Tag Archives: Net neutrality

New Telecom Policy 2011:Draft Proposals and random oddities

The Government of India cannot be trusted to do anything good for it’s citizenry. Primarily, it is in the process of making itself unaccountable for public loot. So whenever draft proposals come in, the media whips up a frenzy.

At best, the draft proposals sound what has been proposed; but the industry and their associations would definitely seek to water it down.  Any customer “friendly” variant is not welcome for obvious reasons. In any case, the draft policy (specifically on broadband) needs specific inputs rather than broad sweeping generalizations that cannot be fulfilled in the current scenario. The Government of India also needs to do away with self styled experts and focus on basics to understand the need to encourage the adoption of broadband.

Let me be honest. I haven’t read the draft proposal in it’s entirety. So I would prefer to link it to someone who has done it. As luck would have it, I stumbled again on Medianama  with their take on the proposed policy changes. I would only highlight the issues that I feel need to be addressed regarding broadband alone.

1) Definition of Broadband : Always on with a minimum speed of 2 Mbps and not as proposed  to be changed in the year 2015. This is because with the change at the centre, the policy decisions invariably get stuck in the red tape. The whole bunch of users have been clamoring for 2 Mbps as the basic benchmark in order to utilize the actual benefit of the broadband.

Why? Because 256 kbps is pathetic. You cannot video chat effectively. You cannot stream media applications. You cannot do zilch. Still, the definition remains stuck at mere “doubling” of the speed. 100 Mbps is a promised pipe dream.

2) There have been effective proposals for setting up interlink peer exchanges in India to replace NIXI. An excellent blog post (not written by me but Mathew), clearly details the methodology to achieve this.  The highlights (sic):

NIXI is supposed to be a non-profit organization (that part I believe), however it allows ISPs to essentially charge each other tariffs of Rs25 per GB. At 1gbit/s, with an in:out ratio of 3:1 and utilization of 80% or so, this comes out to a total monthly bill of Rs44 lakh, or about Rs17/GB.

That’s a hell of a lot of coin, considering that 2 months of that could pay for a year’s supply of bandwidth to Singapore. Yes, a year (well, a single STM-1 @ 155mbit/s, anyway, but the cost still only works out to about Rs13/GB).

As you can imagine, if I, as an ISP, can save Rs4 PER GIGABYTE, I’m damn well going to,

otherwise I have to pass that on to you – the consumer.

3) The proposed opening up of the last mile access by wireless is a useless idea. Wireless or any of it’s iterations cannot, I repeat cannot be relied on for data intensive applications. There is no draft proposal for public access of Wifi’s bankrolled by the municipal corporations. Wifi’s can be used for another lofty purpose. To route the mobile network calls in hard to reach areas. Another brilliant stroke would be to encourage the uptake of the VoIP.

4) Even if you have 100 Mbps rolling in a shiny FTTH all the way up to your home, the lack of “real application” is a dampener. What would the mass of humanity rolling in this country use 100 Mbps for? Facebook? There is no concept proposal for encouraging the uptake of the broadband applications, for fostering a community of developers, lack of clear focus on the e-commerce, overt valuations of the existing firms and the works.  Granted that this is chicken and egg situation,  100 Mbps broadband networks are mere pipe dreams till the time there is focus on backing up a reliable infrastructure and true “unlimited access”.

5) Unbundling of the last mile access: The PSU’s are like wives. You can’t live with them. You can’t kill them. Simple. However, it does not mean that the last mile should be unbundled without having a proper oversight of the sector. I had believed earlier that proper competition on the same copper would effectively bring down the prices. However, this is fraught with it’s own hassles. The copper is pubic property and I am sure that anyone investing money would extract his own pound of flesh in terms of ownership of the cable. (This one is a retort to Medianama).

