Wednesday, May 27, 2015

NET NEUTRALITY: CONCERNS OF A COMMON MAN

The issue of ‘net neutrality ‘ created a lot of furore in the latest past and even our own Rahul Gandhi brought up the issue in the Parliament. The western world, the Bollywood industry joined the bandwagon to accentuate the magnitude of intricacy in the whole issue. In India, the issue got highlighted by the Flipkart-Airtel Zero deal.  But the common man needs to know what exactly it means, since he is a stake holder here. Net neutrality is akin to Land acquisition, where the big corporations, through the government, are encroaching the space of civil liberty of the common man.  It has ballooned into some kind of fight dreaded between the ordinary folks and the corporate honchos.
Net neutrality in simple terms means all websites should be equally accessible; at the same speed; and one should pay the same amount for the said data irrespective of the content. Why should we be bothered then? There are fast lanes (paid) and slow lanes (free) of internet traffic. Elucidating further, it implies that big companies such as YouTube and Skype can dig down their deep pockets and pay for higher speed internet access. Hence people would obviously prefer them over other companies. Smaller start-ups will inevitably be decimated and innovation will cease to exist. The choices before the consumers will get reduced. As proposed by the Father of Economics August Comte, the ‘invisible hand of market’ (that balances the implicit forces of market) gets amputated. This could eventually lead to Oligopoly or even Monopoly.
The second issue is that of ‘control’.  Information available at the disposal of public could be twisted, tweaked and manipulated. Suppose one is looking for the reviews of a movie that he plans to see, but finds only the positive reviews. This takes place because the producers and the distributors of the movie have paid the internet provider to block all the websites that have negative reviews of the concerned movie. Hence through this, the perception of the people can be moulded to benefit certain companies.
The third issue may be that the internet providers in the future may charge you for preferential access. It means that the heavy users of YouTube, Skype, etc. may be charged more to get access to the same data as before.
The Airtel Zero Issue
Now having seen one side of the coin (people’s perspective), it’s also important to know the other side too (companies’ perspective).  It is quintessential to admit the fact that every company enters the market to earn money. So certain companies have competitive advantage vis-a- vis  others due to their resources in terms of infrastructure and technological superiority. Now let me explain you what exactly happened. Airtel Zero is a platform for any website to join. What Bharti Airtel did was, it passed the cost of surfing from the subscriber to the website. Initially the subscriber would pay for the surfing certain websites, which now will be paid by the website itself. For Bharti Airtel, it is an accounting issue; money that used to come from the subscribers will now come from the websites. Hereby, the subscriber will get a lower bill, while the expenses incurred by the websites will be higher. But for the website, it’s not a cost, but an investment to create more traffic. It is akin the toll free number that we use to order a pizza, the cost of which is borne by the pizza company.  It’s like the discount offered by certain companies like e-commerce websites. These are normal business practices that companies use to attract more customers, and hence cannot be deemed as discriminatory or unethical. This would amount to ‘crony capitalism’ if this is used as a tool to control the market forces or if certain websites are blocked to enter the Airtel Zero platform.

People who speak about net neutrality advocate equal net access for everybody. This is a noble intention, but is plausible only in a utopian world. The net accessibility depends upon three things- the hand set, the data plan and the spectrum. To have equal net experience, all the Indians should have the same aforesaid trilogy.  But is it ever possible?

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