Parliament voted on the Demands for Grants for the Ministry of Home Affairs on May 02, 2012. During the debate, MPs expressed concern over the status of police forces in different States of the country.  They emphasised  the need to augment the capability of police forces. Though ‘Police’ and ‘Public Order’ are State subjects, the union government provides assistance to States for strengthening their forces.  For instance, the Ministry of Home Affairs has been implementing a non-plan scheme for ‘Modernization of Police Forces’ since 1969-70.  Under the scheme assistance is provided in the form of grants-in-aid towards construction of secure police stations, outposts, for purchase of vehicles, equipment etc.  (To know more about the scheme, see an earlier blog post on the issue.) At the all India level, the sanctioned strength of State Police equals 20.6 lakh personnel.  Though there exist wide variations across States, at an average this amounts to 174 police personnel per lakh population.  However, the actual ratio is much lower because of high vacancies in the police forces.  At the aggregate level, 24% positions are vacant. The table below provides data on the strength of state police forces as in Jan, 2011

State Sanctioned strength Sanctioned policemen/ lakh of population Vacancy
Andhra Pradesh 1,31,099 155 31%
Arunachal Pradesh 11,955 966 42%
Assam 62,149 200 12%
Bihar 85,939 88 27%
Chhattisgarh 50,869 207 18%
Goa 6,108 348 16%
Gujarat 87,877 151 27%
Haryana 61,307 248 28%
Himachal Pradesh 17,187 256 22%
Jammu & Kashmir 77,464 575 6%
Jharkhand 73,005 235 30%
Karnataka 91,256 155 10%
Kerala 49,394 141 7%
Madhya Pradesh 83,524 115 9%
Maharashtra 1,53,148 139 10%
Manipur 31,081 1,147 26%
Meghalaya 12,268 469 17%
Mizoram 11,246 1,112 6%
Nagaland 24,226 1,073 0%
Orissa 53,291 130 18%
Punjab 79,565 291 14%
Rajasthan 79,554 118 11%
Sikkim 5,421 886 27%
Tamil Nadu 1,20,441 178 15%
Tripura 44,310 1,224 17%
Uttar Pradesh 3,68,260 184 59%
Uttarakhand 20,775 211 24%
West Bengal 72,998 81 18%
A&N Islands 4,417 1,018 22%
Chandigarh 7,873 695 22%
D&N Haveli 325 114 13%
Daman & Diu 281 140 6%
Delhi 81,467 441 1%
Lakshadweep 349 478 36%
Puducherry 3,941 352 25%
All India 20,64,370 174 24%

Source: Lok Sabha Unstarred Question No. 90, 13th March, 2012  and Lok Sabha Unstarred Question No. 1042, March 20, 2012

