Telecom & the Connected Economy
Net Neutrality
The principle that internet providers should treat all online traffic equally, the economic arguments for and against, and India's strong net neutrality rules.
Net neutrality is the principle that internet service providers should treat all data equally, without blocking, slowing down or charging differently for particular websites, apps or services.
The debate
Supporters of net neutrality argue:
- It keeps the internet open, letting new start-ups compete with established companies on equal terms.
- Without it, providers could favour their own services or charge websites for faster access, disadvantaging smaller players.
- It protects free expression and access to information.
Critics argue:
- Providers should be able to manage traffic and offer different service levels, like faster lanes for video.
- Charging heavy users or content companies could fund network investment.
- Some deals, like free access to certain apps, can bring people online who could not otherwise afford data.
Zero-rating and Free Basics
Zero-rating means offering access to certain websites or apps without counting it against a user’s data allowance. In 2015, Facebook promoted Free Basics in India, offering free access to a limited set of websites through a partner operator. Critics argued it would create a two-tier internet, where poor users experienced only services chosen by Facebook.
India’s decision
In February 2016, the Telecom Regulatory Authority of India banned discriminatory tariffs for data based on content, effectively banning Free Basics. In 2018, the government approved strong net neutrality rules based on TRAI’s recommendations, prohibiting providers from blocking, throttling or giving preferential treatment to content, with limited exceptions for specialised services.
Elsewhere
The United States has changed its net neutrality rules several times. The European Union has open internet rules protecting net neutrality.
Two start-ups launch competing music apps. If internet providers can charge for faster delivery, the better-funded start-up pays for a fast lane, and its app loads faster. Users choose it for speed, not quality. Net neutrality aims to ensure both apps reach users on equal terms, so the better product can win.
Free access to selected apps can help people get online, but it can also steer users toward particular services and disadvantage competitors. India decided the risks of a two-tier internet outweighed the benefits.
- Net neutrality means treating all internet traffic equally.
- Supporters say it keeps the internet open and fair for start-ups.
- India's TRAI banned discriminatory data tariffs in 2016, ending Free Basics.
- India adopted strong net neutrality rules in 2018.
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