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Monday, September 21, 2015

The Era of Flashy Product Launches

A simple Google search for the history of product launches brings up a plethora of links leading to Apple’s high profile WWDC launch events. But, that may be because of some SEO at work. Product Launches, are in principle an extension of marketing. It is very hard to trace back the very first product launch that ever occurred, but, it is safe to assume that it was not as ostentatious as the ones in the 21st century. But then, launching a bar of soap would not have invited much fanfare back in the 1900s.

Over the years, marketing has been subjected to various schools of thoughts. The ideologies usually changing every decade or so, in response to global events, and sometimes, even mishaps. A Product, for a business is very much akin to a baby; it starts with an idea, undergoes gestation, and is eventually delivered. That product will later become the extension of the company itself. And like any proud parent, the company likes to show it off to the World. Product Launches are the platform for that showcase.

It would be remarkably wrong to say that the Era of Product Launches was started by Apple (as many people would like to believe); yet in all certainty, they are the ones to make it look like an opera. Modern day launches are extremely flamboyant, even more widely publicized and involve several months of prior planning.

Flashy and over the top launches were brought into fashion by the late Apple CEO Steven Paul Jobs. His bold statements, reality distorting antics and sometimes egotistic rants left the audiences completely enchanted and somewhat disillusioned with the actual product. These events usually culminate with performances by pop stars and rock bands.

In today’s scenario, launch events are far from conservative; but so is marketing as a whole. Conservatism has given way to flamboyance while subtlety has been replaced by theatricality. The norm of the day is- “If you have it, then you got to flaunt it”. Most launches today happen in the tech world and increased consumerism has translated into fast riches for many tech firms.

This has resulted in oversized cash piles and highly increased marketing budgets. Publicity is more important than product differentiation. The scholars from the old school of marketing may find this irksome, but the modern marketing manager with his fancy B-school degree may reply that –“This is what works”.

And in all fairness, this form of marketing is most definitely translating into success. The go-to Mantra is – Be Revolutionary. The impact of effective product launches can be seen almost instantaneously; 300,000 units of the iPad were sold on its very launch day, while the company recorded the sale of 1.7 million iPhone 4 units in the subsequent three days of the launch. The numbers are mind boggling and appalling at the same time.

But, if one were to think hard, the amount of costs and manpower that goes into planning such events should in fact lead to such results, in order to level the cost-benefit ratio. Some companies, however, despite their glitzy product launches are not able to sum up decent numbers that quickly. But, in the long run, this marketing strategy does help a lot. It generates a lot of buzz, maintains the hype around the product and the company for even a month after the culmination of the event and even the press have a field day covering the event left, right and centre.

It is human tendency to try to milk the maximum utility from a tool, regardless of the exhaustion of that option. Many firms tend to do the same with highly common and successful marketing tools. But, the truth is that too much of a good thing never leads to happiness. The same thing is happening to product launches and other corporate outreach events. Sooner or later, you do run out of ideas on how to make a good thing even better. In a bid to stand out, companies today are going for multiple events all round the year, spending loads of money and efforts into making the next one ‘more epic’ than the previous one. But, that cycle DOES eventually come to an end.

In the process of meeting deadlines and consumer expectations, the company not only stresses its employees, but also threatens to jeopardize the quality of the product itself. The launch is centered on the product and not the other way round. There have been several gaffes where CEOs have had to face onstage embarrassment and even media ridicule in the event of the product failing during its demonstration.
An embarrassed Satya Nadella after Cortana Demo Failure


The list of problems includes venue problems, power failures, and failed demonstration and so on. During one of its launches while giving a demonstration, Steve Jobs literally asked everyone in the audience to get off the wireless networks after the newest iPhone failed to load a webpage due to cramped wireless networks. Recently, an overworked CEO of BMW fainted on stage right before launching their newest offering in Germany. Satya Nadella of Microsoft was subjected to immense embarrassment when their highly publicized voice assistant failed to respond to the CEO of the company himself. Such incidents sound more funny than grievous, but, they are slight hints that somewhere, something is very wrong.
BMW CEO Fainting On-Stage

According to a leading market research firm, approximately 75% of product launches of today end up in failure. Some of the products fail to earn back their cost even a year after their initial launch. One may not realize but, product launches are a dual edged sword. On one hand, they give an amazing jumpstart to your product, but when that happens, the company is subjected to the real test of managing its supply chain; and that’s where most companies fail. The bottom rule for a company should be that no single department should ever be given free reign over company decisions. A balanced approach to running a company is what earns dividends over the years.  Too much free reign to the marketing department will always lead to insurmountable costs and haphazard outcomes.


