Re: Airtel wants to pierce net neutrality, charges more for VoIP

We have 4-5 odd service providers per circle, and at a time there were 7-8.
Competition played a crucial role in keeping telecom prices in check and
bringing them down, over the last decade. However, the 4-5 service
providers have kind-of settled into their niches (how so ever vast or
wide), and you hardly see any movers-n-shakers in the competitions as far
as pricing is concerned. The price changes are highly cartelized, and it is
functioning like a typical oligarchy. One operator announces a price change
and others follow. Of late, most of the changes have been removal of
promotional tariffs, removing discounts, increasing fares. Adding Reliance
Jio to the mix is expected to cause some shakeout, and we already saw some
effect of that with Airtel pricing 4G-LTE data at price-points
same-as/lower than 3G. However, it is a matter of time before things settle
back. For something that is dependent on limited resource (RF spectrum),
there is a limit to how many competitors you can finally have. So,
competition alone - is not going to be beneficial for consumers. We do need
pro net-neutrality regulations as well.

On the question of net neutrality, and inferior quality internet services
-- that is a bogey as good or bad as any other. For a moment, let us go
back 5 years in time when many operators introduced 3G and video
(technologies like H.324/M which gave fairly usable quality of video
conversation and conferencing)... what was the uptake ? What was the
revenue that operators were making through ill-conceived and ill-priced
offerings ? What chunk of that revenue has been eroded by Skype ?

Finally, I have no idea how net-neutrality is a backdoor effort to bring
more government interference ? I've not doubt that Govt would love to get
it's finger on every internet user's pulse (wiretap) and have a kill-switch
handy !! IMHO, net-neturality does exactly the opposite. Net neutrality
federates the ability and intelligence to have meaningful communication...
highly decentralizing it... technology and business-model wise.



On Mon, Dec 29, 2014 at 3:10 AM, Ratnendra Pandey <[email protected]>
wrote:

> We  should allow Airtel to charge for VOIP or streaming if market would
> let it do so.  And we should also allow consumers to choose a provider with
> whom they agree on charges and service levels. This will bring more profits
> into the industry which will be then followed by more suppliers trying to
> take a share out of that profit.   The consumers best bet is a strong
> competition providers, a  market in which suppliers are fighting like cats
> and dogs for business from consumers.
>
>   The problem is VOIP is prohibited in India ( My knowledge of Indian
> telecom my be outdated. I would like to be excused and corrected if the
> facts have changed).  The consumers will immensely benefit if we have free
> competition among providers and consumer use their purchasing power and
> market knowledge to  pick the right services. These kind of disputes will
> disappear if the market is freed and innovation is allowed in product and
> services.
>
> Some have suggested net-neutrality. All the talk of net-neutrality is a
> backdoor effort to bring more government interference into already
> substandard internet/telecom market in India. We may like to talk of fancy
> words like net-neutrality and what not. But, I think the focus should be on
> making high quality internet available to anyone who is willing to pay
> market price for it.
>
>
> If I have to make a choice between net-neutrality and net-availability.
> Net-availability will be my choice.  I do not want an inferior internet
> that net-neutrality will bring.
>
> Instead suggesting more restrictions on Airtel, why do we not petition for
> opening markets and removing legal barriers on commercialization of any
> technology?
>
> Sincerely,
> Ratnendra Pandey
>
>
>
>
>
>
>
>
> ------------------------------
> Date: Sat, 27 Dec 2014 06:40:24 +0530
> From: [email protected]
> To: [email protected]
> CC: [email protected]
> Subject: Re: [india-gii] Airtel wants to pierce net neutrality, charges
> more for VoIP
>
>
> Is anyone aware of any organised response / reaction to this issue? The
> line silence is deafening
>
> On Thu, Dec 25, 2014 at 10:51 PM, Srini RamaKrishnan <[email protected]>
> wrote:
>
> Airtel to charge up to 16 times* the standard data rate for using
> Skype and other VoIP services
>
> Airtel seems to be implying that this move has TRAI sanction.
>
> *per rate mentioned in other newspapers
>
> --
>
> Airtel wants you to pay extra for using Skype, Viber, more
>
> If you use services like Skype or Viber to make calls over Airtel's
> mobile data network, be prepared to pay extra. Yes, we know you
> already pay Airtel for for that data. Doesn't matter. Airtel has added
> this line to the terms and conditions of its 2G and 3G data plans:
> "All Internet/data packs or plans (through which customer can avail
> discounted rate) shall only be valid for internet browsing and will
> exclude VoIP (Both incoming/ Outgoing). VoIP over data connectivity
> would be charged at standard data rates of 4p / 10 KB (3G service) and
> 10p / 10 KB (2G service)."
>
> VoIP, or Voice over IP, simply means voice data that is tranferred
> over the internet. The next time you're shooting the breeze on Viber,
> Skype or Google Hangouts on your phone, keep in mind that Airtel will
> charge you you even if you're already paying for that data.
>
> Airtel's move flies in the face of net neutrality, which is a hot
> topic round the globe. In the United States, for instance, there is a
> proposal to provide "fast lanes" for data intensive video-streaming
> services like Netflix and Hulu. Simply put, internet services
> providers want to charge these companies extra for carrying their bits
> to the consumer, even though the consumers are already paying the
> service providers for internet access in the first place. Last month,
> President Barack Obama came out strongly in support of net neutrality
> by saying that "a free and open internet was as critical to Americans'
> lives as electricity and telephone service and should be regulated
> like those utilities to protect consumers."
>
> The timing of this move isn't surprising. Whatsapp, which has wiped
> off a large part of SMS revenues for mobile service providers in
> India, has long been rumoured to introduce voice-calling over data.
> Indians already pay some of the lowest rates in the world for voice
> calls and carriers like Airtel are afraid that once people start using
> data to make voice calls, these revenues will be wiped out as well.
>
> Indeed, in August, the Telecom Regulation Authority of India (TRAI)
> had quashed a proposal from Indian telecom companies to charge
> over-the-top players like Whatsapp and Viber extra "connectivity
> charges." TRAI stated that telcos could make up for the lost revenue
> with the increase in mobile data usage.
>
> In a statement to Hindustan Times, an Airtel spokesperson said: "We
> have made some revisions in the composition of our data packs, and
> will offer VoIP (Voice over internet protocol) connectivity through an
> independent pack that will be launched shortly. Our customers can
> continue enjoying voice calls over data connectivity by opting for
> this VoIP pack, or simply use VoIP services on pay-as-you-go basis."
>
> Which basically means this: unless you buy a seperate VoIP pack,
> you'll be charged extra for making calls using Skype, Viber and other
> services. If you don't think net neutrality is something to lose sleep
> over yet, think about this: If it's VoIP today, operators might start
> charging you extra to stream YouTube or use a music service like Saavn
> tomorrow. It is not immediately clear if other operators will follow
> Airtel's move.
>
> http://www.hindustantimes.com/StoryPage/Print/1300013.aspx
> © Copyright © 2013 HT Media Limited. All Rights Reserved.
>
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-- 
regards,
Banibrata
http://www.linkedin.com/in/bdutta
http://twitter.com/edgeliving

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