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Net Neutrality/No Zero Rating Enforced in India: Telecom Regulator Hands Setback to Facebook

TRAI Chairman R.S. Sharma

TRAI Chairman R.S. Sharma

A plan by Facebook to deliver free limited Internet access to India’s poor and rural communities was delivered a blow this morning after the Telecom Regulatory Authority of India (TRAI) declared the plan would violate Net Neutrality and banned it.

TRAI’s ruling focused on the fact the proposed plan would only allow customers to access Facebook and other partnered websites the social network elected to let users access over its free service. The regulator declared no service provider in India will be allowed to offer or charge discriminatory rates for data services based on content.

The regulator relied heavily on the ISP License Agreement in its ruling, which requires subscribers to have “unrestricted access to all the content available on Internet except for such content which is restricted by the Licensor/designated authority under Law.” TRAI went further in its Net Neutrality declaration than regulators in the U.S. and parts of Europe, proclaiming price-based differentiation “would make certain content more attractive to consumers resulting in altering online behavior.” Under those terms, India has effectively banned the practice of “zero rating,” which exempts certain so-called “preferred content” from metering charges or counting against a customer’s usage allowance.

free basics“This is a big win for Indian consumers and Net Neutrality,” said Independent MP Rajeev Chandrasekhar. “This is a very powerful and positive first step taken by TRAI. The days of telcos controlling regulations and regulatory policy is over and it is consumers to the fore.”

Facebook’s Internet.org and its companion free mobile web service, now dubbed Free Basics, offers stripped-down web services without airtime or usage charges, targeting basic so-called “feature phones” that were common in the U.S. before smartphones. Facebook has targeted the free service on about three dozen developing countries including the Philippines, Malawi, Bangladesh, Thailand and Mongolia. India would have been Facebook’s largest market for Free Basics, until the telecom regulator effectively banned it.

In India, Facebook CEO Mark Zuckerberg’s frequent entries into the debate, including a passive-aggressive OpEd widely panned in India, was seen by many as arrogant and counter-productive. Facebook’s ongoing campaign to enlist users’ active support of the project for the benefit of India’s telecom regulator created a row with the Office of the Prime Minister, that dismissed Facebook’s public relations defense of Free Basics “a crudely majoritarian and orchestrated opinion poll.

A misleading astroturf campaign only infuriated the government more after Facebook users (including some in the U.S.) were greeted with an invitation in their timelines to support “digital equality,” sponsored by Facebook. Regulators were flooded with form letters, only later to be informed many were misled to believe it indicated their support for Net Neutrality.

Facebook users across India (and some in the U.S.) were invited to defend "digital equality," which critics define as "opposing Net Neutrality".

Facebook users across India (and some in the U.S.) were invited by Facebook to defend “digital equality,” which critics define as “opposing Net Neutrality.”

“Facebook went overboard with its propaganda [and] convinced ‘the powers that be’ that it cannot be trusted with mature stewardship of our information society,” said Sunil Abraham, of the Center for Internet and Society in Bangalore.

Initially, Internet.org included Facebook and a handpicked assortment of content partners, including the BBC, that were allowed on the free service. Net Neutrality proponents accused Facebook of creating a walled garden for itself and its preferred partners, disadvantaging startups and other companies not allowed on the service.

Unlike in the United States where Net Neutrality was a cause largely fought by netizens, websites, and consumer groups, major media organizations in India helped coordinate the push for Net Neutrality. The Times of India and its language websites like Navbharat Times, Maharashtra Times, Ei Samay and Nav Gujarat Samay appealed to other broadcasters and publishers to remove themselves from Internet.org. NDTV, a major multi-lingual broadcaster running multiple 24-hour news channels, often promoted Net Neutrality on the air and encouraged Indians to support it.

Like in the United States, Indians faced a telecom regulator more accustomed to dealing with government officials and telecom companies. TRAI was quickly swamped with over one million comments in support of Net Neutrality, so many that invitations for future comments were moved to another government website that made it harder for consumers to address regulators. The unexpected level of support for Net Neutrality also led Facebook to change its Internet.org service and relaunch Free Basics as “an open platform.”