There is an inherent need today for companies to return back to the original ideas of business; some degree of conservatism never hurt anybody. A company should strive to first strengthen its core principles, bolster the product and deliver the best that it can. Marketing it, should come secondary to product development. Yet, a little hype around the product never hurt anyone at all.

Wednesday, August 5, 2015

Ease of Doing Business in India- Current State and Future Prospects

India was once home to the most flourishing trading business in the entire world; a business set up originally by the East India Company, but handled and managed by Indian traders. But, the manner of exit of Britain and the post- World War 2 world was not very favorable for a newly christened country like India. The world’s focus was on rehabilitation and restoration rather than regeneration and production.

This unfavorable climate forced India to maintain a closed economy for years to come; nurturing its nascent industries and small businesses, allowing them to survive and focus solely on domestic consumption. But, the government of India followed this economic policy a tad longer than it should have been.

A closed economy model should only be a temporary phenomenon if any developing nation wishes to embark on the long road to success. The repressive policies of the government are still haunting Indian business sentiment several decades later. The World Bank group is an organization which analyzes various aspects of doing business in 189 countries across the world. India has been a consistent backbencher in its rankings and has shown little or sometimes even negative signs of improvement over the years.
As of 2015, India has fallen two places to the 142nd position in the ease of doing business rankings. This rank represents the ease of running an existing business in the country. Starting a new business in India is a gargantuan task altogether. Complex policies, supererogatory regulations, executive corruption are part of the barrage of problems that businesses have to face.

The economic policies in this country have always been decided on the political mandate, rather than on the requirements of the economy. Positive and forward looking economic decisions are often followed by subsequent years of repressive taxation policies. As soon as a business thinks of poking its head into the mess of the Indian policy system, it’s forced back into the dark, gloomy halls of indecision and laggardness.

The Indian governance framework is an endless rain of regulations after regulations. When a company might finally think that it has all the required documents in place and can finally focus on running the business (the thing that really matters above all else), some new hurdle will surely pop up, leaving the owners frustrated and in bad taste.

Got your shiny new approval certificate from the State Authority? Thinking of holding client meetings and pitching your idea to the board? Think again. This was just the start. You need to go big now. The central mess awaits you for its approval. Such restrictive environment is highly overbearing on innovation. Set aside innovation, one cannot even hope to achieve optimal functionality.

But, business experts forecast fair days ahead. The NDA government is on a positive footnote to change the business sentiment across India. The government is targeting a place in the Top 50 in the ease of doing business ranking in the coming 5 years. High priority is being given to reducing paperwork across the board in all departments and all states. Currently, according to estimates, businesses need 27 days in Delhi and 30 days in Mumbai to set up. The government hopes to significantly reduce these minimum figures and achieve a more reliable and streamlined process of registration for businesses. Several steps have been taken which have gone largely unnoticed, but will greatly help the cause.

Several amendments have been made to the Companies Act to accommodate the reform measures needed to make it easy to start a business from scratch. ESIC registration, filing for PAN and TAN and other allied processes can be done through online portals. Earlier, around seven documents were required for trading in exports and ten for imports. However, according to the Directorate General of Foreign Trade, only three documents will be required henceforth. Several other flagship programs are underway by the government to invite investors and MNCs to a supposedly reformed India.

As of August 2015, the Prime Minister has been on Twenty Six foreign trips and has been constantly advertising The Make in India initiative. The strong points that enable him to put this view forward are the changes being carried out right here at home. Make in India cannot hope to succeed without improving the investment sentiment and the ease of governance.

