Free Basics Vs Net Neutrality
The discussion on differential pricing for internet services has come to an end with the Telecom Regulatory Authority of India (TRAI) prohibiting the practices of zero-rating or providing selected internet services at free of cost.
What has happened?
The debate on Net Neutrality and Facebook’s Free Basics began in 2013 when Facebook announced its plans to launch Internet.org. In February 2015, Reliance Communications and Facebook partnered to launch Internet.org to offer RCom’s service users free access to certain websites. In April 2015, Bharti Airtel launched Airtel Zero platform based on Internet.org to allow its users to freely access certain internet services. Initially several start-ups came under the Airtel Zero platform but Airtel was forced to stop the service due to public criticism. Several start-ups which paired with Internet.org also decided to leave the project due to increased public backlash. In September 2015, Internet.org was rechristened as Free Basics.
In December 2015, the TRAI had issued a consultation paper on differential pricing in data services by telecom players. At the same time, Facebook also launched an aggressive campaign for promotion of Free Basics. TRAI criticised Facebook’s marketing for Free Basics and accused them of misleading public. Officially the Free Basics in India was prohibited under the “Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016” in February 2016. The only exclusion to this ban by TRAI would be provision of services at reduced tariffs during the time of public emergencies such as floods or earthquakes.
What is Net Neutrality?
The idea of Net Neutrality has come from the working principle followed by the telephone operators since the beginning of 20th century. The telecom operators do not block the access to any number and there will be no deliberate delay connection to a particular number, unless the law specifies. When the internet services started in 1980s, there were no rules for the internet service providers (ISPs) to follow the same principle. Since most of the ISPs were also telecom operators, they continued to follow the same principle. This principle is known as Net Neutrality.
Thus, Net Neutrality also referred to as “open internet” means that all data on the internet, in whatever form or who provides it, should be treated equally by the ISPs and governments; and there should be no special charges depending on content, destination, source, platform, application, type of attached equipment, or mode of communication. Globally, only few countries have laws to ensure net neutrality and other countries do not have any specific laws. The net neutrality principle is more of a norm than a law. Legally, in India, the concept of net neutrality doesn’t exist. However, ISPs in India adhere to the principle.
How net neutrality affects the internet?
The net neutrality ensures a level playing field on the internet. Anybody who wishes to launch a new internet service need not worry about partnership with ISPs because ISPs will not restrict access to your services. Net neutrality also allows web users unrestricted access to any internet service. The companies like Google, Facebook, Twitter and other internet application developers succeeded because net neutrality allowed web users to access them easily and unhindered way. Without net neutrality, the ISPs would have blocked the content that they don’t like, and could have prioritized the web traffic. Without net neutrality, the internet would have come to resemble cable TV, where ISPs exert control over where you go and what you see.
What is Free Basics?
Under the zero-rating concept, the ISPs do not charge users on data for select applications that they use. Free Basics, which operates on the zero-rating principle, is an open platform launched by the Facebook that allows free access to certain websites and internet services to those users who cannot afford internet access. However, free access is limited to selected partner websites and applications.
What are the arguments by Facebook on Free Basics?
Facebook says that Free Basics was launched with a philanthropic motive to provide free digital access to poorer sections of the society and its aim is achieve “global connectivity”. Last year, Facebook estimated that internet.org has enabled access to earlier unconnected users at a rate of 50% faster accessibility through the access to free and basics services. Facebook claims that the Internet.org and Free Basics are not aimed to make money. Facebook said that, if it is for money, then they would have focussed on their already existing online advertising markets. Facebook also argues that it was to better to provide selected free and basic services on an open platform, otherwise providing free data access had the potential to be used for high bandwidth applications rather than need.
What are the arguments against Free Basics?
Opponents to the Free Basics argue that there are several deep flaws in the zero-rating concept.
Firstly, through Free Basics, Facebook, which is a private entity, will get the authority to decide “basic” services for Indian internet users. Facebook has defined itself to be the first ‘basic’ service. Free Basics is not an open platform as Facebook defines the technical guidelines for Free Basics and it reserves the right to change the rules. Facebook reserves the right to reject applicants, who are forced to follow the rules of Facebook. This will indirectly discourage innovation and new entrepreneurs in internet domain.
Secondly, through Free Basics, Facebook would be able to decrypt the contents of the ‘basic’ services as the information flows through its servers. This is a deep flaw that has disturbing implications on privacy of users. There is a risk of exposure of health records or financial information of all Indians.
Thirdly, there is nothing ‘free’ in Free Basics. Telecom operators will recover the cost of ‘free basic’ services from the non-free services. It means whatever considered as not a ‘basic’ will cost more. Thus, Indians surrender their freedom in digital economy to Facebook. This is an issue not just for poor Indians but for all Indian internet users. The main motive behind the Free Basics is to acquire more users from the bottom of the pyramid as Facebook users.
Fourthly, differential tariffs lead to classification of subscribers on the basis of the content they want to access. This may potentially go against the principle of non-discriminatory tariff. Facebook says that Free Basics doesn’t have advertisements but it is not saying that it will never have advertisements on Free Basics.
Thus, the Free Basics proposal violates the net neutrality, which is one of the core architectural principles of Internet design. Therefore, any compromise on net neutrality would have deep implications on freedom to access.