But websites included in the service still cannot contain data intensive product experiences, such as streaming video, high-resolution images and GIFs, videos, client or browser side caching or file and audio transfer services.

“Facebook defines the technical guidelines for Free Basics, and reserves the right to change them,” adds the SavetheInternet.in coalition. “They reserve the right to reject applicants, who are forced to comply with Facebook’s terms. In contrast they support ‘permissionless innovation’ in the US.”

In India, the argument has boiled down to whether the country would prefer a usage-limited open Internet platform for the poor or an unlimited experience for a handful of websites. TRAI prefers enforcing rules guaranteeing users can visit any website they want, even if the free service used comes with a usage cap.

It’s a major blow for Facebook and the telecom operators that were some of the service’s biggest defenders.

[flv]http://www.phillipdampier.com/video/NDTV Net Neutrality India 2-8-16.mp4[/flv]

Net Neutrality is now law in India, where the telecom regulator exceeded the United States by completely banning zero rated services, which allow users to avoid usage charges for certain applications or websites. (2:03)

Activists of Indian Youth Congress and National Students Union of India shout anti-government slogans during a protest in support of net neutrality in New Delhi on April 16, 2015. India's largest e-commerce portal Flipkart on April 14 scrapped plans to offer free access to its app after getting caught up in a growing row over net neutrality, with the criticism of Flipkart feeding into a broader debate on whether Internet service providers should be allowed to favour one online service over another for commercial or other reasons -- a concept known as "net neutrality". AFP PHOTO / MONEY SHARMA (Photo credit should read MONEY SHARMA/AFP/Getty Images)

Activists of Indian Youth Congress and National Students Union of India shout anti-government slogans during a protest in support of Net Neutrality in New Delhi on April 16, 2015. (Image: MONEY SHARMA/AFP/Getty Images)

”COAI had approached the regulator with the reasons to allow price differentiation as the move would have taken us closer to connecting the one billion unconnected citizens of India,” said Rajan Mathews, director general of the Cellular Operators Association of India (COAI). “By opting to turn away from this opportunity, TRAI has ignored all the benefits of price differentiation that we had submitted as a part of the industry’s response to its consulting paper, including improving economic efficiency, increase in broadband penetration, reduction in customer costs and provision of essential services among other things.”

In a statement, a Facebook spokesperson said: “Our goal with Free Basics is to bring more people online with an open, non-exclusive and free platform. While disappointed with the outcome, we will continue our efforts to eliminate barriers and give the unconnected an easier path to the Internet and the opportunities it brings.”

TRAI rejected industry claims that differential pricing will enable operators to bring innovative packages to the market.

India has 300 million mobile users but there are still nearly one billion Indians without Internet access. India is an important market for Facebook, with 130 million active Facebook users — second to only the United States.

Allowing Facebook to gain a foothold in rural India using zero rating was compared with British colonialism by Vijay Shekhar Sharma, the founder of PayTM — an Indian mobile payment system. He called Free Basics a trojan horse — “poor Internet for poor people” and referred to it as the colonial-era East India Company of the 21st century.

“India, Do u buy into this baby Internet?” Mr Sharma tweeted in December. “The East India company came with similar ‘charity’ to Indians a few years back!”

“Given that a majority of the [Indian] population are yet to be connected to the Internet, allowing service providers to define the nature of access would be equivalent of letting [operators] shape the users’ Internet experience,” TRAI said in its release.

Telecom operators should be able to adapt to a market that bans zero rating, analysts believe.

“Telecom service providers may not be happy with this notification,” Amresh Nanden, research director at Gartner, told NDTV News. “However, they still have the ability and freedom to create different kind of Internet access packages; as long as content is not a parameter to provide or bar access to anyone. Such practices have already started elsewhere with products such as bandwidth on demand, bandwidth calendaring etc. to create premium products.”

