Centre for Internet and Society

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

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

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

Facebook is no charity, and the ‘free’ in Free Basics comes at a price

praskrishna — 2016-01-30T11:32:47Z

Who could possibly be against free internet access? This is the question that Mark Zuckerberg asks in a piece for the Times of India in which he claims Facebook’s Free Basics service “protects net neutrality”.

Free Basics is the rebranded Internet.org, a Facebook operation where by partnering with local telecoms firms in the developing world the firm offers free internet access – limited only to Facebook, Facebook-owned WhatsApp, and a few other carefully selected sites and services.

Zuckerberg was responding to the strong backlash that Free Basics has faced in India, where the country’s Telecom Regulatory Authority recently pulled the plug on the operation while it debates whether telecoms operators should be allowed to offer different services with variable pricing, or whether a principle of network neutrality should be enforced.

Not content to await the regulator’s verdict, Facebook has come out swinging. It has paid for billboards, full-page newspaper ads and television ad campaigns to try to enforce the point that Free Basics is good for India’s poor. In his Times piece, Zuckerberg goes one step further – implying that those opposing Free Basics are actually hurting the poor.

He argued that “for every ten people connected to the internet, roughly one is lifted out of poverty”. Without reference to supporting research, he instead offers an anecdote about a farmer called Ganesh from Maharashtra state. Ganesh apparently used Free Basics to double his crop yields and get a better deal for his crops.

Zuckerberg stressed that “critics of free basic internet services should remember that everything we’re doing is about serving people like Ganesh. This isn’t about Facebook’s commercial interests”.

Zuckerberg’s indignation illustrates either how little he understands about the internet, or that he’s willing to say anything to anyone listening.

This is not a charity

First, despite his claims to the contrary Free Basics clearly runs against the idea of net neutrality by offering access to some sites and not others. While the service is claimed to be open to any app, site or service, in practice the submission guidelines forbid JavaScript, video, large images, and Flash, and effectively rule out secure connections using HTTPS. This means that Free Basics is able to read all data passing through the platform. The same rules don’t apply to Facebook itself, ensuring that it can be the only social network, and (Facebook-owned) WhatsApp the only messaging service, provided.

Yes, Free Basics is free. But how appealing is a taxi company that will only take you to certain destinations, or an electricity provider that will only power certain home electrical devices? There are alternative models: in Bangladesh, Grameenphone gives users free data after they watch an advert. In some African countries, users get free data after buying a handset.

Second, there is no convincing body of peer-reviewed evidence to suggest internet access lifts the world’s poor out of poverty. Should we really base telecommunications policy on an anecdote and a self-serving industry report sponsored by the firm that stands to benefit? India has a literacy rate of 74%, of which a much smaller proportion speak English well enough to read it. Literate English speakers and readers tend not to be India’s poorest citizens, yet it’s English that is the predominant language on the web. This suggests Free Basics isn’t suited for India’s poorest, who’d be better served by more voice and video services.

Third, the claim that Free Basics isn’t in Facebook’s commercial interest is the most outrageous. In much the same way that Nestlé offered free baby formula in the 1970s as development assistance to low-income countries – leaving nursing mothers unable to produce sufficient milk themselves – Free Basics is likely to impede commercial alternatives.

By offering free access Free Basics disrupts the market, allowing Facebook to gain a monopoly that can benefit from the network effects of a growing user base. Sunil Abraham, executive director of the Centre for Internet and Society, in India, has aptly noted that expanding audience and consumer bases have long been as important as revenues for internet firms. Against Facebook’s immensely deep pockets and established user-base, homegrown competitors are thwarted before they even begin.

Poverty consists of more than just no internet

India will not always have low levels of internet access, this is not the issue – in fact Indian internet penetration growth rates are relatively high. Instead the company sees Free Basics as a means to establish a bridgehead into the country, establishing a monopoly before other firms move in.

There is decades of research about how best to help farmers like Ganesh: access to good quality education, healthcare, and water all could go a long way. But even if we see internet access as one of the key needs to be met, why would we then offer a restricted version?

In presenting Free Basics as an act of altruism Zuckerberg tries to silence criticism. “Who could possibly be against this?”, he asks:

What reason is there for denying people free access to vital services for communication, education, healthcare, employment, farming and women’s rights?

That is the right question, but Free Basics is the wrong answer. Let’s call a spade a spade and see Free Basics as an important part of the business strategy of one of the world’s largest internet corporations, rather than as a selfless act of charity.

For more details visit https://cis-india.org/internet-governance/news/the-conversation-january-11-2016-facebook-is-no-charity

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

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

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

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 goes out all guns blazing in push for Free Basics, Net neutrality advocates cry foul

praskrishna — 2015-12-29T15:32:19Z

Facebook's media onslaught to garner support for its controversial Free Basics program is almost inescapable. Multi-page ads in national dailies, outdoor hoardings, television spots and perhaps the most effective of them all - Facebook notifications.

