Centre for Internet and Society

The Cost of Free Basics in India: Does Facebook's 'walled garden' reduce or reinforce digital inequalities?

Amrita Sengupta — 2025-04-05T04:10:28Z

In this essay—written in April 2016 soon after India's Telecom Regulatory Authority (TRAI) upheld net neutrality and effectively banned Free Basics in India— the author uses development theories to study the Free Basics programme. The author explored three key paradigms: 1) Construction of knowledge, power structures and virtual colonization in the Free Basics Programme, (2) A sub-internet of the marginalized and (3) the Capabilities Approach and explored how the programme reinforces levels of digital inequalities as opposed to reducing it. This essay was written in 2016 and there have been various shifts in the digital and tech landscape. Further a lot of numbers and statistics are from 2016 and not all ideas held here may be transferable today. This should be read as such. This is being published now, on account of 10 years since the Free Basics project was set to be implemented in India.

In 2015, Facebook introduced internet.org in India and it faced a lot of criticism. The programme was relaunched as the Free Basics programme, ostensibly to provide, free of cost, access to the Internet to the economically deprived section of society. The content, i.e. websites, were pre-selected by Facebook and was provided by third-party providers. Later, Telecom Regulatory Authority of India (TRAI) ruled in favor of net neutrality, banning the program in India. A crucial conversation in this debate was also about whether the Free Basics program was going to actually be helpful for those it set out to support.

This paper examines Facebook’s Free Basics programme and its perceived role in bridging digital divides, in the context of India, where it has been widely debated, criticized and finally banned in a ruling from Telecom Regulatory Authority of India (TRAI). While the debate on the Free Basics programme has largely been embroiled around the principles of network neutrality, this paper will try to examine it from an ICT4D perspective, embedding the discussion around key development paradigms.

This essay begins by introducing the Free Basics programme in India and the associated proceedings, following which existing literature is reviewed to explore the concept of development, the perceived role of ICT in development, thus laying the scope of this discussion. The essay then examines the question of whether the Free Basics programme reduces or reinforces digital inequality by looking at 3 development paradigms: (1) Construction of knowledge, power structures and virtual colonization in the Free Basics Programme, (2) A sub-internet of the marginalized: looking at second level digital divides and (3) the Capabilities Approach and premise of connectivity as a source of equality and freedom.

The essay concludes with a view that the need for digital access should be viewed as a subset of overall contextual development as opposed to programs unto themselves and taking purely techno-solutionist approaches. There is a requirement for effective needs identification as part of ICT4D research to locate the users at the center and not at the periphery of the discussions. Lastly, policymakers should look into the addressal of more basic concerns like that of access and connectivity and not just on solutions which can be claimed as “quick-wins” in policy implementation.

Click to download the Essay

For more details visit https://cis-india.org/internet-governance/blog/the-cost-of-free-basics-in-india

India's ‘Facebook ruling’ is another nail in the coffin of the MNO model

praskrishna — 2016-02-28T03:44:34Z

Ability to access 'net from mobe no longer considered a miracle.

The article was published in the Register on February 15, 2016. Pranesh Prakash gave inputs.

Nobody could accuse India’s telecoms regulator, TRAI, of being in the operators’ pockets. This month it has, once again, set eye-watering reserve prices for the upcoming 700 MHz spectrum auction (see separate item), and now it has taken one of the toughest stances in the world on net neutrality, in effect banning zero rated or discounted content deals like Reliance Communications’ Facebook Basics, or Bharti Airtel’s Zero.

In a ruling last Monday, TRAI said telecoms providers are banned from offering discriminatory tariffs for data services based on content, and from entering deals to subsidize access to certain websites. They have six months to wind down any existing arrangements which contravene the new rules. Its stance is even stricter than in other countries with strong pro-neutrality laws, such as Brazil and The Netherlands.

“This is the most extensive and stringent regulation on differential pricing anywhere in the world,” Pranesh Prakash, policy director at the Centre for Internet and Society, said. “Those who suggested regulation in place of complete ban have clearly lost.”

Such decisions, combined with high spectrum costs, will quickly make the traditional cellular business model unworkable in India, and the more that happens, the more wireless internet innovation will switch to open networks running on Wi-Fi and unlicensed spectrum. R.S. Sharma, chairman of TRAI, was careful to tell reporters that the zero rating ruling would not affect any plans to offer free Wi-Fi services, like those planned by Google in a venture with Indian Railways.

A disaster for MNOs, not Facebook

Facebook pronounced itself “disappointed” at TRAI’s ruling, having lobbied aggressively for a more flexible approach since RCOM was forced to suspend the Basics offering in December while the consultation process took place. But while the ruling bars the Basics offering – which provided free, low speed access, on RCOM’s network, to a selection of websites, curated by Facebook – it does not stop the social media giant pursuing other initiatives within its internet.org umbrella. These include projects to extend access using its own networks, powered by drones and unlicensed spectrum, to the unserved of India and other emerging economies.

So while the TRAI decision may be a setback for Facebook, it is not the body blow that it represents for the MNOs with their huge debt loads and infrastructure costs, and low ARPUs. Facebook, with 130m users in India, has a comparable reach to the Indian MNOs (only three, Bharti Airtel, Vodafone and Idea, have more subscribers than Facebook has users), and is better skilled at monetizing those consumers.

The challenge for companies like Facebook is that strict neutrality rules reduce their ability to harness others’ networks in order to reach out to new users. There are about 240m people in India who are online, but don’t use Facebook, and about 800m who are not connected, so the growth potential is far larger than in the other 37 countries where Basics is offered, such as Kenya or Zambia (Facebook is blocked in China). Using RCOM’s network and marketing activities was a far cheaper way to reach some of those people than launching drones, but Facebook has other options too, including its existing efforts to make its services more usable on very basic handsets and connections; the ability to leverage the WhatsApp brand; and partnerships with Wi-Fi providers.

The drones may have less immediate results than Basics, but they are a high profile example of an ongoing shift towards open networks, which has been going on for years, driven more by Wi-Fi proliferation than neutrality laws. The latter will be an accelerant, however.

All internet will be free, not zero rated

Currently, zero rating is an increasingly popular tactic to lure users with an apparently cheap deal and then, hopefully, see them upgrade to richer data plans, or spend money on m-commerce and premium content, in future. Zero rating involves allowing users access to selected websites and services without it affecting their data caps or allowances.

The US regulator has so far tolerated the practice, but the debate is raging, there and elsewhere, over whether it infringes neutrality laws, by offering different pricing for different internet services. If other authorities take the stance adopted by TRAI in India, operators will have to find new ways to attract customers and differentiate themselves.

Increasingly, access to a truly open internet will be the baseline, and priced extremely low. That low pricing will be made commercially viable by rising use of Wi-Fi to reduce cost of data delivery, whether for MNOs, wireline providers or web players like Google and Facebook, which are moving into access provision. Providers, whether traditional or new, will have to stop regarding access to the internet as a premium service or a privilege – it will be more akin to connecting someone to the electricity grid, just the base enabler of the real revenue model.

Just as it’s only when users plug something into that grid that they start to pay fees, so the operators will charge for higher value offerings which ride on top of the internet – premium content, enterprise services, cloud storage, freemium applications and so on.

The mobile operators have not embraced these ideas willingly. For years, the ability to access the internet from a mobile device was regarded as a value-add, almost a miracle. Now that the wireless network is often the primary access method, they need to change their ideas and be more like the smarter cablecos – which have tacked internet access onto a model driven by paid-for content and services – or the web giants, which have worked out ways to monetize ‘free’ access, from advertising to big data.

This, of course, is one of the goals of internet.org and Google’s similar initiatives involving drones, white space spectrum and satellites. The more users are able to access the internet, preferably for free, and the more they see Google or Facebook as their primary conduits to the web, the more data these companies have to feed into their deep learning platforms, their context aware services and their advertising and big data engines.

So while critics of TRAI said the zero rating decision was a setback to the goal of getting internet access into the hands of the huge underserved population of India, that population is too large and potentially rich for Facebook and its rivals to give up at the first hurdle.

Facebook CEO Mark Zuckerberg wrote in a blog post: "While we're disappointed with today's decision, I want to personally communicate that we are committed to keep working to break down barriers to connectivity in India and around the world. Internet.org has many initiatives, and we will keep working until everyone has access to the internet."

For more details visit https://cis-india.org/telecom/news/the-register-february-15-2016-india-facebook-ruling-is-another-nail-in-coffin-of-mno-model

Why the Internet is Making India Furious

praskrishna — 2016-02-28T03:01:59Z

The Centre for Internet and Society (CIS) in Bangalore is a kind of hacker club for wonks and lawyers obsessed with issues of digital rights and global development. Not exactly the mainstream kids’ lunch table. But the Center was brought into sudden relief this week, thanks to … Mark Zuckerberg.