This should not be encouraged. Instead, the companies need to be given incentives to invest in the cable, peer through a separate exchange, a unified license to allow them VoIP applications, create infrastructure for niche products. For example, there could be an ISP specifically for gaming. Let it have the best response times in terms of ping. A separate company for IPTV applications. A different company for say, tele-medicine solutions with end to end infrastructure. Back it up with rural broadband initiatives and then you have customized solutions for different segments.

Let these marginal players slug it out with the established partners. Let them expand the pie. Mobile telephony did not happen overnight but by relentless onslaught of the advertisements to create a need for the product. I am not a big fan of the mobile applications, but that does not bias my outlook for the explosive growth, even though the numbers are disputed crap.

Broadband is a niche application. The draft proposals are mere eye wash and they need to be understood in their context before we bleat and crow about being a fucked up IT “superpower”.

What I agree with Medianama is the crap “fair usage policies”. But I have already stressed on the “unlimited” access. This is hardly going to be achieved and despite claims by fucktards of downloading 100, 500 or even 1000 GB is hogwash. As far as the net neutrality goes, the “faster access” to certain businesses is a huge controversial issue. The ping times in this country are so awful that is hardly going to matter.

Hence, all the more the sarkari buffons need to be given a pat on their asses for making some effort to think over the issues. With all due respect, I am also uploading the critique to their proposals. I am not sure who is going to read them, but for sure, this is better than just sucking up and doing nothing.

 

Response to comments

I have been having a very interesting exchange of ideas with Mathew Carley who is the owner of Hayai Broadband. He needs no introduction on the forums and I owe a lot of good deal to him. However, I must defend the user’s perspective and a blog post follows.

He writes:

1. FUP is not illegal, and there is nothing legally wrong with what any ISP is doing when it wants to keep it’s network under control – it is perhaps unethical to advertise a broadband plan as “unlimited” and apply an FUP. I prefer (and use) the term flat-rate, which refers to pricing, not usage.

TRAI, the regulator defines Broadband as “always on with a speed of 256kbps”. They have supported this definition that has been taken from ITU web site. The whole point here, from an end user’s perspective is that the definition has remained static. I think the FCC definition has also remained stuck here. However, the push for “faster speeds” has mainly come from academia and the realization among the telcos that serving content through their dumb pipes can be very lucrative, net neutrality be damned.

All the more they ALSO realize that it pays in the long run to get the customers hooked on to “speeds” AND “content” and then make money out of “traffic shaping” and the works.

Yet, if you look at the pdf from ITU (opens up a link in your pdf viewer), do check out the page 19 (under pricing) where it clearly states the success of South Korea broadband has been because of “flat rate”.

Here BSNL (others and your probably included) have different tiers with a “limit”. Now this limit can be argued. As I had mentioned that majority of your users would be content with social networking / email you would hardly see the “abuse” of network. However, BSNL is a public service. Which means that the network effectively belongs to public and for arguments sake has no say in the way it overlords it. Thats my opinion.

You would be owning the fiber and its for you to come out with what ever plan/ideas you wish to.

As far as TRAI is concerned, it does NOT mention the word “fair usage policy” which is again in contravention to license terms (as all the ISP’s are regulated by TRAI/DoT) and hence ILLEGAL. So you are right too except that it sugar coats the bitter pill.

2)

Many sites – even many India-centric sites, are hosted abroad. This is where the “strain on the networks” usually comes in.

Yes, I know it. Koreans have much of it hosted inside the country because they are not too comfortable with English. Duh. We are among the largest speaking country in the world by the way; still it is not a huge net market.

3) BSNL only has an International cable between India and Sri Lanka – it doesn’t have any going anywhere else. It buys almost all of it’s bandwidth from VSNL – 65% from VSNL/Tata India, 14% from GlobeInternet (a subsidiary of Tata in North America), with the rest from a small assortment of other ISPs both domestic and foreign through it’s various arrangements.

Thanks for letting me know this. I am waiting for official confirmation including the break up of prices.