The blog post was published in IBN Live on December 29, 2015. Pranesh Prakash gave inputs.

Facebook co-founder and CEO Mark Zuckerberg, took out time during his paternity leave to pen an op-ed in The Times of India in which he tried to drum up support for the Free Basics service that offers people without the Internet free access to a handful of websites through mobile phones.

"If we accept that everyone deserves access to the Internet, then we must surely support free basic Internet services," Zuckerberg wrote, comparing the Internet to a library, public health care and education.

Zuckerberg said he was surprised that there is such a big debate around Free Basics in India.

The debate on Net neutrality stirred across India after Airtel decided to charge separately for Internet-based calls but withdrew it later after people protested. Internet activists and experts flayed the operator for 'Airtel Zero' service along with Facebook's Internet.org service, later renamed as 'Free Basics.'

Net neutrality implies that equal treatment be accorded to all Internet traffic and no priority be given to an entity or company based on payment to content or service providers such as telecom companies, which is seen as discriminatory.

Zuckerberg's personal appeal comes amid fierce criticism from Net neutrality activists who say Free Basics violates the principle that the whole Internet should be available to all and unrestricted by any one company.

In an op-ed response in The Times of India by Medianama's Nikhil Pahwa, who is also a volunteer with savetheinternet.in that is spearheading the campaign for Net neutrality and against Free Basics, asked why Facebook didn't opt for an option that doesn't violate Net neutrality and "why has Facebook chosen the current model for Free Basics, which gives users a selection of around a hundred sites (including a personal blog and a real estate company homepage), while rejecting the option of giving the poor free access to the open, plural and diverse web?"

Countries like the US, Chile, Netherlands and Brazil have already adopted Net Neutrality that doesn't allow discrimination of Internet content or charge users differently based on the content, site, or platform they consume, the debate is still raging in India with the last date for comments on a paper floated by the Telecom Regulatory Authority of India (TRAI) that is open for comments till December 30 and counter comments till January 7.

Facebook is using the might of its about 140 million user base in India urging them to send messages to TRAI supporting Free Basics.

A few companies such as Truecaller is attempting to counter Facebook's push by sending out messages to its millions of users in India asking them to petition TRAI against Facebook's Free Basics.

Earlier this month the TRAI ordered Reliance Communications, the sole mobile operator for the Free Basics in India, to suspend it temporarily.

Pranesh Prakash, policy director at Centre for Internet and Society, believes that Free Basics isn't exactly the evil that opponents picture it as. "In the absence of free Internet, Free Basics is a great enabler of freedom of speech. We ought to keep that in mind when asking for a ban," he said.

Meanwhile, Facebook's Internet.org vice president Chris Daniels, in a Reddit AMA said that Facebook was open to scrutiny of the process by any third party agency like IAMAI or NASSCOM and "We'd also be happy to have Twitter, Google+, etc on the platform which many people have asked for."

Earlier, in July this year the Department of Telecom panel on net neutrality has opposed projects like Facebook's Internet.org, which allow access to certain websites without mobile data charges, while suggesting that similar plans such as Airtel Zero be allowed with prior clearance from TRAI.

For more details visit https://cis-india.org/internet-governance/news/facebook-goes-out-all-guns-blazing-in-push-for-free-basics-net-neutrality-advocates-cry-foul

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

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

Zuckerberg's India Backlash Imperils Free Global Web Vision

praskrishna — 2016-01-06T14:51:42Z

When Facebook'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.

The blog post by Bhuma Shrivastava was published by NDTV on January 4, 2016. Pranesh Prakash gave inputs.

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 Jan 7, extending the deadline from 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 pleas underscore 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 favorites such as Google'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 diluted version of the Web. That could stifle innovation by causing disadvantages for Indian startups building rival apps, or allow Facebook and its telecommunications carrier-partners to act as Internet gatekeepers.

In a sign of the importance he attaches to the issue, Zuckerberg on Tuesday called one of India's most prominent entrepreneurs to make his case.

One97 Communications, the mobile payments startup backed by Alibaba Group Holding, is one of several 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 before that call. "We are asking for access neutrality. We are hoping that all startups will be treated equally."

Sonia Dhawan, a spokeswoman for One97's payment website Paytm, said the call took place but didn't describe the conversation further. Sharma wasn't available for further comment.

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.

While countries such as the Philippines have embraced Free Basics, India has been "the outlier and more challenging," Chris Daniels, vice president of Internet.org, said in a Dec. 26 chat on Reddit.

For more details visit https://cis-india.org/internet-governance/news/ndtv-bhuma-shrivastava-january-4-2016-zuckerberg-india-backlash-imperils-free-global-web-vision

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

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

Why Indians are turning down Facebook's free internet

praskrishna — 2016-01-17T16:25:10Z

Imagine a billion of the world’s poorest gaining overnight access to health information, education, and professional help — for free. Add to this one rich man who wants to make that dream a reality.

