Tag Archives | start-up

Why the new Geospatial Information Bill, 2016 is a death knell for start-ups?

The draft Geospatial Information Regulation (GIR) Bill 2016 recently introduced by the government is complete bad news for Start-up ecosystem and will lead to a license-quota-permit raj 

The government of India, ministry of home affairs recently released a draft bill on geospatial information regulation and invited comments from the public. The reason given by the government is that Pathankot attack in January was due to the precise location being known by the terrorists and that the bill addresses the question of national security. The bill recommends a fine up to Rs. 100 crore and a jail term up to seven years if the map of India is depicted wrongly.

Governments have every right to frame laws to safeguard and enhance national security. The bill has been on the agenda of the Indian government since 2012. The main concern of the government seemed to be Internet giants like Facebook, Google, and Microsoft etc. According to the draft bill, it will be mandatory to take permission from a government authority before acquiring, publishing, disseminating, or distributing any geospatial information about India. It also specifically states that the government will set up a Security Vetting Authority (SVA) in a time bound manner. Where the bill gets it wrong is creating a negative atmosphere and unnecessary roadblocks for start ups.

Amitabh Bagchi, a professor at IIT Delhi, says that companies like Google and Microsoft are at the lowest end of an application stack that may consist of several layers.  Multi billion dollar companies like these get the information available through the Application Programming Interfaces (APIs). In December 2014, the Survey of India, the central government’s nodal agency for maps reported that map of India is wrongly depicted by Google in its websites like google.co.in, ditu.google.co.ch (China), google.pk (Pakistan) and google.org (general).

The ones who are likely suffer the most are Start-ups that heavily depend on geolocation services. Companies like Zomato, Swiggy, zop now, gropeher etc have their successes pinned on to the location. In addition, Bangalore based start ups like MapUnity and Latlong that create apps for businesses are genuinely afraid that it will kill them. Big companies like Ola and Uber do not get affected that much. They are big enough to tide over crises. It is the small companies that have every reason to be apprehensive. The timeline for government approval could be up to three months, a luxury which cannot just be afforded by the start ups. Therefore they have come up with a website titled Savethemap.in that informs the user about the bill in the frequently asked questions (FAQ) section. A good public policy is one in which all stakeholders are consulted rigorously and their concerns addressed.

Guru Aiyar is Research Scholar with Takshashila Institution and tweets @guruaiyar

Featured Image: Geomap by Caulier Gilles licensed from Creativecommons.org

 

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Start -up India

Prime Minster Modi on 16 January 2016 started the new government  initiative called “Start-up India”. This initiative is a venture towards new enterprises and investments in India. This initiative is a movement to bolster innovative new ventures in India. The Government hopes that it would be able to tap ideas and innovation as an effective driver for India’s transformation. The new venture if effectively utilised could help generate employment opportunity in the country .

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The new endeavour  encompasses innovation and development of new products or services. The government is offering several tax benefits  and there is a lighter regulatory burden. This probably could result in innovation-driven companies . Since start-ups often faces several impediments, the new programme seems to be a very positive initiative.

Several Indian entrepreneurs are keen to play a new role in the economy .Start-up ventures triggered by the Silicon Valley successors  is a new trend and with the government support seem to draw several investors. Today Indian entrepreneurs are moving from a safe vault initiative to take up challenges.

India’s tech savvy Prime Minster has set up a $300 million fund for start-ups and also has eased restrictions for Indian’s living abroad who want to invest in venture capitals in India. The adage is “old money, new money-everybody wants a piece of our start-up-boom”.  The start-up India is to be promoted through bank finance and incentive to boost entrepreneurship, job creation and an conducive environment to set up start-ups. Withs several plan drawn, innovation in research is a key are that the government would call for investments.

This has raised a sense of hope amongst the Indian investors and is seen as an important landmark for  emerging India. An action plan is created to this effect drawing several government officials and entrepreneurs. They are  working towards hassle and barrier free environment conducive to investment.The action plan kick starts a new era in building entrepreneurs thus laying a foundation for New India.

The visibility of the initiative is at an infant stage. How is it going to be nurtured and developed  is a question that remains to be seen. Started with a major fanfare the success or the credibility of the vision “Start-up India”  is something that has be watched .

 

Priya Suresh is a Research Scholar with the Takshashila Institute. She tweets@priyamanassa.

 

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Why Free Basics is a bad idea

Free basics violates the basic principle of net neutrality despite being within the four corners of the law and must not be allowed

 

In the last couple of days, Facebook has inundated Indian newspapers with full page ads about Free Basics. The savvy marketing seeks to woo the consumer by asking an innocent question like who could be possibly against free internet? Mark Zuckerberg has tried to make a convincing case in his blog post in the Times of India. In trying to corner a slice of rapidly growing Indian market, free basics junked its old avatar of Internet.org and tried to position itself as messiah of the poor and needy. What could be the main objections to Free Basics? What did the campaign for free basics achieve?

There is nothing ‘free’ about it. When Free Basics planned to launch with Reliance Jio network, its aim was to corner a giant share of the Indian market with selective apps and ads riding on its application. Of course the apps on Facebook are free but what about other start-ups and entrepreneurs/businesses? Simple analogy will be to compare a newly built superhighway, which allows only Mercedes or Audis to operate and discriminates against all other forms of transport. The Telecom Service Provider (TSP) will provide good network speeds for Facebook. What stops TSPs from giving slower/limited access to other websites? Mark Graham, Associate professor of Oxford University argues that free basics is able to read all the data passing through its platform in whatever form it may be. Big data is the oil of the future. E-commerce companies are ever hungry for data. Making Free Basics succeed would only mean cartelising the Internet with some specific telecom service providers having a greater share of the market. Free Basics would ride on some specific TSPs and nothing stops it from setting its own terms and conditions.  It would mean shifting from the consumer to certain clients and their business interests. Nikhil Pahwa, well known Internet activist quotes evidence from research to say that less & low income groups prefer access to unrestricted Internet. Free basics is no way altruistic or charitable in its approach.

There are times when media blitz campaigns have certain unintended consequences. Facebook’s campaign has had one positive effect. It coalesced the Indian middle class opinion that those who cannot afford connectivity must be provided some basic free connectivity as an entitlement. This is a little surprising because the middle class sentiment is largely pro free markets and anti subsidies. The public policy on this subject is yet to emerge with some sense of clarity. The government’s National Optical Fibre Network(NOFN) project is expected to be in place in two to four years which will form the backbone infrastructure for Digital India. This is not an argument for freebies. But neither Free Basics is the answer. For the time being, focus must be to prevent Free Basics from succeeding.

 

Guru Aiyar is a research scholar with Takshashila Institution and tweets at @guruaiyar.

Featured image credit: Link-up with Mosman Library on Facebook, licensed under Creative Commons.

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