Mark Zuckerberg and Sunil Mittal
Taking
on social networking giant Facebook's ambitious 'free internet' plans,
telecom major Bharti Airtel chief Sunil Mittal has said the companies
should do 'philanthropy' if they stop charging for mobile internet.
Facebook
has launched an 'internet.org' initiative under which users can access
internet free of charge for select websites if they come through a
partner telecom operator, reported PTI.
Incidentally, Airtel
Africa is one such partner for Facebook, while rival Reliance
Communications has partnered Facebook in India for this initiative,
which is based on assumption that bringing more people to the internet
fold by offering them free service initially is good for the industry.
Mittal,
who met Facebook founder and CEO Mark Zuckerberg here at the Mobile
World Congress, said that the social networking major is right in its
thinking that such a would expand the market, but telecom operators also
need to get their revenues and charge for the services.
"I told
him (Zuckerberg) that you are right that this (internet.org) expands the
market. At the end, you must understand that we (telecom operators)
need to charge you for something. SMSes have gone more or less, voice is
going down and they (Facebook) recognise that," Mittal said in a media
interaction here.
"If you are going to make the data free, then
let's do completely philanthropic projects. Government must make
spectrum free, there should be free network, but it is not happening,"
the billionaire industrialist said, while adding that telecom companies
were as such not making large money.
The comments, incidentally,
come at a time when a high-pitched auction is underway in India for
spectrum and committed bids worth about
Rs.86,000 crore have come in within first four days of bidding -- crossing the minimum targetted amount of
Rs.82,000
crore. The auction will resume tomorrow, as more unsold spectrum is
left and there are expectations that the overall auction may cross
Rs.one lakh crore.
Telecom
companies say they invest billions of dollars in spectrum, network and
other operations, but they argue that internet-based entities offering
pseudo-telecom services are piggy-backing on the mobile operators'
networks without bearing much investments on their own.
At the
same event here, UK-based telecom giant Vodafone's global CEO Vittorio
Colao reportedly said about Facebook's free-of-cost internet plan that
"it is almost like Zuckerberg does philanthropy, but with my money."
Mittal
cautioned that investments in mobile networks by industry will go down
as Internet-based messaging and calling services are 'cannibalising'
revenues of telecom firms.
"He (Zuckerberg) is saying that make
Internet.org lite version of Facebook free of data charge, so that
people will upgrade. People will come to internet for the first time.
The point is that it is self-serving for them," Mittal said.
Telecom
operators have been facing pressure on their financials from the
emergence of a number of Over-The-Top (OTT) firms like Facebook (through
its WhatsApp messaging service), Skype and Viber, which on their part
claim to be helping telecom operators grow business.
"We (telecom
operators, social media and over-the-top players) are good for each
other but they, regulators and politicians must understand that
networks' investment must be on reasonable terms. Gone are the days when
telecom companies were making large amounts of money," Mittal said.
"OTT
players must understand pains of the mobile industry. Sometimes we are
seeing as gatekeeper, bad guys. The fact of matter is spectrum - there
is cost, network there is cost and tariff has gone up by only 3 paise in
last three years," he added.
In December, Airtel had announced
separate charges for Internet based calling services but withdrew it
after an outcry on social media.
"The rate that we announced was
exactly the same rate as a voice call. If you do one minute VoIP
(internet based calls) in kilobyte terms it would be exactly the same as
voice call.
It was exactly the same as one minute call," Mittal said.