Ans1:
Economics suggests that once you have granted someone a monopoly over a resource- as the government has done via its auction of the spectrum- you can’t question the owner’s right to do what he or she wants to
with that monopoly. However, the catch here is that even according to Article 19(1)(g) of the Constitution, which allows everyone to carry on a trade or business in whatever way he or she likes, reasonable restrictions can be applied. As net neutrality is in the interest of the freedom of choice of Indian netizens, reasonable restrictions can and should be applied.
What economics and politics suggest about net neutrality:
Economics-
1. As the Telecom service providers (TSPs) have paid heavy charges for spectrum via auctions, they are legal owners of it and are free to do whatever they like
2. TSPs are getting no share of revenue from Over-the-Top Service providers (like Facebook, Skype etc.) even though OTTs are using their network to operate and profit from
3. There will be no economic incentive for TSPs to expand their networks without a cut of profits from OTTs
4. OTTs are neither licensed, nor regulated, thus making it unfair for TSPs who not only have to pay heavy spectrum charges but also follow strict regulations
Politics-
1. In a recent survey, 77% citizens want govt. to protect net neutrality.
2. The internet has been declared to be a public utility by the US FCC and there are demands for the TRAI to do the same
3. Choosing what to and what not to access on the internet should be the users’ choice- not the TSP’s.
4. Moving away from net neutrality will cause balkanization of the internet and will stifle local entrepreneurship,
innovation and open learning.
5. An open internet will encourage transparency and accountability among authorities and increases the democratic space available to citizens to have their grievances redressed.
However, there are economic considerations as well that would support net neutrality. For example, letting TSPs bypass net neutrality will give them perverse incentives to not expand network so as to make
bandwidth an even more valuable resource. It will also stifle the little TSP competition that currently exists. A free and open internet promotes speech, innovation, entrepreneurship and the spread of ideas. The guise of economics will not cover TSPs for long as they are free to charge whatever they want for data services but still choose to keep charges in India lower than the global average. Thus, economically, politically and ethically net neutrality is non-negotiable.
Ans2:
The Hint of answer to everyday debated politico-economic dichotomy over the net neutrality can be traced from the story of origin of internet. The forefather of WWW brought into existence their brainchild, to proliferate, expand and cross the boundaries of nations to reach into every nook and corners of world. But with changing global internet dynamics we need to see the issue in the current context,to arrive at the informed opinion.
The concept of treating all data equally on internet in the basic theme of Net neutrality which is in the conflict with return on investment principle of Economics. As the private service providers, purchase spectrum and create infrastructure as long term investment to earn profit, they see over the top services such as Skpe, whatsapp with raised eyebrow assuming them as eating out their share of profit. They calculate in terms of opportunity cost of losing revenue from calls and SMS from these platforms. They also complain about having insufficient infrastructure to accommodate huge data coming from of these platforms. But their claims of losing revenue, insufficient infrastructure be seen in the context that they charge from users for every packet of data being use and infrastructure is a must to be in the business. The assumption of losing revenue on Calls and SMSs, is faulty as customer overuse these services as they cheaper.
The political advocacy net neutrality shall be seen in the context that is shall on occur on the expense of economic. No doubt net neutrality has provided a unique free platform for start up entrepreneurs to scale upto the height of facebook, skpe, flipcart etc. It has equally opened the gateway of information, knowledge for both a beggar and a billionaire. For The freedom of expression advocated it is a kindergarten. Thus is a virtual platform for liberty, equality and fraternity. But economic consideration shall also be given due consideration and it shall be make sure that investors do not occur losses on their investment, setting apart their greed of profits.
The dilution of net neutrality if permitted, may lead to Balkanisation of internet, creating monopoly of few, giving access to privileged and shutting down the gateway for enterprenuers, with corporate houses a gatekeeper, asking for a toll for each entry. It will lead to colonization of liberal free state, making it slave and exploit it for its vested interests. Its time we all raise our voice for our rightful share on internet.
