vesa terava - net neutrality in europe - seserv se workshop june 2012

7/31/2019 Vesa Terava - Net Neutrality in Europe - SESERV SE Workshop June 2012

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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!

vesa terava - net neutrality in europe - seserv se workshop june 2012

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