Read Sanjena Sathian's blog post published by Ozy on February 19, 2016

In a splashy bit of news, India’s telecom authority rejected a program called Free Basics, which the Facebook team had been promoting as a way to get free Internet to the masses. (Here on the subcontinent, more than 300 million people use the Internet — but that’s only about a quarter of the population.) The idea: Facebook would allow free access to a handful of websites (the “basics”) to everyone; users would pay for further content. The objections: On the dramatic end came comparisons to colonialism; on the wonkier, objections based on the principles of net neutrality, or the idea that all Internet content should be treated the same. The threat the critics saw in Free Basics was that of the Web as a two-lane highway — the free stuff for the poor folks, and the good stuff for those who can afford it.

Mumbai-based Sanjena Sathian spoke to CIS cofounder and policy director Pranesh Prakash about the changing landscape of web rights that led up to the news.

OZY:

Tell us what you’re thinking in the wake of India’s decision.

Pranesh Prakash:

The order seemed to fix the issue with a sledgehammer rather than a scalpel. It over-regulates and bans things that are beneficial along with that that aren’t. They should have aimed for discriminatory pricing, but they’ve instead eliminated all differential pricing, even when it’s not discriminatory.

What should come next, in my opinion — it is imperative to ensure that governmental resources are used to provide free access to the Internet. If you’ve taken away something that could have helped and said no, no, no, it’s not good for you, then you are under an obligation to provide a replacement.

OZY:

How do you think the larger political conversations going on in India right now seep into the debates about digital rights?

PP:

Many people think the largest divider is between those who are from a developing country or a developed country. I think the larger divide is between those who are politically skeptical of states — more libertarian — versus those who are more trusting of states and see states as having a role to play in Internet governance. How you think the poor in India should get Internet — should that be provided by government or by market mechanisms — well, your political philosophies will play a role. In India, one tends to find fewer free-market fundamentalists than one would meet in, say, San Francisco.

OZY:

I think, increasingly, post-Snowden in particular, people think of digital rights as human rights. Where do you see things going wrong on a rights front here in India?

PP:

Oh, wow … so many ways. In India we have a situation where, right now, more than 3,000 websites were blocked by the government, but no one knows what these sites are. No one knows whether they were blocked through mechanisms that ensure accountability. There is no transparency around any of these. And this is just the visible tip of the iceberg. And how do I know this? I sent a right-to-information request to the government and they gave me this answer. But beyond this, they put in place a few years ago a law which allows for websites and any kind of web content to be censored by anyone. And all they have to do is send a request to any “intermediary,” which could be anything from your ISP to your web host to your DNS provider.

OZY:

Wait, so what does that mean? I get annoyed at a site — where do I go to lodge my complaint?

PP:

All these websites are required by the law to appoint a particular person as a “grievance redressal officer.”

OZY:

What a title!

PP:

Yes … and there are more than 40 grounds for grievances that have been listed in the law, including things such as “causing harm to minors” and certain speech being “disparaging.” Now, I engage in disparaging speech at least 12 times a day. And that’s perfectly legal under Indian law!

OZY:

Eep. Any good news, though?

PP:

A case went all the way up to the Supreme Court, [involving a young woman named] Shreya Singhal. There was a section 66A, quite an odious provision, that allowed for any kind of “offensive” or “annoying” speech to cause that person to be put in prison for up to three years.

Two teenage girls in Maharashtra, upon the death of a politician, put out a comment on social media. The death had caused a bandh, a curfew of sorts in Mumbai, and done not officially by the government but by political party workers. One girl said on Facebook, sure, go ahead, respect this politician, but why inconvenience so many citizens? Her friend liked this. And a case was launched against them. Similarly, some cartoons by an anticorruption activist were challenged and he was imprisoned briefly and released on bail.

OZY:

It’s always the cartoonists.…

PP:

Yes, and one professor in Calcutta — for forwarding a cartoon, he was placed under this law too. Many cases of perfectly fine political speech were made illegal thanks to this law. Eventually, though, in a landmark decision, the Supreme Court struck down this law, and this is the first time in almost three decades that the Supreme Court has struck off an entire law for being unconstitutional.

But, yes. Mostly? It’s not been pretty.

For more details visit https://cis-india.org/internet-governance/news/ozy-february-19-2016-sanjena-sathian-why-internet-is-making-india-furious

Why India snubbed Facebook's free Internet offer

praskrishna — 2016-02-27T07:49:08Z

The social media giant wanted to give the people of India free access to a chunk of the Internet, but the people weren't interested.

The blog post by Daniel Van Boom was published by Cnet on February 26, 2016. Sunil Abraham was quoted.

Mark Zuckerberg's ambitious mission to provide free Internet access to rural India was rejected by the people it was intended to help long before the country's regulators banned it earlier this month.

Around the country, farmers, labourers and office workers scorned Facebook's offer. Called Free Basics, it provided only limited access to the Internet through a suite of websites and services that, unsurprisingly, included Facebook. They felt the limited service didn't follow the open nature of the Internet, where all sites and online destinations should be equally accessible, so they organized real-world protests and an online Save The Internet campaign, with the message that Zuckerberg's efforts weren't welcome.

You might think people would jump at the opportunity to access Facebook for free, especially since more than a billion people use the social network every day. But it's that hitch -- that they can't access everything else -- which is precisely the problem, said Sunil Abraham, the executive director of the Centre for Internet and Society India. "Even if somebody spends 90 percent of their time on Facebook, that 10 percent is equally as important."

Indian regulators sided with popular opinion and cut off Free Basics in the world's second-most populous country on February 8. The ruling by the Telecom Regulatory Authority of India (TRAI) forbids all zero-rating plans, meaning anyone offering customers free access to only a limited set of services of sites are banned. It was championed as a victory for Net neutrality, the principle that everyone should have equal access to all content on the Internet.

The decision was undoubtedly a blow for Facebook, which says it wants to connect the billions of have-nots around the world to the Internet through the program. While more than half the world's online population uses Facebook each month, the company's efforts to connect with the developing world -- with Free Basics also being available in over 30 other countries, such as Kenya and Iraq -- could be a boon for business.

"[The Internet] must remain neutral for everyone, individuals and businesses alike. Everyone must have equal access to it," said Rajesh Sawhney, a Mumbai-based tech entrepreneur, in support of TRAI's decision to reject Free Basics. He believes the zero-rating scheme can be misused by telcos and other companies to create divisive ecosystems, where certain brands or companies are included and others aren't.

The package wasn't without its supporters though, with some being disappointed with the government's intervention in the marketplace.

"It is generally assumed that there is something sinister behind violations of Net neutrality...but that is not always true," says software engineer Shashank Mehra. "ISPs trying to match consumer demand isn't something sinister, it is a market process."

The social media giant further defends itself by pointing out that Free Basics is open to any and all developers, including competitors Twitter and Google, as long as they meet the program's technical standards. This evidently wasn't enough to convince much of India.

The problem persists

Facebook disputes claims that its interest in India is commercial, saying its efforts are humanitarian. In speeches over the past few months, Zuckerberg has painted Internet access as a tool for global good. "The research has shown on this that for every 10 people who get access to the internet, about one person gets a new job, and about one person gets lifted out of poverty," he said at a Townhall Q&A in Delhi last October. "Connecting things in India is one of the most important things we can do in the world."

Zuckerberg appears to have taken the loss in stride. During a keynote address at the Mobile World Conference in Barcelona earlier this week, he admitted to being disappointed by the ruling, but added, "We are going to focus on different programs [in India]...we want to work with all the operators there." A Facebook spokesperson said the company "will continue our efforts to eliminate barriers and give the unconnected an easier path to the Internet and the opportunity it brings."

Those ideals could certainly help in India, where around 68 percent of its population -- about 880 million people -- live in rural conditions or poverty. The promise of free access to health, education, local and national news through an Internet connection could potentially improve quality of live. So what's the problem?

The service providers would also be granting free Facebook.

Peggy Wolff, a volunteer coordinator at education NGO Isha Vidhya, says Facebook is just the latest in a long line of international companies hoping to crack rural India, where the bulk of the country's poor live.

While admitting that low cost or free Internet is imperative in rural areas, that "smart villages" are needed to help ease the human burden on India's increasingly overcrowded cities, she says, "Free basics is just a bit suspicious to most people. There's just too much vested interest."

"The big question." Sawhney says, "is how do we give fast and free Internet to a large section of society in India?"

There are alternatives. United States-based Jana, for instance, developed an Android app called mCent that allows its growing userbase of 30 million to earn data by downloading and using certain apps or watching advertisements from sponsors. Unlike Free Basics, that data can be expended on any online destination.

Jana's CEO Nathan Eagle, like Zuckerberg, says his mission is to bring Internet connectivity to the next billion people. "Today, Internet connectivity in emerging markets is much more an issue of affordability, rather than access," he explains. "1.3 billion people in emerging markets now have Android phones...it's the cost of data that is prohibitive."