While there is tremendous upheaval happening in government offices as we speak, yet one problem still remains unchecked and undeterred-Rampant Corruption. None of Mr. Modi’s policies include measures to control and curb official corruption once and for all. And that may be the reason that Make in India has not taken off yet as it should have, right from its inception.

But, the road to progress has some speed bumps, which can be overcome easily if one continues to keep moving forward. Abolishing repressive taxation policies, red tape and most importantly corruption, is the way of moving forward. After a long time, a government shows promise if not in much, but its intent to do well.  But what will really matter down the line is the mettle of the government to flex its muscles in face of parliamentary logjams and economic inaction in response to volatile petty politics. The path is set, the map has been laid, all that this government needs to do is put the pedal to the metal. All this will enable and empower the immense entrepreneurial talent that our country holds and give way to innovation, which will in return lead India on its path to Global success. The future is quite bright, if the government and the people choose to believe in it.

The Menace of Hacking and Data Breaches for Organizations

The big shift to computing in the business world occurred around the end of the 1980s; with IBM leading the pack in providing computing solutions for businesses that at the time promised to give your business the edge above other establishments. The biggest selling point of the new technology was the promise that it would revolutionize the way companies stored and managed data. I was a compelling offer, given the hassles of storing and maintaining files, folders and a sea of documents.

Computers changed that scenario altogether, potentially leading to increased levels of productivity and lower data handling costs. The acceptance of computing technology in the 20th century restructured businesses all over the world. However, this isn’t the 20th century anymore. Networking and the internet have further streamlined data flow and by extension businesses, yet, a new menace is at large.

Hacking is commonly defined as the art of gaining unauthorized access to a computer or its data. Worldwide networking and open source software on modern day computer machines translates that anyone skilled in computer programming can manipulate the weaknesses in a machine’s software and gain access to sensitive information that might be stored on your device. While hacking can affect each and every individual with a computing device, however, its sting is felt the most in case of organizations.

Data is the heart and soul of any organization. It helps it to react to rapid changes that might occur due to some environmental changes, gauge market demand or to simply store the contact details of its customers. Data breaches are not new to organizations. Even before the advent of computers, data breaches were reported from high value public companies, but, that amounted to physical theft of data, which could be controlled by simply increasing the security.

However, controlling hacks is not that simple. Earlier, the entire data of a company was stored locally on hard drives that could be accessed only physically. However, ever since networking became more and more prevalent, the data is no longer on physical drives, but is being continuously streamed.  This makes it easier for hackers to potentially gain unauthorized access to sensitive information.

As more and more companies go online, there are reports of frequent attacks and data breaches. The most gruesome one yet occurred in 2013 when Target, the American retail chain was hacked in 2014. Around 40 million debit and credit card numbers were stolen from company databases. Since then, reports of hacks have been regular features in the news.

An even bigger controversy erupted when Sony pictures was hacked, allegedly by North Korea. The hackers eventually posted private emails of company bosses, copies of unreleased movies, causing huge losses and embarrassment to the company. Several other companies also reported similar hacks in the past year, adding fuel to the urgent need for measures to safeguard businesses and also all computing devices from potential hacking attempts.

The situation has gotten out of hand. The laws to prevent hacking and unlawful access of private information; however, they lack enforcement. Companies rely mostly on private contracts with IT companies to manage their data and ensure its security. But, IT companies can only amp up the defense of the system. They cannot go after the hackers.

One of the other problems with data breaches is that investigators do not have much to go on with, because they have very little cases with which they can correlate similarity patterns and strategize accordingly. It is not necessary that hacking attempts have increased exponentially in these past two years. In reality, less than 50% of all hacking attempts are ever reported. Sometimes, due to lack of disclosure on part of companies and other times because most hacks go unnoticed.

The cyber crime divisions of the police are just empty monikers. After all these high profile hacks involving huge multinationals which have the ability to exercise political pressure, the perpetrators have not been identified. To everyone’s disbelief, the US President Barack Obama made and outright accusation on North Korea for being responsible for the hacking attacks on Sony. What followed this event was even more juvenile. A few days later it was reported that the entire internet infrastructure of North Korea had been compromised, allegedly by the United States.

