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> I think you underestimate people's intelligence. More so, if they only want to use Facebook, or don't want to use anything else enough to pay for it, what's the problem?

Would people have moved to Facebook from Myspace if they had to pay $10 per month just to access it? Would people have tried Google if they had to pay $10 per month to access it?? This is a tax on innovation. The innovation from big players doesn't get taxed while a founder would need to innovate 100x instead of the current 10x to make people move. Founders have limited resources. Creating 100x innovation will take a lot more time than getting people to move to 10x innovation, making some money and innovating further. What do you think this would do to the angels in India who have recently started investing in startups rather than gold/land/stocks? They would go back to land/stocks.

> Only if Facebook is the only ISP, which could only happen if government passed a law or regulation that made that so.

Facebook intends to use data services (3g,4g) to deploy its free basics. There aren't many companies providing data services because of obvious spectrum limitations.

>Are you implying they wouldn't without net neutrality?

They primarily get information on radio and newspapers. If those sources are corrupt, lets not add another corrupt source into the mix.

>Not, it isn't. It would be more innovative if it was forced to compete with Facebook.

Really? There was a time in India when you had to be REALLY REALLY REALLY innovative (in many different ways) to merely get a license to start a business from the govt. We called it 'license raj'. You know what it did. It killed all the innovation. You have to let smallest of innovations thrive for them to grow into bigger ones!!

>Now you just have to pay expensive prices even if you just want to chat with your friends.

Better than the possibility of being stuck with that same 'chat' for the next 20 years. India needs jobs more than 'free chat'. Jobs will come from Indian companies. And Indian companies cannot thrive unless the field is even. Plus, its not about Indian vs Foreign. If a small guy produces 2x innovation, his innovation should triumph over facebook. Facebook's coffers shouldn't prevent progress happening in the world. That 2x innovation, if given a chance will grow to 200x.

>>But 50% of the rest of India doesn't pay for internet and it thinks there is no need to because that is ALL the internet has to offer.

>I think you underestimate people's intelligence. More so, if they only want to use Facebook, or don't want to use anything else enough to pay for it, what's the problem?

I think this is totally possible, not at 50% though. Imagine the people who have never used Internet before and are not-so-educated. If Free basics is what they are going to use for the first time, it's possible for them to think that what they get to use through that, is all of the Internet.

Not, it isn't. It would be more innovative if it was forced to compete with Facebook.

Just FYI, startups in India already go head-to-head with Facebook and Amazon. What Free Basics does is make them compete for preferential treatment by network operators, which changes the whole game.