Ans3:
Net Neutrality suggest that all internet based sites and services should be treated equally without any differences in speed and cost of access.
Economists and Net Service Providers retaliation to Net Neutrality lies on the ground of monopoly which they buyed through auction of spectrum and thus posses the right to govern telecom to earn their profits. Economics advocated these argument, underlining article 19(1)(g) to safeguard the interest of NSP.
But governments step to auction spectrum aimed not to create monopoly in telecom sector but to bring efficiency and that too not compromised with effectiveness which aimed at general publics welfare. Thus, it become expedient to apply reasonable under article 19(6) to safeguard the right to information that too in a fair and reasonable rate. Introducing Net Neutrality is a step towards bringing uniformity and homogenity in a society by narrowing the valley of differences in accessibility to internet.
Now a rich and a poor both can have equal access to internet. It is also an step towards achieving goals enshrined in article 38 of indian constitution and thus aims at fulfilling political goals through economic means.
Ans4:
Net Neutrality is the principle that all traffic & content on the Internet must be treated equally by Internet service providers. This has largely been the default mode since Internet started.
Economists say that telecom companies have invested billions in getting access to spectrum and building networks as also adhering to regulations. They do not like the way the apps are riding on their networks for free. They complain that the voice-calling & messaging apps are cannibalizing their business. The absence of net neutrality will benefit telecom companies by making them gatekeeper to a valuable resource. It could be misused to create winners and losers.
At the same time, politics say benefits of net neutrality have been far-reaching. It has helped new ventures/start-ups to come up in a big way in recent decades through the openness of the Internet by reducing transaction costs and leveling the playing field. A start-up can come up with an app today, and can immediately attract a global audience. E.g. Google, Facebook. The education system has benefited from free online coaching and tutorials.
Technological changes are happening at a rapid pace now. Instead of raising new walls of protectionism, the world will be better served if companies across the value chain — be it telcos or e-commerce players or content providers — reconfigure their businesses so as to remain flexible and cost-effective all the time in an environment that is prone to quicker pace of technological disruptions.
Economics suggests that once you have granted someone a monopoly over a resource- as the government has done via its auction of the spectrum- you can’t question the owner’s right to do what he or she wants to
with that monopoly. However, the catch here is that even according to Article 19(1)(g) of the Constitution, which allows everyone to carry on a trade or business in whatever way he or she likes, reasonable restrictions can be applied. As net neutrality is in the interest of the freedom of choice of Indian netizens, reasonable restrictions can and should be applied.
What economics and politics suggest about net neutrality:
Economics-
1. As the Telecom service providers (TSPs) have paid heavy charges for spectrum via auctions, they are legal owners of it and are free to do whatever they like
2. TSPs are getting no share of revenue from Over-the-Top Service providers (like Facebook, Skype etc.) even though OTTs are using their network to operate and profit from
3. There will be no economic incentive for TSPs to expand their networks without a cut of profits from OTTs
4. OTTs are neither licensed, nor regulated, thus making it unfair for TSPs who not only have to pay heavy spectrum charges but also follow strict regulations
Politics-
1. In a recent survey, 77% citizens want govt. to protect net neutrality.
2. The internet has been declared to be a public utility by the US FCC and there are demands for the TRAI to do the same
3. Choosing what to and what not to access on the internet should be the users’ choice- not the TSP’s.
4. Moving away from net neutrality will cause balkanization of the internet and will stifle local entrepreneurship,
innovation and open learning.
5. An open internet will encourage transparency and accountability among authorities and increases the democratic space available to citizens to have their grievances redressed.
However, there are economic considerations as well that would support net neutrality. For example, letting TSPs bypass net neutrality will give them perverse incentives to not expand network so as to make
bandwidth an even more valuable resource. It will also stifle the little TSP competition that currently exists. A free and open internet promotes speech, innovation, entrepreneurship and the spread of ideas. The guise of economics will not cover TSPs for long as they are free to charge whatever they want for data services but still choose to keep charges in India lower than the global average. Thus, economically, politically and ethically net neutrality is non-negotiable.
