Nowadays there is a debate on “Net Neutrality” between Internet Service Providers (ISPs), telecom operators, regulatory bodies and content providers who are also referred to as OTT (Over The Top) players.
Net Neutrality is defined as the principle that all internet traffic has to be treated equally by ISPs, irrespective of content, sender, recipient, device or platform of data consumption.
It also says that ISPs cannot adopt a differential pricing strategy to its subscribers and that all subscribers should be treated equally by the ISPs in terms of quality of services provided by them.
I hold the view that ISPs should be allowed to adopt differential pricing in a scenario where there is scarcity of spectrum which leads to network congestion. Especially when spectrum is auctioned at very high prices because it is a finite resource. Let’s equate the ISPs to a courier service provider. The courier service provider delivers shipment in an express mode by charging higher to the consumers. Whereas shipments of consumers, who pay regular ordinary charges, are delivered through normal mode. Or for that matter when one books a Tatkal ticket he is charged more to jump the waiting list.
Similarly ISPs should be allowed to adopt differential pricing based on quality and speed of services provided to the consumer.
On the other hand I agree that Net Neutrality has to be enforced to ensure that all internet traffic is treated equally irrespective of content, sender, recipient, device or platform of data consumption, which I believe have no relation with the quality of services provided by the ISPs.
Even the demand of telecom operators for a revenue share from OTT players is unjustified. There is no logic in that. It’s like the ISP asking an e-commerce portal to share its revenue from the sales done to an online shopper!! The shopper is buying products, services or content from a particular website because of the offerings made by that website which has no relation with the quality of service provided by an ISP.
Vishal Desai
Faculty
Vishal Desai is a permanent faculty member at DGMCMS. He is an alumnus of Narsee Monjee Institute of Management Studies, Mumbai. He has experience of 12 years in marketing, sales, product management and key accounts management at key positions in leading entertainment companies like Zapak Digital Entertainment Ltd. (Reliance Entertainment), Shemaroo Entertainment Ltd. and Milestone Interactive Group. He has managed mega entertainment brands like Slumdog Millionaire, Dhamaal, Chandni Chowk To China, Bal Ganesh, Spiderman, Batman and many more.
