As the ongoing debate on net neutrality in India has reached a fever pitch, telecom firms have stuck to their demands before the Government and the regulator. After pitching the telecom regulator for bringing the OTT players under the licence regime, almost all mobile operators - both private and State-owned companies - have decided to pursue their demands till the final decision comes from the regulator on this matter.
Confirming the issue, Videocon Telecom Chief Executive Officer (CEO) and Director told The Pioneer, “We support net neutrality very much for sake of common users, but we will pursue our demand till the Government takes a final call on the issue. Our demands before the Government and the regulator are also genuine and we stand by it. Whatever the decision they will take, we will abide by them as there is no option left for us. Almost all telecom players will keep doing their business without bothering their rules.”
However, sources privy to the development in the Department of Telecommunications (DoT) said “We have learnt the new law on net neutrality will come soon from the regulator. As far as licencing demand of telcos on OTTs is concerned, it is still in question whether they will come under licence regime or not. Besides, the lobby groups of Cellular Operators Association of India (COAI) are in regular touch with us and I hope better and feasible trading norms for them will come from the regulator.”
On the other hand, the Government is trying to resolve this issue amicably in consultation with the regulator, Telecom Regulatory Authority of India (TRAI) and telecom firms as well. Even keeping the issue of licencing in question for over-the-top (OTT) players such as apps like WhatsApp, Skype, the Government is still hopeful that new law on neutrality in India, which is yet to come from the regulator, will benefit all stake holders is some way or the other.
On Tuesday, IT & Telecom Minister Ravi Shankar Prasad, however said, “The Government stands for ensuring non-discriminatory access to internet for all citizens of the country. It is committed to the fundamental principles and concept of net neutrality, keeping the internet accessible and available to all without discrimination.”
On new law on net neutrality, a TRAI official said, “The new definition (India) on net neutrality will soon be in public domain. After the feedback from all stakeholders, including users, we are working on this issue. I hope, the regulator will reach up to everybody’s expectation soon.”
Almost all mobile operators have been voicing their support for the idea of net neutrality since the issue came to the fore, but imposition of any regulation on net neutrality is not warranted yet.
According to industry sources, telecom firms are very much concerned about their huge losses due to the fact that OTTs are costing them big bucks in some way or the other. “From Idea to Vodafone to Reliance to BSNl, every firm claims that the industry’s financial performance is far from healthy,” added the official.
They, however, claim that the industry has invested over Rs750,000 crore in setting up the networks, and needs to invest another Rs 500,000 crore over the next 5 years. “The pricing innovations such as zero rating, which will act as a catalyst in the widespread adoption of broadband services, should not be stopped in any manner. Therefore, OTTs or customers, someone has got to pay,” the official said.
Mobile operators recently also hinted with displeasure that if same rules are not to apply by the Government or regulator, then the industry can find the only way out to be viable by increasing existing data rate to 6-folds or the more to maintain a healthy balance sheet.
“If they are not offered a level playing field with Net-based services such as Skype and WhatApp then their businesses would be viable only by raising data prices by up to six times”, said Cellular Operators Association of India (COAI) Vice-Chairman and Bharti Airtel India Managing Director Gopal Vittal, adding that they want to protect their perspective investors and any mobile operator would not let their investors to go away for some reason or the other.
According to Vodafone’s submission to TRAI, net neutrality is not suitable for India. “Net neutrality is a US concept that has been exported to India; unlike the US, however, Indian consumers have a wide range of operators to choose from and the freedom to switch to another operator while retaining their mobile number,” said a top official Vodafone on condition of anonymity.
Right now, Canada, South Africa and the United States are the only countries that offer full number portability transfers between both fixed lines and mobile phone lines.