Friday, January 1, 2016

[Editorial # 30] Caution on Free Basics

[Wishing you all a very Happy New Year. May this year be more productive and rewarding in terms of health and well being for all of you]
[Following editorial has been published in The Hindu on 1st January 2016. Read through it and try to answer the questions that follow. Please do not copy and paste answers. The objective of this exercise is to get you in the groove of answer -writing. Try to write in your own words. Don't hesitate to write in a bulleted-format, if you are uncomfortable in writing in paragraph form.]
‘Free’ and ‘altruism’ are words that generally have a positive ring to them. But it’s clear that social media behemoth Facebook’s Free Basics programme, which it pitches as an altruistic endeavour to provide the have-nots a bridge to the Internet for free, fails to evoke such a feel. Not without reason, though. For starters, as critics have repeatedly pointed out, there is a huge difference between being a gateway to the Internet and being a gatekeeper to the Internet, and Free Basics worryingly has all the makings of the latter. So, it does have the potential to trap subscribers in the metaphorical “walled garden”, what with the immensely popular Facebook thrown into the free mix of offerings. That the whole package is offered free hardly surprises anyone with even a little knowledge of how business models in the digital world work. Free, by the way, is a business model that delivers returns in an unconventional way. There might be many variations of it but basically it is about accumulating millions and millions of new users by offering products free, in the hope that the build-up could be milked for revenue in the years to come. That’s the same tactic many start-ups use to show “traction” while pitching to big moneyed venture capitalists. 
And where do you find an unrestricted Internet economy with millions yet untapped? Yes, India. There can be very little doubt that the haves-have-nots digital divide in India is stark, and needs to be bridged as soon as possible. Credit is due to Facebook for identifying this need and bringing a sense of urgency to addressing it. Credit is also due for the way its young founder Mark Zuckerberg has fought doggedly for the idea’s acceptance. It is close to a year now since he launched Internet.org, the earlier avatar of Free Basics, in India. And during this period, there has never been a dull moment in the exchanges between the critics of Free Basics and Facebook. As it stands, the Telecom Regulatory Authority of India, the regulator, has asked Facebook’s Free Basics partner in India, Reliance Communications, to put the service on hold. The social media giant, showing little sign of backing off, has done all that it can (tweaked its dimensions, launched a comprehensive advertising campaign, and got its charismatic founder to pen articles) to get political and social acceptance to the idea. It’s both impressive and unsettling at the same time when one thinks about how a corporate, valued at over $300 billion, can spend so much money and effort on a controversial project that is not even avowedly a pure business venture. The problem has reached the doorsteps of policymakers. They have to not only decide the fate of services such as Free Basics but also find ways to deliver digital equality fast. For, Free Basics can’t be an excuse for the failures of the state in delivering universal access.
Questions:
1. What is Free Basics Programme? What is its purpose? Does it exist in any other part of the world?
2. What is the rationale behind big Corporates like Facebook offering such a service?
3. Why is the Free Basics Programme being criticised? 
4. How is the common man going to be affected by Free Basics Programme?
5. What is Internet? Who governs it? 
6. How many people in India/World have access to Internet? 
7. What is meant by Digital Divide? Why is it necessary to bridge this divide?
8. What is Telecom Regulatory Authority of India? Why do we need regulatory bodies? What are their roles and objectives ? Mention a few other such regulatory bodies functioning in India.
9. What are ethical concerns (if any) in implementing Free Basics in India?
10. What in your opinion should be the steps taken by the government to bridge the Digital Divide? What are the hurdles in bridging the digital divide? (200 words)

16 comments:

  1. The Free Basics programme is a rebrand of Facebook's seminal internet.org initiative that aims to bring basic internet connectivity to the masses in countries like India with large potential markets, but relatively limited subscription bases as yet.

    The Free Basics programme offers free access to a bouquet of sites and web services, including medical and employment services. Free Basics operates in many countries, including the Philippines and African countries such as Tanzania.

    ReplyDelete
  2. 2.) In the digital sphere, the "freemium" model (as seen in popular mobile games like Clash of Clans) is a widely adopted business model that makes use of zero-point pricing to tap into a much wider customer base than would otherwise be available. While Free Basics is not strictly speaking based on the "freemium" model, it is still relevant to look at the way in which Free Basics taps into as-yet uncharted market segments in the same way that "freemium" products do.

    Free Basics presents a "win-win" scenario both for Facebook and its customers. On the one hand, people who have otherwise not had access to internet services stand to gain in potentially transformative ways through free basic access--taking this further, when these people familiarise themselves with Free Basics, it may then incentivise them to make the choice to pay for conventional internet access. In much the same way that emergency call services are available to anyone with a mobile phone, Free Basics will allow anyone with the app access to basic internet services.

    Facebook on the other hand stands to benefit by potentially increasing the size of its customer base by a substantial amount. Facebook and Google represent a category of entities that make money through acquiring and processing information about people, and then targeting that information to others (e.g. targeted ad services). As such, people are Facebook's main revenue centre, and increasing the number of people using Facebook services not only directly increases revenue from conventional streams like advertising, but also allows for monetization strategies put in place in the future, to operate on a much larger scale.

    ReplyDelete
  3. 2.) In the digital sphere, the "freemium" model (as seen in popular mobile games like Clash of Clans) is a widely adopted business model that makes use of zero-point pricing to tap into a much wider customer base than would otherwise be available. While Free Basics is not strictly speaking based on the "freemium" model, it is still relevant to look at the way in which Free Basics taps into as-yet uncharted market segments in the same way that "freemium" products do.

