Telecom companies want net neutrality and zero rating to co-exist

They seek licensing for OTTs offering communications services and threaten to increase internet charges by six times

Pratap Vikram Singh | April 24, 2015


#net neutrality   #internet   #telecom operators   #zero rate  

Affirming their support ‘net neutrality’ in a circuitous manner, the telecom operators continue to defend zero rating practice. As the pressure over net neutrality builds up the operators on Friday came out with their version of demands and urged the government to bring the VOIP service providers under the licensing regime, demanding “one rule for same type of services”.

“If same rules were not to apply then the only way this industry could be viable is when the data charge go up by six times of what is now,” said Airtel CEO Gopal Vittal on Friday. He was speaking at a conference organized by Cellular Operators Association of India (COAI), industry body representing telecom operators, manufacturers.
 
Vittal cited an example of the US, where voice and data are bundled together and are not charged separately. “[In US] whether you make a voice call or a VOIP call it really doesn’t matter. But the rate of data starts at $30 a gigabit. The rate of data here is 25 paise per megabit, which is less than $ 3.5 dollar per gigabit—one six of what it is in the US,” Vittal said. He said this will have adverse impact as a lot of users will stop using the internet.

“We are the ones who make 99 percent of the investment, build large infrastructure. For us to be able to get return from the investment the obvious way out is to charge the customer,” said Himanshu Kapania, MD, Idea Cellular Ltd, adding that with one billion users, this may not be a right proposition. 

The telcos also defended zero rating practice.  “In many countries net neutrality and zero rating coexist as it helps more customers to get on to the internet,” Kapania said.
 
On licensing of OTTs, Vittal said, “we don’t want licensing for OTT world. It gives us road for mobile internet. All we are saying is that when it comes to communications services everyone should be subjected to same rules. We have to meet security obligations, pay license fee and taxes, and contribute (five percent of revenue) to rural infrastructure development fund.” “This artificial arbitrage created by different rules is going to lead to situation where investments are going to get compromised or the data prices are going to go up,” he said.

“The industry estimates the country would need an additional capital outlay of over Rs 5,00,000 crores over the next 10 years in spectrum, new technology, equipment, towers, optical fibre backbone to meet the PM’s vision of Digital India, and connect 1 billion Indians to the exciting world of internet. The need of the hour, therefore, is to have a sustainable industry that has the ability to invest in growth of data services and connectivity to all,” the association said in a statement.

The government, hence, must provide for “pricing flexibility” – in terms of offering toll free access to certain websites and paid access for others – the industry body indicated.

 “Only then can our citizens in rural India, or from a lower economic strata, be empowered through internet access,” the COAI said.

“A customer should be free to choose the device, technology and access platform – paid or subsidized as long as the Internet is always open in terms of access in a non-discriminatory manner,” the telcos body said.

In response to ‘savetheinternet.in’, the telcos body announced ‘Sabka Internet, Sabka Vikas’, to “connect the 1 billion unconnected citizens of India”. Under this initiative, the COAI has urged customers to give a missed call on 18002706899 to support the idea of ‘affordable internet for all’.

Comments

 

Other News

MDR on UPI: Can sustainability come without weakening the network?

The extraordinary transaction volumes and value (₹29.82 Lakh crore in August 2026 alone) of the Unified Payments Interface (UPI) have made it not only an Indian success story, but a global one. In 2024, UPI accounted for nearly 49% of the world’s real-time payment transaction volume, with more th

The Xi-Trump summit: The unending rivalry

Diplomacy is akin to an art, wherein the summitry, conflict resolution and negotiations form apt constituents of the entire context of deal making and “playing for keeps” in the international arena. The Xi-Trump summit in Washington last week, in which the American president broke all conside

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Import duty on major edible oils cut

The government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.  

From pyramid to platform: BRICS agenda for Global South

In his opening address at the 18th BRICS Summit in New Delhi on September 12, prime minister Narendra Modi did something India`s diplomacy has been building towards for three years: he moved the ‘Voice of the Global South’ from a slogan to a work plan. Addressing the leaders, he argued that t

How to realise the full transformative potential of PM-JAY

The Pradhan Mantri Jan Arogya Yojana (PM-JAY), a welfare scheme which covers approximately 45 crore beneficiaries across India, provides cashless health cover of Rs. 5 lakh per family per year. It is the largest health insurance scheme which helped crores of poor families by reducing out-of-pocket expend

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter