Net Neutrality & Digital

EmpowermentSyed S. Kazi & Rajat Kumar

Digital Empowerment Foundation

C-DAC Induction Training Programme

About us• ‘Inform, Communicate and

Empower’• One Billion Connect• Find sustainable Information

Communication Technology (ICT) solutions including digital and new media to address digital divide in under-served and unreached regions and communities.

• Founded to contribute to an enabling social and economic order in India as well as in developing societies with the need based support of ICT tools and means.

2

Some Interesting Statistics

1.2 Billion People650,000 Villages250,000

6,00067236

Village CouncilsBlocks

DistrictsAdministrative Divisions

3

What is net neutrality?

• Network neutrality is a business philosophy that supports the idea that all content and services that use a network should be treated the same.

• Users have the right to send and receive packets of information equally

4

What is the neutral net?

A. ISP and TSPs may not block access to legal content, applications or services

B. ISP & TSPs may not impair degrade any internet traffic on the basis of content, applications or services

C. ISP & TSPs may not favour some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind—in other words, no "fast lanes." This rule also bans ISPs from prioritising content and services of their affiliates.

• All data is created equal

• No type of data is more or less equal than others

5

Why is it being talked about?

• What can you connect to?• How fast can you connect to it?• How much will it cost to connect?

6

7Source: http://yourstory.com/2015/04/about-net-neutrality-telcos-trai/

Source: https://untanglingtheweb1.files.wordpress.com/2011/03/net-neutrality.jpg

Why VoIP and Instant Messaging?

• Voice over Internet Protocol (VoIP) is the system of delivery of voice communications and multimedia sessions over internet protocol• TSPs’ argue that VoIP is eating into

traditional voice revenues• Instant Messaging (IM) offers real-time text

transmission over the internet• Argument that IM cannibalises SMS

revenues9

Example: Airtel Zero and Internet.Org

• Allowing zero rated or free access to certain sites or services unbalances the level playing field that is the internet

• Airtel Zero and Internet.Org faced massive criticism during launch. While Airtel Zero was retracted, Internet.Org has launched with Reliance as a partner.

10

Global Situation• USA: The Federal Communication

Commission ruled in favour of net neutrality in February 2015. However, this scenario is under heated legal and political debate. All ISPs were classified under Title II classification allow common service rules to be enforced

• Brazil: In 2014, a law was passes upholding network neutrality and protecting the privacy of its citizens

11

Global Situation

• Israel: Passed a pro-network neutral law in 2011. However, included exceptions for reasonable network management

• Japan: Net neutrality is instituted in law through the classification of ISPs as common carriers

12

Indian Scenario - A brief history

• In 2006, TRAI invited comments on the concept of net neutrality.

• In February 2012, Airtel CEO, Sunil Bharti Mittal, suggested that services like YouTube should pay an interconnect charge to network operators. In July same year, the company reiterated that large Internet companies like Google and Facebook should share their revenue with telecom companies for allowing their services for free to the users.

13

On March 27, 2015, TRAI, published a 'Consultation Paper on Regulatory Framework for Over-the-top (OTT) services' consultation paper, which is a 117-page document describing what net neutrality in India would mean and how it'll impact the way we consume the Internet today.

On April 6, 2015, Airtel launched its open marketing platform, Airtel Zero, aimed at offering free access only to certain apps. The platform received flak for splitting the Internet into paid and free where Internet companies pay money to Airtel to allow users to get free Internet. While Airtel has widely defended its platform for being akin to the working of a toll-free number, where the caller doesn't pay but the company which uses the marketing tool does.

14

• April 2015• AIB Video on net neutrality stressing on

sending • Flipkart pulled out of Airtel Zero• Mark Zuckerberg stressed that Internet.Org

did not abuse net neutrality and was aimed at providing access to those communities and places where basic Internet is not available

• Cleartrip pulled out of Airtel Zero• Cellular Operators Association of India (COAI)

reaffirmed support for net neutrality but strongly pitched “net equality”

DoT Report on Net Neutrality

• VoIP: Licensing for domestic VoIP, no licensing for international VoIP.

• Messaging and other apps: no licensing for messaging, no licensing for regular apps

• Zero rating to be allowed on a case by case basis by TRAI, with a deemed approval (in case the TRAI doesn’t decide quickly enough). TRAI should address complaints about Net Neutrality violations on a case by case basis.

• Internet.org is bad because of collusion, content companies cannot play gatekeeper

• Managed and enterprise services can be exempt from Net Neutrality requirements

• Legitimate traffic management is allowed, but shouldn’t be app specific. DPI to look at app and its content is not.

• Interception of IP traffic: Security is paramount and need to figure out how to intercept all traffic, need to look at security issues via inter-ministerial consultations. “National security is paramount, regardless of treatment of net neutrality.

• Privacy is important but have to wait for a privacy law

• Can include net neutrality clause in current laws instead of creating a new law

• Search Neutrality issues are important, but we’ll look at them later

• Not looking at Content Delivery Networks, which are best left to be looked at under unfair trade practices law

Costs• Data is 1’s and 0’s• Cost of transmitting 1GB video and 1GB text

is the same• Wholesale price of Rs.30,000 per month for

2Mbps specifically for small operators. For big operators, the price is much lower.

• Telcos need to pay Rs. 5 per GB for net downloaded on their network

19

Costs - contd.Average subscriber uses 688 MB of 3G data and 216 MB 2G data.However, according to sources the profit for ISP/TSPs per GB works out to be Rs. 250.The profit per MB =

250 —-——- = .244 = ~24 paise.

1024Therefore the profit on 688 MB of 3G data =

0.244 x 688 = Rs. 167.9 per month, per GB, per subscriberThe profit on 2G data =

0.244 x 216 = Rs. 52.70 per month, per GB, per subscriberThe CAGR of gross revenue from data services for FY ’10 to FY ’13 is 8.66%.

20

Existing regulations for internet services

• Telegraph Act, 1885, • Information Technology Act, 2000,• Information Technology (Procedure and Safeguard for

Interception, Monitoring and Decryption of Information) Rules, 2009,

• Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011,

• Section 91 of the Code of Criminal Procedure, 1973,• Information Technology (Intermediary Guidelines) Rules,

2011 21

Spectrum license regime & Community ISPs

• Limited spectrum bandwidth available for civilian use• The spectrum frequencies of 27MHz, 2.4 GHz and 5.8

GHz are regarded as “free”• The unlicensed spectrum has the huge potential of

bridging the digital divide and enable more individuals to come online.

• Provide access to internet in locations that do not have last mile point-of-access connectivity provided by ISPs

• Similar to the model of community radio

22

How does it affect the common man?

23