Airtel's recently launched service called Airtel Zero looks like just anthoer value added service (VAS) from a telecom operator. It is meant for app developers and web service providers. Airtel plans to allow app developers or web service providers to pay money to Airtel so that these apps and services can be accessed by Airtel users for free.
According to a India Today report, if an app pays money to Airtel, consumers on Airtel network will be able to use it without paying any data charges. Now, it seems that Flipkart has signed with Airtel to be a part of its Airtel Zero platform. Consumers who have Flipkart installed will be able to access the app without paying data charges.
According to the report, Airtel says that by allowing app developers or web service providers to push their stuff to consumers it is helping them reach more people while for consumers the benefit is that they will be able to use these services without paying any data charges.
According to the report, this service violates the concept of net neutrality, a basic principle around which the internet has been built. There are many aspects to the net neutrality. And there will be a lot of talk about them in the coming days as TRAI, the telecom regulator, holds its consultations on the matter.
Airtel Zero can prove to be extremely damaging for not only consumers as well as for app developers. Currently, a user creates a website or an app and then launches it. Once the app is out in the market it competes with similar other apps and if it is good then wins. Once an operator is allowed something like the Zero plan, others will follow. So soon the Indian market will have all telecom operators offering Zero data plans for apps that pay them money. This is going to make the market fragmented.
For consumers, this means they will get uneven experience. For example, if they access Flipkart on an Vodafone connection they will be charged for it. But if they access it on Airtel connection, they won't be. At the same time, hypothetically speaking, if they access Jabong, which is paying Vodafone for zero data plan, they will not be charged for data.
At one level nothing seems wrong with this situation. But see it from the perceptive of consumers. Considering that accessing one app will cost them money and one won't, they are more likely to access the app that won't cost them money. This behaviour may even propel consumers to not compare prices between various apps, something that is going to benefit companies like Flipkart. According to the report, this doesn't even take into account additional measures that companies like Airtel may introduce.
For app developers, the Zero plans will add an extra step that app developers will have to deal with. If one wants their app to succeed, they will have to pay telecom operators and most new app developers may not have that money, which will be difficult for new developers.