Lok Sabha Question No. 3468 (UNSTARRED), answered on 2018-08-08
Subject: Net Neutrality
Ministry: COMMUNICATIONS
Asked by: (ADV.) JOICE GEORGE

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 3468 TO BE ANSWERED ON 8 TH   AUGUST, 2018

## NET NEUTRALITY

3468. ADV. JOICE GEORGE:

Will the Minister of COMMUNICATIONS be pleased to state:

(a) whether the Government proposes to make it mandatory for telecom companies to treat the internet as a public utility and not a luxury;

- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government is planning any revision in net neutrality framework; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a)& (b) The Government is committed to the fundamental principles and concept of Net Neutrality i.e. to keep the Internet accessible and available to all without discrimination.

(c)&(d) In order to ensure that the regulatory framework adheres to the fundamental  principles  and  concepts  of  Net  Neutrality,  the  policy  directives  on  Net Neutrality  incorporating  the  principles  of  non-discriminatory  treatment  of  content  have recently been issued, a copy of which is attached as Annexure-I. As per the directives, the Internet Access Services are to be governed by a principle that restricts any form of discrimination, restriction or interference in the treatment of content, including practices like blocking, degrading, slowing down or granting preferential speeds or treatment to any content.

## 2015/OTT (Pt) Ministry of Communications Department of Telecommunications Networks & Technologies (NT) Cell

## Subject: Regulatory Framework on 'Net Neutrality'

## 1. Introduction

- 1.1 The  Internet  is  increasingly  becoming  central  to  the  lives  of  citizens, consumers and industry.  It  has  emerged  as  a  transformative  medium  for innovation and economic growth. It has revolutionized not only our lifestyles but also the way governance is done and public services are delivered.
- 1.2 The future growth of telecom sector is largely contingent upon innovation and growth of the Internet infrastructure and many applications, content and services  linked  to  it.  However,  increasingly,  concerns  have  been  raised globally  as  well  as  in  India  relating  to  the  potential  for  discriminatory treatment of Internet traffic by the entities that control access to the Internet. These  concerns  regarding  non-discriminatory  access  have  become  the centre of a global policy debate, often referred to as the debate on 'network or net neutrality'.
- 1.3 'Net- Neutrality' refers to the concept of non-discrimination of Internet traffic by intermediate networks on any criteria. The network should be neutral to all the information being transmitted through it. All communication passing through a network should be treated equally i.e. independent of its content, application, service, device, sender or recipient address.

## 2. Background

- 2.1 In the Indian context, there have been multiple consultations on the issue of net neutrality and related aspects. Various initiatives taken by TRAI as well as DoT on the subject are as below:
- 2.1.1 A  Committee  was  established  by  Department  of  Telecommunications (DoT)  on  19 th   January,  2015  to  provide  recommendations  on  Net Neutrality. The committee submitted its recommendations in May 2015.
- 2.1.2 TRAI issued a consultation paper on 'Regulatory Framework for OverThe-Top (OTT) Services' on 27 th  March, 2015. This paper raised issues relating  to  the  regulatory  framework  for  OTT  services  and  included questions  on  the  principles  of  net  neutrality,  reasonableness  of  traffic management practices, non-price based discrimination of services and transparency requirements.
- 2.1.3  On 9 th December, 2015, TRAI issued a consultation paper on 'Differential  Pricing  of  Data  Services'.  After  a  detailed  and  widespread consultation  process,  TRAI  issued  the  'Prohibition  of  Discriminatory Tariffs  for  Data  Services  Regulations',  2016  in  February,  2016.  The

Dated:      31 st  July, 2018

regulations restricted TSPs from directly or indirectly charging discriminatory prices to consumers based on the content, applications, services or any other data being used by them.

- 2.1.4 In response to request of DoT vide letter dated 3 rd  March, 2016, TRAI initiated a detailed consultation on issues relating to Net Neutrality. This included  publication  of  a  pre-consultation  paper  on  30 th   May,  2016, followed by a detailed consultation paper on 4 th  January, 2017.
- 2.1.5 TRAI  provided  to  DoT  its  recommendations  on  'Net  Neutrality'  dated 28-11-2017.

## 3. Policy Directives on Net Neutrality:

- 3.1 The Government is committed to the fundamental principles and concepts of  Net  Neutrality  i.e.  keep  the  Internet  accessible  and  available  to  all without  discrimination.  Internet  Access  Services,  therefore,  need  to  be governed by a principle that restricts any form of discrimination, restriction or interference in the treatment of content, including practices like blocking,  degrading,  slowing  down  or  granting  preferential  speeds  or treatment to  any content. To ensure that the regulatory framework on Net Neutrality  adheres  to  the  fundamental  principles  and  concepts  of  Net Neutrality, the policy directives as mentioned in the succeeding paras are hereby issued.
- 3.2 Principle of non-discriminatory treatment, application, exclusions and exceptions:

3.2.1 It has  been decided to amend  the  terms of various license agreements governing the provision of Internet services in India (UL, VNO license,  UASL  and  CMTS)  in  order  to  incorporate  the  principles  of  nondiscriminatory treatment of content by Internet Access Services along with the  appropriate  exclusions  and  exceptions.  This  will  also  help  in  building uniformity  in  the  terms  governing  the  provision  of  Internet  services  by different categories of licensees. The specific amendments to be made in each of the license agreements are listed in Table 1 of Annexure-I.

3.2.2 The amendments of licence agreements as above shall be issued by the respective licensing wings of DoT hereafter.

3.2.3 The  necessary  Traffic  Management  Practices  (TMPs)  shall  be formulated by DoT after recommendations of TRAI in this regard.

