Wednesday, April 15, 2015

NetNeutrality, Electricity Metaphor

Imagine an air-conditioning company with a proven track record. It reaches an agreement with electricity company. According to the agreement, there will be no billing for the electricity units consumed by this air-conditioner. Instead, the air-conditioning company will pay the charges.

This is a win-win situation for everybody. Consumer benefits because he is now able to use air-conditioner at zero cost. Electricity company benefits because without any extra cost or even profit it is able to service customers, and penetrate market further given the other potential customers who like to leverage this agreement. Even the air-conditioning(AC) industry benefits. The competitors of the air-conditioning company now need to innovate harder, because to compete in this environment there should be able to offer a really compelling product, quality and usability wise. Product that is good enough for certain segment of consumers to forego the billing benefits. Therefore skill level, and also the wages rise in the AC industry. New training schools open up, to train professionals in the field of AC.

And now imagine a segment of population, led by the smaller AC competitors, leading a campaign #ElectricityNeutrality. Saying that the AC industry will not be able to innovate because of the agreement between the Big 2. And from this you should know, who is scared, and why? The AC competitors are not willing to explore their true potential, and are instead running a slanderous campaign against the Big 2.

Well the conclusion is simple. Replace AC company with flipkart, electricity company with airtel, AC competitor with zomato, ElectricityNeutrality with NetNeutrality.... and think for yourself.