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‘Free Basics’ - Some Clarifications

In the discussions on my previous blog here and the posts on Facebook (as a note and posts) certain issues have cropped up: a) At least a few from outside India have misunderstood that some of those who are critical of ‘Free Basics’ are demanding totally free data. b) Some have questioned the ethics of criticising Facebook and its business from within the platform of Facebook itself. Implied is a position that it is somehow unethical and those who do not like facebook should opt out of it. c) I feel that there are quite a few important points in between all this that we need to discuss more explicitly. This note briefly touches on these.


Right or Entitlement to Data


Nobody in India has raised the demand (so far) for free access to data services or telecom facilities. It is Zuckerberg who is insisting on offering that! He is lobbying hard to induce 'poor Indians' into accepting what he is pushing as ‘free’ service, claiming that he is doing it to benefit the poor. He wants everyone to consider his offering as 'charity'. He is quite annoyed that there are people who object to that.

People in India and other places eventually may end up asking from our respective governments some minimum entitlement to data. Since all traffic today is digitized (i.e., no longer analogue), every citizen - rich or poor, with premium or entry-level connectivity (land lines, cell phone, broadband cable, etc) plans - should get access by default to a base amount of data (a fixed volume, subject to some assured minimum speed). Nobody needs to pay separately for that 'base data plan'. It must come automatically with any subscription. The actual size and speed will depend on the level of development of telecom infrastructure at a given place. It may be high in large cities and may be somewhat limited in remote villages with poor connectivity.

Instead of ensuring that every subscriber get a base data plan without any additional charges, Zuckerberg wants to push his 'Free Basics' through so-called 'Zero-Rating' plans. In such plans telecom companies will not charge the customer for accessing the websites and services offered through 'Freebasics'. The companies (websites, telecoms and Facebook) will have revenue sharing arrangements. Users cannot access any other services. A large number of users will be using a small set of services creating 'captive user base'. This user base will be mostly from low income backgrounds. However, in absolute numbers it will be very large.

With the ‘Free Basics’ model, even if the companies make a very low nominal return per user, the total revenue potential is phenomenally large. As of now, in India the data and voice tariffs are not very high (largely reasonable). Because of relatively low tariffs, even those with low incomes do use these services by paying for it (mostly through pre-paid plans). Zuckerberg wants to distort that market by first creating a captive user base using freebies. After that, as and when data network infrastructure improves and users become more demanding, they can charge them at a small discount to prevailing market rates to retain the captive base. Essentially the freebies serve to create a captive user base. In the next phase, they will try to minimize the dropouts from the captive base by suitable retention offers.

Whether it is water or air, there has to be a minimum entitlement. That applies to data bandwidth too. The radio spectrum is a resource that belong to all citizens (like air) anywhere in the world (quite unlike oil or minerals). It is allocated to telecom companies subject to regulations, taxes, licensing, etc. Therefore, all citizens must have a minimum quantum of that spectrum (available as data bandwidth) for access from any part of the country at a reasonable price or gratis as a basic entitlement. It must preferably be bundled with whatever connectivity plans (subscriptions) they have.

In no part of the world can we have someone die for lack of drinking water because she cannot pay for it. The day is not far off when survival (right to life) will depend on access to data (entitlement to a per capita ration of radio spectrum). Eventually, we will have to recognize data too as a basic right. Of course, citizens and governments will have to democratically decide how much will the minimum entitlement be depending on kind of technologies (it will evolve to make this happen easily), state of economy, and many other factors.


Ethics of Using Facebook


Is it unethical to use the Facebook platform to criticize them? Well, that's how almost everything in life is. Sometimes, we have no choice but to continue to use certain things even when we don't like everything about it. We go on living in places or countries despite many problems. Using fb is like using any other s/w or platform. We can use Microsoft Office while being critical of Microsoft as a company. We can travel in an airline, say British Airways, and yet not like everything about it. Using fb is not like having an interpersonal relationship.

Having said that, please note that the discussion on ‘Free Basics’ (in India and a few other not so developed countries) has very little to do with Facebook, the platform we are using. 'Free Basics' is a separate business owned and operated, incidentally, by Facebook/ Zuckerberg. That is it. Nothing more. However, Facebook did cross the line when it started prompting Indian users to send emails to Indian telecom regulator professing support to 'Free Basics' when it came under severe criticism. Facebook teams now seem to be monitoring our posts on this subject and altering how our posts appear in newsfeeds, notifications, etc.

Facebook is still activating the misleading pop up with a send button that sends email to Indian telecom regulator. Large number of fb users did click the send button without understanding what it was. They clicked it as they would click the like button. Besides, some users thought that the Indian telecom regulator is going to shut down Facebook (the pop up said Free Basics will be shut down by the regulator; it needs support to survive; click … send ..etc).

The real issue had nothing to do with the platform Facebook that we are using. Instead, TRAI (the regulator) has invited from public comments to a consultation paper on a few major regulatory issues as part of evolving a policy on Net Neutrality in the Indian telecom space. The pop-up looks similar to one of the typical ToS pages of fb. Many inadvertently clicked on the send button. Many who use Facebook in India aren't too good at English. Many post / communicate in local languages on fb. Many clicked the link assuming it to be one of the mandatory ‘Yes’ needed to continue using fb. It looked like one of the ToS update.

None of what we are discussing with regard to ‘Free Basics’ have anything to do with Facebook as such (ToS, privacy policy, etc.). Of course, it would be great if there were better alternatives to Facebook for one to migrate out. Frankly, even when I don't fully like the terms of fb, I continue to use it primarily because it is difficult to migrate to another. It is not at all possible to transfer data – the whole complex of data: posts, comments, replies, notes, …. etc. - from one platform to another. Secondly, the alternatives too aren't very different. However, a competing platform is needed. Some of us hoped Google will be able to do that. Sadly, G+ hasn’t been a great success and let us hope a platform will emerge that will also allow porting of essential data across platforms. We are only loyal to friends; not to Facebook the platform or the company.

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