[Chapter-delegates] Network neutrality and EU Telecoms Package

[Frédéric Donck]

Dear All

As expected, the Commission has today adopted its long-awaited Telecoms Package<http://europa.eu/rapid/press-release_IP-13-828_en.htm>. The texts should be available soon, but I am sending you here the extract from the Commission’s Memo which addresses net neutrality.
I'll share the texts once they are available and give this further analysis in the Weekly Newsletter this Monday.

Best Regards
Frederic

Frederic Donck
Director European Regional Bureau
Internet Society

www.isoc.org<http://www.isoc.org>

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11. Yes to Net Neutrality!
A Connected Continent means an open internet
[http://europa.eu/rapid/exploit/2013/09/MEMO/EN/m13_779.eni/Pictures/10000201000001E0000001684BA5CE05.png]
PROBLEMS
•                     There are no clear rules on net neutrality today at EU level, leaving 96% of Europeans without legal protection for their right to access the full open internet.
•                     Some EU Member States (NL, SI) have adopted laws, but without EU action this could further fragment the European market, and significantly complicates the integrated management of multi-territorial networks.
•                     The blocking and throttling of P2P and VoIP is the most common example of unacceptable traffic management by operators: around 21% of fixed Internet access subscribers and around 36% of mobile subscriptions are affected by restrictions.
•                     This causes problems for: consumers who can’t enjoy full internet; content and application providers who do not have a guaranteed access to consumers, and are prevented from innovating in the long term; operators who face different approaches to traffic management in different Member States and who are not encouraged to create new business models, but simply protect past/current territory and business models;
SOLUTIONS OFFERED
•                     This proposal will end discriminatory blocking and throttling and deliver effective net neutrality. It sets out clear rules for traffic management, which has to be non-discriminatory, proportionate and transparent.
•                     Companies would however be allowed to differentiate their offers (for example by speed) and compete on enhanced quality of service. There is nothing unusual about this – postal services (express mail) and airlines (economy/business class) have done this for decades.
•                     To meet end-users' demand for better service quality, content providers may agree deals with internet providers to assure a certain quality of service. Such offers will enable telecom operators to generate additional revenue streams from OTT actors, content providers as well as from consumers who are willing to pay for better or faster services. These revenues in turn, will enable operators to finance investments into network upgrades and expansion.
•                     Specialised services must not lead to a degradation of quality in the "normal" internet. National regulators will monitor quality of service and may impose minimum quality requirements under Commission control.
IMPACTS
•                     For business: Stepping stone for innovators, who will not see their applications and services blocked and who will be able to choose to pay for a guaranteed quality of service (ex: videoconference businesses, e-health).
•                     European operators can develop new business models and have greater leverage in negotiating agreements with OTT providers.
•                     For consumers: Will be given new rights that they do not have today. Will be able to access all contents and applications of their choice on any device they choose (within the limits of any contracted data volumes or speeds and subject to existing laws) They will also benefit from a greater range of high-quality services on offer. They will have access to an open internet, vital for freedom of expression and debate.
•                     For the future: A real basis for providing and enjoying services everywhere in the EU. It will allow innovative companies to launch services without fear of blocking or throttling and design new services requiring a guaranteed quality of service. Operators will have access to additional revenue streams to finance investments into network upgrades and expansion.
[http://europa.eu/rapid/exploit/2013/09/MEMO/EN/m13_779.eni/Pictures/10000000000001E000000168A4F8ED80.jpg]
Vice President Neelie Kroes said "We do not have protection of net neutrality in Europe today. This proposal will ensure it. The proposal aims at optimising the outcome for end-users, content providers and Internet service providers.

http://europa.eu/rapid/press-release_MEMO-13-779_en.htm

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