The article by Nimisha Jaiswal was published in the Global Post on January 13, 2016. Sunil Abraham was quoted.

That’s the invitation that Facebook has sent to India. Many there, however, are rejecting such benevolence.

Facebook has introduced its Free Basics project in 36 countries. The company claims that the app acts as a stepping-stone to the internet for those who are otherwise without access, by providing them with a few essential sites — or “basics” — to get started.

“We know that when people have access to the internet they also get access to jobs, education, healthcare, communication… We know that for India to make progress, more than 1 billion people need to be connected to the internet,” wrote Facebook CEO Mark Zuckerberg in a recent op-ed for a major Indian newspaper. “Free Basics is a bridge to the full internet and digital equality.”

However, net neutrality researchers and activists in India define it quite differently.

“Free Basics is a zero-rated walled garden that gives users a tiny subset of the world wide web,” Sunil Abraham, executive director of the Bengaluru-based Centre for Internet and Society, told GlobalPost.

The Free Basics app is part of Facebook’s Internet.org, a “zero-rating” internet service that provides limited access for no charge to the consumer. The original Internet.org was heavily criticized in India for violating net neutrality, the principle that all content on the web should be accessible to consumers at the same speed, without discrimination by providers.

Last spring, as part of a homegrown Save The Internet movement, over 1 million people wrote to the Telecom Regulatory Authority of India (TRAI) to protest services that disrupt net neutrality by providing only a small fraction of the internet to their users.

India’s Department of Telecommunications has already recommended that such platforms be disallowed. Before it makes its own recommendations this month, the TRAI asked concerned citizens for another round of input on zero-rating apps. The criticism has been so loud that, at the end of December, Free Basics’ local telecom partner was ordered to take the service down until a decision is reached.

Though Free Basics does not require payment from the websites it shares, Facebook’s competitors are unlikely to participate and provide user data to their rivals. And while there are currently no advertisements on Free Basics, Facebook reserves the right to introduce them in the future to garner revenue from their “walled-in” clients.

According to Abraham, such a platform harms free speech, privacy, innovation and diversity by adding another layer of surveillance and “censoring” the internet.

Mahesh Murthy, a venture capitalist who is part of India’s Save The Internet movement, puts it more bluntly.

“What Facebook wants is our less fortunate brothers and sisters should be able to poke each other and play Candy Crush, but not be able to look up a fact on Google, or learn something on Khan Academy, or sell their produce on a commodity market, or even search for a job on [Indian recruitment website] Naukri,” said Murthy.

Zuckerberg and Facebook’s India team have vigorously rebutted net neutrality activists in India, including Murthy, challenging their criticism of Free Basics and accusing activists of deliberately trying to prevent the masses from gaining internet access.

“Critics of the program continue to spread false claims — even if that means leaving behind a billion people,” wrote Zuckerberg in his Times of India op-ed.

According to Abraham, this is a misleading assertion. “They are falsely framing the debate, they are making it look like we have only two choices,” he told GlobalPost. “The choice is not between less people on the internet and unregulated [Free Basics].”

Several alternatives are being proposed. Abraham does not advocate a complete ban on Free Basics, instead suggesting a “leaky” walled garden where users would be given 100 MB of full internet access for every 100 MB of Free Basics consumed.

The Save the Internet campaign, however, wants Free Basics barred altogether. It proposes returning to previously implemented schemes like providing data on the purchase of a phone, or letting users access the full internet after watching an ad. The Universal Service Obligation Fund, set up by the Department of Telecommunications to provide affordable communication technology in rural areas, could also be used to finance free data packs.

While Facebook could potentially contribute to such funds to promote its connectivity goals, the millions of dollars it has spent loudly defending Free Basics in India suggest that the company is deeply attached to its own scheme.

Facebook has claimed that “more than four in five Indians support Free Basics,” according to a survey that it paid for. Indian users of the social network have received notifications encouraging them to send a template letter to the regulator in support of Free Basics. Even users in the US were “accidentally” notified to add their backing to the Indian campaign.

Some of the company's critics suggest that it is driven less by philanthropy, more by guaranteeing itself a stream of new users.

Murthy points out that a large number of the world’s population not yet on the internet are in India and China — and Facebook is banned in China. “So who becomes essential to Mark Zuckerberg’s balance sheet? Enter us Indians.”

While Indian activists agree that connectivity is an important goal, they insist that Free Basics in its current form is not the solution or even the only option right now. All it does is whets the appetite of the consumer, according to Abraham.

“You can compare Free Basics to when you go through the mall: You see the people selling cookies, and the aroma fills the whole mall,” he said. “That’s what Free Basics does — it gets you interested in the cookie. But it doesn’t solve the affordability question.”

For more details visit https://cis-india.org/internet-governance/news/global-post-nimisha-jaiswal-why-indians-are-turning-down-facebook-free-internet