Centre for Internet and Society

Network Neutrality Regulation across South Asia: A Roundtable on Aspects of Differential Pricing

praskrishna — 2016-01-17T02:41:13Z

The Centre of Internet and Society (CIS) in association with Observer Research Foundation, and IT For Change in collaboration with the Annenberg School for Communications at the University of Pennsylvania is pleased to announce a roundtable on ‘Network Neutrality Regulation Across South Asia: Aspects of Differential Pricing” that will take place on January 22, 2016 from 11.00 a.m. to 5.00 p.m. at TERI in Bangalore.

Download the Invite

The objective of this roundtable will be to look into the issue of differential pricing in light of TRAI’s recent consultation process, with the specific intention of research building. The network neutrality debate has gained significant momentum in India during the past year, with competing interests of internet service providers, OTTs and the public giving rise to important questions of ICT regulation and policy.

With Facebook looking to expand its zero rated walled garden, Free Basics, into nascent markets, differential pricing is an important point of regulatory policy not just in India, but in jurisdictions across South Asia. These countries have limited connectivity, large consumer potential and low internet penetration which bring to the fore questions of access, diversity, competition and innovation. To this end, the roundtable will seek to address the regulatory and market aspects of differential pricing as well as the impact on rights. Broadly, the roundtable will be forward looking and seek to build future research agendas.

Draft Agenda

11:00 – 11:30	Tea and Registration
11:30 – 12:30	Roundtable 1: Framing the issue: The practice of differential pricing Examples of differential pricing Stakeholder perspectives Competition and market effect of differential pricing Larger social consequences of differential pricing
12:30 – 1:00	Lunch
1:00 – 2:30	Roundtable 2: Regulatory response: Discerning governmental actions Locating public interest Moving from research to action
2:30 – 3:00	Tea
3:00 – 4:30	Roundtable 3: Impact on rights: Access Freedom of expression Privacy Equity and Social Justice
4:30 – 5:00	Discussion and research agenda building

Roundtable Questions:

Roundtable 1: FRAMING THE ISSUE:

What is differential pricing and how does it work? What are the technical components and policy components of differential pricing? What are examples of differential pricing?
What has been the response from different stakeholders to differential pricing schemes? What are the arguments for/against differential pricing?
What could be the market effect of differential pricing?
What are possible larger social impacts of differential pricing?

Roundtable 2: REGULATORY RESPONSE:

How have governments responded to differential pricing? What can these responses tell us about the position of governments?
What are the different components for consideration with developing a regulatory response? What are different forms of regulation for differential pricing?
What type of policy research around differential pricing can drive meaningful action?

Roundtable 3: IMPACT ON RIGHTS:

How does differential pricing impact the right to access, freedom of expression, privacy, and equity and social justice?
Are there ways to mitigate this impact through regulation? Market incentives? Company policy?
What are forms of redress that individuals could seek in the context of differential pricing?

For more details visit https://cis-india.org/internet-governance/events/network-neutrality-regulation-across-south-asia-a-roundtable-on-aspects-of-differential-pricing

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

Nasscom against differential pricing for data services

praskrishna — 2016-01-06T15:12:17Z

The National Association of Software and Services Companies says it should be the regulator that decides on such content, not firms.

The article by Moulishree Srivastava was published in Livemint on January 5, 2016. Pranesh Prakash gave inputs.

India’s top software lobby on Monday said if select web content needs to be provided cheaper for some Indians, it must be the regulator that decides on such content, not companies.

In its response to a consultation paper by the Telecom Regulatory Authority of India (Trai) on differential pricing for data usage, the National Association of Software and Services Companies (Nasscom) objected to plans such as Free Basics and Airtel Zero where companies choose content to be provided at different speeds and prices, but backed powers for the regulator to allow such a model if the regulator deems they are in “public interest”, while adhering to principles of net neutrality.

“We strongly oppose any model where telecom service providers (TSPs) or their partners have a say or discretion in choosing content that is made available at favourable rates, speed... any differential pricing by TSP either directly such as Airtel Zero or indirectly as in the case of Free Basics through a platform provider which limits access to the internet services or websites (selected by the TSP or by the partners) violate the idea of net neutrality,” said R. Chandrashekhar, president, Nasscom.

“But when we recognize the reality of India as a country which has low internet penetration and even lower broadband penetration, apart from low levels of digital literacy and limited local language content... there may be a need to provide certain services in public interest at differential or lower prices which the regulator feels are necessary,” he said.

