Net Neutrality A solution in search of a problem?
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- Calvin Dennis
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1 Net Neutrality A solution in search of a problem? Net Neutrality and the Quest for Sustainable Internet Bucharest June 5, 2012 Veronica Bocarova Cullen International
2 What is net neutrality? The ability of end-users to access and distribute information or run applications and services of their choice (Article 8(4)g FWD) The principle that all electronic communication passing through a network is treated equally, i.e. independent of (i) content, (ii) application, (iii) service, (iv) device, (v) sender address, and (vi) receiver address. Sender and receiver address implies that the treatment is independent of end user and content / application / service provider (BoR (10) 42, September 2010) Cullen International SA 2012
3 As internet traffic grows Cullen International SA 2012
4 and applications become more diverse... Cullen International SA 2012
5 while traditional revenues are under pressure. Cullen International SA 2012
6 Industry response Invest in network capacity (for a fair return!!!) 2. Cope with traffic exceeding maximum capacity
7 Why traffic management? Coping with growing volumes of traffic while maintaining the best possible QoS for end users For vertically integrated ISPs, discrimination against a competitor in a downstream market OR Cullen International SA 2012
8 Traffic management in the EU BEREC investigation December 2011 Responses by 266 fixed and 148 mobile operators 140m fixed broadband subscribers and 200m active mobile Internet subscribers Common practices: Blocking of VoIP Throttling and/or blocking of P2P traffic Congestion management Security and integrity (control of spam ) Managed (specialised) services VoIP, IP TV, VoD Data caps and fair use policies Legal requirements Cullen International SA 2012
9 Traffic management practices Source: BEREC Cullen International SA 2012
10 Restrictions on specific traffic Source: BEREC Cullen International SA 2012
11 Restrictions on specific traffic 36% 21% 21% Source: BEREC Cullen International SA 2012
12 Impact on end-users and competition? Cullen International SA 2012
13 Impact on end-users and competition?
14 Impact on end-users and competition?
15 Impact on end-users and competition?
16 Impact on end-users and competition?
17 Impact on end-users and competition?
18 Impact on end-users and competition?
19 Impact on end-users and competition? What is the moral of this story? Where some see a case for restrictions, others see a market failure and opportunity to do business
20 Net Neutrality, restrictions and competition Underlying assumptions to this happy story Competition or Transparency Low switching costs
21 Competition - VoIP on mobile networks Mobile issue In most cases, at least allowed on premium packages SMS and
22 VoIP on mobile networks and revenues Currently, revenues of mobile operators are disproportionally tilted towards voice Because: Voice is priced relatively high compared to data, with respect to the use of network resources Because: Consumers are more inclined to pay for voice than for data Voice can be compressed at low bitrates (e.g. 6kbps)
23 VoIP on mobile networks and revenues Rebalancing of voice and data revenues is a huge challenge for the mobile industry and will take time
24 Traffic Management - transparency Greater transparency towards National NRAs End-users
25 Plusnet UK ( Value option) Ideal for web surfing and . It's not suitable for frequent gaming, binary USENET, Peer-to-Peer, VPN, FTP or lots of music and video downloads. Kbps P2P FTP VPN Gaming YouTube Downloa d Streamin g 12am-12pm Mbps pm-2pm Mbps - 1Mbps - - 2pm-4pm Mbps - 1Mbps - - 4pm-6pm Mbps Other 6pm-7pm Mbps 2.5Mbps pm-8pm Mbps 2.5Mbps pm-10pm Mbps 2.5Mbps pm-11pm Mbps pm-12am Mbps
26 Traffic Management - transparency Not all operators share the same enthusiasm for transparency
27 Net Neutrality and minimum QoS When is regulatory intervention justified? In order to prevent the degradation of service and the hindering or slowing down of traffic over networks, Member States shall ensure that national regulatory authorities are able to set minimum quality of service requirements on an undertaking or undertakings providing public communications networks (Art USD)
28 When is regulatory intervention justified? Source: BEREC
29 Source: KPN presentation, May 2011 Net neutrality in the EU Dutch net neutrality law (1)
30 Net neutrality in the EU Dutch net neutrality law (2) KPN admits using DPI, plans to charge consumers for using WhatsApp The Netherlands adopt first EU net neutrality law on May 8, 2012:
31 Net neutrality in the EU Conclusions Quite early to draw conclusions: EU level measures have not yet been implemented in most Member States. Except for the Netherlands, no Member State appears to lay down net neutrality by law. Discussions are focused on practical implementation (transparency, data limits, QoS)
32 Net neutrality in the EU Conclusions I am in favour of an open Internet and maximum choice. That must be protected. But you don t need me or the EU telling you what sort of Internet services you must pay for
33 Net neutrality in the EU Open issues Is an average user able to obtain and understand relevant information? Fast and limited Internet vs slow and full Internet? How easy is it to switch between ISPs in practice? E.g. in rural areas?
34 Thank you!
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