For more details visit https://cis-india.org/internet-governance/news/why-india-snubbed-facebooks-free-internet-offer

Net Neutrality Advocates Rejoice As TRAI Bans Differential Pricing

subha — 2016-02-23T02:10:42Z

India would not see any more Free Basics advertisements on billboards with images of farmers and common people explaining how much they benefited from this Facebook project.

The article by Subhashish Panigrahi was published by Odisha TV on February 9, 2016.

Because the Telecom Regulatory Authority of India (TRAI) has taken a historical step by banning differential pricing without discriminating services. In their notes TRAI has explained, “In India, given that a majority of the population are yet to be connected to the internet, allowing service providers to define the nature of access would be equivalent of letting TSPs shape the users’ internet experience.” Not just that, violation of this ban would cost Rs. 50,000 every day.

Facebook planned to launch Free Basics in India by making a few websites – mostly partners with Facebook—available for free. The company not just advertised aggressively on bill boards and commercials across the nation, it also embedded a campaign inside Facebook asking users to vote in support of Free Basics. TRAI criticized Facebook’s attempt to manipulate public opinion. Facebook was also heavily challenged by many policy and internet advocates including non-profits like Free Software Movement of India and Savetheinternet.in campaign. The two collectives strongly discouraged Free Basics by moulding public opinion against it with Savetheinternet.in alone used to send over 2.4 million emails to TRAI to disallow Free Basics. Furthermore, 500 Indian start-ups, including major names like Cleartrip, Zomato, Practo, Paytm and Cleartax, also wrote to India’s Prime Minister Narendra Modi requesting continued support for Net Neutrality – a concept that advocates equal treatment of websites – on Republic Day. Stand-up comedians like Abish Mathew and groups like All India Bakchod and East India Comedy created humorous but informative videos explaining the regulatory debate and supporting net neutrality. Both went viral.

Technology critic and Quartz writer Alice Truong reacted to Free Basics saying; “Zuckerberg almost portrays net neutrality as a first-world problem that doesn’t apply to India because having some service is better than no service.”

The decision of the Indian government has been largely welcomed in the country and outside. In support of the move, Web We Want programme manager at the World Wide Web Foundation Renata Avila has said; “As the country with the second largest number of Internet users worldwide, this decision will resonate around the world. It follows a precedent set by Chile, the United States, and others which have adopted similar net neutrality safeguards. The message is clear: We can’t create a two-tier Internet – one for the haves, and one for the have-nots. We must connect everyone to the full potential of the open Web.”

There are mixed responses on the social media, both in support and in opposition to the TRAI decision. Josh Levy, Advocacy Director at Accessnow, has appreciated saying, “India is now the global leader on #NetNeutrality. New rules are stronger than those in EU and US.”

Had differential pricing been allowed, it would have affected start-ups and content-based smaller companies adversely as they could never have managed to pay the high price to a partner service provider to make their service available for free. On the other hand, tech-giants like Facebook could have easily managed to capture the entire market. Since the inception, the Facebook-run non-profit Internet.org has run into a lot of controversies because of the hidden motive behind the claimed support for social cause.

For more details visit https://cis-india.org/internet-governance/blog/odisha-tv-february-9-2016-subhashish-panigrahi-net-neutrality-advocates-rejoice-as-trai-bans-differential-pricing

Internet Freedom

Sunil Abraham and Vidushi Marda — 2016-02-15T02:51:10Z

The modern medium of the web is an open-sourced, democratic world in which equality is an ideal, which is why what is most important is Internet freedom.

The article by Sunil Abraham and Vidushi Marda was published by Asian Age on February 14, 2016.

What would have gone wrong if India’s telecom regulator Trai had decided to support programmes like Facebook’s Free Basics and Airtel’s Zero Rating instead of issuing the regulation that prohibits discriminatory tariffs? Here are possible scenarios to look at in case the discriminatory tarrifs were allowed as they are in some countries.

Possible impact on elections

Facebook would have continued to amass its product — eyeballs. Indian eyeballs would be more valuable than others for three reasons 1. Facebook would have an additional layer of surveillance thanks to the Free Basics proxy server which stores the time, the site url and data transferred for all the other destinations featured in the walled garden 2. As part of Digital India, most government entities will set up Facebook pages and a majority of the interaction with citizens would happen on the social media rather than the websites of government entities and, consequently, Facebook would know what is and what is not working in governance 3. Given the financial disincentive to leave the walled garden, the surveillance would be total.

What would this mean for democracies? Eight years ago, Facebook began to engineer the News Feed to show more posts of a user’s friends voting in order to influence voting behavior. It introduced the “I’m Voting” button into 61 million users’ feeds during the 2010 US presidential elections to increase voter turnout and found that this kind of social pressure caused people to vote. Facebook has also admitted to populating feeds with posts from friends with similar political views. During the 2012 Presidential elections, Facebook was able to increase voter turnout by altering 1.9 million news feeds.

Indian eyeballs may not be that lucrative in terms of advertising. But these users are extremely valuable to political parties and others interested in influencing elections. Facebook’s notifications to users when their friends signed on to the “Support Free Basics” campaign was configured so that you were informed more often than with other campaigns. In other words, Facebook is not just another player on their platform. Given that margins are often slim, would Facebook be tempted to try and install a government of its choice in India during the 2019 general elections?

In times of disasters

Most people defending Free Basics and defending forbearance as the regulatory response in 2015/16 make the argument that “95 per cent of Internet users in developing countries spend 95 per cent of their time on Facebook”.

This is not too far from the truth as LirneAsia demonstrated in 2012 with most people using Facebook in Indonesia not even knowing they were using the internet. In other words, they argue that regulators should ignore the fringe user and fringe usage and only focus on the mainstream. The cognitive bias they are appealing to is smaller numbers are less important.

Since all the sublime analogies in the Net Neutrality debate have been taken, forgive us for using the scatological. That is the same as arguing that since we spend only 5% of our day in toilets, only 5% of our home’s real estate should be devoted to them.

Everyone agrees that it is far easier to live in a house without a bedroom than a house without a toilet. Even extremely low probabilities or ‘Black Swan’ events can be terribly important! Imagine you are an Indian at the bottom of the pyramid. You cannot afford to pay for data on your phone and, as a result, you rarely and nervously stray out of the walled garden of Free Basics.

During a natural disaster you are able to use the Facebook Safety Check feature to mark yourself safe but the volunteers who are organising both offline and online rescue efforts are using a wider variety of platforms, tools and technologies.

Since you are unfamiliar with the rest of the Internet, you are ill equipped when you try to organise a rescue for you and your loved ones.

Content and carriage converge

Some people argue that TRAI should have stayed off the issue since the Competition Commission of India (CCI) is sufficient to tackle Net Neutrality harms. However it is unclear if predatory pricing by Reliance, which has only 9% market share, will cross the competition law threshold for market dominance? Interestingly, just before the Trai notification, the Ambani brothers signed a spectrum sharing pact and they have been sharing optic fibre since 2013.

Will a content sharing pact follow these carriage pacts? As media diversity researcher, Alam Srinivas, notes “If their plans succeed, their media empires will span across genres such as print, broadcasting, radio and digital. They will own the distribution chains such as cable, direct-to-home (DTH), optic fibre (terrestrial and undersea), telecom towers and multiplexes.”

What does this convergence vision of the Ambani brothers mean for media diversity in India? In the absence of net neutrality regulation could they use their dominance in broadcast media to reduce choice on the Internet? Could they use a non-neutral provisioning of the Internet to increase their dominance in broadcast media? When a single wire or the very same radio spectrum delivers radio, TV, games and Internet to your home — what under competition law will be considered a substitutable product? What would be the relevant market? At the Centre for Internet and Society (CI S), we argue that competition law principles with lower threshold should be applied to networked infrastructure through infrastructure specific non-discrimination regulations like the one that Trai just notified to protect digital media diversity.

Was an absolute prohibition the best response for TRAI? With only two possible exemptions — i.e. closed communication network and emergencies - the regulation is very clear and brief. However, as our colleague Pranesh Prakash has said, TRAI has over regulated and used a sledgehammer where a scalpel would have sufficed. In CIS’ official submission, we had recommended a series of tests in order to determine whether a particular type of zero rating should be allowed or forbidden. That test may be legally sophisticated; but as TRAI argues it is clear and simple rules that result in regulatory equity. A possible alternative to a complicated multi-part legal test is the leaky walled garden proposal. Remember, it is only in the case of very dangerous technologies where the harms are large scale and irreversible and an absolute prohibition based on the precautionary principle is merited.

However, as far as network neutrality harms go, it may be sufficient to insist that for every MB that is consumed within Free Basics, Reliance be mandated to provide a data top up of 3MB.

