Net Neutrality – Recent Developments and Context

January 6, 2025

The ongoing debate surrounding net neutrality has seen developments recently. On January 2, 2025, the 6th U.S. Circuit Court of Appeals ruled against the Federal Communications Commission (FCC) in its second attempt to enforce net neutrality. This ruling contrasts sharply with India’s approach over the past decade, where telecom companies have sought to navigate net neutrality regulations to extract payments from major technology platforms. About net neutrality is crucial, as it affects how internet traffic is managed and the implications for users and providers alike.

What is Net Neutrality?

Net neutrality is the principle that all internet traffic should be treated equally by internet service providers (ISPs) and telecom companies. This means that no service should be prioritised over another, preventing the establishment of “fast lanes” for certain traffic and “slow lanes” for others. The concept is essential for maintaining a level playing field for all online services and ensuring that users have unrestricted access to information and services.

The U.S. Context – A Tale of Two Motivations

In the United States, the push for net neutrality was largely driven by tech companies like Netflix, which resisted attempts by ISPs to charge them for increased bandwidth. Digital rights advocates joined forces with these companies, fearing that allowing ISPs to create preferential treatment would undermine the open nature of the internet. This led to regulatory actions during the Obama administration, which established the first set of net neutrality rules.

India’s Unique Path to Net Neutrality

India’s journey towards net neutrality has been distinct. In 2014, before the entry of Jio, Bharti Airtel attempted to impose higher tariffs on internet calls made through apps like Viber. This sparked widespread public opposition, leading to a movement against discriminatory pricing. Facebook’s Free Basics initiative, which aimed to offer limited services without data charges, intensified the debate, eventually shifting the focus to zero rating practices.

Regulatory Milestones in India

The Telecom Regulatory Authority of India (TRAI) and the Department of Telecommunications (DoT) made strides in net neutrality. In 2016, TRAI banned discriminatory data pricing, and in 2018, net neutrality became part of the Unified Licence that all ISPs must adhere to. Consequently, telecom operators have been prohibited from creating exclusive data packages or manipulating service speeds based on content.

Current Challenges and the Network Usage Fee Debate

In recent years, Indian telecom companies have revived discussions around a network usage fee, which would require large internet companies to compensate ISPs for the traffic they generate. This demand has raised concerns among net neutrality advocates, who argue that it could lead to unfair pricing structures. Dr. R.S. Sharma, former TRAI chairperson, has dismissed this debate, asserting that ISPs should not charge different rates based on the companies using their bandwidth.

TRAI – Telecom Regulatory Authority of India, regulates telecom services.
Zero Rating – Exempting specific data from charges, controversial in net neutrality debates.
Ajit Pai – Former FCC chairman known for rolling back net neutrality rules in the U.S.
Free Basics – Facebook’s initiative aimed at providing limited internet services for free.
Unified Licence – Regulatory framework that incorporates net neutrality in India.

Future of Net Neutrality in India

Despite the victories for net neutrality in India, challenges remain. TRAI’s recommendation for a multi-stakeholder body to address ongoing issues was rejected by the DoT in 2022, citing budget constraints due to COVID-19. As the debate continues, the balance between telecom companies’ demands and the principles of net neutrality will be crucial in shaping the future of internet access in India.

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