Current Net Neutrality Issues

These days we are seeing lot of TV debates and reading so many reports on net neutrality. It is little difficult for an ordinary person to understand why it is so much important from his own point of view.

How the issue cropped-up ?

Recently, the US Federal Communications Commission ruled to repeal net-neutrality guidelines, which had suggested equal rights to the internet for all, and prevented broadband providers from favoring their own apps and services. Commission’s chairman Ajit Pai  said that the US government will "stop micromanaging the internet", from hereon.

What  is the concept of net neutrality?

It is a principle that says all data on the internet should be treated equally. Internet Providers should not artificially slow down or speed up any website or service, or put different price tags on different parts of the internet, to benefit one or more entities.

The world without net neutrality

If net neutrality will not be observed,  Internet Service Providers (ISPs) will demand fees from websites to treat different websites and services preferentially. This would make way for fast lanes and benefit big players, as they will only be in a position to negotiate better deals with ISPs.

 FCC Chairman Ajit Pai first released his proposal in May to undo the net neutrality rules, an unprecedented 22 million comments from the public have poured into the FCC, but the process has been mired by rather serious irregularities. Comments posted by dead people and bots were found, and the online submission system even suffered a suspicious cyberattack, which is currently being investigated by the US Government Accountability Office.

But none of that appears to be enough to deter Pai. He wrote in a Wall Street Journal op-ed on this Tuesday that his inspiration for gutting the rules comes from the desire to spur more investment in broadband infrastructure. He cites research that claims capital expenditure from internet providers has decreased 5.6 percent since 2014. But there are all kinds of reasons a business may decide to reduce spending or shift priorities, such as the contentious federal election season, pending mergers, and extreme weather.

And besides, Comcast, Verizon, and AT&T have all said on investor call that, since the recent net neutrality rules were issued, they’ve been investing more in network infrastructure. Pai may be hearing that there’s been a downward trend in investment following the network neutrality rules, but internet service provider investors may be getting a different story.

So Pai’s rationale is easy to poke holes in. It’s true that without net neutrality regulations, internet companies stand to make a lot more money, some of which very well could go into network improvement. But even if internet providers make more money and invest it in stronger networks, it’s the public that stands to lose the most. That’s because without network neutrality, ISPs won’t be legally prevented from creating a tiered internet where some sites will load faster than others. Comcast, for example, will be able to operate a two-way toll, collecting fees from both subscribers and websites trying to reach subscribers at faster speeds. And let’s face it: When one website loads slower than another, the immediate reaction is to navigate away to the faster loading page. The companies that are already successful and can afford the fast-lane prices will likely get to set the fee, giving them an even bigger advantage against a small startup or struggling local news operation.

The majority of the FCC is expected to vote to proceed with Chairman Pai’s proposal while two commissioners are expected to vote against it. In a recent interview with, one of those commissioners, Jessica Rosenworcel, called on the FCC to conduct public hearings across the country, since the public comment process has had numerous serious snafus since Pai’s proposal released, she says.

Pai  plans to release the full text of the new net neutrality proposal Wednesday. While it may seem like a dead-end road at this point, there are still a few alarms to sound to try to get the FCC to pull the brakes. For one, Americans can contact their elected representatives and urge them to write to the FCC or take action to protect network neutrality with strong legislation. Another would be to continue to comment to the FCC-even though the draft of the rule is out, the commission does continue to accept public comments.

Still, unless something seriously unforeseen happens to stall the process, by this time next year, the internet could be a very different place.

Indian Scene.

It is unlikely that India will be impacted by the US Federal Communications Commission's plan to repeal net neutrality regulations. Last year, India had adopted a pro-net neutrality stand by taking a tough call against zero-rated plans such as Facebook's Free Basics and Airtel Zero.

Infact, Telecom Regulatory Authority of India (TRAI) has already shown courage and conviction in battling any preferential treatment of internet websites, despite a massive campaign by big brothers like Facebook. TRAI has recently barred telecom service providers from charging differential rates for data services, effectively prohibiting Facebook’s Free Basics and Airtel Zero platform by Airtel in their current form.In nut shell :

	No service provider can offer or charge discriminatory tariffs for data services on the basis of content.
	No service provider shall enter into any arrangement, agreement or contract, by whatever name called, with any person, natural or legal, that the effect of discriminatory tariffs for data services being offered or charged by the service provider for the purpose of evading the prohibition in this regulation.
	Reduced tariff for accessing or providing emergency services, or at times of public emergency has been permitted.
	Financial disincentives for contravention of the regulation have also been specified
	TRAI may review these regulations after a period of two years.

TRAI also made a provision of a fine of Rs. 50,000 per day, subject to a maximum of Rs. 50 lakh, for any violation of these regulations by the service providers. An exemption, however, has been made for offering emergency services.

Interestingly, in India, the regulator and Facebook were at loggerheads over the issue with the authority terming the social networking giant’s attempt to lobby for its Free Basics initiative a “crude” attempt at turning the consultation over differential pricing of data services into an “orchestrated opinion poll” on Free Basics. Facebook had partnered with Reliance Communications in India to offer Free Basics service. However, the services were put in abeyance, post a TRAI order to this effect.

 So the current  regulations in India are  progressive in nature. They do not seek a middle ground but take a clear stand .