3.2.4 In case of the UASL and the CMTS License, which do not contain a definition of Internet, the definition of Internet shall also be included along with the new definition of Internet Access Service.

## 3.3 Applicability to Internet of Things (IoT) and Specialized Services:

3.3.1 The provision of any specialised services, as defined in Table 1 of Annexure-I shall be explicitly excluded from the principle of nondiscrimination.

3.3.2 However,  IoT  as  a  class  of  services  shall not be  specifically excluded from the scope of the restrictions on non-discriminatory treatment.

3.3.3 Those  critical  IoT  services,  which  shall  be  identified  by  DoT  as satisfying  the  definition  of  specialised  services  (as  stated  above),  would be automatically excluded.

3.3.4 The  classification  of  critical  IoT  services  shall  be  done  by  DoT  in consultation  with  /  other  departments/  stakeholders  /  for  incorporation in license agreements from time to time.

3.3.5 The specialised services should be provided only if:

- i. such services are not usable or offered as a replacement for Internet Access Services; and
- ii. the provision of such services should not be detrimental to the availability  and  overall  quality  of  Internet  Access  Services. This  could  be  monitored  using  various  quality  of  service parameters.

3.3.6 The  Content  Delivery Networks  (CDNs)  shall  not be included within the scope  of any  restrictions on  non-discriminatory treatment, which are designed   specifically  to  cover  the  providers  of  Internet  Access Services.

## 3.4 Transparency and Disclosures:

TRAI shall supplement its existing disclosure and transparency requirements by framing additional regulations in this regard.

## 3.5 Monitoring and Enforcement :

3.5.1 DoT  shall  establish  a  multi-stakeholder  body  with  framework  for collaborative mechanism among  the  stakeholders.  The  body  shall  have an advisory role.

3.5.2 DoT  shall  seek  recommendations  of  TRAI  on  the  composition, functions, role and responsibilities of the multi stake-holder body.

3.5.3 The  monitoring  and  enforcement  functions  with  respect  to  Net Neutrality shall rest with DoT.

This is issued with the approval of competent authority.

Encl: As above

## Copy to:

1. PS to MoS (IC), MoC
2. PSO to Secretary (T)
3. Special Secretary (T)
4. Member (T)/Member (F)/DGT/ Member(S)
5. Secretary, TRAI
6. All Advisors, DoT
7. All TSPs/ ISPs
8. DDG (AS/ CS/ DS), DoT with a request to issue amendments of licence agreements as above.
9. COAI

Sd/- (Prashik Jawade) ADG (NT-II), DoT

Ph: 011-23719585

## Table 1

The specific amendments to be made in each of the license agreements are listed in the table below:

| Subject                                                                                                                          | License and Provision to be Inserted                                                                                                                                                                                   | Text                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Principle of non- discriminatory treatment Definition of specialised services Reasonable traffic management and other exceptions | UL - Insertion of new Clause 2.3 in Chapter IX VNO License - Insertion of new Clause 2.3 in Chapter IX ISP License - Insertion of new Clause 2.5 UASL - Insertion of new Clause 2.7 CMTS - Insertion of new Clause 2.4 | i. A Licensee providing Internet Access Service shall not engage in any discriminatory treatment of content, including based on the sender or receiver, the protocols being used or the user equipment. ii. The Licensee is prohibited from entering into any arrangement, agreement or contract, by whatever name called, with any person, natural or legal, that has the effect of discriminatory treatment of content. iii. Nothing contained in this provision shall restrict: a) the provision of any Specialised Services by a Licensee, provided that:  the Specialised Services are not usable or offered as a replacement for Internet Access Services; and  the provision of the Specialised Services is not detrimental to the availability and overall quality of Internet Access Service. b) any measures adopted by the Licensee that are proportionate, transient and transparent in nature and fall under any of the following categories: |

## Annexure- I

|  Reasonable traffic management practices, as may be specified from time to time;  Provision of emergency services or any services provided during times of grave public emergency, as per the process laid down by the Licensor/ TRAI;  Implementation of any order of a court or direction issued by the Government, in accordance with law;  Measures taken in pursuance of preserving the integrity and security of the network and equipment; and  Measures taken in pursuance of an international treaty, as may be specified by the Government. iv. For the purposes of this provision: a) 'Content' shall include all content, applications, services and any other data, including its end-point information, which can be accessed or transmitted over the Internet. b) 'Discriminatory treatment' shall include any form of discrimination, restriction or interference in the treatment of content, including practices like blocking, degrading, slowing down or granting preferential speeds or treatment to any content. c) 'Specialised services' shall mean services other than Internet Access Services that are optimised for specific content, protocols or user equipment, where the optimisation is necessary in order to meet specific quality of   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |                                                                                                                                                                                                                                                                        | Provided that the Licensee is authorised to provide such services in accordance with the provisions contained in this License, as modified from time to time.                                                                                                                                                                                                                                                                  |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Definition of Internet Access Service UL | UL - Insertion of new Clause 44A in Annexure- I VNO License - Insertion of new Clause 45A in Annexure- I ISP License - Insertion of new Clause 16A in Annexure - I UASL - Insertion of new Clause 26A in Annexure- I CMTS - Insertion of new Clause 16A in Annexure- I | Internet Access Service is a service to access the Internet that is: i. generally available to the public; and ii. designed to transmit data to and receive data from all or substantially all endpoints on the Internet Explanation: Any service that offers capabilities that are incidental to or provide the functional equivalent of Internet Access Services, shall also be included within the scope of this definition |

Note: In case of the UASL and the CMTS License, which do not contain a definition of Internet, the definition of Internet shall also be included along with the new definition of Internet Access Service.

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