Setting aside all these conspiracy theories, the pressing need is to safeguard businesses and ensure that the next hack does not crumple a bank or a stock exchange, threatening the entire economic structure of a country. The age old principle of prevention is better than cure comes into play here as well.  Using secure networks, screening and training employees, regularly updating the software are all safeguards which will make it harder for hackers to penetrate the system firewalls.

But there is only so much that a company can do while just increasing the home base security. The companies that own devices and even computer security companies have not been able to keep a check on hacking activities. The only effort that can now seem to put a dent in hackers’ ambitions is the setting up of cyber security cells which are dedicated towards safeguarding the interests of business owners, before this becomes a full blown catastrophe.


Friday, June 19, 2015

Space: The Bold New Frontier for Business

Space has always been the dark, mystifying void, familiar to the common man only through text books and documentaries. Practically, yet, ironically, space or the universe as a whole does not seem to affect the humble humans living on Earth. Its traverses are limited only to tabloids, scientists or the weekly documentary on the discovery channel. Until now, the space industry was mainly driven by the state funding to their respective national space agencies.

However, this arrangement is rapidly changing with the private sector taking a keen interest in space innovation (A déjà-vu moment for Sci-Fi buffs). But space is not your ordinary run-of-the-mill industry with initial investment and long term profits. Investment in space is a continual and painstakingly grueling process, with the silver lining of profits far away into the distant future.
The space shuttle program of the United States officially came to an end in 2011. This led to the United States having to rely on other space agencies and mediums to launch supplies in order to keep the International Space Station operational. However, this was still not feasible as the only other reliable country with an autonomous launch vehicle was Russia.

The gradual development of these events breathed fresh life into the Elon Musk founded company SpaceX. The company successfully test fired their rocket and launch vehicle systems in the presence of NASA scientists; thus, bagging a $1.5 billion contract for providing essential supplies to the space station for the next couple of years.  This was a huge achievement for the virtually unexplored industry and led to the opening of a new frontier for business.

According to 2013 estimates, the space innovation industry is currently valued at 315 billion dollars, consistently growing at around 4 percent per annum. The tremendous growth tasted by SpaceX has prompted entrepreneurs to latch on the early opportunity as the industry is expected to double in the next ten years; an opportunity that is too tempting to resist.

This newfound faith in exploring space has prompted entrepreneurs to engage in bold and what some may term as foolhardy measures to develop space technologies ranging from rockets and spaceships to asteroid miners, Moon Landers, interplanetary transport vehicles and zero gravity 3-D printers. This is not some stuff out of a science fiction novel; these are actual technologies being developed by the so-called next-gen start-ups.

This industry has another dimension; a more fun and luxurious dimension. Richard Branson founded Virgin Galactic and other small companies in the fray are offering trips to space to patrons. However, the ticket to space goes at $200,000 a pop. But, the company hopes to provide the ‘joy of space travel’ accessible to the common man in subsequent years.

The commercially successful industries here on Earth, are fueling the progress for space innovation. The glowing examples of this growth are companies like Boeing and SpaceX; whose successful business models are enabling the reallocation of resources. The common man may think that space exploration and travel is only a rich guy’s whim, but the same thing happened with the aviation industry, which was inappropriately disregarded as an extravagant dream of playboys.

India’s recent space missions to the Moon and Mars were not mainly in the spirit of science, but had an ulterior motive of emblazoning its low cost, yet, effective technology to the world. The growth of this industry will suffer form shortfalls unless newer and more efficient technologies can be developed. India’s move to showcase their low cost rocket technology will go further to bolster investment in India’s space program initiatives.

For now, the real business of space is just about promoting science and providing much needed ground support to keep the International Space Station operational. However, this is because the control of the industry is in a phase of transition from government hands to those of corporate. Once the base is ready, the private sector will look to fully exploit the opportunities that lay in space, encompassing the tertiary services right at home.