“Therefore, it is important that the regulator should have the power to allow differential pricing for certain types or classes of services that are deemed to be in public interest and based on mandatory prior approvals,” he said. “Any such programmes should abide by the principles of net neutrality and not constrain innovation in any way and not constrain innovation in any way.”

Differential pricing for data usage means offering services at different price points to different users. However, analysts say it could lead to an anti-competitive environment, hurting small companies and start-ups, while giving the TSPs and their partner platforms near-monopolistic access to the vast amount of user data that has potential commercial value in a country such as India where privacy laws are not strong.

Differential pricing is a significant aspect of the net neutrality debate that erupted in India in 2015, when Trai released a consultation paper in April. Soon, telecom operator Bharti Airtel Ltd launched Zero, a marketing platform that allows customers to access mobile applications for free but charges the application providers.

Facebook’s Free Basics service (the new name for Internet.org) aims to offer people without the Internet free access to a handful of websites and a range of services through mobile phones, which net neutrality activists say will violate the core principle that everyone should have unrestricted access to Internet and it should not be regulated by a company.

Following the outrage, Trai put Free Basics on hold, asking Reliance Communications Ltd to furnish the detailed terms and conditions of its Free Basics service. The next step will be announced later this month.

In an op-ed in the Times of India last week, Nandan Nilekani, co-founder of Infosys Ltd. and former chairman of Unique Identification Authority of India, publicly criticized Facebook’s Free Basics, calling it a walled garden.

“The walled garden of Free Basics goes against the spirit of openness on the internet, and in the guise of being pro-poor, balkanises it. Only Free Basics-approved websites will be accessible for free,” he said in the article which he co-authored with Viral Shah who led the design of government’s subsidy platforms using Aadhaar. “In theory, anyone meeting the technical guidelines today can participate. However, services that may potentially compete with telco offerings may not join Free Basics. Since Facebook does not currently subsidise free usage, telcos will have to foot the bill by raising prices.”

He said schemes such as direct benefit transfer for Internet data packs would be better compared to programmes such as Free Basics.

Nasscom, in its response, recommended “mandatory prior approval of such services by the regulator and sharing of periodic information on tariff plans seek to lower the price as well as zero rating services,” adding that these programmes should abide by the principle of net neutrality, meaning it should not limit consumers access to pre-defined set of services or websites.

“Any such differential pricing programs should have explicit approval of the regulator—and should be deemed to be in the public interest and the onus of proving it to be in the public interest in the first instance would be on service provider and before Trai arrives at a final decision a public consultation is also advised because of the dangers involved,” Nasscom said. “Even after the approval, suitable oversight mechanism should be maintained by the regulator in all such case.”

Pranesh Prakash, policy director at the Centre for Internet and Society (CIS), said Nasscom’s approach to make differential pricing plans and options as an exception rather than the rule was quite reasonable. “It says that if differential pricing services adhere to the guidelines of being non-discriminatory, non-anti-competitive, non-predatory, non-ambiguous and transparent, they can be allowed under the supervision of the regulator, which is similar to the position adopted by CIS,” he said.

“Though some of their positions are ambiguous—for instance what they mean by non-discriminatory, and whether they are okay with differential pricing between classes of applications, are unclear—and some of their recommendations increase regulatory complexity, such as their proposal for independent not-for-profit entities with independent boards to own and manage such differential pricing programs, by and large it is a useful submission,” Prakash added.

For more details visit https://cis-india.org/internet-governance/news/livemint-moulishree-srivastava-january-5-2016-nasscom-against-differential-pricing-for-data-services

Millions of Indians Slam Facebook's ‘Free Basics’ App

subha — 2015-12-30T14:37:09Z

It has been less than two months since the nationwide launch of the Free Basics app in India. The smart phone application (formerly known as Internet.org) offers free access to Facebook, Facebook-owned products like WhatsApp, and a select suite of other websites for users who do not pay for mobile data plans.

This was published in Global Voices on December 29, 2015.

But the app has already been suspended, at least temporarily, as the Telecommunications Regulatory Authority considers new rules governing network neutrality. Depending on how they're written, the rules could render Free Basics a violation of the policy.

