EC to Recommend Net Neutrality Guidance to Give Consumers Better Information and Choice
There are enough problems with consumers gaining full Internet access “to warrant strong and targeted action” to safeguard users, although not necessarily more regulation, EU Digital Agenda Commissioner Neelie Kroes said Tuesday. She responded to a European Commission-ordered report by the Body of European Regulators for Electronic Communications (BEREC) into potential net neutrality problems. Internet access works well most of the time for Europeans, but survey findings showed a need for more regulatory certainty and better consumer choice, she said. In addition to its report on traffic management practices, BEREC launched consultations on several issues in the context of net neutrality: Quality of service guidelines (http://xrl.us/bm9pti); differentiation practices and related competition issues (http://xrl.us/bm9ptk); and Internet Protocol interconnection (http://xrl.us/bm9ptp).
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One key finding is that at least 20 percent of mobile Internet users experience some form of restriction on their ability to access VoIP services, though there are national differences, BEREC said. A majority of ISPs offer Internet access with no application-specific restrictions, it said, but specific practices such as blocking or throttling of peer-to-peer or VoIP -- which occurs more on mobile than on fixed networks -- could create concerns for end-users. The findings are a snapshot of the EU market based on more than 400 responses to a questionnaire sent to operators in the fixed and mobile markets, it said.
In a separate explanatory note (http://xrl.us/bm9pub), BEREC set out how the traffic management results and the consultation documents relate. The IP interconnection market has developed very well so far without any significant regulatory intervention, it said. Separation of network and application layers is a characteristic feature of the best-effort Internet and it’s spurred innovation and growth, it said. Although traffic management and differentiation aren’t intrinsically harmful, they can be used for “questionable purposes or in an inappropriate manner,” it said. The situation differs from country to country, and the documents propose general criteria to allow national authorities to evaluate the practice on a case-by-case basis in their own markets, it said.
On the issue of net neutrality, BEREC concluded that competition is expected to discipline operators and ensure the best offers for consumers, but that this “critically” relies on effective transparency and the ability of users to switch providers easily. National regulators and end-users should be able to monitor the performance of the Internet access service and the applications used via that service, it said. Where there’s inadequate competition and transparency, existing regulations, including quality-of-service requirements, should allow national regulators to address neutrality-related issues “for the time being,” BEREC said: Those authorities “are ready to act without hesitation if necessary."
Kroes said she doesn’t like to muscle into competitive markets unless it’s the only way to help consumers and/or companies. But the evidence showed that in addition to restricting services such as VoIP, around 20 percent of fixed operators, throughout virtually all EU members, also cut access by such actions as limiting peer-to-peer volumes at peak times, she said. That can affect up to 95 percent of users in a country, she said. Most if not all ISPs offer fixed and mobile access services that aren’t subject to such restrictions, Kroes said. BEREC figures showed that 85 percent of all fixed ISPs and 76 percent of all mobile ISPs offer at least one unrestricted service, she said. The market is generally providing choice, although that choice is quite limited in some nations, she said.
Consumers aren’t getting enough information about those practices to make informed choices, Kroes said. Given BEREC’s findings that consumer choice isn’t effective, “I will prepare recommendations to generate more real choices and end the net neutrality waiting game,” she said.
The recommendations will include providing clear information on actual, real-life upload and download broadband speeds, “not just the speed at 3 a.m.,” Kroes said. Consumers also need clear notice of the limits of what they're paying for, she said. Quantified data ceilings are better than vague “fair use” policies that leave too much discretion to ISPs, she said. Users also must know if they're getting “Champagne or less sparkling wine,” she said. A service that’s not full Internet shouldn’t be sold as such, or maybe shouldn’t be marketed as “Internet” at all, she said. The recommendations are due around Christmas, Kroes’ spokesman told us.
Kroes said she doesn’t intend to force every operator to provide full Internet, because it’s up to consumers to vote with their feet. The EC also doesn’t want to create roadblocks for entrepreneurs who want to provide tailored connected services or service bundles, whether for social networking, music, smart grids or some other application, she said. “But I want to be sure that these consumers are aware of what they are getting, and what they are missing.” EC guidance will make it easier to shift to new providers and service offers, Kroes said.
Products that limit access often require monitoring of online traffic through packet inspection, Kroes said. That raises privacy concerns, sparking the need for clear guidance on responsible behavior by ISPs as well as on how consumers can exercise informed and effective control if they choose such products, she said. The BEREC consultations close July 31 -- pm@berec.europa.eu.