On Monday, the Telecom Regulatory Authority of India ruled against allowing Facebook to offer free access to a limited selection of websites throughout the country. The plan was part of a broader effort by Facebook to boost internet access across the developing world, including under-resourced communities in India. However, regulators believe that allowing the Free Basics scheme would violate net neutrality principles, which call for equal treatment of all traffic on the internet. 'No service provider shall offer or charge discriminatory tariffs for data services on the basis of content,' ruled the regulator, adding that 'differential pricing is not in the interests of consumers, or the growth of the internet'. Facebook Basics would have offered Indian residents free access to a selection of websites, including local news and weather, selected health websites, the BBC, Wikipedia, and Facebook.

Disappointed, but persevering

Facebook's founder has expressed disappointment with the TRAI decision against Free Basics, but has insisted that the company will push ahead with its plans to offer limited free internet access to communities around the world, including India. 'Connecting India is an important goal we won't give up on, as more than a billion people in India don't have access to the internet,' said Mr Zuckerberg. 'We know that connecting them can help lift them out of poverty, create millions of jobs and spread education opportunities.'

All for some, or some for all?

While Mr Zuckerberg has previously argued that it is 'not sustainable to offer the whole internet for free', opponents of Free Basics maintain that offering only a select suite of websites risks a 'two-tier internet' which structurally promotes major players like Facebook to the detriment of smaller competitors and start-ups. 'The message is clear. We can't create a two-tier internet—one for the haves and one for the have-nots,' said World Wide Web Foundation programme manager Renata Avila, welcoming the regulator's decision. 'We must connect everyone to the full potential of the open web.'

Potential 'knock-on effects'

Singapore-based A.T. Kearney analyst Naveen Menon warns that the stubbornness of Indian regulators may sway the tide of public and regulatory opinion against Free Basics in the other markets where the scheme is or hopes to be operational. 'This is a major setback for Facebook,' she commented, 'Not only because India was expected to be such a critical piece in the overall internet.org success story, but more so because it has potential dangerous knock-on effects for the universal access initiative in other markets.' Facebook currently offers Free Basics in nearly 40 countries via local mobile operators. Sources: BBC; Wall Street Journal; Reuters