Subject: TRAI questions on net Neutrality
From: Raj Eswaran
Date: 06-Apr-15 6:17 PM
To: advqos@trai.gov.in

Dear Sir

I have attempted to answer all your questions below each in Blue for ease of identification

Question 1: Is it too early to establish a regulatory framework for 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? Please comment with justifications.

A beginning should be made now as otherwise it will be a chaotic growth which will become very difficult to regulate in the future.  Much like the Cable TV growth where cable operators connected houses in any way they saw fir with following any rule or regulation. 

Question 2: Should the 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? Please comment with justifications.

Yes, the OTT players should be regulated as well.  While competition brings about innovation and reduces costs, an unregulated competition brings about chaos.  It is important that these OTT players register with TRAI and pay a licence fee, much like the others in the market.  A part of this amount should go back to the service providers to compensate their loss of revenue due to the OTT

The regulation itself should be minimal and effective so that it acts as an enabler rather than a deterrent

Question 3: Is the growth of OTT impacting the traditional revenue stream of TSPs? If so, is the increase in data revenues of the TSPs sufficient to compensate for this impact? Please comment with reasons.

Yes, the TSPs are losing potential revenue out of SMS and Voice, which they would have factored in when they bid for the spectrum.  Denying them this will lead to a lower spectrum price at a later date.  Increase in data traffic at the current pricing levels is not sufficient to compensate ht loss.  

However Video Calls are different.  Even the TSPs can only factored it as a data revenue stream and hence it does not in any way affect the revenue of TSPs

Question 4: Should the OTT players pay for use of the TSPs 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 product/service differentiation? Please comment with justifications.

OTT players should not have any direct relationship with TSPs as this will lead to formation of unholy nexus.  The Licence fee payment should be made to TRAI, who inturn can compensate the OTT as it sees fit, in a manner which fair to all.  The unlicensed OTT should be blocked from the network over mobile, though should be still available over an ISP network.

Question 5: Do you agree that imbalances exist in the regulatory environment in the operation of OTT players? If so, what should be the framework to address these issues? How can the prevailing laws and regulations be applied to OTT players (who operate in the virtual world) and compliance enforced? What could be the impact on the economy? Please comment with justifications.

Yes, I agree imbalances do exist in the regulatory framework.  In fact as in all fast developing scenarios, regulation is way behind the development.  Applications prevailing laws, or lack of it, can only cause more confusion.  Since it falls under the TRAI scope of work, TRAI should take the lead and form the applicable regulation.  The only way to enforce a regulation is to block the non compliant OTT from the network

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? Please comment with justifications.

We are not a police state and I don’t think it will go down well with the users if we try and make it a police state.  While genuine security concerns do exist, trying to enforce it in the cloud is near impossible and we will only make a fool of ourselves.  Having said that, in case the security agency needs a particular customer monitored, then a written request should suffice.  Google does that as well as other websites.  OTT is no exception

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? Please comment with justifications.

There is no way the TRAI can enforce this.  Since none is forced to go to anyone OTT, TRAI can publish, thro SMS, their recommendations on security issues on any OTT to all mobile users so that the users can make the informed choice as to whether to continue or not wit the service provider.  Anything more than an advice will be a intrusion of an individuals privacy

Question 8: In what manner can the proposals for a regulatory framework for OTTs in India draw from those of ETNO, referred to in para 4.23 or the best practices summarised in para 4.29? And, what practices should be proscribed by regulatory fiat? Please comment with justifications.

Question 9: What are your views on net-neutrality in the Indian context? How should the various principles discussed in para 5.47 be dealt with? Please comment with justifications.

Net Neutrality is very important in this day and age of open information and requires the strictest of enforcement.  The moment ISP decide on their own regulation rules, then only chaos will prevail and the whole information age will go to the dark ages.  Having said that, a uniform charge by a neutral 3ed party, such as TRAI for OTTs is not against the principle of net neutrality.  It si important that the ISPs maintain neutrality and TRAI decides on the tariff etc.

Question 10: What forms of discrimination or traffic management practices are reasonable and consistent with a pragmatic approach? What should or can be permitted? Please comment with justifications.

None at all, no discrimination should be permitted by TRAI to ISPs.

Question 11: Should the TSPs be mandated to publish various traffic management techniques used for different OTT applications? Is this a sufficient condition to ensure transparency and a fair regulatory regime?

No, please see my answers above

Question 12: How should a conducive and balanced environment be created such that TSPs are able to invest in network infrastructure and CAPs are able to innovate and grow? Who should bear the network upgradation costs? Please comment with justifications

The TSPs are free to price their services and the price should be sufficient to ensure they get a fair return on their investment.  Charging more for OTTs etc, is not required as this hits at the heart of the net neutrality argument.  If they feel OTTs are taking their business, let TSPs charge more for data on the whole

Question 13: Should TSPs be allowed to implement non-price based discrimination of services? If so, under what circumstances are such practices acceptable? What restrictions, if any, need to be placed so that such measures are not abused? What measures should be adopted to ensure transparency to consumers? Please comment with justifications.

No any form of discrimination is not in the interest of the consumer

Question 14: Is there a justification for allowing differential pricing for data access and OTT communication services? If so, what changes need to be brought about in the present tariff and regulatory framework for telecommunication services in the country? Please comment with justifications.

Data is data, how is it different for OTTs?  TSP charge for Data and voice which is what they are allowed to do as per the spectrum auction rules and TRAI.  Where is the question of charging for something else

Question 15: Should OTT communication service players be treated as Bulk User of Telecom Services (BuTS)? How should the framework be structured to prevent any discrimination and protect stakeholder interest? Please comment with justification.

No, it is just another website which requires data usage

Question 16: What framework should be adopted to encourage India-specific OTT apps? Please comment with justifications.

The IT industry in India has flourished and grown due to the fact that there was little or no governmental interference.  Best to keep out of this and allow market dynamics to take over

Question 17: If the OTT communication service players are to be licensed, should they be categorised as ASP or CSP? If so, what should be the framework? Please comment with justifications.

No comments

Question 18: Is there a need to regulate subscription charges for OTT communication services? Please comment with justifications.

Train to decide.  should not be left to TSPs.  We do not want Airtel & Vodafone to play god.  One possibility would be to rebook at the TSPs.  Why not split them into 2 entities, one owning the tower, spectrum and network and the other the service provider.  That way everyone has a level playing ground

Question 19: What steps should be taken by the Government for regulation of non-communication OTT players? Please comment with justifications.

None, Govt please keep off

Question 20: Are there any other issues that have a bearing on the subject discussed?
Best Regards

Raj Eswaran
raj.eswaran@easungroup.in