Tuesday, June 4, 2013

EU Network Neutrality Rules Would be Less Restrictive than U.S. Rules

It appears that any European Union version of network neutrality would have some distinctive features, compared to the rules fixed network providers (cable and telco) must follow in the United States, if the framework now proposed by European Commission Digital Agenda Vice President Neelie Kroes is adopted.

Among the most-noticeable differences is that although fixed network ISPs can provide only “best effort” access, EU network neutrality rules would allow quality of service tiers. At the moment, mobile service providers can offer such features, while fixed network ISPs cannot.

“I you've just bought a videoconferencing system, you'll probably also want an internet service that guarantees the right quality, end-to-end,” said Kroes. “If someone wants to pay extra for that, no EU rules should stand in their way; it's not my job to ban people from buying those services, nor to prevent people providing them.”

In other ways, the EU rules would be similar, requiring plan transparency, for example. “Before you sign up to an internet contract, you want to know key details,” said Kroes.

But EU rules probably will regulate terms and conditions of service in a way U.S. rules do not. With an eye to allowing consumers more ability to switch ISPs, the EU will be looking at excessive charges, modem rentals or control of email addresses that tend to create barriers to switching behavior. In the U.S. market those might not be in the domain of network neutrality but more consumer protection.

As do U.S. rules, EU rules would prohibit the blocking or other degradation of lawful services such as voice over Internet Protocol (VoIP) or over the top messaging services.

Traffic management to avoid congestion will be allowed, as network management is permitted on U.S. networks, under network neutrality rules.

But there are key nuances. Under EU rules, it appears Kroes supports rules that would allow ISPs to separate time-critical traffic from the less urgent traffic. Under U.S. “best effort only” rules, that is not allowed.

The EU rules might also allow creation of access services customized for different types of lead applications, ranging from light email or Web surfing plans to video entertainment intensive plans. “Operators need to respect these different needs, and to do that they must also be allowed to innovate to meet those needs,” said Kroes.

On balance, the EU rules would be less restrictive of ISPs, allowing more use of quality of service and assured levels of service features, while also making clear that all lawful applications must be free of interference, compared to U.S. rules.

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