MC Explains: Debate over net neutrality rears its head again

Telecom Regulatory Authority of India had upheld net neutrality norms in 2016

Stakeholders, including entrepreneurs, those advocating for open Internet and net neutrality are worried that the principle that guarantees equal access to Internet, may well be again under attack, seven years after Telecom Regulatory Authority of India (TRAI) ruled in favour of net neutrality. But why?

A few days back, a few telecom companies made submissions to TRAI, arguing that apps should be paying telcos network costs based on the traffic they generate.

This has rung the alarm bells, with many seeing it as a threat to net neutrality. Stakeholders have revived the Save The Internet campaign, which was first launched in 2015 where citizens were urged to write in mass to TRAI to uphold net neutrality.

Here is all you need to know about the issue —

What is net neutrality?

Net neutrality encompasses the idea that internet service providers (ISPs) and telecom companies should treat all online traffic equally, and refrain from any form of discrimination or favouritism towards specific websites, applications, or online services.

This entails that ISPs must not engage in practices like blocking, intentionally slowing down (throttling), or giving preferential treatment to particular types of internet traffic.

What was the trigger point for the recent debate on net neutrality?

A few days back telecom companies such as Reliance Jio, Bharti Airtel, Vodafone Idea and Bharat Sanchar Nigam Limited (BSNL) submitted their comments in regards to the ongoing consultation on “Regulatory Mechanism for Over the Top (OTT) communication services and selective banning of OTT services”.

OTT as the name suggests can mean any content provider which works on top of existing internet service provided by telecom companies. This includes all major platforms such as Google, WhatsApp, Meta and any other platform that works on top of the internet.

In their comments, these telecom companies suggested that internet companies should pay telcos towards telecom network costs based on traffic these platforms generate and other such parameters.

What did the telecom companies say specifically?

Reliance Jio: “ It is no secret that OTT Players consume humongous amounts of bandwidth, which puts tremendous pressure on the network infrastructure established by the TSPs, without contributing an iota to this cost. At the same time, OTT Players gain massive direct/indirect benefits. Thus, it would be all the more fitting that both Communication and other OTT players contribute towards the cost of this infrastructure development, through direct compensation to TSPs,” Jio said in its submission.

Bharti Airtel: “Given the large requirements for meeting the vision of digital India, large traffic originators that account for a disproportionate amount of these investments must contribute a fair share. This should be through a direct contribution to TSPs,” Airtel’s submission read.

Vodafone Idea: “There is a need that OTT players should contribute towards investment in the network. A policy framework should be prescribed on ‘fair share’ contribution from the large OTT players to TSPs towards the telecom networks. Fair share contribution would address the inequalities between different stakeholders,” Vodafone Idea said in its submission, adding that it would apply only to large OTT players.

The companies claim that these proposals are “fully compliant with net neutrality obligations”.

Meanwhile, BSNL batted for bringing OTT services/service providers under licensing and regulatory frameworks similar to norms that TSPs have to follow.

What does this mean?

Essentially telecom companies want internet companies to pay them a network fee based on the traffic they generate, turnover threshold, number of users and so on.

Critics of these suggestions maintain that this would lead to higher operation costs for internet companies, which may subsequently, “drive smaller players out of the market, limit user choice and preference, or lead to a spike in usage or subscription fees”, digital rights group Internet Freedom Foundation said.

What has been the fallout of these recommendations?

Digital rights groups and proponents of the principle of open internet have revived the signature campaign, “Save the Internet”. It was first launched in 2015 when a similar debate over net neutrality had erupted, and it received widespread support from citizens who sent letters in troves to the TRAI urging the regulator to rule in favour of net neutrality. In 2016, TRAI issued regulations that upheld the principles of net neutrality.

What does Save the Internet’s mass letter to TRAI say?

The Save the Internet letter says, “Bringing OTT apps under licences and imposing high operation costs upon them may drive smaller players out of the market, limiting user choice and preference, or leading to a spike in usage or subscription fees. And that fundamentally threatens net neutrality.”

“What’s more, data-secure apps like Signal may find themselves on thin ice with authorities who may require them to break end-to-end encryption or implement customer verification. In summary: this policy move may jeopardise user privacy and autonomy, restrict innovation, and concentrate power in the hands of a few,” the letter added.

What are India’s entrepreneurs saying?

On September 12, Zerodha Co-founder and Chief Executive Officer (CEO) Nithin Kamath, took to X (formerly Twitter) and attributed the growth of Indian start-ups to net neutrality.

“Without net-neutrality, there perhaps would not have been a Zerodha. The destiny of our increasingly digital nation is tied to the internet remaining open, accessible, and neutral for everyone,” he said.

Cleartrip’s Co-founder, Hrush Bhatt, reposted the Save the Internet letter on X and said, “Let’s Save the Internet again. Please sign this.”

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