Net Neutrality

Net Neutrality

News: The debate around Net Neutrality has resurfaced in India, with the TRAI inviting a comprehensive consultation on the possible mechanisms for regulation of Over-The-Top (OTT) services.

What is Net Neutrality?
• Net Neutrality is a principle that states all traffic on the internet should be treated equally, without any discrimination by Telecommunication companies or Internet Service Providers. This means that service providers should not differentiate this service with different forms and categories of traffic on the internet.
• The term “Net Neutrality” was coined by Columbia University media law professor Tim Wu in 2003

What are the advantages of Net Neutrality?
• Equal Access: Net neutrality ensures that all internet users have equal access to online content and services, irrespective of their financial capacity or the prominence of websites.
• Free Expression: It preserves the freedom of speech and expression by preventing Internet Service Providers (ISPs) from censoring or limiting access to certain content.
• Innovation: Net neutrality promotes fair competition and innovation by providing a level playing field for all online entities. It prevents ISPs from favoring certain websites or services, which can be particularly beneficial for start-ups and niche websites.
• Consumer Protection: Net neutrality protects consumers by preventing ISPs from speeding up, slowing down, or charging higher fees for select online content.
• Boost to economic growth: It has enabled the growth and development of unicorn startups based on free and democratised internet. For example, India has witnessed the growth of over 100 unicorn startups due to net-neutrality.
• Employment Generation: Digital economy based on principle of Net Neutrality of internet has created employment opportunities in both formal and informal sectors. Example, Gig workers.
• Low Tariffs and Increasing internet penetration: Rural India has benefitted due to low tariffs and also contributed to higher internet penetration.

What are the challenges with Net Neutrality?
• Reduced Investment: Critics argue that net neutrality could deter investment in network infrastructure. If ISPs can’t charge more for certain services, they might not have the financial incentive to improve their networks. For example, financial strain on Indian network operators such as VodafoneIdea, Closure of TATA docomo, Aircel etc.
• Competition: Some believe that net neutrality may stifle competition. If all data is treated equally, ISPs might not be motivated to innovate or offer new services.
• Regulation: There are concerns that net neutrality imposes unnecessary regulations on ISPs, which could lead to bureaucratic inefficiencies.
• Net Neutrality isn’t necessary for Tech Evolution as critics argue that the internet developed amazingly well even in the absence of Net Neutrality. Example, Google, FB, Youtube etc grew before any regulations were placed.
• Allocation of Resources: Without the ability to prioritize traffic, ISPs may not be able to allocate resources effectively to the most needed users.
• Security and Privacy: Net neutrality could potentially impact internet security and user privacy. If all data must be treated equally, it might limit the ability of ISPs to manage security threats.
• Less availability of free vital services- Opponents of internet neutrality contend that more vital services (like online healthcare) could be made accessible for free if the companies that draw excess bandwidth (For example, the video streaming websites/OTTs) are charged extra for their heavy use.