But, there have been recent setbacks to the industry, which have opened it up for debate, whether space companies will ever be able to bring home the bacon. Orbital Sciences’ Antares rocket, carrying cargo supplies for the space station exploded shortly after take-off. In another incident, Virgin Galactic’s SpaceShip Two crashed, killing its test pilot. Such setbacks are foreseeable, given the nature of danger that follows with the line of work. The advancements that will be made after such setbacks are much more important as they will be reminiscent of the growth and maturation which will take space innovation to its heights.

Private investment will keep on growing as the achievements and success of companies will invite more and more to join in on the space boom. The first space race ended with the end of the Cold War, but a whole new space age is taking shape right before our eyes. The coming years will be a testament to how well the industry is able to mature and grow from its infancy in achieving the visions of its pioneers. You may very well be enjoying a burger from McDonalds while sipping a hot latte at a vacation in space.




Monday, April 20, 2015

The Fading Sheen of SEZs in India

Globalization and massive Industrial growth gave rise to today’s Special Economic Zones or SEZs (as they are commonly known).  They were developed with a clear goal of providing tax incentives to huge Multi National Companies and to promote the inclusive and exclusive growth of the host country. The first SEZs were naturally set up in several East Asian countries which were looking towards rapid industrialization and growth.

The first one was set up at an Airport in Ireland, but the idea didn’t really pick speed until the 1980s, when the Chinese Dragon started scaling the economic ladder to high growth and industrialization. Through the 1990s and the early 2000s, the world saw a huge spurt in the number of SEZs. Even India got on the bandwagon and came up with the SEZ policy in 2000 looking to unleash a new 
chapter of industrial and manufacturing growth.

With that aim clear in mind, SEZs should have probably revolutionized the investment climate in any country willing to offer such incentives and infrastructure. Today, there are over 4000 SEZs across the globe, with a majority of them lying in developing countries (for obvious reasons).And new ones keep coming up or are in the planning process. But, despite these huge numbers, a majority of them haven’t been able to account for the kind of growth that they should have.

In India too, their performance has been dismal. There are around 580 SEZs approved by the government; but only around 200 are operational. That is a disheartening figure for a country which has recently launched campaigns like Make in India and is aiming at double digit growth rates within a decade.  One may think that 200 operational SEZs is a good number for India; however, out of those operational, the ones which are profitable are very few.

The real sheen behind an SEZ is the list of tax incentives and exemptions that the government is willing to offer, in return for the company’s investment and operations. However, as ambitious as Make in India sounds, it fails to perform on paper. As per the SEZ policy, companies were exempt from paying the Minimum Alternate Tax MAT) levied on book profits and the Dividend Distribution Tax (DDT). However, these tax lollies have been snatched away from the companies. In late 2014, the government announced an 18.5% MAT on book profits; a move which has been highly criticized by the commerce ministry.

It seems that the government wants to achieve its growth targets but, without letting go of its cash kitty. What the government needs to understand is that, if it does take away some of these tax benefits; it has to be ready with some other incentive which can compensate for it. However, there is complete deadlock in the further development of SEZs.

Like all Industrial zones, SEZs are also located outside the limits of cities and metropolitans. This arrangement requires setting up of minimum infrastructure in order to enable functionality. The infrastructure includes high quality roads fit for heavy machinery and equipment, a robust rail network, along with ports and airports.

But, all that is secondary to tax exemptions. Relief from unnecessary taxes is the primary driver that makes an SEZ attractive to multinational corporations. If that isn’t offered, the company may set up its business on a different piece of land, with better infrastructure and connectivity. The commerce industry was hoping that the budget would include such reliefs, but that didn’t happen.  The Prime Minister has made lavish boasts of how the government is cutting the red tape and improving the ease of doing business; however right now, these are nothing but big words with little backing. A recent report stated that developers have pulled back from 61 approved SEZ projects in Maharashtra.

From the look of it, it may seem that the government has given up on the SEZ dream; but it isn’t so. The story of Sanand district in Gujrat is a major driver towards this cause. Sanand is rapidly on its way to becoming the automobile hub of India; and has also been flamboyantly referred to as the next Detroit in making. The portfolio of high profile manufacturers includes TATA Motors, Ford, Hitachi, Citroen and Cadila Healthcare.