[flv]http://www.phillipdampier.com/video/AIB Save The Internet 1 4-2015.mp4[/flv]

All India Bakchod produced several humorous mostly English language videos teaching Indians about Net Neutrality and why it’s important. It’s a familiar case for North Americans dealing with our own telecom operators. (9:07)

An update from All India Backchod last summer alerted India to an astroturf campaign underway at Facebook and telecom operators to mislead Net Neutrality supporters. (8:02)

House GOP Tries to Ban FCC’s Net Neutrality Enforcement; Rider Would Prohibit Oversight of Data Caps

sneakHouse Republicans are hoping a back door legislative maneuver will successfully block the Federal Communications Commission from enforcing Net Neutrality and regulating or banning data caps.

The GOP is fighting to deliver a death-blow against Net Neutrality in a rider attached to an important financial services appropriations bill. If adopted, this single sentence would effectively kill Net Neutrality enforcement and allow providers to adopt data caps and usage-based billing without any regulatory oversight from the FCC:

None of the funds made available by this Act may be used to regulate, directly or indirectly, the prices, other fees, or data caps and allowances (as such terms are described in paragraph 164 of the Report and Order on Remand, Declaratory Ruling, and Order in the matter of protecting and promoting the open Internet, adopted by the Federal Communications Commission on February 26, 2015.

The rider, in effect, makes it illegal for the FCC to protect customers upset about usage-capped Internet. It would also prevent the FCC from intervening if a provider wrongly charged overlimit fees to customers.

The spending measure is being fast-tracked through Congress and is considered a “must-pass” bill, with or without any attached riders. If legislators do not pass the omnibus measure by Dec. 11, it could result in another government shutdown.

The tactic is part of a broader move by several House Republicans to curtail the FCC’s oversight authority by threatening to dramatically cut the agency’s budget.

The anti-Net Neutrality rider has not gotten a lot of attention over the Thanksgiving holiday and was overshadowed by two other priorities of House Republicans that are getting more press attention: making it more difficult for Syrian and Iraqi refugees to resettle in the United States and a measure to strip federal funding for routine medical services performed by Planned Parenthood.

Rep. Barbara Lee (D-Calif.), a member of the House Appropriations Committee, released a statement condemning the Republicans for their “extreme agenda,” using procedural tricks to override the FCC and steamroll over nearly four million Americans that wrote the agency demanding Net Neutrality.

The Republican rider would effectively give a green light to Comcast to move forward with nationwide data caps, no longer fearing a potential FCC investigation that could eventually lead to a prohibition of compulsory usage-based billing.

Stop the Cap! urges all of our readers to visit this Free Press campaign page to get the phone number of their local representative and take five minutes to let them know you “vehemently oppose Net Neutrality riders being placed in a must-pass government-funding bill.” Tell your congressman you want the FCC’s authority left intact and you support their oversight of broadband. That is literally all you need to say.

Charter Relies on Netflix Testimonial to Sell Time Warner Cable/Bright House Merger to Consumers

Phillip Dampier September 9, 2015 Broadband Speed, Charter Spectrum, Consumer News, Data Caps, Net Neutrality, Online Video, Public Policy & Gov't, Video Comments Off on Charter Relies on Netflix Testimonial to Sell Time Warner Cable/Bright House Merger to Consumers
netflix charter

Image from Meet New Charter television ad (Image courtesy: Charter Communications)

Charter Communications has begun advocating for its merger with Time Warner Cable and Bright House Networks in advertisements that note Netflix is a merger supporter.

“Netflix says our upcoming merger with Time Warner Cable is a good thing for you,” said the advertisement, which also promoted an Associated Press story that stated Netflix supports Charter’s acquisition of Time Warner Cable.

The 30-second spots, now run by Time Warner in heavy rotation during local ad inserts on cable networks, promotes Charter’s 60Mbps entry-level broadband tier, 200 HD channels, no contracts or hidden fees, and the company’s claim it offers unlimited broadband access. It does not mention Charter executives have included a three-year expiration date on their commitments, after which the company can do almost anything it pleases.

Charter is hoping to enlist Time Warner Cable and Bright House customers to advocate for their merger’s approval with regulators and has launched a new website called Meet New Charter to promote the deal.

