What is net neutrality? The ability to access internet services without any discrimination between the services, thus giving the ultimate power to the consumer. Earlier this year, there was massive outcry during the net neutrality saga over platforms like Flipkart signing up on Airtel zero. It was assumed that the chapter had ended there.

However a new tale has apparently begun. Telephone Regularity Authority of India (TRAI) has once again asked for views on free mobile data latest by Dec 30th and counter views by January 7th whether free data plans are in violation of net neutrality.

Let’s try to analyse both sides of the argument. Why do telecom companies feel that plans like internet.org are the way forward? One simple way to understand is that it will give them a sense of control over which site is visited, thus shifting the power of choice from consumers to operators. But behind it is a deep sense of revenue. The rates for voice calling in India is the lowest in the world and data is primarily seen as the engine of growth. (This segment is expected to see lot of action with the much anticipated entry of Reliance Jio. ). As mobile phones are increasingly becoming the primary medium of internet access, mobile operators see this as the mode to change their dipping fortunes.

In the recent past, mobile operators have started charging higher data rates for services like Whatsapp and Skype. Is it not in some ways against the very principle of net neutrality? In effect, data companies are directly discriminating against these apps and discouraging the users. Now imagine the ability to access some apps for free, and that too in a price sensitive market like India, will lead to a scenario where consumers are no longer important. Instead, service providers will determine the rules of access.

The result: Big pocket businesses like Flipkart will start spending enormous amounts on getting these premier slots, and smaller ecommerce start-ups will perish. Thus, ventures like Airtel zero and internet.org have the potential to kill the tech startup revolution in the country.

A counter suggestion has been provided by TRAI, suggesting what if the company pays all the operators and not any one like internet.org. But just think for a second, does it not sound absurd? It is almost like TRAI suggesting, forget net neutrality- this is the future. Can a small startup afford to compete with biggies in such an atmosphere?

If we look at the startup boom in our country and compare it on a maturity level, we are somewhere at point A. In the event net neutrality becomes a reality, we will jump to point B in almost no time. I have made the below graphic to illustrate the same. Without net neutrality, the region marked “The Lost Potential” will indeed be lost forever. The startup boom will come to a premature halt.

Net Neutrality

A pictorial representation using lifecycle graph about impact on startups in the absence of net neutrality.

Just think what will happen when India’s entrepreneurial innovators are able to create great global companies without leaving their country. They will change the world. Hundreds of large firms focused on the Internet will be founded and will succeed by focusing purely on Indian consumers, Indian taste, Indian style, Indian sports. Can anyone of those companies ultimately become the next Google? Of course. – Eric Schmidt , Executive Chairman, Alphabet

Are we ready to kill these yet unborn start-ups and potential Google in the pretext of providing free internet? Access to free internet will undoubtedly create some new ventures but kill far more. It is almost like saying nuclear weapons are good because nuclear energy can also be used for peaceful purposes. In a similar way internet is probably the greatest asset as long as it creates a level playing ground. Besides, a website / app is probably the most cost effective way to start providing a new product or service. Is this the price for digital India that entrepreneurs have to pay?

The Snapdeal app might have been uninstalled by many users in the wake of the recent Amir Khan controversy, but there is a lot to admire about their stand on net neutrality.

Snapdeal exists as it grew up in a net neutral environment – Kunal Bahl , Founder & CEO

We can only hope other ventures can learn a thing or two from Snapdeal on how to respect and let the ecosystem flourish.

Are we ready to let service providers decide, which app or website to visit ? Are we, seriously ?

Tags:

You might like reading:

The Pre MBA Jitters!

The clock in my Macbook reads Mon 2.03AM. It is seven days to go before I start school at a prestigious B-school (NMIMS Mumbai) of India. What keeps me up so late is not the last week movie watching chronicles with extended family or crazy night outs with friends, it is the pre MBA assignments we were sent via mail […]

0 comments

Deciding the right equity stocks for your portfolio

Equity as an asset class is known to give the highest returns among other asset classes such as bonds and derivatives. In fact, it can be considered as an inflation hedge as if the price of commodities increase it will be matched with higher sales thereby implying significantly higher cash flows. Equity investments also provide one the benefits of  capital […]

0 comments
0 0 votes
Article Rating
Subscribe
Notify of
2 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Nikita Sharma

Interesting viewpoint

Follow us

©2010-2023 IdeasMakeMarket.com |Contact Us | T&C | Privacy Policy

 

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

or    

Forgot your details?

Create Account