Friday, May 15, 2015

Indian Regulators Consider a Ban on Zero Rating of Apps

As policies related to the concept of network neutrality are debated in various countries, “restraint of trade” issues and permissible “business models” are colliding.

Most might agree that lawful applications should not be blocked by any Internet service provider (Governments and other entities might disagree, of course). That would be a clear example of unlawful restraint of trade.

Beyond that is where views are more disparate. Some common business models and retail pricing and packaging strategies are viewed as violations of network neutrality. It is common in most industries for different products to be created, for sale under different terms and conditions, to different sets of customers.

In the Internet access area, business access services can offer any number of features barred under net neutrality rules in the consumer segment, for example, including quality of service guarantees. In the consumer segment, access is restricted to “best effort only,” with no priorities for traffic classes or types.

Some object to sponsored data access, or zero rating, since such policies, in principle, favor some apps over others, to the extent that zero rated apps incur no data plan charges. In that sense, zero rating is akin to toll-free calling, where a sponsor pays the normal charges.

Such issues are a matter of active debate in India, especially, where both network neutrality rules and zero rating bans are under consideration.

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