This is truly a welcoming step, but such moves should not be limited to certain districts of the country. The incentives being offered there should be generalized to other industrial hubs of the country as well. Instead of spending money on opening of new SEZs, the funds should be diverted towards infrastructure development.


It isn’t too late for India to unleash its growth potential. But, retrospective taxation will take the investment climate to its doom. For SEZs and the industries to flourish, the government has to let go of its control and provide multinationals with opportunity on a silver plate. Basic Infrastructure facilities like Electricity, connectivity with railways, ports and airports should be developed to end negative sentiment towards SEZs in India. 

Monday, March 23, 2015

The Indian Startup Bandwagon

According to a recent report by NASSCOM, the IT-BPO industry body, the last fiscal year saw 800 startups enter the Indian market ecosystem. Riding on the wave of globalization and opened market access, several trained professionals are going the entrepreneurial way. As per NASSCOM’s report, according to the current growth patterns, India will house the second largest startup ecosystem after the US, in the next two years.

For a few years now, India has chosen to silently ignore the immense potential that the mushrooming startups hold for the economy. But, all of that is changing now. The Union Budget 2015 has acted as the first step by the Indian government to acknowledge this new segment of the market, by creating a special mechanism called SETU-Self Employment and Talent Utilization.

This mechanism is meant to support and nurture the startup ecosystem in India. But, it is still a very small step, given the size of the startup market and its current growth trajectory. The biggest driver of growth in the startup scene is e-commerce. 2014 was the year, when the average Indian consumer was exposed to a new frontier of shopping.  

However, the story of startups is not as rosy as it is portrayed. A startup is like any other company and requires investment and funds to function; especially in the garage phase of its existence. The US has a highly evolved and nurturing ecosystem for startups in the form of incubators and angel investors. On the other hand, India currently has just 80 angels and incubators combined. It is quite apparent that the startup to incubator ratio is dangerously low in our country.

Unlike home businesses, startups cannot run on family money for long. The Union Budget has allocated a thousand crore rupees for the promotion of startups, but, it is still meager compared to the requirement.
Some of the startups which have served as the flag bearers of the startup growth story are companies like Snapdeal, Ola cabs, CarTrade, PolicyBazar, etc. these companies have come a long way to become successful startups that offer unique services to the consumers. The rapid growth of these firms has been the driver for other entrepreneurs to dream big.

The startup ecosystem is thus divided among two categories- the haves and the have nots.  On one hand, there are successful startups like Flipkart, Snapdeal, and Ola which are managing to score multiple rounds of multi-million dollar infusions; while on the other hand there are others who are facing situations similar to a famine.

Also, the most notable startups that have sprung up and are successfully running their businesses are limited to the fields of Mobile and E-commerce. One may think that this is the case because of the immense strides going on in this sector, but that is not entirely true. The fact to blame here is that Indian startups are being funded by foreign VCs, who are currently fixated at expansions in the technology sector.

Such a scenario is very disheartening for the hard working entrepreneur, with brilliant ideas and innovations, but, no recognition and support.  SETU is a positive approach out of this mess. However, it is still a pebble in a pond.

While the government goes on calling to foreign conglomerates to Make in India, their first step should rather have been to promote an internal growth ecosystem. The number of new startups is going to keep on growing, as young graduates and professionals ride the entrepreneurial wave to self employment. So, instead of creating new sets of regulations to bog them down, the GoI should instead create support groups and organizations which identify and aid potentially unique and valuable startups.


The road ahead is quite long for Indian startups. The coming year will see many more startups mushrooming all over the country, with new and unique products and enthusiastic entrepreneurs at their helm to guide them to glory. Several more steps are also expected from the government which will help reduce the turbulent divide between the top 5 percent of startups and the rest of the 95 percent. 

Monday, February 16, 2015

Toll Booths on the Internet: The Case for Network Neutrality

The internet today is an embodiment of the democratic world that we live in. it was founded on the principle of equal access for all. This meant that each and every person would be able to access the immense streams of data that abundantly fill up the far reaches of the internet; a principle that has struggled to stand firm over the years.

