Let's separate zero rating from the net neutrality debate

The current debate on net neutrality has 2 key parts

1. Additional charge for using certain apps like Whatsapp, Skype etc. (primarily apps that cut into voice and messaging revenue of telcos).
2. Zero rating - The app owner (Flipkart, Facebook etc.) pays for data instead of consumer

Unfortunately the 2 parts have been hopelessly mixed together.

Opposition to additional charge for certain apps is understandable. The consumer has already paid for the bandwidth and telcos or anyone else has no business telling how to use or not use that bandwidth.

Opposition to Zero rating is puzzling. Amongst all the rhetoric, the strongest argument for the opposition is that it will maintain a level playing field for all, primarily start ups.

Really?

It is absurd that level playing field is being defined in the narrow terms of data access cost. There are far more important things than data costs when it comes to level playing field.

1. Pricing power – Forget start ups, can established offline players match pricing of well funded online companies?
2. Access to talent – Huge salaries not only for top engineering talent but even for logistics personnel
3. Service terms – 30 day no questions asked returns, 1 day delivery, COD etc.

Should pricing, employee salaries and service terms be also regulated in interest of ‘level playing field’?

Zero rating will help in on-boarding a much broader section of society and enable them access to the same content, services, market places from which limited section of the society has benefited so far. The scale of impact will be so massive that the advantages of zero rating will far outweigh any concerns around stifling innovation or maintaining level playing field.

It’s time that the issue is looked at from the perspectives of those hundreds of millions of people who are going to benefit from zero rating immediately. Sure, large companies would be the first beneficiaries but it’s just a matter of time before the entire ecosystem benefits due to the significantly bigger market that would be created.