Free Basics, which has been deployed in 30 developing countries across the globe, gives users free access to websites that meet Facebook's technical standards for the application. The application does not give users access to the Internet at large. For open Internet advocates, this undercuts consumer choice and violates the principle of network neutrality, under which Internet providers are to treat all Internet traffic equally. Net neutrality allows users equal access to any website they want to visit, and gives website operators equal opportunities to attract visitors.

Facebook has responded to the pending regulation with an aggressive ad campaign both online and off. Over the last week, Facebook users across India (and some in the US) upon logging into the site have been greeted with notifications urging them to take action. The Free Basics page on Facebook now leads to a pleading form that asks users to contact the Telecom Regulatory Authority of India (TRAI) and voice their support for making Free Basics available in India. The company has also purchased a smattering of billboard advertisements across the country and taken out numerous two-page ads in leading national newspapers, as seen above.

The Indian Internet bites back

Indian netizens and activists have spoken out against the company's actions en masse, protesting heavily on social media, blogs and newspapers.

The grassroots open Internet group, SavetheInternet.in, that has been advocating for net neutrality in India throughout 2015, has launched an email campaign asking users to send letters to TRAI explaining how Free Basics violates net neutrality principles and propagates an inaccurate picture of the Internet for new users by placing it inside the confines of Facebook's application.

Multiple stand-up comedy groups have created videos explaining the regulatory debate and supporting net neutrality, which have gone viral:

Above, the third in a series of videos created by All India Bakchod, in partnership with SavetheInternet.in. Below, a video by East India Comedy.

The issue has also been hotly debated on Twitter, with technology and law experts leading the way.

Internet policy expert and lead staff member of the Center for Internet and Society in Bengaluru Pranesh Prakash tweeted:

New Delhi-based technology lawyer Mishi Choudhary, who leads the legal team at the Software Freedom Law Center, tweeted:

The Free Software Movement of India, a non-profit promoting use of free software and its philosophy in India via their local chapters, also has taken the campaign to the streets where the volunteers raised public awareness about Free Basic's adverse side.

Apart from local experts and activists, companies like Reddit, Truecaller and Indian e-commerce platform Paytm have publicly shared their opposition to Facebook's actions.

Facebook targets open Web activists

Facebook is paying close attention to civil society opposition to its activities in India. Across the globe, the company's Free Basics page now opens to a plea for users to contact TRAI, and includes a statement that directly targets open Internet advocates, suggesting that their motives are somehow driven by financial incentives:

…Free Basics is in danger in India. A small, vocal group of critics are lobbying to have Free Basics banned on the basis of net neutrality. Instead of giving people access to some basic internet services for free, they demand that people pay equally to access all internet services – even if that means 1 billion people can't afford to access any services.

SavetheInternet.in explicitly states in their About page that they are entirely volunteer-run and have no affiliation with any political party in India or elsewhere.

Users also have tweeted screenshots alleging that Facebook is restricting access for individuals sending messages opposing Free Basics. This has not been confirmed, but the tweets have only further stoked public frustration with the company.

Zuckerberg vs. SavetheInternet

On December 28, Facebook CEO Mark Zuckerberg penned a piece in the Times of India arguing that Free Basics will help “achieve digital equality for India,” and claiming that the initiative “isn’t about Facebook’s commercial interests.” India represents the world's largest market of Internet users after the US and China, where Facebook remains blocked.

In response, Nikhil Pawa, founder of online portal MediaNama and a volunteer with Savetheinternet.in, authored a critical opinion piece in the same newspaper:

[…] Why hasn’t Facebook chosen the options that do not violate Net Neutrality? For example, in India, Aircel has begun providing full internet access for free at 64 kbps download speed for the first three months….In Bangladesh, Grameenphone users get free data in exchange for watching an advertisement. In Africa, Orange users get 500 MB of free access on buying a $37 handset…

[…]

Facebook is being disingenuous — as disingenuous as the company’s promotional programmes for Free Basics to its Indian users — when it says that Free Basics is in conformity with Net Neutrality.

Pawa also quoted Naveen Patnaik, Chief Minister of Indian state of Odisha, who wrote to TRAI supporting net neutrality. “If you dictate what the poor should get, you take away their right to choose what they think is best for them,” he wrote.

“If you dictate what the poor should get, you take away their right to choose what they think is best for them.”

Writing for Quartz, technology critic Alice Truong expressed similar sentiment: “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.”