As of early September, the sparse website includes four testimonials — one from Reed Hastings, CEO of Netflix who supports the transaction because Charter promises to voluntarily abide by Net Neutrality policies, won’t attempt to extract fees from Netflix to improve the reach of its service for TWC/Bright House customers, and won’t have usage caps — all deterrents to subscribers using online video.

The other three testimonials come from cable and broadcast programming networks depending on carriage deals with Charter to increase their audience reach.

Meet New Charter wrote of these commitments for Time Warner Cable and Bright House Networks customers:

Faster speeds. Charter’s slowest broadband tier is 60Mbps, which enhances the ability of several people in the same house to watch streaming high-definition video at the same time.

Affordable, faster broadband at lower prices. New Charter will price its new 60Mbps entry level speeds based on Charter’s current model, which is less expensive than TWC and BHN’s comparable offerings.   Charter’s pricing model offers nationally uniform pricing with no data caps, no usage-based pricing, no modem fees and no early termination fees.

Committed to Net Neutrality. Charter has long practiced network neutrality and consistently invested in interconnection capacity to avoid network congestion.

Investing in customer care. We are focused on improving New Charter’s customer service and improving our relationships with our customers across our footprint.  Over the last three years, Charter has brought back jobs from overseas call centers and hired thousands of people to improve our customer care services. New Charter will also return TWC call center jobs to the United States and will hire and train thousands of new employees for its customer service call centers and field technician operations.

A quicker rollout of advanced technology. We will complete the full digitization of TWC and BHN—freeing up spectrum that will allow for faster broadband speeds and more high-definition channels and On-Demand offerings.

New Charter customers will transition to Charter’s new cloud-based guide. The new guide will offer intuitive search and discovery and will work on old and new set-top boxes, so consumers will get the benefits of the new guide without needing a technician to visit or to pay more for a new box.

To carry out these ambitions, Charter will have to drop analog video channels from the lineup, which means cable television customers will need to lease set-top boxes or other devices for each connected television in their home.

Consumer Reports has also repeatedly rated Charter as one of the country’s worst cable operators (sub req’d.) for customer service, pricing, customer satisfaction, and reliability. In 2015 it rated among the bottom five cable operators nationwide.

[flv]http://www.phillipdampier.com/video/We Are Charter 9-9-15.mp4[/flv]

Charter Communications has begun running this advertisement in heavy rotation on Time Warner Cable systems promoting its merger deal. (30 seconds)

The Philippines: Free Market Broadband Paradise or Deregulated Duopolistic Hellhole?

special reportFans of the “hands-off” approach to broadband oversight finally have a country where they can see a deregulated free marketplace in action, where consumers theoretically pick the winners and losers and where demand governs the kinds of services consumers and businesses can get from their providers.

That country is the Philippines, which has taken the libertarian free market approach to Internet access in a dramatic leap away from the authoritarian Marcos era of the 1980s.

The Deregulation “Miracle”

Until 1995, the Philippines Long Distance Telephone Company (PLDT) maintained a 60-year plus government-sanctioned monopoly on telecommunications services. Its performance was less than compelling. Establishing landline service took up to 10 years on a lengthy waiting list. Getting a phone line was the first problem, making sure it worked consistently was another. Just over 10 years after the United States formally broke up AT&T and the Bell System, the government in Manila approved RA 7925 – the Public Telecommunications Policy Act of 1995, breaking PLDT’s monopoly and establishing a level playing ground for each of 11 regions across the country and its many islands in which private companies could compete with PLDT for customers.

philippinesTo attract investment and competition, the government declared all value-added services like Internet access deregulated and guaranteed the complete privatization of all government telecom facilities no later than 1998. It also initially limited the number of companies that could compete against PLDT in each region to two new entrants. The government felt that would be necessary to attract competitors that knew they would have to quickly invest millions, if not billions, to build telecom infrastructure in the Philippines. It would be hard to make a case for investment in a region where a half-dozen companies all engaged in a price war fighting for customers while stringing new telephone lines and building cell towers.

