Data, they say, is the most important natural resource of this century. And that explains the rat race among the world’s most important companies to capture a big slice of the data pie. Everyday, humans and their machines produce an estimated 2.5 exabytes (1018) of data. That’s a huge universe. Which is only growing, making the business of data (production, distribution and examination) so lucrative that companies take big risks to make the most of it. This trend is good for consumers in the short-term, as the price war among Reliance Industries-controlled Jio, Airtel and State-owned BSNL illustrates. Data is getting cheaper than atta as RJD’s Laloo Yadav says. Whether Laloo likes it or not, that’s a good thing. Consumers will now make more video calls, download films, stream high-quality videos and audios, search as much as they want and use online educational content (including MOOCs).
But there are concerns. Jio’s content dissemination model may not help digital inclusion because its applications work only on its own ecosystem. There is hardly any inter-operability. Which means consumers cannot use them on other platforms. This is something AOL tried and, as history shows, failed. If Jio is going the AOL way, its model may face challenges in a market known for consumer infidelity. If Jio can offer platform flexibility, it will enhance digital inclusion. Second, Jio must respect the fact that people have a right to data. Data is not oil. It connects many unexpected facets of human life, especially in an increasingly internet-connected universe. As more people flock to Jio — especially in villages where ‘price and reach’ issues have hindered internet penetration — and start consuming online content in large quantities — they are likely to become dependent on this natural resource. If the company decides to use its monopoly position and jack up prices or introduce differential pricing, it will undermine digital inclusion. Regulators should prevent this from happening.
Deputy Editor