Myths around Airtel Zero busted

Srini Gopalan

It’s only been a couple of days since the launch of Airtel Zero, an innovative and open marketing platform that will allow customers to access mobile applications free of cost, and we are seeing a big and somewhat unrelated debate on net neutrality with regards to the product.

While opinions from critics of the product are very welcome, it is pertinent that we set the record straight and look at some key facts relating to Airtel Zero and the benefits it brings to customers and the industry alike.

First and foremost, Airtel Zero is free for all our consumers and open to all marketers.

In fact, since we announced Airtel Zero on April 6, over 150 start-ups–with majority being small start-ups–have inquired about the product. Every one of them told us what a great platform we will be providing to them, and for a change they will have an equal opportunity to run with the big boys.On an average, Airtel Zero will help reduce their marketing costs by almost three quarters. Not bad, I would say, though some may still feel otherwise.

There is also a high level of misinformation surrounding the product, which is not surprising since the very concept of Net Neutrality is a bit misunderstood. Let us also bust some of the myths regarding Airtel Zero.

Myth

• The concept amounts to preferential access.
• Large companies with big budgets will be favoured, and smaller start-ups will lose out.
• Smaller start-ups will not be able to afford to pay for the data charges.
• Telecom companies will charge other companies for data used by customers. This is a way of making money.
• Airtel Zero is against Net Neutrality and gives advantage to those who can pay for data. As a concept, Airtel Zero has nothing to do with Net Neutrality. It is free for each and every customer and offers the same speed to all. It charges the same amount to each company for data without any discrimination.
• Speed to access the apps that are not on Airtel Zero will be throttled is completely incorrect. There is no difference in speed to access various apps, whether they are on Airtel Zero or not.

Reality

• Airtel Zero provides universal access and is free for all our customers. Customers have the choice to decide whether they want to come there or not.
• We have received calls from lots of small start-ups who congratulated us for building this platform, which offers them a great opportunity to market their products at very low costs. Over 150 companies are already in touch with us, and want to sign up.
• Today, when a consumer downloads a new app and uses it for a day, the total amount of data consumed is roughly about 20-30 MB. Assuming a price of Rs 1/MB of free data, this will translate to Rs 20 for the start-up. Compared to this, the average cost of marketing digitally through large media/ Internet companies is about Rs 50 to Rs 300 per download. So, this platform will actually make it cheaper for small companies to gain distribution as well as visibility.
• Telecom companies have been working with businesses for decades to offer toll-free voice services, wherein, a business pays to a customer to call in. Airtel Zero is the same concept.
• As a concept, Airtel Zero has nothing to do with Net Neutrality. It is free for each and every customer and offers the same speed to all. It charges the same amount to each company for data without any discrimination.
• There is no difference in speed to access various apps, whether they are on Airtel Zero or not.

Today, some mobile devices can store 50 or more apps, others can store five and some can't even do so. Will Net Neutrality imply that all devices must be standardized and offered at the same price to make the net neutral?

As the mobile technologies advance beyond 2G to 3G and 4G, should service providers offer the same speed to all, and charge the same for the services provided in the name of Net Neutrality?

Some customers pay cheaper data rates based on volume purchased. Does Net Neutrality imply that everyone must pay the same rate irrespective of usage?

In the end, the debate over the past few days has clarified one thing –a large number of people are still not clear about what Net Neutrality. This gives an opportunity to the so called experts to make baseless arguments.While their point of view is important, we should have a more informed and nuanced debate without painting a picture that is based on rhetoric rather than reason.

Given the facts above, what better way to contribute to the Digital India vision of the Government of India. Never before has an open and innovative platform like Airtel Zero been on offer that will help drive Internet adoption through free usage (and companies and app developers being an equal partner in the process). It will also drive innovation in the internet and mobile app space by providing a cost-effective and non-discriminatory platform, in particular, to smaller companies. This will truly drive ‘Make in India, For India’.

The author is director, consumer business, Bharti Airtel