    Free Basics presents a "win-win" scenario both for Facebook and its customers. On the one hand, people who have otherwise not had access to internet services stand to gain in potentially transformative ways through free basic access--taking this further, when these people familiarise themselves with Free Basics, it may then incentivise them to make the choice to pay for conventional internet access. In much the same way that emergency call services are available to anyone with a mobile phone, Free Basics will allow anyone with the app access to basic internet services.

    Facebook on the other hand stands to benefit by potentially increasing the size of its customer base by a substantial amount. Facebook and Google represent a category of entities that make money through acquiring and processing information about people, and then targeting that information to others (e.g. targeted ad services). As such, people are Facebook's main revenue centre, and increasing the number of people using Facebook services not only directly increases revenue from conventional streams like advertising, but also allows for monetization strategies put in place in the future, to operate on a much larger scale.

    ReplyDelete
  4. 1. What is Free Basics Programme? What is its purpose? Does it exist in any other part of the world?
    A. Free Basics Programme is the new avatar of internet.org in which the Facebook and Reliance agreed to provide free data to the users who uses Reliance connection instead of any other servies like vodafone, hutch etc.
    purpose: The purpose of Free Basics is to provide selective services at free of cost to the users.No, it doesnot exist in any part of the world. US, china, Brazil are maintaining net neutrality.

    ReplyDelete
  5. 2. What is the rationale behind big Corporates like Facebook offering such a service?
    A. big corporates like FB wants to increase their userbase. Hence with increase in the user base they will create the monopoly by not allowing others by nipping at the bud.

    ReplyDelete
  6. 4. How is the common man going to be affected by Free Basics Programme?
    A. As of now everybody can get access to any content through any ISP. But if Free Basics Programme is enforced, some services that are provided by the ISP will be accessible at free of cost. If we want to acess to other services, we have to pay for the service. Moreover, the speed of the content will be regulated by the ISP which is against the concept of net neutrality. Hence it simply means that the consumer is forced to use services which are accessible at free of cost. This reduces the choices to the consumer. To enjoy all the choices available he has to pay the charges.

    ReplyDelete
  7. 5. What is Internet? Who governs it?
    A. it is the network of networks that helps to transfer data from one device to another.
    nobody goeverns it . it is decentralised platform to all.

    ReplyDelete
  8. 6. How many people in India/World have access to Internet?
    A. around 40% of world's and 30% of indian population use internet as perINTERNET USAGE STATISTICS.
    http://www.internetworldstats.com/stats.htm

    ReplyDelete
  9. 7. What is meant by Digital Divide? Why is it necessary to bridge this divide?
    A. the digital divide is the gulf between those who have ready access to internet and computers to those who don't.

    ReplyDelete
    Replies
    1. It is necessary to bridge the gulf for
      ready availability of resources with respect to knowledge;
      reduce communication gap;
      to make every individual to reap the benefits of governemnt schemes
      encourage innovation
      to compete with other countries in all aspects
      to make wise use of resources
      to provide the level playing field b/w rural and urban
      to make every citizen equipped himself with informed decisions

      Delete
  10. 8. What is Telecom Regulatory Authority of India? Why do we need regulatory bodies? What are their roles and objectives ? Mention a few other such regulatory bodies functioning in India.
    A. TRAI is independent regulatory body which is entrusted to look after telecommunications business in india. Established in 1997, TRAI helps to promote level playing field to all the telecom servie providers. TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, Direct To Home (DTH) services and mobile number portability.
    other regulatory bodies
    FSSAI
    RBI
    IRDA
    PFRDA
    SEBI etc
    All these bodies are essential for GOI to be as a facilitator by regulating the agencies to bring efficiency . promote competition and to provide consumer satisfation of services.

    ReplyDelete
  11. 9. What are ethical concerns (if any) in implementing Free Basics in India?
    The ethical concern is that with a huge digital divide in india where 30% of netizens only are getting benefitted from internet, such a programme will increase digital access especially in rural areas where most of the population stays.

    ReplyDelete
    Replies
    1. Is the above mentioned point an ethical concern ?? Please Correct me if I am wrong, but, it looks more or less as an advantage of Free Basics.

      Delete
  12. 10. What in your opinion should be the steps taken by the government to bridge the Digital Divide? What are the hurdles in bridging the digital divide? (200 words)
    A. To bridge the divide govt has to take the following measures:
    for electronic devices:
    1. incentives to elecronic device manufacturing sector
    2. promote indegenous startups
    3. India should revamp its safety testing requirements for electronic products
    for connectivity:
    4.lift the ban on foreign satellite operators that provide spectrum
    5. DIPP should allow at least 51 per cent FDI in e-commerce — and ultimately 100 per cent.
    6. e-commerce models should enable SMEs businesses across India to reach national and global consumers.
    GOI :
    1.Aadhar card
    2. JAM TRINITY
    3.DIGITAL INDIA
    4.e-BIZ portal

    ReplyDelete
  13. 3. It is likely to go against net neutrality which envisage equal treatment of data on internet by promoting its own sets of applications and services and hence would exploit other set of services which are not in sync with Free Basics guideline

    ReplyDelete
  14. 9.
    (a). Against the concept of net neutrality

    (b). Privacy of an user is to be uswd for commercial advantages

    (c). Creation of monopoly and avoiding people to utilise internet to ones best capacity.

    ReplyDelete