Net neutrality (News - Alert) is almost a kitchen table topic in the United States, with subjects like the possible throttling of Netflix on the part of cable ISPs often making national news. But that’s not the case everywhere, and apparently Bharti Airtel (News - Alert), India’s largest telecom provider, has unabashedly started charging mobile subscribers extra for making VoIP calls.
It all started when some 2G and 3G Airtel subscribers who are used to flat-rate data pricing found themselves facing additional rates when making VoIP calls, according to a new data policy:
“All Internet/data packs or plans (through which customer can avail discounted rate) shall only be valid for internet browsing and will exclude VoIP (both incoming/outgoing). VoIP over data connectivity would be charged at standard data rates of 4p / 10 KB (3G service) and 10p / 10 KB (2G service).”
Airtel acknowledged that it had “made some revisions in the composition of our data packs, and will offer VoIP (Voice over internet protocol) connectivity through an independent pack that will be launched shortly. Our customers can continue enjoying voice calls over data connectivity by opting for this VoIP pack, or simply use VoIP services on pay-as-you-go basis.”
And indeed, it has made good on the “VoIP Pack” promise, launching 75MB bundles to be used for VoIP minutes.
On the face, it certainly looks like Airtel is looking to protect its cellular voice calling revenue by making competitive over the top (OTT) services more expensive for users. It has prompted Union Telecom minister Ravi Shankar Prasad to pledge to look into the situation.
But Airtel is committed to fighting its fight, saying that it has poured almost $24 billion into network upgrades and about $8 billion in taxes in the last five years and that as such, it simply can’t afford not to game the system a bit competitively.
“Our voice services that are enjoyed by every one of our customers provides us the capacity to continuously invest in and upgrade our networks on an ongoing basis,” it said. “We, therefore, believe that VoIP services in their current form are not tenable for us as a business. As a result, we will charge separately for VoIP services.”
It remains to be seen if the Indian government buys the excuse, but the situation is certainly fodder for the role of incumbent network owners and their regulatory rights vis a vis the OTT services that ride on top of their investments.