Yesterday, the Telecom and Regulatory Authority of India (TRAI) released the Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016.  These regulations prohibit Telecom Service Providers from charging different tariffs from consumers for accessing different services online.  A lot of debate has taken place around network (net) neutrality in India, in the past few months.  This blog post seeks to present an overview of the developments around net neutrality in India, and perspectives of various stakeholders. Who are the different stakeholders in the internet space? To understand the concept of net neutrality, it is important to note the four different kinds of stakeholders in the internet space that may be affected by the issue.  They are: (i) the consumers of any internet service, (ii) the Telecom Service Providers (TSPs) or Internet Service Providers (ISPs), (iii) the over-the-top (OTT) service providers (those who provide internet access services such as websites and applications), and (iv) the government, who may regulate and define relationships between these players.  TRAI is an independent regulator in the telecom sector, which mainly regulates TSPs and their licensing conditions, etc., What is net neutrality? The principle of net neutrality states that internet users should be able to access all content on the internet without being discriminated by TSPs.  This means that (i) all websites or applications should be treated equally by TSPs, (ii) all applications should be allowed to be accessed at the same internet speed, and (iii) all applications should be accessible for the same cost.  The 2016 regulations that TRAI has released largely deal with the third aspect of net neutrality, relating to cost. What are OTT services? OTT services and applications are basically online content.  These are accessible over the internet and made available on the network offered by TSPs.  OTT providers may be hosted by TSPs or ISPs such as Bharti Airtel, Vodafone, Idea, VSNL (government provided), etc.  They offer internet access services such as Skype, Viber, WhatsApp, Facebook, Google and so on.  Therefore, OTT services can broadly be of three types: (i) e-commerce, (ii) video or music streaming and, (iii) voice over internet telephony/protocol services (or VoIP communication services that allow calls and messages).  Prior to the recent TRAI regulations prohibiting discriminatory tariffs, there was no specific law or regulation directly concerning the services provided by OTT service providers. How is net neutrality regulated? Until now, net neutrality has not directly been regulated in India by any law or policy framework.  Over the last year, there have been some developments with respect to the formulation of a net neutrality policy.  TRAI had invited comments on consultation papers on Differential Pricing for Data Services as well as Regulatory Framework for Over-The-Top Services (OTT).[i],[ii]  A Committee set up by the Department of Telecommunications (DoT) had also examined the issue of net neutrality.[iii] Internationally, countries like the USA, Japan, Brazil, Chile, Norway, etc. have some form of law, order or regulatory framework in place that affects net neutrality.  The US Federal Communications Commission (telecom regulator in the USA) released new internet rules in March 2015, which mainly disallow: (i) blocking, (ii) throttling or slowing down, and (iii) paid prioritisation of certain applications over others.[iv]  While the UK does not allow blocking or throttling of OTT services, it allows price discrimination. What do TRAI’s 2016 Regulations say? The latest TRAI regulations state that: (i) no service provider is allowed to enter into any agreement or contract that would result in discriminatory tariffs being charged to a consumer on the basis of content (data services), (ii) such tariffs will only be permitted in closed electronic communications networks, which are networks where data is neither received nor transmitted over the internet, (iii) a service provider may reduce tariff for accessing or providing emergency services, (iv) in case of contravention of these regulations, the service provider may have to pay Rs 50,000 per day of contravention, subject to a maximum of Rs 50 lakh, etc.[v] It may be noted that, in 2006 and 2008, TRAI had suggested that the internet sector remain unregulated and non-discriminatory (net neutral).[vi][vii] What are some of the key issues and perspectives of various stakeholders on net neutrality? TSPs and ISPs:  TSPs invest in network infrastructure and acquire spectrum, without getting a share in the revenue of the OTT service providers. Some have argued that the investment by TSPs in internet infrastructure or penetration levels would diminish if they are not permitted to practice differential pricing, due to a lack of incentive. Another contention of the TSPs is that certain websites or applications require higher bandwidth than others.  For example, websites that stream video content utilise much more bandwidth than smaller messaging applications, for which the TSPs need to build and upgrade network infrastructure.  The Committee set up by DoT had recommended that the TSPs may need to better manage online traffic so that there is better quality of service for consumers and no network congestion. Further, the Committee also said that in case of local and national calls, TSP (regular calling) and OTT communication services (calls made over the internet) may be treated similarly for regulatory purposes.  However, in case of international VoIP calling services and other OTT services, it did not recommend such regulatory oversight. Consumers and/or OTT service providers:  The Committee set up by the DoT said that the core principles of net neutrality (equal treatment and equality in speed and cost) should be adhered to.  It also said that OTT services (online content) enhance consumer welfare and increase productivity in many areas.  These services should be actively encouraged. In the absence of neutrality, the internet may be fragmented and not as easily accessible to those who are unable to pay for certain services. It has been said that discrimination of internet content by TSPs could be detrimental to innovation as the bigger market players would be able to pay their way out of being throttled.  This could potentially result in TSPs restricting consumers’ access to small-scale, but innovative or qualitative OTT services (restricting growth and innovation for start-ups too). Now that regulations regarding price discrimination are in force, we do not know whether TRAI or the government will enforce rules regarding other aspects of net neutrality.  Also, the extent to which these regulations would affect the business of TSPs and OTT service providers remains to be seen. [i] “Consultation Paper on Differential Pricing for Data Services”, the Telecom Regulatory Authority of India, December 9, 2015, http://www.trai.gov.in/WriteReaddata/ConsultationPaper/Document/CP-Differential-Pricing-09122015.pdf. [ii] “Consultation Paper on Regulatory Framework for Over-the-top (OTT) services”, TRAI, March 27, 2015, http://www.trai.gov.in/WriteReaddata/ConsultationPaper/Document/OTT-CP-27032015.pdf. [iii] “Net Neutrality, DoT Committee Report”, Ministry of Communications and Information Technology, May 2015, http://www.dot.gov.in/sites/default/files/u10/Net_Neutrality_Committee_report%20%281%29.pdf. [iv] “In the Matter of Protecting and Promoting the Open Internet: Report and Order on Remand, Declaratory Ruling, and Order”, Federal Communications Commission USA, February 26, 2015, http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0403/FCC-15-24A1.pdf. [v] “Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016”, TRAI, February 8, 2016. [vi] “Consultation Paper on Review of Internet Services”, TRAI, December 2006, http://www.trai.gov.in/WriteReaddata/ConsultationPaper/Document/consultation27dec06.pdf. [vii] “Recommendations on Issues related to Internet Telephony”, TRAI, August 18, 2008, http://www.trai.gov.in/WriteReadData/Recommendation/Documents/recom18aug08.pdf.