For Mahesh Murthy, an Indian venture capitalist and self-described net neutrality activist, it all comes down to revenue. On the Wire, Murthy offered untempered criticism of Facebook and Zuckerberg's efforts to appease the country's leaders:

[..] Unlike Facebook, who tried to silently slime this thing through last year when it was called Internet.org, and then are spending about Rs. 100 crores on ads – a third of its India revenue? – to try and con us Indians this year again. This is after we’d worked hard to ban these kind of products, technically called “zero rating apps” last year.[..] This Facebook ad [spread] doesn’t include the full-on Mark Zuckerberg love event put up for our Prime Minister when he visited the US, aimed again at greasing the way for this Free Basics thing through our government.

For more details visit https://cis-india.org/telecom/blog/millions-of-indians-slam-facebooks-2018free-basics2019-app

Mark Zuckerberg’s India backlash imperils vision for free global web

praskrishna — 2015-12-30T15:25:08Z

The growing backlash against Facebook’s Free Basics could threaten the very premise of Internet.org, Mark Zuckerberg’s effort to connect the planet.

The article by Bhuma Shrivastava was published in Livemint on December 30, 2015. Pranesh Prakash was quoted.

Mumbai: Mark Zuckerberg didn’t see this coming.

When Facebook Inc.’s co-founder proposed bringing free Web services to India, his stated aim was to help connect millions of impoverished people to unlimited opportunity. Instead, critics have accused him of making a poorly disguised land grab in India’s burgeoning Internet sector. The growing backlash could threaten the very premise of Internet.org, his ambitious, two-year-old effort to connect the planet.

Indian authorities are circumspect because the Facebook initiative provides access to only a limited set of websites—undermining the equal access precepts of net neutrality. The telecommunications regulator is calling for initial comments by today on whether wireless carriers can charge differently for data usage across websites, applications and platforms. Losing this fight could imperil Facebook’s Free Basics, which allows customers to access the social network and select services such as Messenger and Microsoft’s Bing without a data plan.

“The India fight is helping shape debates elsewhere,” said Pranesh Prakash, policy director at the Centre for Internet and Society, a Bangalore-based non-profit advocacy group. “Activists in other countries such as Brazil, Venezuela and Colombia are watching this debate and will seize the momentum created in India.”

Zuckerberg’s argument for free Web access is based in part on Deloitte research showing that for every 10 people who are connected to the Web, one is lifted out of poverty and one job is created.

Facebook argues that by giving people free access to a small slice of the Internet, they will quickly see the value in paying for the whole thing. Zuckerberg has said his biggest challenge in connecting people to the Web isn’t access to cellular networks, but a social hurdle: he needs to prove to people who have never been online that the Internet is useful.

“Who could possibly be against this?” Zuckerberg wrote in an impassioned op-ed in the Times of India this week. “Surprisingly, over the last year there’s been a big debate about this in India.”

Zuckerberg’s plea underscores what’s at stake. Facebook already attracts 1.55 billion people monthly, or about half of the Internet-connected global population. To keep growing, the world’s largest social network needs to get more people online. Hence the billions of dollars Facebook is spending on projects to deliver the Web to under-served areas via drones, satellites and lasers. And Internet.org, which now spans 37 nations.

India, as the world’s second most populous nation, is arguably the most important piece of Zuckerberg’s Free Basics strategy. But the opposition is fierce. Critics note that the Facebook service doesn’t offer Web favourites such as Google Inc.’s search. Facebook has said it would be open to adding more features from competitors, but critics are skeptical of giving the social-networking giant such influence on the Internet.

Critics also say that by offering a limited swath of the Internet at comparatively slow speeds, the company is creating a poor-man’s or diluted version of the Web. That could stifle innovation by disadvantaging Indian startups building rival apps, or allow Facebook and its telecommunications carrier- partners to act as Internet gatekeepers.

One97 Communications Ltd, a mobile payment startup backed by Alibaba Group Holding Ltd, is one of several Indian tech companies that have come out against Facebook’s plans.

“We are totally against telcos preferring one developer over another,” One97 founder Vijay Shekhar Sharma said in a phone interview. “We are asking for access neutrality. We are hoping that all startups will be treated equally.”

Facebook is now scrambling to drum up support. It’s started a ‘Save Free Basics In India’ campaign, asking Indian users to support ‘digital equality’ by filling out a form that shoots an e-mail to regulators. That also has the effect of sending notifications to user’s friends unless they opt out.