This would have three advantages. One, it would be easy to articulate in a brief regulation and therefore reduce the possibility of litigation. Two, it is easy for the consumer who is harmed to monitor the mitigation measure and last, based on empirical data, the regulator could increase or decrease the proportion of the mitigation measure.

This is an example of what Prof Christopher T. Marsden calls positive, forward-looking network neutrality regulation. Positive in the sense that instead of prohibitions and punitive measures, the emphasis is on obligations and forward-looking in the sense that no new technology and business model should be prohibited.

What is Net neutrality?

According to this principle, all service providers and governments should not discriminate between various data on the internet and consider all as one. They cannot give preference to one set of apps/ websites while restricting others.

2006: TRAI invites opinions regarding the regulation of net neutrality from various telecom industry bodies and stakeholdersFeb. 2012: Sunil Bharti Mittal, CEO of Bharti Airtel, suggests services like YouTube should pay an interconnect charge to network operators, saying that if telecom operators are building highways for data then there should be a tax on the highway
July 2012: Bharti Airtel’s Jagbir Singh suggests large Internet companies like Facebook and Google should share revenues with telecom companies.
August 2012: Data from M-Lab said You Broadband, Airtel, BSNL were throttling traffic of P2P services like BitTorrent
Feb. 2013: Killi Kiruparani, Minister for state for communications and technology says government will look into legality of VoIP services like Skype
June 2013: Airtel starts offering select Google services to cellular broadband users for free, fixing a ceiling of 1GB on the data
Feb. 2014: Airtel operations CEO Gopal Vittal says companies offering free messaging apps like Skype and WhatsApp should be regulated
August 2014: TRAI rejects proposal from telecom companies to make messaging application firms share part of their revenue with the carriers/government
Nov. 2014: Trai begins investigation on Airtel implementing preferential access with special packs for WhatsApp and Facebook at rates lower than standard data rates
Dec. 2014: Airtel launches 2G, 3G data packs with VoIP data excluded in the pack, later launches VoIP pack.
Feb. 2015: Facebook launches Internet.org with Reliance communications, aiming to provide free access to 38 websites through single app
March 2015: Trai publishes consultation paper on regulatory framework for over the top services, explaining what net neutrality in India will mean and its impact, invited public feedback
April 2015: Airtel launches Airtel Zero, a scheme where apps sign up with airtle to get their content displayed free across the network. Flipkart, which was in talks for the scheme, had to pull out after users started giving it poor rating after hearing about the news
April 2015: Ravi Shankar Prasad, Communication and information technology minister announces formation of a committee to study net neutrality issues in the country
23 April 2015: Many organisations under Free Software Movement of India protested in various parts of the country. In a counter measure, Cellular Operators Association of India launches campaign , saying its aim is to connect the unconnected citizens, demanding VoIP apps be treated as cellular operators
27 April 2015: Trai releases names and email addresses of users who responded to the consultation paper in millions. Anonymous India group, take down Trai’s website in retaliation, which the government could not confirm
Sept. 2015: Facebook rebrands Internet.org as Free Basics, launches in the country with massive ads across major newspapers in the country. Faces huge backlash from public
Feb. 2016: Trai rules in favour of net neutrality, barring telecom operators from charging different rates for data services.

The writers work at the Centre for Internet and Society, Bengaluru. CIS receives about $200,000 a year from WMF, the organisation behind Wikipedia, a site featured in Free Basics and zero-rated by many access providers across the world

For more details visit https://cis-india.org/internet-governance/blog/asian-age-february-14-2016-sunil-abraham-vidushi-marda-internet-freedom

Facebook’s Free Basics hits snag in India

praskrishna — 2016-02-15T02:33:26Z

Indian regulators have dealt a major blow to Facebook’s controversial Free Basics online access plan by forbidding so-called differential pricing by internet companies, in effect banning the programme in the country.

The article by James Crabtree with additional reporting by Tim Bradshaw was published in Financial Times on February 8, 2016. Pranesh Prakash was quoted.

Free Basics, a plan to make access to parts of the internet free, has been at the centre of a fierce row in the country between the social network and local start-ups and advocates for net neutrality — the idea that all web traffic should be treated equally and technology companies should not be allowed to price certain kinds of content differently from others.

Last December, the Telecom Regulatory Authority of India ordered Facebook to put its Free Basics programme on hold pending a review.

On Monday, Trai published the results of its deliberations, introducing a complete ban on any form of differential pricing.

The ruling is the latest in a series of regulatory battles pitting net neutrality campaigners against telecom and internet companies, and is likely to be viewed as a test case for other emerging markets in which programmes similar to Facebook’s are yet to be challenged in the courts.

It also marks the most significant setback yet for Free Basics, which Facebook founder Mark Zuckerberg launched in 2014 as the centrepiece of plans to help poorer people access the internet in emerging economies. It operates in more than 30 countries.

Facebook had launched a high-profile public campaign to defend its programme, which offered stripped-down access to sites such as BBC News or Facebook’s own app to customers of Reliance Communications, the US company’s local telecoms partner.

But critics attacked the programme as an attempt to become a gatekeeper for tens of millions of internet users.

In a post to his Facebook page on Monday, Mr Zuckerberg said the company “won’t give up on” finding new ways to boost internet access in India.

“While we’re disappointed with today’s decision, I want to personally communicate that we are committed to keep working to break down barriers to connectivity in India and around the world. Internet.org has many initiatives, and we will keep working until everyone has access to the internet,” he wrote.

Trai’s ruling was welcomed by anti-Facebook campaigners, a group that included the founders of many Indian start-ups including online retailers such as Flipkart, Paytm and restaurant search service Zomato, which had declined to offer their services as part of the Free Basics platform.

Analysts also hailed the Indian regulator’s ruling as a landmark. “This is the most broad and the most stringent set of regulations on differential pricing which exists anywhere in the world,” said Pranesh Prakash of the Bangalore-based Centre for Internet & Society, a think-tank.

India has become an increasingly important focus for the company’s global business, with the country becoming its second-largest market by users last year.

For more details visit https://cis-india.org/internet-governance/news/financial-times-february-8-2016-james-crabtree-facebooks-free-basics-hits-snag-in-india

Zuckerberg's Plan Spurned as India Backs Full Net Neutrality

praskrishna — 2016-02-15T02:18:54Z

Facebook Inc.’s plans for expansion in India have suffered a major setback.

The article by Adi Narayan and Bhuma Srivastava was published in Bloomberg on February 8, 2016. Pranesh Prakash was quoted.

Telecom regulator bans differential Internet data plans
Facebook had lobbied India to approve its Free Basics plan

After the company spent months lobbying the country to accept its Free Basics service -- a way of delivering a limited Internet that included Facebook, plus some other tools, for no cost -- India’s telecom regulator ruled against any plans from cellular operators that charge different rates to different parts of the Web.

Telecom operators can’t offer discriminatory tariffs for data services based on content, and aren’t allowed to enter into agreements with Internet companies to subsidize access to some websites, the Telecom Regulatory Authority of India said in a statement Monday. Companies violating the rules will be fined, it said.

“This is the most extensive and stringent regulation on differential pricing anywhere in the world,” Pranesh Prakash, policy director at the Centre for Internet and Society, said via phone. “Those who suggested regulation in place of complete ban have clearly lost.”

With this decision, India joins countries such as the U.S., Brazil and the Netherlands in passing laws that restrict telecom operators from discriminating Internet traffic based on content. It is a big blow to Facebook’s Internet sampler plan known as Free Basics, which is currently offered in about three dozen countries including Kenya and Zambia, none of which come close to the scale or reach that could’ve been achieved in India.

With 130 million Facebook users, 375 million people online, and an additional 800 million-plus who aren’t, India is the biggest growth market for the social network, which remains blocked in China.

Facebook said in a statement that it’s “disappointed with the outcome.”

Chief Executive Officer Mark Zuckerberg said the decision won’t cause Facebook to give up on connecting people to the Internet in India, “because more than a billion people in India don’t have access to the Internet.” The company will continue to focus on its other initiatives, like extending networks using satellites, drones and lasers.

Freebies Curtailed

The rule will put an end to prepaid plans that offered free access to services such as Google searches, the WhatsApp messaging application and Facebook. These packages were popular with low-income users by giving them an incentive to get online, said Rajan Mathews, director general of the lobby group Cellular Operators Association of India.

“These types of plans were being used by operators to meet the policy goals of connecting one billion people,” Matthews said. “With these gone, the government needs to tell us what alternatives are there.”

The regulator’s decision comes after months of public lobbying by Facebook for India to approve Free Basics, which allows customers to access the social network and other services such as education, health care, and employment listings from their phones without a data plan.

Free Basics was criticized by activists who said it threatened net neutrality, the principle that all Internet websites should be equally accessible, and could change pricing in India for access to different websites.

