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ISPs in India guilty of Unfair Bundling of Services?
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When Microsoft bundled its Browser software with the Windows OS it was held illegal. Why should it be different for Indian ISPs?....

Domain Names are established as identification marks on the Cyber Space akin to Trademarks. Why should e-mail ID s be different?...

Consumers are to be protected from Spam? Why Should it be used an excuse for putting chains on the consumers?.

Digital Signatures are meant for developing a responsible communication system on the Internet. Why should ISPs be allowed to sabotage the system for their vested interests?.

These are the issues that confront Indian ISP customers who want to switch ISPs. Certain e-mail policies followed by ISPs are indirectly aimed at preventing consumers of ISP services from switching their service providers. We call upon  Thiru Dayanidhi Maran, Honourable Minister of Communications and Information Technology to immediately address these issues.

Naavi

(Details below)


Why Spam Proliferates?

Spam is recognized to be one of the biggest menace in the Cyber Space next only to perhaps Virus and Pornography. Since Virus and Pornography also raid on Spam for distribution, it is perhaps appropriate to consider the Spam menace to include Virus and Pornography and therefore as the most important menace in the society. It is widely agreed that around 85 to 90 % of all e-mails circulating in the Cyber Space today is spam category. Hence it is natural that "Netizens" who are the consumers of services are concerned with Spam and expect regulators to address this issue.

However, in India there has been a low regulatory interest in Spam prevention and despite efforts from Netizen organizations like Naavi.org, the proposals for amendments to ITA-2000 fail to address this issue.

In this context, it is necessary to understand that one of the reasons for which Spam proliferates is because the powerful community of ISPs who control the Internet market have a vested interest in Spam. If today 90 % of e-mails are spam, then e-mail consumers are paying nearly 90 % of the access charges to  receive spam. In other words, to receive Rs 10 worth of e-mails they are spending Rs 100. There is thus a huge financial benefit for ISPs in sustaining the current high spam regime.

Nevertheless some ISPs try to do some tweaking of their systems ostensibly to prevent spamming and the current discussion is on one such policy being adopted by Indian ISPs. Though it is put under the garb of "Spam Prevention", the policy is only to proliferate the business monopoly of the ISPs and put barriers for ISP consumers from choosing a service provider at their own free will.

The Policy that is Unfair

The policy in question is "Preventing the ISP access customer from accessing SMTP servers of other ISPs". This is ostensibly to prevent "Open relay" but actually prevents a bonafide e-mail customer of one of the Indian Licensed ISPs from using access service of another ISP. In other words, ISPs are bundling their "access service" with "e-mail service" and if the customer is forced to go with the restrictive trade practice if he wants to avail the service of an ISP.

Naavi.org had already raised this issue (See articles, Can an ISP lock away your e-mails?, Please Do not Play around with Digital Identities, Do We Need a Consumer Forum for ISP issues?) in the past. Though some temporary solution was provided by understanding executives at Dishnet DSL at that time, the problem got buried with the merger of the two ISPs. The problem has now resurfaced with the aggressive marketing strategies of Airtel to market its broadband services and unwary customers are getting trapped in the process of switching ISPs with a need to change their long standing IDs in the Cyber Space.

To be fair to Airtel, it must be stated that the broad band services offered by them compare extremely well with the Tata Broadband Services and I would not be surprised if many of the current customers of Tata Broadband would shift to Airtel.  At one stroke, Airtel has halved the price of Broadband services  compared to Tatas  and unless their services deteriorate with increasing volume, they are likely to get deep into the ISP market. If Tata Broadband does not wake up, their market share would plummet.

 Though the issue raised here is addressed to Airtel, the benefits of the current unfair system actually strengthens the market hold of existing ISPs like Tata Indicom and creates an artificial barrier for customers to switch over to new ISPs. If a solution is found for the problem now posed, it is perhaps likely to be of advantage to Airtel. However, our proposal is not because it is beneficial or not to one ISP or the other but because it is fair to the consumers.

Bundling of Services

In order to understand the problem being raised, it is necessary to appreciate that Internet services consist of a bundle of different services. Each service may require different skills and if the overall efficiency of the system is to be enhanced then efficiency in the management of each individual component has to be maximized.

In this context let us now look at Internet Access service and E-Mail service as two components of business. Presently, when one buys an access service whether a broadband service or dial up service, the service provider gives him an e-mail box with an identity attached to the domain of the service provider. For example, when a person say naavi buys an access service from VSNL, he got an ID naavi@vsnl.com. When he got an access service from dishnet the ID in the domain of eth.net was allotted. Now if Naavi opts for Airtel services, he would get naavi@touchtelindia.net as his new ID. As long as the IDs are given as free add ons to facilitate communication between the customer and the service provider, it is fine. But when a service provider says that I will now provide a new ID but I will put barriers for you to use your earlier IDs, then the question of unfair business practice comes in.

