The point is that Free Basics existing would automatically remove a huge amount of incentive for other solutions appearing. Why bother building a better internet if FB already provides "the essentials" to everyone? It would wipe the market before it had a chance to develop organically as it happened elsewhere. If AOL had provided free access to its own services only we would have a very different network today.

The Internet market in India already has 300+ million users, and has been growing at a good pace. It's hardly an incipient market.

And besides, before AOL there was CompuServe (and Minitel, in France), which did provide access almost exclusively to its own services.

CompuServe never had the volume and appeal FB has today. Minitel is a good reference because it is widely credited as one of the reasons France initially experienced slow internet uptake.