4. We can safely assume that they’re anticipating about 300GB of usage on their FTTH plans, at Rs10/GB. Cheaper than what I can get it for, but they’ll already be getting the volume discounts I’m aiming for.

Network usage varies WILDLY. I cannot nail even an “AVERAGE USE” but well, it can possibly be predicted once the metrics are clear, the amount of traffic flowing in your fiber and the works.

7. If you’re an ADSL customer, 768kbit/s is pretty much all you’ll get out of a DSL line anyway, unless you’re really close to your DSLAM. ADSL2+ is meant to go up to 3.5mbit/s upload speed, but in NZ I’m 300m away from my cabinet on fairly decent quality lines, and I barely hit 900kbit/s. Since the default upload speed they provide I think is 256kbit/s and you purchase more upload in 256kbit/s increments, this probably is to cover their ass so as to prevent people from trying to buy 1 or 2mbit/s upload and then getting about 768k.

Thanks! The wording on the web site sounded as a “limit” without mentioning the technical reason. Let them confess in writing that it it still is ADSL and then I can question them as to why it is taking delay in introducing ADSL 2. I can file as many as RTI’s I want!

@operamaniac Right of way and civil works costs a fortune. I mean that quite literally – about 75-80% of our laying of fiber to homes goes towards these two things: the fiber and equipment to run the network are negligable costs by comparison, and since it can be crores per kilometer, it won’t take many kms of fiber for us to reach 1,000 crores.

The sad fact. It is the job of municipalities to lay down fat ducts throughout and just offer it to the end users. Simple. Far sightedness is not a virtue in this country. It comes at a premium from those who are NOT in this country.

Interestingly here’s something from Wikipedia entry for ‘Internet in Japan’. It says and I quote:

Operators struggle to maintain enough bandwidth to allow maximum usage of the service by customers. Even the largest operators have capacities in the region of tens of gigabits while customers with gigabit FTTH services (or higher) may number in the thousands. This problem is further compounded by limits caused by internal router bandwidth. Estimates of traffic based on data collected in May 2007 by the Ministry of Internal Affairs and Communications set total network usage at approximately 720 Gbit/s combined. The report further states that by May 2008, total traffic will exceed 1 Tbit/s.

Woooo. But then these are 2008-09 figures. Similarly the ITU report that I alluded above is 2003. Much has changed in past 7 years; we are still stuck in the kbps and well….. Time to change the tune, the gears and tracks.

@ Operamaniac a.k.a. my dear web master. 3G is not in my radar right now. In fact, I wanted to ask them as to how they have utilized the USO fund and what is the state of broadband connections in the rural areas. I know for sure that they are spending disproportionately on 3G services and neglecting the land line when it should be reverse. Lets see how they react. At least it would be a basis for seeking legal remedy or anyone who wants to file a Public Interest Litigation.

Cheers!!

News from Europe

I rarely cover European Union despite the fact that it is home to Nokia and other equipment providers. I have argued against the inevitability of globalization and effectively it is distorting the local economies and integrating the whole system in one. The proponents argue for one world but opponents argue against that notion. It is not my domain to ponder over such issues but I feel that it is best to adopt selective practises.

There are two issues here. One relates to having a single communication block for India as a whole with seamless integration throughout country. Roaming in India is feasible but there are innumerable charges which push up the prices beyond reach for many. I find this a stupid approach that rationalization for such issues is not there on the regulator’s agenda.

The reason why I have brought this up here is the NY Times write up on the same where European Union is debating to make it a single “communication block” by removing the roaming charges. The telecom operators are bound to oppose such ideas because it hurts them badly over a profitable revenue stream (unaccounted charges).

In another development, EU is pondering over the net neutrality debate. This of course is “contentious” but in search of fatter profit margins, it opens up a great revenue stream. It is inevitable that data charges for Internet access are going south. By discriminating against a rival for access, it is a lucrative deal. For example, some customers in EU pay a higher price for accessing Skype through 3G.

Sad scenario.