To prevent cherry-picking only the wealthiest areas of the country, the government declared its desire for a privately funded nationwide telecom network and used the 11 regions, combining urban and rural areas in each, to get it. Competitors were required to support at least 300,000 landlines and 400,000 cellular lines in each region. That assured new networks could not simply be built in urban areas, bypassing smaller communities. After building their networks, companies largely operated on their own in a mostly-free deregulated market, slightly overseen by the National Telecommunications Commission (NTC) — the Philippines equivalent of the FCC.

The early years of telecom deregulation seemed promising. PLDT, much like AT&T in the United States, kept the lion’s share of customers (67.24%) after deregulation took effect, but new competitors quickly captured one-third of the market. But with lax regulation and oversight, some of the Philippines’ most powerful families, many benefiting under years of the Marcos dictatorship, managed to gain influence in the newly competitive Philippines telecom business. In the United States, telecom competition meant a choice between Sprint, MCI, AT&T or others. In the Philippines, you dealt with one or two of nine powerful family owned conglomerates, each operating with a foreign-owned telecom partner. It would be like choosing between companies owned by the Rockefellers, the Astors, the Carnegies, or the Morgans.

pldtThe NTC remained more “hands-off” than the FCC, avoiding significant involvement in critical interconnection issues — how competing telephone companies handle calls from subscribers of a competing provider. That was last an issue in the United States in the early 1900s, where rare independent competitors to the rapidly consolidating Bell System faced a telecom giant that initially refused to handle calls from customers of other companies. American regulators eventually demanded interconnection policies that guaranteed customers could reach any other telephone customer, regardless of what company handled their service. In the Philippines, the NTC eventually mandated less-demanding access, allowing companies to charge long distance rates to reach customers of other companies. In the 1990s, it was not uncommon to find businesses maintaining at least two telephone lines with different companies to escape long distance expenses and stay accessible to all of their potential customers.

PLDT initially fought the opening of the marketplace but benefited handsomely from it once it took effect. The company got away with setting sky-high interconnection rates to connect calls from other smaller providers to its customers. It also made access to its network a minefield of bureaucracy and often required competitors to sign unfair revenue sharing agreements.

It is Cheaper to Buy Out the Competition Instead of Competing With It

competition-issues-in-philippine-telecommunications-sector-challenges-and-recommendations-3-638

(Image Courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

The investment community eventually balked at the cost of constructing competing telecommunications networks, especially after the dot.com crash in 2000, and a drumbeat for industry consolidation through mergers and acquisitions quickly grew too loud to ignore. Investors fumed over the amount of money being spent by providers to meet their service obligations in the 11 subdivided regions. Instead of building redundant or competing infrastructure, allowing competitors to merge would cut costs and enhance investor return. The NTC let the marketplace decide, as did the government, and it led to a frenzy of industry consolidation that ran far beyond what the FCC and American Justice Department would ever tolerate.

In 2011, the government backed a colossal merger that brought together the wireless networks of Pilipino Telephone Corporation, PLDT, and Smart under the PLDT brand. The three former competitors became one and controlled 66.3% of the Philippine’s wireless customers. The merger was comparable to allowing Verizon to buy out Sprint.

Additional mergers in response to the super-sized PLDT rapidly reduced the competitiveness of Philippine’s telecommunications marketplace to a duopoly. Just two companies — PLDT, Globe, and their respective house brands — dominate landline, DSL, cable, and wireless telecommunications service in the Philippines. The investment community celebrated the deal’s approval as a lucrative goldmine of future revenue gains from a less competitive market.

Philippine Broadband: Hey, It’s at Least Moderately Better Than Afghanistan

competition-issues-in-philippine-telecommunications-sector-challenges-and-recommendations-8-638

(Image courtesy: Mary Grace Mirandilla-Santos/LIRNEasia)

Broadband performance, under any measure other than financial success, has proved abysmal for Philippine consumers and businesses. The country’s broadband speeds are among the worst in the world, only beating Afghanistan in many speed tests. Look the other wayoversight led to a bribery scandal in 2007 that threatened to bring down the government. Officials exploring the development of a National Broadband Network were accused of soliciting kickbacks from Chinese equipment vendor ZTE, which would have been responsible for supplying equipment for the project. The government canceled the project as the scandal widened and some of the principals left the country or in at least one case were kidnapped.