Facebook has also taken out full-page advertisements, including one featuring a smiling Indian farmer and his family who the ads say used new techniques to double his crop yield. Bloomberg

For more details visit https://cis-india.org/internet-governance/news/mark-zuckerberg2019s-india-backlash-imperils-vision-for-free-global-web

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

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

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

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

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

Free Basics: Negating net parity

sunil — 2016-01-03T05:58:00Z

Researchers funded by Facebook were apparently told by 92 per cent of Indians they surveyed from large cities, with Internet connection and college degree, that the Internet “is a human right and that Free Basics can help bring Internet to all of India.” What a strange way to frame the question given that the Internet is not a human right in most jurisdictions.

The article was published in the Deccan Herald on January 3, 2016.

Free Basics is gratis service offered by Facebook in partnership with telcos in 37 countries. It is a mobile app that features less than a 100 of the 1 billion odd websites that are currently available on the WWW which in turn is only a sub-set of the Internet. Free Basics violates Net Neutrality because it introduces an unnecessary gatekeeper who gets to decide on “who is in” and “who is out”. Services like Free Basics could permanently alienate the poor from the full choice of the Internet because it creates price discrimination hurdles that discourage those who want to leave the walled garden.

Inika Charles and Arhant Madhyala, two interns at Centre for Internet and Society (CIS), surveyed 1/100th of the Facebook sample, that is, 30 persons with the very same question at a café near our office in Bengaluru. Seventy per cent agreed with Facebook that the Internet was a human right but only 26 per cent thought Free Basics would achieve universal connectivity. My real point here is that numbers don’t matter. At least not in the typical way they do. Facebook dismissed Amba Kak’s independent, unfunded, qualitative research in Delhi, in their second public rebuttal, saying the sample size was only 20.

That was truly ironical. The whole point of her research was the importance of small numbers. Kak says, “For some, it was the idea of an ‘emergency’ which made all-access plans valuable.” A respondent stated: “But maybe once or twice a month, I need some information which only Google can give me... like the other day my sister needed to know results to her entrance exams.” If you consider that too mundane, take a moment to picture yourself stranded in the recent Chennai flood. The statistical rarity of a Black Swan does not reduce its importance. A more neutral network is usually a more resilient network. When we do have our next national disaster, do we want to be one of the few countries on the planet who, thanks to our flawed regulation, have ended up with a splinternet?

Telecom Regulatory Authority of India (Trai) chairman R S Sharma rightly expressed some scepticism around numbers when he said “the consultation paper is not an opinion poll.” He elaborated: “The issue here is some sites are being offered to one person free of cost while another is paying for it. Is this a good thing and can operators have such powers?” Had he instead asked “Is this the best option?” my answer would be “no”. Given the way he has formulated the question, our answer is a lawyerly “it depends”. The CIS believes that differential pricing should be prohibited. However, it can be allowed under certain exceptional standards when it is done in a manner that can be justified by the regulator against four axes of sometimes orthogonal policy objectives. They are increased access, enhanced competition, increased user choice and contribution to openness. For example, a permanent ban on Free Basics makes sense in the Netherlands but regulation may be sufficient for India.

Gatekeeping powers

To the second and more important part to Trai chairman’s second question on gatekeeping powers of operators, our answer is a simple “no”. But then, do we have any evidence that gatekeeping powers have been abused to the detriment of consumer and public interest? No. What do we do when we cannot, like Russell’s chicken, use induction to explain our future? Prof Simon Wren-Lew says, “If Bertrand Russell’s chicken had been an economist ...(it would have)... asked a crucial additional question: Why is the farmer doing this? What is in it for him?” There were five serious problems with Free Basics that Facebook has at least partially fixed, thanks mostly to criticism from consumers in India and Brazil. One, exclusivity with access provider; two, exclusivity with a set of web services; three, lack of transparency regarding retention of personal information; four, misrepresentation through the name of the service, Internet.org and five, lack of support for encrypted traffic. But how do we know these problems will stay fixed? Emerging markets guru Jan Chipchase tweeted asking “Do you trust Facebook? Today? Tomorrow? When its share price is under pressure and it wants to wring more $$$ from the platform?”

