Several years after TRAI embraced Net Neutrality as a fundamental principle for telecom networks in India, major players like Airtel, Jio, and Vi (Vodafone) are now advocating for the ability to act as gatekeepers and charge internet companies for utilizing their networks. In response to a consultation paper issued by TRAI in July, these telecom giants have argued that services such as Netflix and Amazon Prime place a strain on their infrastructure, necessitating the imposition of fees on tech companies for their services.
This issue came to the forefront when Nikhil Pahwa, who operates the MediaNama website and was a prominent advocate for Net Neutrality during previous debates when telecom companies and Facebook's Free Basics attempted to undermine the concept of free and open internet, drew attention to it. On Tuesday, Nikhil posted on X, "It's 2023, and I'm not sure if anyone still cares about #netneutrality in India, but Jio, Vi, and Airtel are challenging it. Don't take my word for it. Here are excerpts from their submissions to @TRAI (uploaded last night)."
He proceeded to share excerpts from letters sent by Jio, Vodafone, and Airtel to TRAI. These letters were sent in response to TRAI's paper titled "Regulatory Mechanism for Over-The-Top (OTT) Communication Services, and Selective Banning of OTT Services," which was released for consultation in July.
In their responses, both Jio and Airtel are pushing for a share of the revenue generated by internet companies that use their networks to deliver OTT services to users. They argue that users consume significant amounts of data provided by telecom operators to access websites and apps operated by these companies, thereby generating revenue for OTT services. However, telecom companies claim they do not receive a portion of this revenue.
In essence, the argument made by telecom companies mirrors their longstanding grievances against major tech firms. Nevertheless, their argument is somewhat flawed, as it resembles power companies demanding a share of revenue from TV and washing machine manufacturers solely because these appliances consume electricity.
Jio, in its response, suggests that payments to telecom companies should be determined by OTT players based on usage. Their submission to TRAI states, "The contribution by all OTTs will help restore a level playing field; and ensure all market players benefiting from the digital transformation make a fair and proportionate contribution towards digital infrastructure. Contribution of OTTs to network costs can be based on assessable criteria like volume of traffic, turnover threshold, number of users, and other criteria."
Airtel's argument follows similar lines. Airtel contends, "Given the large requirements for meeting the vision of digital India, large traffic originators that account for a disproportionate amount of these investments must contribute a fair share. This should be through a direct contribution to TSPs."
Following the consultations, TRAI is expected to make a decision on whether OTTs should be required to pay telecom companies. However, it's essential to note that OTTs such as Netflix and Prime are not the only services under scrutiny; telecom companies have previously advocated for tech companies to pay them for services like WhatsApp, Instagram, and YouTube.
While the idea of banning or controlling OTTs may resonate with telecom companies, advocacy groups supporting free and transparent internet access have deemed TRAI's consultation paper unnecessary. Recently, the Internet Freedom Foundation stated, "We understand TRAI's temptation to consider selective banning over complete internet shutdowns, but we reiterate our stance that there is inadequate evidence at the moment, and therefore no need, for creating a collaborative framework between OTT communication service providers and the licensed telecommunication service providers."
