A TELCO DOUBLE DIP ATTEMPT THAT THREATENS NET NEUTRALITY\

Topic: GS3 – Net neutrality.

Context:

• The article discusses the Telecom Regulatory Authority of India’s (TRAI) consultation on regulating Over-The-Top (OTT) services and argues against telecom companies’ demands for OTT platforms to share bandwidth costs, emphasizing the importance of preserving net neutrality for an open and fair Internet.

Why telecom companies’ demand to regulate OTT services is flawed

• Telecom companies argue that OTT services should share in the costs of bandwidth because they are free riders,benefiting from the infrastructure built and maintained by the telecom companies.
• This argument is fundamentally flawed and sets a dangerous precedent that undermines the principle of net neutrality.
• Telecom companies do not own the Internet.Consumers pay the telcos for access services by purchasing data plans.
• OTT platforms generate demand for Internet access and they also pay for the content delivery networks (CDNs) to create pathways that substantially augment the capacity of the internet to deliver their content.
• Telecom companies should increase their prices to cover costs,rather than seeking cross-subsidies from OTT services.
• OTT services compete in their own market on the basis of variety and quality of content,the quality of streaming, ease in navigation and discovery of content, and its availability on multiple devices.
• The attempt of telcos to double dip by charging both consumers and content providers is not only avaricious but also undermines net neutrality.
• If OTT platforms were to acquiesce to the demands of the telcos,the incurred costs would trickle down to subscribers, either through increased subscription fees or degraded service quality for those platforms unwilling or unable to pay the toll.

What is net neutrality?

• Net neutrality is the principle that Internet access providers must treat all traffic originating from and terminating to the Internet in the same way.
• Net neutrality is important for innovation,competition, and consumer welfare.
• Many countries have adopted net neutrality,including India.