Zero. Facebook pays telecom operators zero. The operators pay Facebook zero. The consumers pay zero. Why do we need to regulate philanthropy? Because these freebies are not purely the fruit of private capital. They are only possible thanks to an artificial state-supported oligopoly dependent on public resources like spectrum and wires (over and under public property). Therefore, these oligopolies much serve the public interest and also ensure that users are treated in a non-discriminatory fashion.

Also provision of a free service should not allow powerful corporations to escape regulation–in jurisdictions like Brazil it is clear that Facebook has to comply with consumer protection law even if users are not paying for the service. Given that big data is the new oil, Facebook could pay the access provider in advertisements or manipulation of public discourse or by tweaking software defaults such as autoplay for videos which could increase bills of paying consumers quite dramatically.

India needs a Net Neutrality regime that allows for business models and technological innovation as long as they don’t discriminate between users and competitors. The Trai should begin regulation based on principles as it has rightly done with the pre-emptive temporary ban. But there is a need to bring “numbers we can trust” to the regulatory debate. We as citizens need to establish a peer-to-peer Internet monitoring infrastructure across mobile and fixed lines in India that we can use to crowd source data.

(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/deccan-herald-january-3-2016-sunil-abraham-free-basics-negating-net-parity

Facebook’s Free Basics Shuts Down In Egypt, Continuing Troubled Run

praskrishna — 2016-01-03T06:11:51Z

The report was published by TV Newsroom on January 1, 2016. Pranesh Prakash gave inputs.

“This isn’t about Facebook’s commercial interests – there aren’t even any ads in the version of Facebook in Free Basics”, he said. Initiatives like Internet.org are attempting to change that, but not without backlash. A similar proposal called zero internet was put forward later by Airtel.

Facebook now has a Zacks Rank #2 (Buy).

“The India fight is helping shape debates elsewhere”, said Pranesh Prakash, policy director at the Centre for Internet and Society, a Bangalore-based nonprofit advocacy group.

That prompted Facebook CEO Mark Zuckerberg to write an op-ed piece published in the Times of India that asks, “Who could possibly be against this?” There was fulsome praise for Modi from the young internet billionaire. Etisalat Egypt could not be reached for comment at this time. “For example, Facebook can just provide 50 or 100 megabytes for their data connection free every month”.

On Wednesday, Trai extended the last date for submission of comments and counter comment to 7 and 14 January, respectively.

But Zuckerberg is not having a walk in the park with this Free Basics proposition. It sounds a perfectly good idea.

Internet.org is a partnership, led by Facebook and including Samsung, Ericsson, MediaTek, Opera, Nokia and Qualcomm. Through a deal between Facebook and local mobile operators, the data to access those services is free.

The coalition has said that Facebook is misleading users and cautioned that the free service could be replete with advertising if and when it’s implemented. Similarly, signature drives are going on by those staunchly opposed to it. Now the problem for this is that we had asked for response to the specific question of differential pricing… instead we have got responses on supporting Free Basics.

Those campaigning to protect net neutrality in India suggest data providers should not favour some online services over others by offering cheaper or faster access.

The founders and executives mention that the difference in pricing through zero rating “affects the ability of new players to compete” with well-established companies. A situation where the haves can access the Internet and enjoy its tremendous opportunities and the have nots are kept out. Zuckerberg said that India’s progress depends on providing Web access to the 1 billion Indians without it.

Listing three main flaws within the programme, the scientists urged the Telecom Regulatory Authority of India to “completely reject” Facebook’s “free fundamentals” proposal. Such as providing a tiered system of broad band access.

It would make sense for the government to target free Internet services while it clamps down on physical gathering places.

Read the original here.

For more details visit https://cis-india.org/internet-governance/news/facebook2019s-free-basics-shuts-down-in-egypt-continuing-troubled-run

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

Facebook’s Fight to Be Free

praskrishna — 2016-01-31T09:11:52Z

In India, Mark Zuckerberg can’t give Internet access away.

The article by Adi Narayan and Bhuma Shrivastava was published in Bloomberg Businessweek on January 15, 2016. Pranesh Prakash was quoted.

Thanks mostly to its mobile-ad profits, Facebook has had a great couple of years. According to its most recent earnings report, in November, the company’s quarterly ad revenue rose 45 percent, to $4.3 billion, from the same period in 2014. It has more than 1.5 billion monthly users, just over half of all the people online anywhere. Keeping up its rate of user growth—more than 100 million people each year—will only get tougher.

A big part of the problem is that a lot of potential new eyeballs are in places where Internet access is patchy at best. Some of Facebook’s grander projects anticipated that issue: It has satellites and giant solar-powered planes that beam Wi-Fi down to areas that don’t have it. And then there’s Free Basics, the two-year-old project Chief Executive Officer Mark Zuckerberg has called an online 911. In about three dozen countries so far, Free Basics—also known as Internet.org—includes a stripped-down version of Facebook and a handful of sites that provide news, weather, nearby health-care options, and other info. 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.

Facebook says Free Basics is meant to make the world more open and connected, not to boost the company’s growth. Either way, online access is an especially big deal in India, where there are 130 million people using Facebook, 375 million people online, and an additional 800 million-plus who aren’t. (The social network remains blocked in China.) That may help explain why Zuckerberg spent part of the first few weeks of his paternity leave appealing personally to Indians to lobby for Free Basics. On Dec. 21 the Indian government suspended the program, offered in the country by carrier Reliance Communications, while it weighs public comments and arguments from Internet freedom advocates who say preferential treatment for Facebook’s services threatens to stifle competition.

“An emerging country like India needs to provide the consumer with incentives to get onto the Internet.” —Neha Dharia, an analyst at consulting firm Ovum

Since the government’s telecommunications regulator announced the suspension, Facebook has 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-ed, asking that Indians petition the government to approve his service. “If we accept that everyone deserves access to the Internet, then we must surely support free basic Internet services,” the CEO wrote in a column published in the Times of India, the nation’s largest daily paper, shortly before the new year. “Who could possibly be against this?”

Opponents, including some journalists and businesspeople, say Free Basics is dangerous because it fundamentally changes the online economy. If companies are allowed to buy preferential treatment from carriers, the Internet is no longer a level playing field, says Vijay Shekhar Sharma, founder of Indian mobile-payment company Paytm. A spokesman for Sharma confirmed that Zuckerberg called to discuss the matter but declined to comment further.

India’s Internet base will grow with or without Facebook’s help, says Nikhil Pahwa, a tech blogger and co-founder of the Save the Internet coalition, which opposes Free Basics. “We don’t see Free Basics as philanthropy. We see it as a land grab,” says Pahwa. When dealing with the famously protectionist Indian government, that’s a pretty good argument. An April attempt by India’s top mobile carrier to underwrite data costs for certain apps drew heavy criticism, and the carrier, Bharti Airtel, has put the program on hold.

None of that means Facebook can’t help get more Indians online, says Neha Dharia, an analyst at consulting firm Ovum. “An emerging country like India needs to provide the consumer with incentives to get onto the Internet,” she says. “What Facebook Free Basics is doing is a bit extreme, but what you do need is a bit of a middle path.”

Internet sampler packages such as Free Basics can also help carriers like Reliance, the fourth-largest in India, upgrade their often-struggling networks, Dharia says. That’s a symbiotic process, because customers may quickly grow frustrated with the bare-bones service and demand more. Free Basics doesn’t have Gmail, YouTube, Vimeo, Twitter, or Bollywood music streaming. (Video will account for 64 percent of India’s data traffic by March 2017, consulting firm Deloitte estimates.) It’s meant to be a steppingstone. Facebook says about 40 percent of Free Basics users start paying for data plans within a month.

But again, if Free Basics catches on in India, people may just keep paying for data to use more Facebook and forget about some of those other services, says Dharia. “Facebook is the Internet” to a lot of people in India, she says. Google, whose services are most conspicuously absent from the Free Basics roster, declined to comment.

India’s telecommunications regulator says Facebook’s advocates and opponents have until Jan. 14 to file public comments; it’s received about 2.4 million responses so far, most of them form letters supporting Free Basics. The government’s decision could also ripple beyond India, says Pranesh Prakash, a Free Basics opponent and the policy director at the nonprofit Centre for Internet & Society in Bengaluru. In the weeks since India suspended Free Basics, Egypt, which had done the same back in October, once again shut down the Facebook plan, though the government wouldn’t say why. The India fight “will be a reputational challenge for Facebook,” says Prakash. “It will set the tone for Free Basics debate in other countries.”

The bottom line: Facebook’s free data plan in India faces strong opposition from local businesses and Internet freedom advocates.

For more details visit https://cis-india.org/internet-governance/news/bloomberg-businessweek-adi-narayan-bhuma-shrivastava

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