Eight years later, broadband in the Philippines would be considered a North American nightmare. The free market approach has led to free-flowing profits and a profound lack of marketplace competition, with broadband ripoffs and broken promises rampant across the country.

Although both PLDT and Globe Telecom are spending large sums on infrastructure, much of it benefits their very profitable wireless networks and business customers. Despite the investments, residential customers are stuck with some of the world’s worst broadband speeds and performance.

An independent Quality of Service test revealed the bad news all around:

The findings of the Philippine QoSE tests were expected, but nevertheless still disappointing.

The best performing among the three ISPs delivered only 21% of actual versus advertised speed on average. This same ISP also offered at least 256kbps download speed (generally accepted definition of broadband) only 67% of the whole time it was tested, falling short of the required 80% service reliability.

The Broadband Commission defines the core concepts of broadband as an “always-on service” with high capacity “able to carry lots of data per second.” While there is no official definition of broadband locally, the Philippine Digital Strategy 2011-2016 defines broadband Internet service as 2Mbps download speed.

Finally, like the last nail in the coffin, Philippine ISPs performed the worst in terms of value for money when compared to select providers in South Asia and Southeast Asia. The highest value given by any of the three Philippine ISPs tested was a measly 22kbps per US dollar. This figure is too low when compared to similar mobile broadband ISPs that offer 173kbps per dollar in Jakarta, Indonesia and 445kbps per dollar in Colombo, Sri Lanka.

These results have huge implications on truth in advertising, consumer welfare, and the need for appropriate regulation.

My DSL Service is So Bad I Prefer 3GB Usage-Capped Slow Wireless Instead

senloren

Legarda

Home DSL broadband is so bad that customers have increasingly dropped service in favor of tightly managed wireless service. Companies report DSL customer losses over the past few years, with no end in sight.

The telecom regulator has generally just shrugged its shoulders at the situation, suggesting competition between equally poor providers will somehow resolve the problem. That view is applauded by service providers who claim the Internet is “just a value-added service” not essential to basic living needs. But consumer groups wonder why providers are allowed to make false advertising claims about the speed of their service with no repercussions. A range of position papers appealing to the government to create a meaningful minimum broadband speed have been introduced and some are being pushed by members of the Philippine Senate.

Senator Loren Legarda joined scores of other frustrated customers complaining about unreliable and expensive Internet in the country. In a 2014 hearing Legarda complained she had once again lost her DSL Internet connection in her office and her wireless connection was so slow it was unusable.

“As we speak now, there is no Internet connection in my office,” Legarda said. “I received a message this morning from my staff on my way here because I may be e-mailing, etc. And for someone whose deadline was yesterday, I always want things done fast and I’m sure many of you want that efficiency too to serve our people better.”

[flv]http://www.phillipdampier.com/video/ANC Poor Broadband Internet 5-14.flv[/flv]

ANC aired this story about Sen. Legarda’s broadband problems and how Philippines’ providers oversell their networks back in 2014. (4:56)

We Oversold Our Networks So Sue Us, Except You Can’t

Providers blame the problem on oversold networks that attempt to manage too many paying customers on an inadequate network. In other words, they blame themselves with little fear any regulator will create problems for them.

Wireless service is no panacea either. Customers in the Philippines face draconian “fair use policies” on so-called “unlimited plans” that leave them throttled after 1GB of usage per day or 3GB of usage per month, whichever happens first. Providers suggest the policy is a benefit, promising them a better user experience. Besides, they suggest, even those that run into the speed throttle can still browse the Internet, albeit at as speed resembling dial-up:

Your internet speed will slow down if you use up 1GB of data for the day, or accumulate 3GB of data usage for the month.