Ans2:
The Hint of answer to everyday debated politico-economic dichotomy over the net neutrality can be traced from the story of origin of internet. The forefather of WWW brought into existence their brainchild, to proliferate, expand and cross the boundaries of nations to reach into every nook and corners of world. But with changing global internet dynamics we need to see the issue in the current context,to arrive at the informed opinion.
The concept of treating all data equally on internet in the basic theme of Net neutrality which is in the conflict with return on investment principle of Economics. As the private service providers, purchase spectrum and create infrastructure as long term investment to earn profit, they see over the top services such as Skpe, whatsapp with raised eyebrow assuming them as eating out their share of profit. They calculate in terms of opportunity cost of losing revenue from calls and SMS from these platforms. They also complain about having insufficient infrastructure to accommodate huge data coming from of these platforms. But their claims of losing revenue, insufficient infrastructure be seen in the context that they charge from users for every packet of data being use and infrastructure is a must to be in the business. The assumption of losing revenue on Calls and SMSs, is faulty as customer overuse these services as they cheaper.
The political advocacy net neutrality shall be seen in the context that is shall on occur on the expense of economic. No doubt net neutrality has provided a unique free platform for start up entrepreneurs to scale upto the height of facebook, skpe, flipcart etc. It has equally opened the gateway of information, knowledge for both a beggar and a billionaire. For The freedom of expression advocated it is a kindergarten. Thus is a virtual platform for liberty, equality and fraternity. But economic consideration shall also be given due consideration and it shall be make sure that investors do not occur losses on their investment, setting apart their greed of profits.
The dilution of net neutrality if permitted, may lead to Balkanisation of internet, creating monopoly of few, giving access to privileged and shutting down the gateway for enterprenuers, with corporate houses a gatekeeper, asking for a toll for each entry. It will lead to colonization of liberal free state, making it slave and exploit it for its vested interests. Its time we all raise our voice for our rightful share on internet.
Ans3:
Net Neutrality suggest that all internet based sites and services should be treated equally without any differences in speed and cost of access.
Economists and Net Service Providers retaliation to Net Neutrality lies on the ground of monopoly which they buyed through auction of spectrum and thus posses the right to govern telecom to earn their profits. Economics advocated these argument, underlining article 19(1)(g) to safeguard the interest of NSP.
But governments step to auction spectrum aimed not to create monopoly in telecom sector but to bring efficiency and that too not compromised with effectiveness which aimed at general publics welfare. Thus, it become expedient to apply reasonable under article 19(6) to safeguard the right to information that too in a fair and reasonable rate. Introducing Net Neutrality is a step towards bringing uniformity and homogenity in a society by narrowing the valley of differences in accessibility to internet.
Now a rich and a poor both can have equal access to internet. It is also an step towards achieving goals enshrined in article 38 of indian constitution and thus aims at fulfilling political goals through economic means.
Ans4:
Net Neutrality is the principle that all traffic & content on the Internet must be treated equally by Internet service providers. This has largely been the default mode since Internet started.
Economists say that telecom companies have invested billions in getting access to spectrum and building networks as also adhering to regulations. They do not like the way the apps are riding on their networks for free. They complain that the voice-calling & messaging apps are cannibalizing their business. The absence of net neutrality will benefit telecom companies by making them gatekeeper to a valuable resource. It could be misused to create winners and losers.
At the same time, politics say benefits of net neutrality have been far-reaching. It has helped new ventures/start-ups to come up in a big way in recent decades through the openness of the Internet by reducing transaction costs and leveling the playing field. A start-up can come up with an app today, and can immediately attract a global audience. E.g. Google, Facebook. The education system has benefited from free online coaching and tutorials.
Technological changes are happening at a rapid pace now. Instead of raising new walls of protectionism, the world will be better served if companies across the value chain — be it telcos or e-commerce players or content providers — reconfigure their businesses so as to remain flexible and cost-effective all the time in an environment that is prone to quicker pace of technological disruptions.
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