowing the telecom companies to continue making super profits shouldn't be the job of the regulator. I hope you won't go down the way of the U.S. Financial sector regulators and favour the constituents of your industry over the consumers of the industry's services. I believe you are here to balance the interests of the consumers over the interest of the constituents of the industry. It's better to have a free internet that a destroyed one.
Your move Messrs Regulators.
Regards,
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Vivek Ananth