Net Neutrality &
Digital Empowerment
Syed S. Kazi & Rajat Kumar
Digital Empowerment Foundation
C-DAC Induction Training Programme

About us
• ‘Inform, Communicate and Empower’
• One Billion Connect
• Find sustainable Information
Communication Technology (ICT)
solutions including digital and new
media to address digital divide in
under-served and unreached regions
and communities.
• Founded to contribute to an enabling
social and economic order in India
as well as in developing societies
with the need based support of ICT
tools and means.
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Some Interesting Statistics
1.2 Billion People
650,000 Villages
250,000
6,000
672
36
Village Councils
Blocks
Districts
Administrative Divisions
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What is net neutrality?
• Network neutrality is a business philosophy that
supports the idea that all content and services
that use a network should be treated the same.
• Users have the right to send and receive packets
of information equally
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What is the neutral net?
A. ISP and TSPs may not block access to legal content, applications
or services
B. ISP & TSPs may not impair degrade any internet traffic on the
basis of content, applications or services
C. ISP & TSPs may not favour some lawful Internet traffic over other
lawful traffic in exchange for consideration of any kind—in other
words, no "fast lanes." This rule also bans ISPs from prioritising
content and services of their affiliates.
• All data is created equal
• No type of data is more or less equal than
others
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Why is it being talked about?
• What can you connect to?
• How fast can you connect to it?
• How much will it cost to connect?
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Source: http://yourstory.com/2015/04/about-net-neutrality-telcos-trai/

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

Why VoIP and Instant Messaging?
• Voice over Internet Protocol (VoIP) is the system of
delivery of voice communications and multimedia
sessions over internet protocol
• TSPs’ argue that VoIP is eating into traditional
voice revenues
• Instant Messaging (IM) offers real-time text
transmission over the internet
• Argument that IM cannibalises SMS revenues
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Example: Airtel Zero and
Internet.Org
• Allowing zero rated or free access to certain sites
or services unbalances the level playing field that
is the internet
• Airtel Zero and Internet.Org faced massive
criticism during launch. While Airtel Zero was
retracted, Internet.Org has launched with
Reliance as a partner.
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Global Situation
• USA: The Federal Communication Commission
ruled in favour of net neutrality in February 2015.
However, this scenario is under heated legal and
political debate. All ISPs were classified under
Title II classification allow common service rules
to be enforced
• Brazil: In 2014, a law was passes upholding
network neutrality and protecting the privacy of its
citizens
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Global Situation
• Israel: Passed a pro-network neutral law in 2011.
However, included exceptions for reasonable
network management
• Japan: Net neutrality is instituted in law through
the classification of ISPs as common carriers
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Indian Scenario -
A brief history
• In 2006, TRAI invited comments on the concept of
net neutrality.
• In February 2012, Airtel CEO, Sunil Bharti Mittal,
suggested that services like YouTube should pay
an interconnect charge to network operators. In
July same year, the company reiterated that large
Internet companies like Google and Facebook
should share their revenue with telecom
companies for allowing their services for free to the
users.
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On March 27, 2015, TRAI, published a 'Consultation Paper
on Regulatory Framework for Over-the-top (OTT) services'
consultation paper, which is a 117-page document
describing what net neutrality in India would mean and
how it'll impact the way we consume the Internet today.
On April 6, 2015, Airtel launched its open marketing
platform, Airtel Zero, aimed at offering free access only to
certain apps. The platform received flak for splitting the
Internet into paid and free where Internet companies pay
money to Airtel to allow users to get free Internet. While
Airtel has widely defended its platform for being akin to the
working of a toll-free number, where the caller doesn't pay
but the company which uses the marketing tool does.
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• April 2015
• AIB Video on net neutrality stressing on sending
• Flipkart pulled out of Airtel Zero
• Mark Zuckerberg stressed that Internet.Org did not
abuse net neutrality and was aimed at providing
access to those communities and places where
basic Internet is not available
• Cleartrip pulled out of Airtel Zero
• Cellular Operators Association of India (COAI)
reaffirmed support for net neutrality but strongly
pitched “net equality”

DoT Report on Net Neutrality
• VoIP: Licensing for domestic VoIP, no licensing
for international VoIP.
• Messaging and other apps: no licensing for
messaging, no licensing for regular apps
• Zero rating to be allowed on a case by case basis
by TRAI, with a deemed approval (in case the
TRAI doesn’t decide quickly enough). TRAI
should address complaints about Net Neutrality
violations on a case by case basis.

• Internet.org is bad because of collusion, content
companies cannot play gatekeeper
• Managed and enterprise services can be exempt
from Net Neutrality requirements
• Legitimate traffic management is allowed, but
shouldn’t be app specific. DPI to look at app and its
content is not.
• Interception of IP traffic: Security is paramount and
need to figure out how to intercept all traffic, need to
look at security issues via inter-ministerial
consultations. “National security is paramount,
regardless of treatment of net neutrality.

• Privacy is important but have to wait for a privacy
law
• Can include net neutrality clause in current laws
instead of creating a new law
• Search Neutrality issues are important, but we’ll
look at them later
• Not looking at Content Delivery Networks, which
are best left to be looked at under unfair trade
practices law

Costs
• Data is 1’s and 0’s
• Cost of transmitting 1GB video and 1GB text is the
same
• Wholesale price of Rs.30,000 per month for 2Mbps
specifically for small operators. For big operators,
the price is much lower.
• Telcos need to pay Rs. 5 per GB for net
downloaded on their network
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Costs - contd.
Average subscriber uses 688 MB of 3G data and 216 MB 2G data.
However, according to sources the profit for ISP/TSPs per GB works out to be Rs. 250.
The profit per MB =
250
—-——- = .244 = ~24 paise.
1024
Therefore the profit on 688 MB of 3G data =
0.244 x 688 = Rs. 167.9 per month, per GB, per subscriber
The profit on 2G data =
0.244 x 216 = Rs. 52.70 per month, per GB, per subscriber
The CAGR of gross revenue from data services for FY ’10 to FY ’13 is 8.66%.
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Existing regulations for internet
services
• Telegraph Act, 1885,
• Information Technology Act, 2000,
• Information Technology (Procedure and Safeguard for Interception,
Monitoring and Decryption of Information) Rules, 2009,
• Information Technology (Reasonable Security Practices and
Procedures and Sensitive Personal Data or Information) Rules,
2011,
• Section 91 of the Code of Criminal Procedure, 1973,
• Information Technology (Intermediary Guidelines) Rules, 2011
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Spectrum license regime &
Community ISPs
• Limited spectrum bandwidth available for civilian use
• The spectrum frequencies of 27MHz, 2.4 GHz and 5.8 GHz are
regarded as “free”
• The unlicensed spectrum has the huge potential of bridging the
digital divide and enable more individuals to come online.
• Provide access to internet in locations that do not have last mile
point-of-access connectivity provided by ISPs
• Similar to the model of community radio
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How does it affect the
common man?
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