Differential pricing will hit India’s digital economy

The pending TRAI decision on establishing a regulatory framework for Web-based OTTs if gets passed will have serious implications on millions of Indian’s lives. While the there is a lot of debate going on about the ramification of Net Neutrality and why its relevant in today’s digital economy, the two segments that will be clearly be affected are the telcos and the customers using Web-based or data-based services.

 

However, Greyhound Research believes that this will not have any direct impact on BYOD and CYOA. BYOD allows employees to bring their own devices to work and be connected to work all the time. It does not have any restrictions on the type of content being used by the employees. However, individual users as well as companies have to pay extra for the apps that they are using.

While the TRAI regulatory framework will affect both consumers and Web-based service providers, the section  that will suffer the maximum blow will India’s burgeoning Web-based start-ups. Larger organizations will get to benefit from economies of scale and will get cost advantages in face of monetization of web-based OTTs. In simpler words, large organizations will be able to shell out easy cash to ensure their service is delivered to the customers in a seamless manner as compared to small and medium organizations. For example: India’s eCommerce sector is highly competitive at this point of time with FlipKart, Amazon and SnapDeal that rule the roost, at the same time one cannot overlook the thousand other eCommerce start-ups that have recently sprung up. The massive competition in this sector will lead to the giants dominating the industry, and leaving little or no space for eCommerce SMBs to grow.

Today the fact remains that all businesses are moving to the Web and to the cloud, this puts SMBs into a state of endangerment as process of dissemination of information & knowledge will be delayed thus directly impacting business processes at all levels.

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