The regulator, which had sought stakeholders’ views, said it was seeking to ensure data tariffs remain content agnostic. Operators will have six months to wind down existing differential pricing services.

Google Unaffected

“Anything on the Internet can’t be priced based on content, applications, source and destination,” R.S. Sharma, the regulator’s chairman, told reporters in New Delhi. Some Internet companies’ plans to offer free WiFi at public venues, like Google Inc.’s project with Indian Railways, are not affected by this ruling, he said.

For Free Basics, one or two carriers in a given country offer the package for free at slow speeds, betting that it will help attract new customers who’ll later upgrade to pricier data plans. In India, Facebook had tied up with Reliance Communications Ltd., though the service was suspended in December as the government solicited comments from proponents and opponents.

Since the government’s telecommunications regulator announced the suspension, Facebook bought daily full-page ads in major newspapers and plastered billboards with pictures of happy farmers and schoolchildren it says would benefit from Free Basics. Zuckerberg has frequently made the case himself via phone or newspaper op-eds, asking that Indians petition the government to approve his service.

Entrepreneurs, business people and activists took to Twitter to share their views after the decision came out on Monday.

“Great to see TRAI backing #NetNeutrality,” Kunal Bahl, founder of Snapdeal.com, one of India’s biggest e-commerce sites, said. “Let’s keep the Internet free and independent.”

For more details visit https://cis-india.org/internet-governance/news/bloomberg-adi-narayan-bhuma-srivastava-february-8-2016-zuckerberg-plan-spurned-as-india-backs-full-net-neutrality

Trai upholds Net Neutrality in setback to Facebook’s Free Basics

praskrishna — 2016-02-15T02:01:37Z

Trai says Internet service providers will not be allowed to discriminate on pricing of data access for different web services.

The article by Moulishree Srivastava and Shauvik Ghosh was published in Livemint on February 9, 2016. Sunil Abraham was quoted.

India’s telecom regulator has barred Internet service providers from offering customers preferential tariffs to access certain content over concerns that it will violate Net neutrality norms, dealing a blow to Facebook Inc.’s free data service plan.

Internet service providers, including telecom operators, are prohibited from offering discriminatory tariffs for data services based on content, the Telecom Regulatory Authority of India (Trai) said on Monday. Service providers that violate these rules will be fined Rs.50,000 per day to a maximum of Rs.50 lakh. Trai said it may review the rules after two years.

The decision ends a long battle between Facebook and the country’s telecom operators, including Bharti Airtel Ltd, on one side and Net neutrality activists on the other. Facebook had launched an intense lobbying effort that included full-page advertisements in newspapers and an Internet campaign to assure people that its Free Basics plan, which allows access to its social network and some other websites without a data plan, would benefit millions of poor Indians.

“BJP wholeheartedly welcomes the Trai decision on differential pricing. The decision is a clear expression of popular will,” said telecom minister Ravi Shankar Prasad on Monday. “The government made sure proper processes were followed at all levels which eventually led to the victory of an open and equal Internet... It is gladdening to see that the NDA government ensured unparalleled transparency in the entire issue of net neutrality,” he added.

Net neutrality requires Internet service providers not to discriminate on online data by user, content, site, platform, application, mode of communication or price.

“The net neutrality activists... have got exactly what they wanted—the complete prohibition of the differential pricing,” said Sunil Abraham, executive director of the Bengaluru-based research organization Centre for Internet and Society. “Before Facebook started with its aggressive and outrageous campaign to promote Free Basics, the Net neutrality debate was a peaceful discussion. The way it has behaved must have led the regulator to lose trust that big companies can self-regulate.”

It, however, remains to be seen whether telcos challenge the regulation in court, he added.

“This has been a litigious issue and a lot of money is at stake so quite likely, I think, they will go to court,” said Apar Gupta, a lawyer and part of Save The Internet campaign.

The basic rationale behind the regulation is that the network that carries the data should be agnostic to data packets, R.S. Sharma, chairman of Trai, told reporters.

“Anything on the Internet cannot be priced discriminately based on source, destination, content and applications,” he said.

A spokesperson for Facebook said the company will carefully study what the regulator has said and comment accordingly.

Bharti Airtel and Reliance Communications Ltd (Facebook partnered with R-Com in India) declined to comment.

Differential pricing based on the network speed, Sharma said, is a larger issue and so is Net neutrality.

“We have used the term discriminatory pricing in place of differential pricing, because differential pricing in the consultation paper had a particular context. Differential word was quite contextual in the regulation, but it was misunderstood in a very larger context. Therefore, to differentiate, we are calling it discriminatory,” he said.

However, Sharma said that the Net neutrality debate is not over.

“Net neutrality is a larger question, and we have not gone into that question, though, I must admit, differential pricing is looking at Net neutrality from a tariff perspective. Net neutrality has a number of other components which is fast lane, throttling and differentially treating the packet in terms of speed etc. So this is not a part of this regulation,” Sharma said.

Amresh Nandan, research director at Gartner in India, said the Trai order favouring Net neutrality is in line with rules in the US. “The European Union has also ruled in favour of treating all Internet traffic equally,” Nandan said.

Nandan said the proponents of Net neutrality all over the world have been highlighting the importance of democratic values of the Internet and even a marginal attempt to curb it can possibly trigger all kinds of differentiation.

All the major telcos in India have, however, been lobbying the regulator to allow differential-pricing plans for data services. The telcos said such tariffs will increase Internet penetration in the country, benefiting consumers in the long run. They further argued that the existing legal framework is sufficient for regulating and monitoring differential pricing measures provided by the service providers and that Trai can deal with any issue regarding anti-competitive practices on a case-by-case basis as and when they arise.

Activists say such a practice will undermine competition and create monopolies. Differential pricing, they said, will allow big companies to buy favoured treatment from carriers.

Telecom operators said they were disappointed with the ruling. “Differential pricing could be useful in connecting the unconnected in India. This is an upfront disbarment,” said Rajan Mathews, director general of the Cellular Operators Association of India, the lobby group that represent some of the major telcos. “We believe that it was an appropriate tool to allow consumers who have never been on the Internet, to enjoy getting accustomed to it without getting sticker shock.”

Hemant Joshi, a partner at Deloitte Haskins and Sells Llp, said differential pricing was a well-accepted principle across industries.

“The concept inherently recognizes the economic principle of paying differently for different levels of service and experience. In telecom, there are virtual highways that need to follow the same principle. More awareness and education is needed around the economics of differential pricing and its long-term implications on the Industry and the consumer,” he added.

Trai, which put up the consultation paper on differential pricing on 9 December, asked four specific questions, broadly on whether telecom operators should be allowed to offer different services at different price points and models that can be implemented to achieve this.

Trai extended the deadline for comments and counter-comments on its consultation paper to 7 January and 14 January from 31 December and 7 January, respectively. For the consultation process, Trai said that majority of the individual comments received did not address the specific questions that were raised in the consultation paper.

P.R. Sanjai and Ashish K. Mishra in Mumbai contributed to this story.

For more details visit https://cis-india.org/internet-governance/news/livemint-february-9-2016-shauvik-ghosh-moulishree-srivastava-trai-upholds-net-neutrality-in-setback-to-facebooks-free-basics

There is No Such Thing as Free Basics

subha — 2016-02-14T11:37:50Z

India would not see the rain of Free Basics advertisements on billboards with images of farmers and common people explaining how much they could benefit from this Firefox project. Because the Telecom Regulatory Authority of India (TRAI) has taken a historical step by banning the differential pricing without discriminating services.

The article was published in Bangalore Mirror on February 9, 2016.

In their notes, TRAI has explained, "In India, given that a majority of the population are yet to be connected to the Internet, allowing service providers to define the nature of access would be equivalent of letting TSPs shape the users' Internet experience." Not just that, violation of this ban would cost Rs 50,000 every day.

Facebook's earlier plan was to launch Free Basics in India by making a few websites—that are mostly partners with Facebook—available for free. The company not just advertised heavily on billboards and commercials across the nation, it also embedded a campaign inside Facebook asking users to vote in support of Free Basics.

TRAI criticised Facebook's attempt for such a manipulative public provocation. However, Facebook was heavily criticised by many policy and Internet advocates, including non-profits groups like Free Software Movement of India and Savetheinternet.in campaign.

The latter two collectives were strongly discouraging Free Basics by bringing public opinion wherein Savetheinternet.org was used to send over 10 lakh emails to TRAI to disallow Free Basics.

Furthermore 500 start ups including major ones like Cleartrip, Zomato, Practo, Paytm and Cleartax also wrote to prime minister Narendra Modi requesting continued support for Net Neutrality — a concept that advocates equal treating of websites — on the Republic Day.

Stand-up comedy groups like AIB and East India Comedy had created humorous but informative videos explaining the regulatory debate and supporting net neutrality which went viral.