If you hit the 1GB/day threshold, you’ll experience slower speed, but no worries because as we mentioned above, you can still surf! You’ll move up to normal speed at midnight. If you hit the 3GB/month threshold, your speed will move up to normal speed on the next calendar month (not based on bill cycle).

With a stifling usage allowance, shouldn't providers in the Philippines be offering better speeds?

With a stifling usage allowance, shouldn’t providers in the Philippines be offering better speeds?

Say Hello to the “Promo Pack” – Your Net Neutrality Nightmare Come True

Remember the scary ads from Net Neutrality proponents promising a future of Internet add-ons that would charge you to surf theme-based websites without facing network slowdowns or stingy usage caps if Net Neutrality protections were not forthcoming? In the Philippines, the nightmare came true. Mobile providers sell added cost “promo packs” that bundle extra throttle-free usage with theme-based apps. A package with Spotify runs about $6.50US a month and includes 1GB of usage. Anyone can buy a Spotify premium membership in the Philippines for around $4.37US without the add-on. But even worse are app-based promo packs that bundle free-to-download-and-use apps in the U.S. with special designated usage allowances.

Want to use Google Maps on your wireless provider? A “promo pack” including it costs around $2.17 a month and includes 300MB of usage. That money doesn’t go to Google — it stays in the pocket of the provider – Globe Networks. Twitter will set you back $4.37US a month and includes 600MB of usage, which seems odd for a short message service when contrasted with an identically-priced promo pack for Facebook, that needs the extra usage allowance more than Twitter likely would. But then they also get you for Facebook Messenger, which costs an extra $2.17US per month and comes with its own usage allowance — 300MB.

"What If" actually "Is" in the Philippines.

“What If” actually “Is” in the Philippines.

Globe-Telecom3While segmenting out popular mobile apps for special treatment, Philippine mobile providers have also taken Verizon and AT&T’s lead, pushing plans like myLIFESTYLE that bundle unlimited text and phone calls with expensive data plans.

Lifestyle Promo Packs:

Lifestyle Bundle

Price (Philippine Peso)

Consumable MBs/GBs

Description

Spotify

299

1GB

Premium membership to Spotify, with 1GB data
Work

299

1GB

Access to Gmail, Yahoo Mail, Evernote, + 10GB Globe Cloud Storage
Explore Bundle

99

300MB

Access to Agoda, Trip Advisor, Cebu Pacific, PAL
Navigation Bundle

99

300MB

Access to Waze, Grab Taxi, Google Maps, MMDA app, Accuweather
Shopping Bundle

299

1GB

Access to Zalora, Amazon, Ebay, OLX, Ayosdito
Facebook

199

600MB

Access to Facebook
Twitter

199

600MB

Access to Twitter
Viber

99

300MB

Access to Viber
FB Messenger

99

300MB

Access to FB Messenger
Chat Bundle

299

1GB

Access to Viber, Whats App, FB Messenger, Kakao Talk, Line, WeChat
Photo Bundle

299

1GB

Access to Instagram, Photogrid, Photorepost, Instasize

Extra Add-ons:

Basic Price Description
Consumable 100 Stackable Amounts of P100 denomination consumables
Unli Duo 299 Unlimited Calls to Landline/duo
Unli Txt All 299 Unlimited Texts to other networks
Unli iSMS 399 Unlimitend International SMS to one intl. number
Unli IDD 999 Unli IDD calls to one intl. number
DUO International 499 Unlimited calls to US landlines

The Philippines Should Regulate Under the American Example vs. The Philippines Should Not Regulate Under the American Example (It’s Obama’s Fault)

Lincoln_MemorialProviders in the Philippines have learned a lot from America’s telecommunications lobbyists. Their advocacy campaigns revolve around the theme that the United States has the best wireless networks in the world, developed under a largely hands-off regulatory philosophy that the Philippine government should follow.

The government and regulators largely acquiesced to that campaign until this year, when that idea came back to haunt providers. Earlier this year, the Obama Administration and the FCC began taking a more hands-on approach to telecom regulation after recognizing the marketplace is not as competitive as providers suggest. Strong Net Neutrality enforcement, limits on mergers and acquisitions and strong signals marketplace abuses would no longer be tolerated are now being pushed in Washington by the White House and the Federal Communications Commission. Providers in the Philippines no longer advocate following the American model, but it may now be too late.

obamaThe NTC is close to issuing new minimum broadband speed and performance standards and is now listening to Filipino consumers that launched Democracy.net.ph to fight usage caps in the Philippines back in 2011. The NTC may soon require providers advertise average speeds and performance, not “up to” speeds nobody actually receives. Those getting poor service would be entitled to refunds or rebates.

That could be the first step towards a more activist NTC that may have learned the lesson that listening to the broken promises of better service through deregulation has resulted in some of the worst broadband performance the world has to offer. The Philippines took the advocacy arguments of the deregulation crowd and doubled down, not only allowing providers to lie and distort in their advertising, but also permitting massive industry consolidation reducing the choice for most Filipinos to just two providers for almost all telecommunications services. The government looked the other way as corruption turned into a scandal and today it is left with two very powerful conglomerates that deliver third world Internet access while pocketing the generous proceeds.

A Better Way to Better Broadband

A deregulated, free market only works where healthy competition exists. Too few players always leads to reduced innovation, poorer service at higher prices, and a corporate fortress deterring would-be competitors that are unlikely to be able to survive in a fair, competitive fight. For the Philippines (and by extension the United States) to fully benefit from healthy competition, large conglomerates must be broken up and further mergers must be prevented above all else. Until sufficient competition can self-regulate the marketplace, strong oversight is necessary to protect consumers from the abuses that always come from monopolies and duopolies. Charging wireless customers for free apps and suggesting 3GB of usage is equal to unlimited broadband are two places to start cracking down, quickly followed by an investigation into where investment dollars are being spent and for whose benefit. It seems like customers are not reaping any rewards in return for high-priced service.

The Philippine government should also continue exploring a National Broadband Network strategy that puts the country’s broadband needs above the profit motivations of the current duopoly. Governments build roads and bridges, airports and railways. Broadband is another infrastructure project that needs to be developed in the public interest. If private companies want to be a part of that effort, that is wonderful. But they should not be dictating the terms or holding the country back from what may be the biggest scandal of all — broadband that barely performs better than what the Taliban can get these days in Helmand province.

D.C. Court of Appeals Announces Expedited Schedule for Net Neutrality Legal Challenges

Phillip Dampier June 30, 2015 Consumer News, Net Neutrality, Public Policy & Gov't Comments Off on D.C. Court of Appeals Announces Expedited Schedule for Net Neutrality Legal Challenges
DC Circuit Court

DC Circuit Court

The U.S. Court of Appeals for the D.C. Circuit has agreed to begin contemplating the legality of the Federal Communications Commission’s Net Neutrality rules on an expedited schedule, with written briefs from the cable and wireless industry challenging the rules due by July 30.

The schedule could allow the court to begin hearing oral arguments about whether Net Neutrality and Title II reclassification of broadband as a telecommunications service are legal as early as late fall, with a decision coming in 2016.

Both sides advocated for the court to make its decision as soon as possible.

To help the judges, the court has ordered all parties to limit the length of their written briefs and avoid using telecom jargon at all costs. The judges expect to read a series of at least 13 written briefs from all parties in the case before oral arguments are heard and has imposed limits ranging from 2,000-33,000 words on each submission to cut the workload.

Those objecting to Net Neutrality are not challenging the FCC’s rules prohibiting blocking of websites, paid prioritization or speed throttling. They are more worried about Title II reclassification, which gives the FCC wide latitude to oversee the broadband business. They are also challenging the vaguely defined “catch-all” general Internet conduct standard which allows the FCC to regulate if providers attempt end runs around specific rules to achieve comparable results. The FCC argues it needs the latitude to respond to a rapidly changing Internet. Internet providers also have a track record of finding and exploiting loopholes, something the FCC wants to limit.

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Stop the Cap!