If a person discontinues his earlier service, then perhaps there is no issue. However, if a person would like to avail both services say because his office is subscribing to one ISP while he uses another ISP at home or because one is a dial up service and the other is a broadband or just for the sake of redundancy, then the prevention of use of IDs of other ISPs starts hurting.

According to the ISP policies today, if you are using Airtel services, you will not be able to send outgoing mails from your Outlook express with the ID of vsnl.com. Though VSNL runs its own authenticated SMTP server and does not allow any body other than its authorized customers to  access the smtp server, Airtel prevents access to the server by its customer under the mistaken impression that this is a measure to prevent Spam. Airtel must realize that if authorized clients of VSNL are using smtp server of VSNL, it does not become a Spam and therefore Airtel's attempt to prevent access to VSNL smtp server cannot be accepted as a measure to prevent spam.

On the other hand this restriction can only be interpreted as an attempt to discourage the customers of Airtel from continuing to use their current IDs attached to a competitor's domain. Therefore this becomes a bundling of service similar to what Microsoft attempted to do and was legally prevented from doing.

If the e-mail service and access service is unbundled, then independent e-mail service providers can develop their services with features that the Netizens would welcome. Already Google has emerged as a leader in webmail services and if Indian ISPs do not see the writing on the wall, people will shift to Google Mail and none of the ISPs will be able to maintain loyalty of their e-mail customers.

Why There is a Need to Allow Customers to use e-mail IDs of a Different ISP ?

Apart from the business sense that the restriction will kill the e-mail services of all the Indian ISPs with the public moving to Google type of services, it is necessary to recognize certain other incongruencies in the policy of "I will not allow my competitor's e-mail ID to be used by my customers".

We are all aware that the domain names such as www.naavi.org has already been recognized as Virtual properties providing a right similar to Trademark right to a registrant. If this logic is beyond legal dispute, then why should we not accept that an e-mail ID such as naavi@vsnl.com by virtue of its first and consistent use provide a right to the registrant to the mark "naavi@vsnl.com".? After all if domain name is an identity to a web site in Cyber Space, the e-mail ID is an identity to a person in the "Cyber Space". Though this is perhaps yet to be confirmed in a Court of law, there is every reason to believe that Courts will accept the argument that if an e-mail ID is being consistently used by a certain person, he will have a right over it similar to the domain name. Not accepting this argument would lead to the same kind of disputes which we envisage in domain name disputes.

It must also be remembered that "Digital Signatures" are slated to be the order of the day in Cyber Space and when they become affordable ideally every e-mail should have the digital signature of the sender. Today many customers have already acquired digital signature certificates attached to an e-mail ID and using it in their communication. Under the restricted policy adopted by Airtel and others, it would not be possible to send digitally signed e-mails. For example if my customers were a\earlier getting digitally signed e-mails from naavi@vsnl.com, and if they now receive an undigitally signed e-mail in the name of naavi@touchtelindia.com, then there is a serious issue of "Trust" in Cyber Space. If the ISP says that you can very well take a new Digital Certificate, then it would amount to another unfair bundling of service.

In fact, use of digital signatures themselves are a solution to Spam and the system should actually encourage the use of digital signatures rather than discouraging them.

Solution

In the light of the above, I request ISPs to follow the following suggestions or any alternative that leads to the sorting out of the problem.

a) ISPs should allow access to SMTP servers of all licensed ISPs in India (It is like Cross certification ). It should be the responsibility of each ISP to ensure that their SMTP servers are accessed only by authorised persons. If Google and Hotmail can provide such access free of charge and Yahoo under their premium service, there should be no technical barrier to providing such service.

b) It is open to the ISPs to restrict the above permission to clients on specific request. Though this could be considered as a premium service and charged additionally, I donot advocate such additional burden on the customer since he is anyway bearing the cost of the e-mail service with the other ISP in addition to the access service of one ISP.

Benefits:

The unbundling of e-mail service and access service will introduce free competition for the two services separately and the consumers will get a better deal in the long run.

More importantly, it will encourage public to use one e-mail ID consistently so that better trust can be built in the e-mail communication system.

Further the use of Digital Signatures would not be restricted for extraneous reasons.

I request the honourable Minister of Communications and Information Technology, Mr Dayanidhi Maran to take up the issue and ensure a quick solution.

(A copy of this note is being sent to the Minister. Comments from the public are welcome and they will also be forwarded to the Ministry..Naavi)

Naavi

December 01, 2005

 



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