Flipkart quits Airtel Zero in support of Net Neutrality

Activist Backlash made Flipkart pull out from the scheme

'We at Flipkart has always strongly believed in the concept of net neutrality, for we exist because of the internet' - Flipkart.

Airtel, the leading Indian Telecom company, started a scheme 'Airtel Zero' which made way for the website to have preferential treatment but for a fee. It promised free consumer browsing and special promotion campaigns for companies which subscribed to the plan. But net neutrality envisages that all data and websites should be treated equally and charged equally.

Severe social media criticism and downgrading of its rating app stores has persuaded Flipkart to pull out of Airtel Zero. 

See also: TRAI's consultation paper on Over-the-top (OTT) service

Net Neutrality:

The term net neutrality was coined by Columbia University professor Tim Wu in 2003. It is the principle that mobile operators, internet service providers and governments should not discriminate on data access on the Internet. A service provider, for instance, should not offer a higher access speed to a website on the basis of a higher payment by that website.

Internet Companies response:

Most internet companies and startups denounced the zero-rating deal of the telecom operators. Zero-rating is against net-neutrality.

Paytm founder and CEO Vijay Shekar Sharma said telecom players are national utilities and not a marketing platform to run such a programme when asked about Zero-Ratings.

'Telecom infrastructure must be a open ecosystem...'

Internet has disrupted the world of business like no other technology in the world. With penetration of Internet, the growth of online entrepreneurship has grown many fold. The Technology has paved way for smaller startup to setup its market. 

'By rejecting the net neutrality, we'll be shutting the door on the entrepreneurial aspirations of millions' - Ritesh Agarwal, CEO of Oyo Rooms.

Net Neutrality is essential to maintain free and competitive market. As the regulatory framework for net neutrality is unclear and equivocal, the telecom companies are trying to make a dent into the market with sponsored contents from publishers for a fee. While the Zero-rating is an innovation in Indian telecom business, yet it hampers the free and competitive internet. It may lead to few choice to the consumers considering the preferential treatment for few websites.

However, Rajan S Mathews, Director General, Cellular Operations Association of India (COAI) said a distinction must be made between zero rating and net neutrality. He said telecom operators are not violating any terms and conditions that came attached with spectrum. They are waiting for TRAI framework on net neutrality and find a way out of problems.

As usual, Telecom companies will find its way to circumvent rules and laws once TRAI defines a framework for net neutrality. 

Net Neutrality Law:

Chile was the first country to introduce Net Neutrality law in 2010. It was a popular movement by Neutralidad Si. In 2014, Chile Telecom regulator banned mobile operators from zero-rating websites.

It was followed by Netherlands in the year 2011. The footsteps were followed by Belguim, France, Solvenia. Later, European Union (EU) adopted laws passed by the Netherlands which now provides uniform net neutrality law. Zero-rating has been banned in EU. 

In 2014, Brazil followed the footstep and enacted law principled at net neutrality. It states all data transmissions must be treated equally.

Later, USA's Federal Communications Commission laid down new rules on net neutrality. At&t, Verizon and Comcast are not allowed to block lawful contents, slow down applications or services, or accept fees for favorable treatment.

SaveTheInternet:

In India, in response to consultation paper from TRAI, Indian Telecom Regulator, SaveTheInternet to uphold net neutrality in India.