Assuming they are honest, I don't get their argument. If most people are paying for the internet, they why do they need Free Basics in the first place? An internet connection costs a fraction of the hardware cost, or is embedded in the hardware subscription.

So you can either afford hardware and internet, or you can't afford internet in which case you also can't afford the hardware, so the free internet is useless.

Assuming their motives are truly altruistic, making internet free doesn't make any sense!