Net Neutrality and technological neutrality - some further elements - by yaofenji


									      Net Neutrality
    and technological
- some further elements -
   Prof. Eugenio Prosperetti
    Business Models for IT
       5 novembre 2009
Tech neutrality and regulation
• 1997 (U.S.) Framework for global electronic
  commerce        states    “rules    should     be
  technologically neutral”
• 2002 (E.U.) New Regulatory Framework for
  telecommunications contains reference to
  technology neutrality principle
• Since 1997 and the Internet revolution the
  principle of tech neutrality enters regulation,
 Understanding tech neutrality
• Apparently, there is no clear understanding of
  the principle by regulators (Reed, 2007)
• Often, the principle is stated as a core
  principle      but       there       are      no
  remedies/procedures for its enforcement
• Tech neutrality is often invoked to support
  antitrust remedies against conditional access
  services, we will see this is not always correct
• Tech neutrality is about “access” to networks
  and services
     Tech neutrality principle,
          regulated - 1
• Framework Directive (2002/21/EC), Art.
  – Member States shall ensure that in
    carrying out the regulatory tasks specified
    in this Directive and the Specific Directives,
    in particular those designed to ensure
    effective competition, national regulatory
    authorities take the utmost account of the
    desirability     of    making     regulations
    technologically neutral.
 Tech neutrality, regulated - 2
• Italian    Communications        Code      (D.lgs.
  259/2003, Art. 4 (g): “La disciplina delle reti e
  servizi di comunicazione elettronica e' volta
  altresì a: (…) garantire il rispetto del principio
  di neutralità tecnologica, inteso come non
  discriminazione tra particolari tecnologie, non
  imposizione dell'uso di una particolare
  tecnologia rispetto alle altre e possibilità di
  adottare provvedimenti ragionevoli al fine di
  promuovere taluni servizi indipendentemente
  dalla tecnologia utilizzata.”
     Tech neutrality, defined
• So, what is tech neutrality?
• Non discrimination (by law) between specific
• Non imposing (by law) the use a technology
  over another
• Ensuring the possibility of adopting
  reasonable regulation to promote certain
  services, regardless of technology issues
• Rules should neither require nor assume a
  particular technology
    Tech neutrality, two kinds
• There are two kinds of tech neutrality:
  – Network technology neutrality (different from net
     • Not imposing any specific requirement on networks
       which forces a certain network to serve only a certain
  – Service technology neutrality (service neutrality)
     • Ensuring that services on networks remain open to any
       reasonable technology which may be used on that
       network by consumers

• If operators possessing rights to use sat
  frequencies are required to configure them in
  such a way that broadband is not possible…
• If terminals operating on a network do not
  allow certain services which are technically
  possible (e.g. VoIP on mobile networks)
Specific tv neutrality regulation
• Art. 31 Universal Service Directive
•   1. Member States may impose reasonable "must carry" obligations, for the
    transmission of specified radio and television broadcast channels and services,
    on undertakings under their jurisdiction providing electronic communications
    networks used for the distribution of radio or television broadcasts to the public
    where a significant number of end-users of such networks use them as their
    principal means to receive radio and television broadcasts. Such obligations
    shall only be imposed where they are necessary to meet clearly defined general
    interest objectives and shall be proportionate and transparent. The obligations
    shall be subject to periodical review.

•   2. …determine appropriate remuneration, if any, ….while ensuring that, in
    similar circumstances, there is no discrimination in the treatment of
    undertakings providing electronic communications networks. … a
    proportionate and transparent manner.

   Service neutrality: critical
   principle with new models
• Google applications and network
• Google provides service which was once
  vertically integrated into network provider
  (e.g. voice, mail, apps, content, etc.)
• Mere conduit has low appeal/remuneration
• Does Google has an obligation to remunerate
• Does the principle safeguard Google?
Interactions with net neutrality
• Net neutrality demands:
  – Transparency in QoS
  – Users should be able to demand some
    priority in certain services and some
    network management
  – If imposed, they should know about these
    policies (e.g. railway traffic)
  – …and be able to have them turned off
• Google should not pay but… it cannot
  ask for priority unless…
• Users allow such policy
• Telcos cannot prevent such policy but…
• They can market neutral offers and try
  to incentivate other services….
• Microsoft is trying to compete with Bing
 The myth of NGAN networks
• Race to invest on an NGAN network
• An infrastructure which brings
  ultrabroadband to households and
• It might be pointless w/o:
  – Tech neutrality
  – Interoperability
  – Net neutrality
                 In fact…
• NGAN could result just in an open
  infrastructure supporting a series of closed
  business models
• Why should public policy provide incentives
  to this kind of business?
• Facebook, Google books, Google docs,
  iTunes, Playstation store, MSN, Skype, etc.
  are the building blocks of a non neutral
• If this is the model, they should pay for
  transport (supply side)
• New business model for tlc network is
• Something new started in UK in 2006
  (functional separation)
• Incumbent BT “agreed” to spin-off its
  network in a separate company
  “OpenReach” in the BT Group
• To avoid antitrust sanctions
       Telecom Italia 2008
• Something similar: Open Access
• Unilateral undertakings to “better
  comply” with regulation
• Approved by AGCOM
• Open Access division, monitored by a
  Board, to regulate wholesale
• But…
  Something more is required
• Open model for communications
• A consortium of operators
• Fiber capacity to be provided by local
  operator and compensated in an exchange
• Many groups are working on similar models
• Dark fiber to corporate/institutional users
• Service detached from transport
• A very different pricing
      Something more also in
•   Virtual mobile operators
•   MNO just frequency carriers
•   Value added services generate revenue
•   Voice traffic is not the key
•   We will look more into this

To top