Debate shifts from net neutrality to differential pricing! But aren't they highly co-related?

Over the past several months, we’ve read a lot on net neutrality, the freedom of choice and Free Basics. So what exactly was the debate around, you wonder? To be specific, it’s around the right to expression we are left with. Last year was revolutionary in the Indian Internet space. Finally, netizens had a voice, and we were being heard! It all began when Airtel Zero, an open marketing platform that allows customers to access some mobile apps for free with data charges being paid by the firms offering them, popped its ugly head. While Airtel still fights for the zero plan and clearly calls it a way to combat its revenue-eater, Facebook decided to play the ’noble’ card and called its such similar platform Internet.org aka Free Basics a means to connect billions.  Here’s the problem – some apps will be made available for free, while others who do not get on to these schemes or don’t have the money to will be left behind. Facebook on the other hand now calls its platform open (which can be a debate by itself), but we don’t want people believing Internet is Facebook, do we now? So, the past half year has kept telcos, Internet companies, regulatory body and many free online thinkers busy with this debate, among other things. Now, Trai seems to be taking its own course at tackling, whatever it plans to. It began with Trai floating a consultation paper seeking views if differential pricing should be allowed, amidst the whole net neutrality debate. The regulator wanted to know what steps should be taken to ensure principles of non-discrimination, affordable Internet access, competition and so on if differential pricing is allowed. After some media coverage connecting differential pricing to net neutrality, Trai quickly put out a statement saying the paper issued is not on net neutrality, but on a specific matter about differential pricing. “Effectively what has happened is that telecom companies in a way are creating a differential pricing regime for different websites, so that is the question which we have asked in the consultation paper whether it is appropriate or not,” Trai Chairman RS Sharma had said. After spending almost half of last year debating over net neutrality in India, the focus slowly seems to be shifting on the differential pricing. Now, isn’t differential pricing essentially a part of the overall net neutrality debate? But that just stays non contextual here because Trai wants to only emphasis on differential pricing and nothing other than that. In fact, IAMAI has also clearly said that different pricing models mentioned in the consultation paper of Telecom Regulatory Authority of India (Trai) are not only violating the core principles of Trai’s pricing regulation but also the principles of net neutrality. Surprisingly, industry body IAMAI members include Facebook, Google, Twitter, and other Internet companies. [caption id=“attachment_225837” align=“aligncenter” width=“640”]  Image: Reuters[/caption] But isn’t Facebook among the ones supporting differential pricing? Yes, it is. Telcos have written to Trai, explaining differential pricing is essential for promoting innovation and growth of data services, and find support from Facebook. While most voices out there, from startups to netizens, are against differential pricing, telcos have found support from Facebook. “The short answer is yes. Differential pricing, as the term is used in the consultation paper, should generally continue to be allowed,” Facebook said in its comments submitted to telecom regulator TRAI. As counter comments, “This consultation is examining the issue of Differential Pricing for Data Services. At the very outset, it must be said that the vague responses and claims made by Telcos with regard to ‘Level Playing Field’ are irrelevant to this question and can be ignored,” Rajeev Chandrasekhar, who has been quite vocal about net neutrality said. SFLC.in (Software Freedom Law Centre, India) - a not-for-profit legal services organization that works to protect civil liberties in the digital space has filed counter comments stating how Internet cannot be treated like cable television. “Regulator’s job is not to save old and dying business models but keep anti-competitive and other misbehaviour by players in check. Differential Pricing as proposed by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs) to split the Internet into various slices and to price them separately violates their license agreements to provide Internet access,” it states among other things. Meanwhile, PMO has also decided to step into the ongoing discussion over differential pricing with Digital India being its pet project and wants to ensure what would work best to get the ball rolling faster in the digital space. Now, differential pricing means, different prices for different content aka apps, which violates net neutrality. So, differential pricing and net neutrality don’t go hand-in-hand. And, we can say the same about Free Basics or any other similar platform. Differential pricing won’t just change the way we’ve always used Internet, but blatantly unfair and discriminating. After all, companies such as Facebook were born out of the neutral nature of Internet. It isn’t very difficult to decipher that net neutrality and differential pricing are co-related. On the brighter side, if differential pricing isn’t given a go-ahead, will other similar policies (read Free Basics) be booted out of the country? Only time will tell.