On April 22 the
Indian telecom operators are preparing to recommend that changes are
required in the current telecom regulatory framework. Telecom operators
are concerned primarily because of the excessive use of internet leading
to congestion and bandwidth difficulties. 10% of mobile users actually
consume 90% of operators' bandwidth. Internet companies are not in favour
of regulation that could tilt the balance in favour of telecom operators,
but are advocating legislation to keep the internet open.
Media apps clearly
seem to be one of the few services that are earning large revenues for
the Internet companies, revenues coming mainly from advertising. In
India, with 4% broadband penetration, the challenges to be faced by the
broadcasting industry are yet to materialise. The India's active
Internet video subscribers (on mobile) in 2014 were 12 million, expected:
15 million by 2015.
Allowing
telecom operators to charge fees from content producers can result in
operators "competing" for content, by charging different fees for
different content providers. This could lead to a fragmentation-where certain
content would only be available on certain telecom operators, -and hence
multiple "internets".
Key
pointers :
.
The underlying idea of an open internet is that all
internet resources and the means to operate on it are easily accessible
to all.
.
The ability of smaller and start-up Apps to compete
with established Apps may be affected if they are unable to secure
access to specific telecom operators or afford access-tiering charges,
particularly if a Telecom Operators with market power reaches an
exclusive arrangement with
an
established App or where smaller Apps are unable to secure affordable access.
This may deter start-ups from joining the market.
.
There are concerns that telecom operators will
discriminate against certain types of content and political opinions.
This will hurt consumers and diminish innovation in apps and content
spaces.
.
Discriminatory pricing proposals can raise
anti-competitive concerns. Telecom players will favour their own
services, applications, and content and to kill competing services.
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