Throughout history, telecoms have endeavored to block the free movement of communication across diverse landscapes. They have used every play in their book to ensure that the costs of communication remain high for the end users. But, the close eye of the governments prevented them from having their way.

Ever since the internet went mainstream, the telecoms could see their grip over the telecommunication market loosen. Technology had found a way through their oppressive tactics. Today, the internet has arrived at a juncture, where it is capable of becoming the sole carrier of all kinds of data and communication.  Such a scenario is unprecedented.


The hyperactivity of the internet has attracted the sharks. The telecom companies can see their control deteriorating. The cost of communication has halved for the end user because of decreased dependency on carrier calling and messaging services. The self sufficiency of the internet is highly hostile to the telecom carriers.

This is where the case for Net Neutrality comes in. The carriers are no longer able to generate demand for the calling and messaging services. And they cannot simply justify a hike in prices of internet services.  So, instead, they are taking the hostile route.
The term network neutrality was coined almost ten years ago by Tim Wu of the Columbia Law School. It highlights the gargantuan success of the internet and how its providers are trying to control the transmission of data packets across its lengths. 

The protocols of the internet were clearly defined to allow free transmission of data without any bias or discrimination. However, the network operators have now found a chink in this armor. New technologies have now enabled network operators to easily identify and at the same time, intercept the kind of traffic that is being transmitted.

This technology, which was originally intended to filter SPAM and phishing data, is now being used by operators to put up toll booths on the internet.  In order to keep their revenue up, telecoms intend to use these barriers to unleash so called ‘premium’ services.

Their idea is to sell premium access to consumers for services being hailed as ‘fast lanes’ (bandwidth hungry services like videos, gaming, etc.). So, if one is a regular user, then he will be forced to use the slower road to his destination; unless, of course, he is willing to pay a premium to avail the benefits of the metaphorical highway of bandwidth.

And this problem is not just limited to the West. In December 2014, Airtel tried to bring this dirty game to India too. They tried to make internet calling or VoIP a paid service for all its users. The carrier would be able to differentially charge customers for using these services.  This move was met with a huge opposition and caused quite a furore across the country. Thankfully, the company did not go forward with their plans due to such widespread opposition.

But, the disturbing news is that, the war against Net Neutrality has managed to arrive in India too. Internet activists the world over are up in arms to oppose such moves and to ensure that the internet is not tied down. The only way that this can be prevented is by setting up network neutrality rules that prevent network operators from fragmenting the internet.

The United States and the European Union are working together to create a set of guidelines and rules which will govern net neutrality. The Netherlands has already passed strict network-neutrality laws, after its national telecoms company threatened to levy additional charges on internet calling services.
India has one of the slowest broadband infrastructures all over the world. Along with that, internet penetration is mostly limited to urban and semi urban areas. Although access to fast internet services has been recognized as a necessity in today’s world; it remains a luxury in our country.

The Airtel incident went without any comment from the Indian telecom regulator TRAI. The matter has subsided for now, but, in all possibility, some other carrier might try to make a similar move. Currently, the Indian telecom laws are quite liberal and do not stop the operators from attempting to introduce differential pricing for their internet services.

Several organizations have sprung up to defend the rights of consumers and to ensure that each and everyone have equal access to the internet. The internet is defining tool that reflects the liberal and secular times that we live in. to take that away, is like taking away the sovereignty of the people and their voices. Barack Obama is a staunch proponent o the cause and last year launched a dedicated website for people to track the developments. The Federal Communications Commission is working with governments all over the world to prevent the free reign of telecoms. 


The internet is a catalyst of all modern innovations and thus, to safeguard the interests of the consumers and the constitutional foundations of the country, the Indian government should also become a part of the process of framing stringent network neutrality rules.  Right now, it is very difficult to say how these rules would hold against the attacks of its opponents.  The only thing that’s important is to ensure that network neutrality does not become another notion, forever stuck in legal tussles; for the sake of democracy and free access to information.