Technology critic and Quartz writer Alice Truong reacted saying: "Zuckerberg almost portrays net neutrality as a first-world problem that doesn't apply to India because having some service is better than no service."

In the light of differential pricing, news portal Medianama's founder Nikhil Pawa, in his opinion piece in Times of India, emphasised the way Aircel in India, Grameenphone in Bangladesh and Orange in Africa were providing free access to Internet with a sole motif of access to Internet, and criticised the walled Internet of Facebook that confines users inside Facebook only.

Had the differential pricing been allowed, it would have affected start ups and content-based smaller companies adversely, as they could never have managed to pay the high price to a partner service provider to make their service available for free.

On the other hand, tech-giants like Facebook could have easily managed to capture the entire market. Since the inception of the Facebook-run non-profit Internet.org has run into a lot of controversies because of the hidden motive behind the claimed support for social cause.

The decision by the government has been welcomed largely in the country and outside.

In support of the move, Web We Want programme manager at the World Wide Web Foundation, Renata Avila, has shared saying,

"As the country with the second largest number of Internet users worldwide, this decision will resonate around the world.

"It follows a precedent set by Chile, the United States, and others which have adopted similar net neutrality safeguards. The message is clear: We can't create a two-tier Internet — one for the haves, and one for the have-nots. We must connect everyone to the full potential of the open Web."

For more details visit https://cis-india.org/internet-governance/blog/bangalore-mirror-subhashish-panigrahi-february-9-2016-there-is-no-such-thing-as-free-basics

India Sets Strict New Net Neutrality Rules

praskrishna — 2016-02-11T01:53:19Z

In India, advocates of net neutrality have welcomed new rules by the telecom regulator that have blocked efforts by Facebook to offer free but limited access to the web in the country’s fast growing Internet market.

The article by Anjana Pasricha was published in Voice of America on February 9, 2016. Sunil Abraham was quoted.

In a widely awaited ruling, the Telecom Regulator Authority of India (TRAI) said on Monday that “no service provider shall charge differential pricing on the basis of application, platforms or websites or sources." It will impose penalties of $735 a day if the regulations are broken.

Kiran Jonnalagadda, who was among a group of 10 that launched an impassioned campaign called Save the Internet, says they have won a “fabulous” victory against large corporations to ensure equal web access for millions.

“We were up against the most powerful companies in the world, we had no chance of fighting Airtel last year, we had no chance of fighting Facebook. I think the only reason it worked is that we were on the side of facts, the opposition was not,” says Jonnalagadda.

Debate on Airtel

The campaign on net neutrality snowballed into a nationwide public debate after an Indian telecom company, Airtel, launched a marketing platform last April on which it planned to offer customers access with no data charges to certain Internet services and sites.

In recent weeks, the focus turned to “Free Basics”, a service being offered by Facebook on mobile phones to a handful of sites in areas such as communication, healthcare, and education.

Saying it wanted to vastly expand Internet access in poor, rural areas, Facebook had launched a massive advertising campaign in support of the platform. Only about 300 million in the country of 1.2 billion people have access to the net, many just through mobile devices.

But campaigners slammed Free Basics as “poor Internet for poor people” and said it would create a “walled garden” in which Facebook would control the content it offered users. Leading Indian technology entrepreneurs and university professors also called on the government to guard against attempts by Internet giants to turn the country into a “digital colony.”

Many of them have applauded the regulator’s move to strengthen net neutrality.

Ban on differential pricing

However, some are raising questions about the the complete ban on differential pricing announced by the regulator. That includes the Bangalore-based Center for Internet and Society research group, which says India has put in place the most stringent net neutrality regulations across the world. Its executive director, Sunil Abraham, says TRAI cited the examples of the Netherlands and Chile, but the ban on differential pricing in those countries is not as absolute as the one notified in India.

“We think that if proper technological safeguards and other market safeguards are put in place, it would be possible to have both — to have rapid growth in Internet access and reduced harm that emerge[s] from network neutrality violations,” says Abraham.

Indeed, the last word may not have been said on net neutrality in India as big telecom operators are expected to mount legal challenges to the regulator’s ruling in the coming months.

Expressing disappointment with India’s ruling, the Cellular Operators Association of India has called the ban on differential pricing a “welfare reducing measure” that could block an avenue for “less advantaged citizens to move to increased economic growth and prosperity by harnessing the power of the Internet.”

In a statement, Facebook has said “we will continue our efforts to eliminate barriers and give the unconnected an easier path to the Internet.”

But after having tasted victory, the volunteers at Save the Internet, who have grown from about 10 to 100 in the last year, have already set their sights on another aspect of net neutrality besides differential pricing.

“The campaign is not going to retire because this is not the end of it. There is also discrimination on the basis of speed, which the regulator has not taken up yet,” says Jonnalagadda.

For more details visit https://cis-india.org/internet-governance/news/voice-of-america-anjana-pasricha-february-9-2016-india-sets-strict-new-net-neutrality-rules

Facebook's Fall from Grace: Arab Spring to Indian Winter

sunil — 2016-02-11T15:51:34Z

Facebook’s Free Basics has been permanently banned in India! The Indian telecom regulator, TRAI has issued the world’s most stringent net neutrality regulation! To be more accurate, there is more to come from TRAI in terms of net neutrality regulations especially for throttling and blocking but if the discriminatory tariff regulation is anything to go by we can expect quite a tough regulatory stance against other net neutrality violations as well.

The article was published in First Post on February 9, 2016. It can be read here.

Even the regulations it cites in the Explanatory Memorandum don’t go as far as it does. The Dutch regulation will have to be reformulated in light of the new EU regulations and the Chilean regulator has opened the discussion on an additional non-profit exception by allowing Wikipedia to zero-rate its content in partnership with telecom operators.

Bravo to Nikhil Pahwa, Apar Gupta, Raman Chima, Kiran Jonnalagadda and the thousands of volunteers at Save The Internet and associated NGOs, movements, entrepreneurs and activists who mobilized millions of Indians to stand up and petition TRAI to preserve some of the foundational underpinnings of the Internet. And finally bravo to Facebook for having completely undermined any claim to responsible stewardship of our information society through their relentless, shrill and manipulative campaign filled with the staggeringly preposterous lies. Having completely lost the trust of the Indian public and policy-makers, Facebook only has itself to blame for polarizing what was quite a nuanced debate in India through its hyperbole and setting the stage for this firm action by TRAI.

And most importantly bravo to RS Sharma and his team at TRAI for several reasons for the notification of “Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016” aka differential pricing regulations. The regulation exemplifies six regulatory best practices that I briefly explore below.

Transparency and Agility: Two months from start to finish, what an amazing turn around! TRAI was faced with unprecedented public outcry and also comments and counter-comments. Despite visible and invisible pressures, from the initial temporary ban on Free Basics to RS Sharma’s calm, collected and clear interactions with different stakeholders resulted in him regaining the credibility which was lost during the publication of the earlier consultation paper on Regulatory Framework for Over-the-top (OTTs) services. Despite being completely snowed over electronically by what Rohin Dharmakumar dubbed as Facebook’s DDOS attack, he gave Facebook one last opportunity to do the right thing which they of course spectacularly blew.

Brevity and Clarity: The regulation fits onto three A4-sized pages and is a joy to read. Clarity is often a result of brevity but is not necessarily always the case. At the core of this regulation is a single sentence which prohibits discriminatory tariffs on the basis of content unless it is a “data service over closed electronic communications network”. And unlike many other laws and regulations, this regulation has only one exemption for offering or charging of discriminatory tariffs and that is for “emergency services” or during “grave public emergency”. Even the best lawyers will find it difficult to drive trucks through that one. Even if imaginative engineers architect a technical circumvention, TRAI says “if such a closed network is used for the purpose of evading these regulations, the prohibition will nonetheless apply”. Again clear signal that the spirit is more important than the letter of the regulation when it comes to enforcement.

Certainty and Equity: Referencing the noted scholar Barbara Van Schewick, TRAI explains that a case-by-case approach based on principles [standards] or rules would “fail to provide much needed certainty to industry participants…..service providers may refrain from deploying network technology” and perversely “lead to further uncertainty as service providers undergoing [the] investigation would logically try to differentiate their case from earlier precedents”. Our submission from the Centre for Internet and Society had called for more exemptions but TRAI went with a much cleaner solution as it did not want to provide “a relative advantage to well-financed actors and will tilt the playing field against those who do not have the resources to pursue regulatory or legal actions”.

What next? Hopefully the telecom operators and Facebook will have the grace to abide with the regulation without launching a legal challenge. And hopefully TRAI will issue equally clear regulations on throttling and blocking to conclude the “Regulatory Framework for Over-the-top Services” consultation process. Critically, TRAI must forbear from introducing any additional regulatory burdens on OTTs, a.k.a Internet companies based on unfounded allegations of regulatory arbitrage. There are some legitimate concerns around issues like taxation and liability but that has to be addressed by other arms of the government. To address the digital divide, there are other issues outside net neutrality such as shared spectrum, unlicensed spectrum and shared backhaul infrastructure that TRAI must also prioritize for regulation and deregulation.

