Memoranda for Submission to the Chief Ministers of the Two Telugu States.

Eduction

Free Basics is not Trojan Horse – It is a CSR Activity

Dt:  11/1/16

Free Basics is not  Trojan Horse –

It is a CSR Activity

 

Sri Prabir Purakayastha of the Knowledge Commons has been engaged  for more than   two decades in incessantly critiquing and opposing  all government’s  liberalisation  moves and reforms in the delivery of  telecom & internet services,  demonopolisation  of telecoms,  entry of  private  companies and FDI  into the   sector  and corporatisation of DOT’s  telecom services . Opposition by him  has been through  articles in newspapers as well as  court actions but all in vain.  He is  committed to fundamentalist, state capitalism otherwise known as socialism/ communism .   This is evident from  the frequent use  of the  swear words like telecom and internet monopolies in his  article.  (The  Trojan Horse of Free Basics  ( Hansa  India  10 Jan 2016).  When there are    more than  half a dozen telecom and more than  a dozen internet  service providing  companies,  his use of  the word monopolies  in respect of  both, betrays  his faith in and commitment  to Marxism/ Communism  and its vocabulary.  Another such Marxist swear word is cartels.  He says that the telecom  and internet  monopolies  will form cartels  by collusion and though some of them  may initiate free  or cheap rate service  but would later through  a cartel increase prices  to  the detriment of the     average  user. This is standard  Marxist   / Communist line of argument against every non-state enterprise.

 

2. Is he not aware that  our government-  owned Railways provide  differently priced  tickets for travel  between the two same  destinations, the price  differential   being  related to the  time taken  for the  journey  and  the comfort provided?  Similarly, in the   governments’ public distribution  system (PDS), certain   necessities only are given   in limited quantities at  subsidised prices while  more quantities of the  same and other materials    can be had only at market  prices.   The  cost of the  subsidies,  as  every citizen knows,  is built into the prices of those  which are available in the  free market.  Similarly,  incomes  above   certain levels are   taxed at 10%, 20% and 30%  and the  amounts  so realised  are used to subsidise  various  goods and services including education,  health and  so on.   In the same  fashion, certain  companies  can provide  certain  services,  internet access  and   data freely or at nominal  price  and  the true cost of these is realised  from the prices of  other services. This is the universal practice in a free market  economies and is in contrast to command  markets as in Marxist  communist countries.

 

 

3. Insinuation is made as to  expecting what benefit  the company, Face Book    is giving  free access to certain  internet websites.   Has not the  government imposed  a 2% compulsory contribution,  on   Corporate  Social Responsibility? What will companies  get out of that?  Even without this government order and legislation,  some companies like  Tatas have been providing  certain services free  not only for their  employees but even for the community in which   their business /industry is located.  Why cannot Face Book do like-wise?

 

4. The critics of  Free Basics  are  suggesting that instead of  allowing  Face Book to offer the Free Basics,  government  itself should give freely a certain amount of  whatever data an Internet user  down loads from any  website . There can be no objection to this.  Governments are already doing  such things.  For eg: the  Telangana government  has  abolished property tax  for properties  whose rental value  is below  a certain amount. Similarly, certain units of electricity are  given free to poor people. The cost of all these  free / subsidised goods and services are   realised from enhanced   taxes and charges and rates    for the  same services  by large  consumers.  There is no ban on any  private company or  any organisation  supplementing such    services  to the poor. Are there not tens of thousands of  NGOs  who are  providing   some services   free while  such services are also bought  by some consumers at market prices from private & government providers ? Any and every Internet user can have a subscription  both to  Free Basics as well as  any other Intern Service Provider.  

 

 

5. It is fashionable  for   many populist writers and   ideology committed  “leftist”, progressive “peoples’ democratic” activists  to criticise and denounce every action of  private  companies and  extol   state capitalism, otherwise popularly dished out as socialism, welfarism  and  inclusive growth despite the humongous scams the  socialist, progressive political ministers  and their  colluding  civil servants ( or masters) indulge in with  impunity.   (716 words)

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