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1 Network Neutrality Disclosure: Elements of this presentation are adapted from the Digital Empowerment Foundation s submission on Network Neutrality to the Telecom Regulatory Authority of India This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
2 India Statistics 1.2 Billion People 650,000 Villages 250,000 6, Village Councils Blocks Districts Administrative Divisions Country
3 India s Digital Demographic Total Mobile Subscriptions = 899 Million Total Internet Users = 354 Million Urban Internet Users = 216 Million Rural Internet Users = 138 Million Total Mobile Internet Users = 213 Million Urban Mobile Internet Users = 160 Million Rural Mobile Internet Users = 53 Million Connecting the Unconnected Access for All
4 Summary of Recommendations There is no need to establish a regulatory framework for OTT services as the vibrancy and choice currently prevalent in the sector enables the freedom of choice for consumers. It also encourages the vibrancy mentioned earlier. Any communication services provided by OTT operators are not impacting the bottom line of ISP/TSPs. Data revenues are rising at a very high rate, Digital VAS, at an exponential rate and is expected to contribute to 23% of operators revenues by This market is expected to reach US$ 8 Billion by Low costs of cellular and data connections allows increasing numbers newlyconnected individuals to come online, increasing the population of the Digital Indian. Violations of net neutrality would hamper the proliferation of the internet in India and negatively impact the vision of the Digital India plan. Strong network neutrality guidelines promotes innovation and keeps entry barriers relatively lower. This has a positive impact on the thriving startup ecosystem in India.
5 The Principles of Net Neutrality All data is created equal No type of data is more or less equal than others A. ISP and TSPs may not block access to legal content, applications or services B. ISP & TSPs may not impair degrade any internet traffic on the basis of content, applications or services C. ISP & TSPs may not favour some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind in other words, no "fast lanes." This rule also bans ISPs from prioritising content and services of their affiliates.
6 Existing regulations for OTT Players Telegraph Act, 1885, Information Technology Act, 2000, Information Technology (Procedure and Safeguard for Interception, Monitoring and Decryption of Information) Rules, 2009, Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, Section 91 of the Code of Criminal Procedure, 1973, Information Technology (Intermediary Guidelines) Rules, 2011
7 Spectrum license regime & Community ISPs Limited spectrum bandwidth available for civilian use The spectrum frequencies of 27MHz, 2.4 GHz and 5.8 GHz are regarded as free The unlicensed spectrum has the huge potential of bridging the digital divide and enable more individuals to come online. Provide access to internet in locations that do not have last mile point-of-access connectivity provided by ISPs Similar to the model of community radio
8 In Practice Wireless for Communities - Guna In Guna, the Digital Empowerment Foundation has created a wireless network using the unlicensed frequencies. Taking internet access from more than 75 Kms away through the unlicensed frequency, our hope was to provide internet access to residents of Guna. However, the ISP we have our connection with, has been providing low quality internet access. Due to the intermittent access, the residents use the wireless network as an intranet to talk amongst themselves; exchanging information, songs, videos etc. The local hospital has also been connected through this network. This allows residents to talk to doctors and get medical assistance from them.
9 Costs Data is 1 s and 0 s Cost of transmitting 1GB video and 1GB text is the same Wholesale price of Rs.30,000 per month for 2Mbps specifically for small operators. For big operators, the price is much lower. Telcos need to pay Rs. 5 per GB for net downloaded on their network
10 Costs - contd. Average subscriber uses 688 MB of 3G data and 216 MB 2G data. However, according to sources the profit for ISP/TSPs per GB works out to be Rs The profit per MB = =.244 = ~24 paise Therefore the profit on 688 MB of 3G data = x 688 = Rs per month, per GB, per subscriber The profit on 2G data = x 216 = Rs per month, per GB, per subscriber The CAGR of gross revenue from data services for FY 10 to FY 13 is 8.66%.
11 Thank You Digital Empowerment Foundation 44, Kalu Sarai New Delhi Ph
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