Without doubt other regulators from the global south will be inspired by India’s example and will hopefully take firm steps to prevent the rise of additional and unnecessary gatekeepers and gatekeeping practices on the Internet. The democratic potential of the Internet must be preserved through enlightened and appropriate regulation informed by principles and evidence.

The writer is Executive Director, Centre for Internet and Society, Bengaluru. He says CIS receives about $200,000 a year from WMF, the organisation behind Wikipedia, a site featured in Free Basics and zero-rated by many access providers across the world).

For more details visit https://cis-india.org/internet-governance/blog/first-post-february-9-2016-sunil-abraham-facebook-fall-from-grace-arab-spring-to-indian-winter

India bans Facebook’s ‘free’ Internet for the poor

praskrishna — 2016-02-10T02:53:49Z

India’s telecom regulator said Monday that service providers cannot charge discriminatory prices for Internet services, a blow to Facebook’s global effort to provide low-cost Internet to developing countries.

The article by Annie Gowen was published in Washington Post on February 8, 2016. Sunil Abraham gave inputs. The article was also mirrored by NDTV.

Facebook’s “Free Basics” program provides a pared-down version of Facebook and weather and job listings to some 15 million mobile-phone users in 37 countries around the world.

When it debuted in India in April, however, Free Basics immediately ran afoul of Internet activists who said it violated the principle of “net neutrality,” which holds that consumers should be able to access the entire Internet unfettered by price or speed.

On Monday, the Telecom Regulatory Authority of India agreed, prohibiting data service providers from offering or charging different prices for data — even if it’s free. The Free Basics program has run into trouble elsewhere in the world recently — with Egypt banning it and Google clarifying that it pulled out of the application during a testing phase in Zambia.

In a statement, Facebook said that while the company was “disappointed with the outcome, we will continue our efforts to eliminate barriers and give the unconnected an easier path to the Internet.”

In an interview before the ruling, Chris Daniels, Facebook’s vice president for Internet.org — the umbrella organization of the global effort — said India’s negative reaction has been “unique versus other markets we’ve seen. We’ve been welcomed with open arms in many countries.”

Facebook chief executive Mark Zuckerberg launched the program to great fanfare in 2013, partnering with other international tech firms on a mission to connect the 4 billion people in the world without Internet access — which he says is a basic human right.

India has 300 million mobile Internet users but still has close to 1 billion people without proper Internet access. But it is second only to the United States in number of Facebook users, with 130 million, with vast expansion potential as Facebook works to increase its user base beyond the developed world.

Yet the Free Basics program was controversial from the start in India, where critics accused Facebook of creating a “walled garden” for poor users that allowed them access to only a portion of the web that Facebook controlled.

Dozens of well-known tech entrepreneurs, university professors and tech industry groups spoke out against it, saying that the curated app, with its handpicked weather, job and other listings, put India’s scrappy start-ups and software developers at a disadvantage.

On Monday, Vijay Shekhar Sharma, the founder and creator of India’s payment application PayTM, applauded the regulator’s move.

He had been among the program’s fiercest critics, dubbing Free Basics “poor Internet for poor people” and comparing Facebook’s actions to that of British colonialists and their East India Co.

“India, Do u buy into this baby internet?” Sharma tweeted in December. “The East India company came with similar ‘charity’ to Indians a few years back!”

“In a country like India that’s just taking off, it’s important that there is an equal playground for every app developer,” he said in an interview.

In December, India’s regulator put out a position paper on differential pricing and asked for public comment on whether such programs were fair.

In response, Facebook launched a public relations blitz, with television and newspaper advertisements, billboards and an opinion piece by Zuckerberg in the Times of India in which he argued against criticism that the social-media giant was providing the service simply to expand its user base.

Facebook also engineered a prompt to users that sent “robo” letters of support for Free Basics to India’s telecommunications regulator. The regulator, flooded with form letters, was not amused.

Facebook’s behavior may not have helped its cause, some analysts said.

“Facebook went overboard with its propaganda [and] convinced ‘the powers that be’ that it cannot be trusted with mature stewardship of our information society,” said Sunil Abraham of the Center for Internet and Society in Bangalore.

Yet David Kirkpatrick, the author of “The Facebook Effect,” says that Zuckerberg is determined to see the program succeed.

“Facebook is relentless,” he said. “Zuckerberg has said from the beginning his goal is to make the world more open and connected. And that’s a phrase he continues to repeat 10 years later.”

The regulator had asked Facebook, and its local telecom partner, Reliance Communications, to suspend Free Basics’ operations during the public comment period. But the social-media giant and its partner appeared to flout the suspension order, with the program continuing to be operational on Reliance SIM cards.

A spokesman for Reliance earlier said that the applications was in “testing mode” and that it was not commercially promoting the product.

The regulatory body said Monday that anybody violating the order in the future will be subject to a fine of about $735 a day. It will return to review the policy in two years to see if it is effective.

For more details visit https://cis-india.org/internet-governance/news/washington-post-annie-gowen-february-8-2016-india-bans-facebooks-free-internet-for-the-poor

A Megacorp’s Basic Instinct

praskrishna — 2016-02-04T13:53:05Z

Bolstered by academia and civil society, TRAI stands its ground against FB’s Free Basics publicity blitz.

The article by Arindam Mukherjee was published in Outlook on February 8, 2016. Sunil Abraham was quoted.

Hours before the January 31 deadline for telecom regulator TRAI to give its opinion on Facebook’s controversial and expensive Free Basics pitch—which seeks to give India’s poor “free” access to certain partner websites—the consensus seems to be building up against the social media giant. “If there is cannibalising of the internet through services like Free Basics, the internet will be split; it will parcel out and slice the internet. Its future is at stake,” says a senior government official on condition of anonymity.

In a climate where the tech-savvy Modi government is seen to be close to the online trinity of Facebook, Google and Twitter, TRAI’s defiant stance in favour of net neutrality stands out. There’s a lot at stake. India’s position becomes crucial as few countries in the world have clearly defined laws on net neutrality or have taken a stand on it. For Facebook, there’s a lot more at stake. India is its second-largest user base after the US (it is banned in China), so it is leaving no stone unturned. The massive Rs 300-crore electronic and print media campaign is an indication of that.

TRAI sources say they are ready for any adverse onslaught and they are under no pressure from the PMO. The view gaining ground in government is that FB is trying to create a walled garden where it controls what people see and surf and what they can access online. While this will be offered to consumers for free—the technical term is differential pricing—the websites part of Free Basics will have to pay for being on the platform. Outlook’s queries to FB remained unanswered at the time of going to press.

At an ‘open house’ meeting to discuss TRAI’s consultation paper on differential pricing last week, regulator Ram Sevak Sharma stood firm against the barrage of pro-Free Basics opinions that flowed from FB, telecom operators and some members of the public. TRAI’s message was clear: FB’s tactics of moulding public opinion by stealth will not be acceptable in India. In the past few weeks, there have been bitter exchanges between TRAI and FB over the latter’s responses to a consultation paper on differential pricing.

TRAI’s defiant stand draws from an unprecedented show of strength by civil society against Free Basics and FB’s intentions. Says former Aadhar man Nandan Nilekani, “Free Basics is certainly against net neutrality. How can a solution be neutral, if it disproportionately benefits a particular website or business on the internet? Today, 400 million Indians are online. They came online because of the inherent value the internet offers. How can a walled garden of 100-odd websites provide the same value?”

What does Free Basics mean for PM Modi’s Digital India campaign? Being a walled garden, thousands of start-ups without adequate budgets to pay for such dedicated service will be forced to stay out of it. Similar questions are being raised about government services that are increasingly coming online. The concern is that all government traffic will have to pass through FB servers. The senior government official quoted above agrees, “In such a scenario, the government will have to approach FB to make its websites accessible on the free service which is neither desirable nor safe.”

The other fear is what happens to public data if it goes through a service like Free Basics. There is fear that a lot of government and public data will be put through Free Basics once government services start coming online. If Free Basics is for the poor who are also beneficiaries of government services, FB too can access this data. Says Prabir Purkayastha, chairman, Knowledge Commons, “FB says public service will be available through Free Basics but can public service be given through a private initiative? Public data is valuable and can’t be handed over to a private company.”

Few again are convinced by FB’s claim that Free Basics aims to make the internet accessible to the poor, with the many services offered through it. “The claim that the poor will get access to the internet is false,” warns Sunil Abraham, executive director, Centre for Internet and Society, Bangalore. “Free Basics gives access to less than 100 of the one billion plus websites on the world wide web. Those in the walled garden will be treated quite differently.”

