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Net Neutrality
in EuropeSpeaker: Vesa Terv
- Head of Unit B2, DG INFSO -
SESERV Workshop
20 June 2012
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The goals of todays presentation
To answer questions regarding netneutrality in Europe
To present you the current state ofplay
To provide information on the wayforward in a glance
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What is net neutrality?
Net neutrality advocates haveestablished different definitionsof network neutrality, so there is
no common definition.
Basic definitionNetwork neutrality is theprinciple that all Internettraffic should be treated
equally
No restrictionsNetwork neutrality is a principlethat advocates no restrictions by
Internet service providers orgovernments on consumers'
access to networks that participatein the internet.
Absolute non-discrimination"Network neutrality
is best defined as anetwork designprinciple. The idea isthat a maximallyuseful publicinformation networkaspires to treat allcontent, sites, andplatforms equally.
Tim Wu, ColumbiaLaw School professor
Limited discriminationwithout quality ofservice (QoS) tiering
United States lawmakershave introduced bills thatwould allow QoSdiscrimination as long asno special fee is charged
for higher-quality service.
Limiteddiscrimination andtiering
This approach allowshigher fees for QoS aslong as there is no
exclusivity in servicecontracts.
First come first serveda neutral Internet mustforward packets on a first-come, first served basis,without regard for quality-of-service considerations."Susan P. Crawford,Cardozo Law School
professor
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What is net neutrality in Europe?
Reference to the net neutrality principle in the Electronic
Communications Framework:
End-users should have the ability
to access and distribute information
or run applications and services
of their choice.
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What has been done until now? In 2009, the Commission set out in its Declaration on Net Neutrality its commitment
to preserve the open and neutral character of the internet.
The declaration was followed by a wide ranging public consultation in summer 2010and a joint summit organised together with the European Parliament in Nov. 2010.
In April 2011 the Commission published a Communication on the open internet andnet neutrality in Europe.
It said it would remain vigilant to ensure that the new EU electronic communicationsdirectives adopted in 2009 are properly transposed and implemented.
These rules modernise the provisions regarding ease of switching, transparency andquality of service across Europe, and give National Regulatory Authorities (NRAs) the
tools to deal with net neutrality issues.
The directives had to be transposed by the Member States by 25 May 2011.
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Why has the Commission waited so far?
1. The EU's new telecoms rules contain provisionson transparency and quality of service
specifically related to net neutrality. TheCommission had to wait to make sure thatMember States properly implement these rulesinto national law.
2. Policy makers have to take into considerationthe interests of all stakeholders.
3. They have to take decisions based on facts.
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1. The revised Electronic CommunicationsFramework supports net neutrality
Net neutrality
Transparency
NRAs can obligeservice providersto publishtransparent,comparable,adequate andup-to-dateinformation Art.20 and 21 ofUniversal ServiceDirective (USD)
Choice
NRAs mustpromote theability of end-users to accessand distributeinformation orrun services oftheir choice. Art. 8 ofFrameworkDirective (FD)
Quality ofservice
NRAs can setminimumquality ofservicerequirements Art.22(3)USD
Switching
Initialcommitmentperiod shall notexceed 24m+ contract offerswith max 12mduration+ conditions andprocedures fortermination shallnot disincentiviseoperator change
- Art. 30 USD
E-privacy
Surveillance ofcommunicationsand relatedtraffic data,without consentof the usersconcerned, shallbe prohibited Art. 5 ePrivacyDirective
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2. Net neutrality stakeholders havedifferent goals that have to be consideredNotexhaustive
Internet ServiceProviders
want to:
protect theirinvestments inthe network
have high returnon theirinvestments
End-Users
want to have:
information on whatthey pay for
affordable prices access to all content
and applications oftheir choice
good quality of theinternet service
easy switching
Content Providers
want to have:
access to end-users non-discrimination oftheir content
Transit Providers
want to:
Keep payment flowsas it is
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3. BERECs work in the net neutrality fieldsupports the Commissions activities
At the same time, BEREC launched a public consultation on threefurther issues related to net neutrality, namely:
quality of service, differentiation practices and related competition issues, and IP Interconnection.
Issues
In April 2011 the Commission asked BEREC to undertake a fact-finding exercise on issues crucial toensuring an open and neutral internet.
In December 2011, BEREC adopted guidelines on transparency in thecontext of net neutrality by identifying best practices andrecommended approaches.
In December 2011 BEREC published a framework for quality of service.
BERECs results
In October 2010, BEREC published a report on best practices tofacilitate consumer switching. Additional information on switching was
provided in 2011 based on the output of the Net Neutrality andSwitching Questionnaire, issued by BEREC.
On 29 May 2012 BEREC published the results of its traffic managementinvestigation, which covered more than 400 fixed and mobile ISPs andgives a very good overview of traffic management practices in Europe.
Barriers to
changingoperators
Blocking orthrottling ofinternet traffic
Transparency
Quality of service
Other
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Why should the Commission take actionnow?
The evidence from BEREC published in May shows thatthere is a problem regarding net neutrality on European
markets
Member States started to take different approachesregarding net neutrality that would lead to afragmentation of the Digital Single Market
Investors need regulatory certainty
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The facts from BERECs trafficmanagement investigation Share of users affected: P2P fixed: 21% (plus some of additional 1%) P2P mobile: 36% (plus some of additional 6%) VoIP mobile: 21% (plus some of additional 18%) Mobile restrictions on other specific traffic: 12% (plus
some of additional 10%)
Share of operators that apply restrictions: (X% that apply restrictions to all their subscribers
plus y% that apply restrictions to some of theirusers)
P2P fixed: 15% (plus 3%) P2P mobile: 24% (plus 11%) VoIP mobile: 3% (plus 20%) Mobile restrictions on other specific traffic: 3% (plus
5%)
Countries affected by restrictions imposed onsubscribers:
P2P fixed: 20, thereof 18 EU MS P2P mobile: 23, thereof 22 EU MS VoIP mobile: 15, thereof 14 EU MS Mobile restrictions on other specific traffic: 9, thereof
8 EU MS
Source: The results of BERECs traffic management investigation:http://erg.eu.int/doc/consult/bor_12_30.pdf
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Member States are adopting differentapproaches
In the Netherlands, on 8 May 2012 a net neutrality law hasbeen adopted that prevents operators from charging forinternet access services on the basis of the services and
applications run over the internet.
There is also a proposal for legislation on net neutrality inBelgium.
The French regulator ARCEP has published in September2010 ten net neutrality principles. On April 12, 2011 theCommission for economic affairs of the French parliamentapproved the report on net neutrality of MP Laure de LaRaudire. The report contains 9 propositions.
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What does the Commission propose?
Guidance on:
Transparency Some elements of traffic management Switching The responsible use of traffic management tools
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The Recommendation will affect positivelyboth consumers and the industry
Recommendation
RegulatorycertaintyUnder the current
economiccircumstances
predictability andregulatory
certainty is key for
telecom operatorsand contentproviders.
ChoiceThis guidance willboost consumer
confidence and choice
InnovationIt will stimulateinnovation byenabling new
business modelsand by facilitating
the market entry ofcontent providers
and innovativebusinesses.
Growth, investmentsIt will help grow the
Internet economy andthe roll out of high-
speed Internet.
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Thank youfor your attention!