All the Questions

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? Please comment with justifications.

ANS1: While a framework and regulations may not be a bad idea, it is still too early, in my opinion. Like with everything in our country, there is a high risk of it being misused by the big telecom providers into a tool to generate additional revenue from the common man. Words like security, licensing and security will be thrown about to convince us it's needed, but revenue generation appears to be the primary motive.

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? Please comment with justifications.

ANS 2: Definitely not. The internet should be used for any purpose as required by organizations or individuals. The services are endless and licensing is not only going to be difficult, but also pointless. The question you should ask yourself here is, is it going to help the common man? Additionally what you will notice are the schemes like the current Airtel Zero, in partnership with Flipkart. If you use Airtel, then flipkart will charge you less, else more. This will only slow down the internet penetration and also make it clear that it's preferential treatment for Airtel customers.

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.

ANS 3: How many decisions taken by the government negatively affect one business or the other? The advent of internet streaming closed down the CD/DVD rental businesses. Why was the government not interested in their plight or their diminishing revenue? The government isn't expected to make decisions to help the rich get richer. Supporting big industries by ensuring your policies help them gain additional revenue from my pocket seems unfair to say the least. Are the service providers incurring additional costs? resources? if not, then how is the increase in revenue justified?

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? Please comment with justifications.

ANS4: Not qualified to comment on this.

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? Please comment with justifications.

ANS5: What is the purpose of a regulation? When the regulation is in place to ensure fair trade practices and especially a free market, it makes sense. A regulation that is formulated for the purpose of increasing revenues of industries is almost akin to a cartel. Once we have regulations that dictate what can and cannot be done through the internet I currently pay for, I am at the mercy of the telecom providers and their pricing. 

Question 6: How should the security concerns be addressed with regard to Internet/OTT players providing communication services? What security conditions such as maintaining data records, logs etc. need to be mandated for such Internet/OTT players? And, how can compliance with these conditions be ensured if the applications of such Internet/OTT players reside outside the country? Please comment with justifications.

ANS6: All companies are governed by laws. There are strict laws in the US and European countries about the protection of personal data. This has to be strictly enforced in India, we do not need a industry specific regulation. Every single business entity has customers, information, logs records etc. When the government hasn't really instituted any specific action towards them, why the sudden interest in the telecom industry only? 

Question 7: How should the Internet/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

ANS: Those can easily be handled with app permissions and specifications. What role does the government play in ensuring that Microsoft products sold in our country ensure the security and safety? Apply the same rules here.

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 or the best practices? And, what practices should be proscribed by regulatory fiat? Please comment with justifications.

ANS: Not qualified to comment.

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

ANS: The internet was a service created for information sharing. Service providers have provided access to these resources by adding a profit margin to their cost of providing these services. This is fine, if they now start charging for which websites I visit, which apps I use, it becomes a complete violation of of the premise of offering these basic services to customers. It's akin to stating that you can buy a car, but if you drive it in 1st gear only, you pay 10, second gear you pay an additional 20 and so on. Customer's are going to feel cheated, and most importantly lose complete faith in the government to establish fair trade practices.

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.

ANS: By traffic management if you are referring to bandwidth, it is something ISP's already have in place. If you are talking about identifying the source-destination of internet requests, I see no value in this. 

Question 11: Should the Telecom Operators 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?

ANS: This is still unfair, especially considering the basic nature of internet services needed to modernize and improve the country. You currently pay x for the electricity you use at home, if you use machines that have higher consumption of electricity, it reflects in your bill and you pay accordingly. Consider a scenario where your electricity provider starts charging you additional amounts for using an AC, or a fan. And then they say if you use a Crompton Greaves fan, we charge 10, but if you use a Bajaj fan, it's 20. Where is the sense in this?

Question 12: How should the conducive and balanced environment be created such that Telecom Operators 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.

ANS: Network upgradation is a business investment that is OPTIONAL for the providers. IF and when they make these upgrades, they are able to provide better, faster services to consumers and accordingly charge higher. When 3G services were launched in india due to better infrastructure, they were charged a premium, in some ways to cover the incurred cost. This is fair, and it's optional. A provider who doesn't wish to upgrade, need not, and can still continue to offer old speeds, bandwidth at a lower cost to consumers who only want this.

Question 13: Should Telecom Operators 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.

ANS: Not clear on non-price based services. Currently the service offered is internet, for which the measurement metric for volume and speed are KB/MB/GB and kbps/mbps. These are sufficient to monitor usage and pricing.

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.

ANS: I see no justification. It is quite clear that it's a revenue generation mechanism, only the serve the telecom companies and through taxation, maybe the government. No value/use for consumers.

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.

ANS: Not qualified to comment.

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

ANS: No framework is needed, provide incentives for apps developed by/from India. Create a simpler app vetting process. Stringent rules exist for Apple apps, independent of government organizations.

Question 17: If the App based/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.

Apps have their own licensing, if they generate revenue from it, you have corporate taxes. Licensing how they are accessed, will cause the app providers to possibly incur this charge, which they will happily pass down to the consumers. What will be achieved through this?

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

ANS: Such charges should not be implemented. It clearly violates net neutrality.

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

ANS: What is it about these apps that the government wishes to regulate? What is the primary objective of such a regulation?

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

ANS: Yes, these kind of steps will lead to industries forming cartels and deciding pricing strategies and under the table agreements to mutually benefit each other. In all these cases, an average consumer suffers. Competition is key to improvement and keeping services and prices affordable. Ensuring Fair trade is the responsibility of the government, not an option.

Thanks,

Jay Mathew