Net Neutrality and Why does it matter?

The TRAI is all set to issue recommendations on net neutrality. The regulator’s recommendations to the telecom department will form a vital component of the government’s policy on net neutrality, a principle that guarantees consumers equal access to all Internet services, with no discrimination on the basis of tariffs or speed. Here is a look at what the developments mean for consumers and companies.

Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumers advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet – blocking or slowing down apps that rival their own services.

In US, big telecom companies say they don’t want the stricter regulation that comes with the net neutrality rules. They say the regulations can undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the Federal Communications Commission had said it won’t set prices for consumer internet service.

Internet companies such as Google have strongly backed net neutrality but many tech firms have been more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.

FCC Chairman distributed his alternative plan to other FCC commissioners in preparation for a vote. Although the FCC two Democrats said they will oppose the proposal, the repeal is likely to prevail as Republicans dominate 3-2. The vote for net neutrality in 2015 was also along party lines, but Democrats dominated then. The TRAI fought a battle in 2016 against plans that promised select Internet services to poor people by offering them free of cost. The regulator issued differential pricing regulations by which it banned what’s known as zero-rating plans.