What gives TRAI a shot in the arm is that, for the first time, academia has put its weight behind Free Basics opponents. In a signed statement, several IIT and IISc Bangalore professors have said that Free Basics won’t serve the purpose FB is proposing and is not good for the country. “The problem is the internet being provided (via Free Basics) is a shrunken and sanitised version of the real thing. Free Basics is not a good proposal for the long-term development of a healthy and democratic internet setup in India,” says Amitabha Bagchi, IIT Delhi professor and one of the signatories to the memo.

Of course, many of the experts Outlook spoke to say that the government, and not FB, should be responsible for providing free internet to the people. Says Parminder Jeet Singh, executive director, IT for Change, “The government is sitting on Rs 40,000 crore of USO funds. It can surely utilise that to provide a free basic data package to people in India. Basic government services and emergency services should essentially be free.” Nilekani is also in favour of the government providing free internet to people. “The internet is a powerful poverty alleviation tool.... Government can do a direct benefit transfer for data, a more market-neutral way of achieving the goal of getting everyone on the internet,” he told Outlook.

Legally, though, there may be issues in stopping FB from introducing its Free Basics platform in India. Says Singh, “Technically, the Indian government may not be able to stop FB from introducing Free Basics in India as it is just a platform. What the government has to do is to stop telcos from collaborating with it for free internet because Indian telcos, not FB, mediate access to the internet.”

The demand for the government and TRAI to come clean on net neutrality has reached fever pitch. Experts like Nilekani feel that net neutrality, which does not allow zero rating and differential pricing based on telcos looking at the contents of the subscriber’s data packets, should be enshrined in law through an act of Parliament, the way countries like the US have done. TRAI has also proposed two models where the internet is provided free initially and charged at a later stage and another where content providers and websites reimburse the cost of browsing directly to consumers. Both these proposals have not found favour with experts who say that these are unworkable and only the government should disburse free internet.

In any case, all this is a matter of detail—important, no doubt. The key question is, what happens to Free Basics if TRAI rules in favour of net neutrality and goes against FB? “This is going to be a long-drawn-out battle as FB will certainly challenge this in court,” says the government official. After spending Rs 300 crore on publicity, there is no way it will roll over and die.

For more details visit https://cis-india.org/internet-governance/news/outlook-february-8-2016-arindam-mukherjee-a-megacorps-basic-instinct

India, Egypt say no thanks to free Internet from Facebook

praskrishna — 2016-02-03T01:49:25Z

ALWAR, India — Connecting people to the Internet is not easy in this impoverished farming district of wheat and millet fields, where working camels can be glimpsed along roads that curve through the low-slung Aravalli Hills.

The article by Annie Gowen was published in Washington Post on January 28, 2016. Sunil Abraham gave inputs.

So when Facebook chief executive Mark Zuckerberg helicoptered in about a year ago to visit a small computer lab and tout Internet for all, Osama Manzar, director of India’s Digital Empowerment Foundation, was thrilled.

But when Manzar tried Facebook’s limited free Internet service, he was bitterly disappointed. The app, called Free Basics, is a pared-down version of Facebook with other services such as weather reports and job listings.

“I feel betrayed — not only betrayed but upset and angry,” Manzar said. “He said we’re going to solve the problem with access and bandwidth. But Facebook is not the Internet.”

Zuckerberg launched his sweeping Internet.org initiative in 2013 as a way to provide 4 billion people in the developing world with Web access, which he says he sees as a basic human right.

But the initiative has hit a major snag in India, where in recent months Free Basics has been embroiled in controversy — with critics saying that the app, which provides limited access to the Web, does a disservice to the poor and violates the principles of “net neutrality,” which holds that equal access to the Internet should be unfettered to all.

Activist groups such as Save the Internet, professors from leading universities and tech titans such as Nandan Nilekani, the co-founder of Infosys, have spoken out against it. Another well-known Indian entrepreneur dubbed it “poor Internet for poor people.”

The debate escalated in recent weeks after India’s telecommunications regulator suspended Free Basics as it weighs whether such plans are fair, with new rules expected by the end of the month.

A week later, Free Basics was banned in Egypt with little explanation, prompting concern that the backlash could spread to other markets. More recently, Google pulled out of the app in Zambia after a trial period. An estimated 15 million people are using Free Basics in 37 countries, including 1 million in India.

[India’s Modi wants to woo Silicon Valley, but privacy fears grow at home]

“It’s a very important test case for what will be India’s network neutrality regime,” said Sunil Abraham of the Center for Internet and Society in Bangalore.

India’s debate could affect the way other countries address the question of whether it is fair for Internet service providers to price websites differently. The U.S. Federal Communications Commission’s rules on net neutrality went into effect only in June.

Officials at Facebook launched an advertising blitz to counteract the negative publicity. “Who could possibly be against this?” Zuckerberg wondered in a Times of India editorial on Dec. 28.

“I think we’ve been a bit surprised by the strong reaction,” said Chris Daniels, Facebook’s vice president for Internet.org. “Fundamentally, the reason for the surprise is that the program is doing good. It’s bringing people online who are moving onto the broader Internet.”

India, a country of 1.2 billion, has the second-highest number of Internet users in the world, but an estimated 80 percent of the population does not have Internet access.

India’s tech-savvy prime minister, Narendra Modi, is trying to combat this with an ambitious “Digital India” plan to link 250,000 village centers with fiber-optic cable and extend mobile coverage. He has turned to the Indian tech community as well as Silicon Valley for help, securing an agreement with Google to provide free WiFi in railway stations.

India has 130 million Facebook users, second only to the United States, and is a key market as the social-media giant looks to expand beyond the developed world, where its growth has slowed.

“If Facebook manages to get another half a billion users in India, that’s a valuable set of eyeballs to sell to a political party or corporation,” Abraham said.

[Is India the next frontier for Facebook?]

Facebook has long said that its program is about altruism, not eyeballs.

But it does reap new customers. Those who buy a SIM card from Facebook’s local mobile partner, Reliance Communications, are then prompted to pay for additional data. About 40 percent who sign up for Free Basics buy a data plan to move to the wider Web after 30 days, Daniels said.

The service is still running despite the India suspension. A Reliance spokesman said it is in “testing mode” and is not being promoted.

“The thing people forget about Free Basics is that it’s intended to be a temporary transition for people to give them a taste of the Internet and sign up. It’s a marketing program for the carrier in some sense,” said David Kirkpatrick, author of “The Facebook Effect.” But he added: “The idea that it’s some kind of alternative Internet that’s a discriminatory gesture to the poor is the prevailing view among the Indian intelligentsia. It’s fundamentally misunderstood.”

Facebook has pledged to open up to new scrutiny the selection process for companies with new applications, Daniels said. That is a response to concerns by many in India’s tech community that Facebook’s process put India’s fledgling start-ups at a disadvantage.

The project’s proponents say that India’s needs are so great it cannot afford to suspend one program that could help.

Mahesh Uppal, a telecommunications consultant, notes that more than 10 percent of the country does not have mobile phone coverage and that India’s progress in extending fiber-optic cable to village centers is proceeding at a glacial pace. Modi had set a goal of linking all 250,000 by 2016, but only 27,000 have cable so far and it is ready for use in only 3,200, according to a government report.

In comparison, some 80 percent of China’s villages are linked by broadband.

[Inside the Indian temple that draws America’s tech titans]

In Alwar district in the northern state of Rajasthan, many remember when Zuckerberg came to visit but fewer know about Free Basics.

“I’ve heard it’s free and by Facebook and you don’t have to pay for it,” said Umer Farukh, 43, a folk musician. “But I don’t think Facebook should control it. The Internet should be for everybody.”

Farukh has only been computer literate for two years, but he’s already emailing and using YouTube to post videos and promote his band.

He’s become such a proponent that he has donated space for one of Manzar’s computer centers — part of a government initiative to build cyber-hubs in minority communities — and encouraged the female members of his family to take classes, which is rare in his conservative community.

Farukh says that challenges to connecting India go far beyond data plans and fiber-optic cable or the government broadband that often sputters out. Wages are low, and hours are long. Only about half of the women in his state are literate, and about a quarter of the young women in his neighborhood are kept at home and not educated.

“This place is very backward,” he said. “India as a society is lagging far behind in terms of Internet.”

In the small nearby community of Roja Ka Baas, ringed by fields of blooming mustard greens, residents are still awaiting the opening of their planned WiFi center. They are struggling along on cheap mobile phones with slow 2G spectrum until then, they said.

Sakir Khan, 14, said that once the Internet finally arrived in this village, the first thing he would do would be to sign up for Facebook.

Farheen Fatima and Subuhi Parvez contributed to this report.

For more details visit https://cis-india.org/internet-governance/news/washington-post-annie-gowen-january-28-2016-india-egypt-say-no-thanks-to-free-internet-from-facebook