[AfrICANN-discuss] Nelie Kroes at ARCEP -- Net neutrality

Wed Apr 14 11:39:23 SAST 2010

  Neelie Kroes Vice President of the European Commission Commissioner for
the Digital Agenda Figures and graphics available in PDF and WORD PROCESSED
Net neutrality in Europe Address at the ARCEP Conference (L'Autorité de
Régulation des Communications Electroniques et des Postes) Paris, 13th April
2010
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SPEECH/10/153

http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/153&format=HTML&aged=0&language=EN&guiLanguage=en

<http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/153&format=HTML&aged=0&language=EN&guiLanguage=en>Neelie
Kroes

Vice President of the European Commission Commissioner for the Digital
Agenda

Figures and graphics available in PDF and WORD PROCESSED
Net neutrality in Europe

Address at the ARCEP Conference (L'Autorité de Régulation des Communications
Electroniques et des Postes)

Paris, 13th April 2010

Ladies and gentlemen,

Net neutrality is a subject that stirs emotions. Everyone has an opinion
and, so far, this has not led to an agreement on what net neutrality
actually means.

Issues

As such, I think it is worth revisiting briefly some of the fears, demands
and choices that exist in this debate.

The fears are numerous, and are not limited to technical issues. They range
from 'Big Brother' concerns about government censorship through to broad
questions about who should govern the internet as it becomes ever more
complex. Some worry that an increasingly commercial internet, and
increasingly congested networks, will afford no space the next time
demonstrators for democracy in countries such as Iran try to use digital
technology to communicate their efforts and sacrifices to the world.

On the other hand, with user needs multiplying and traffic growing, every
telecoms operator I meet has a demand. Many want to have the possibility to
charge a form of rent to content providers for what they see as extensive
use of their networks. And they want to be able to offer differentiated
levels of service to their customers – as we already see in many markets
with different classes and routes of travel such as planes and trains.

All parties are passionate in their view. This does not mean there are clear
answers, but it suggests that each party knows that the internet is not an
inherently neutral platform; that there are choices to be made.

Choices like:

   -

   Should internet providers be allowed to prioritise one kind of internet
   usage of another? (for instance delaying peer-to-peer applications). And
   should they be able to charge for that?
   -

   Are transparency rules on traffic management sufficient to solve possible
   issues?
   -

   Would the bottlenecks and other problems disappear if we manage to foster
   investment in new and open networks?
   -

   Would regulation promoting more infrastructure competition be reason
   enough to bring a lighter touch to net neutrality?

You can see it is a complex set of choices. What is more, some of the
choices are closely related to issues like the delivery and regulation of
new very-fast internet and efficient spectrum management.

The consequences of such choices are by no means yet clear. But with the
internet transforming every part of life, the consequences of our choices
will be significant. High speed access, quality, affordability, innovation,
competition, more generally our democracy – these may all be affected by how
this debate progresses.

This debate is still at an early stage in Europe. This is probably because
our regulatory framework and the competitive investments that it fostered
meant that we have not been so immediately confronted with these tough
choices as in some other jurisdictions. Of course, we need to anticipate
potential problems. However, as we do so, we must also avoid over-hasty
regulatory intervention.

Reflecting on the more advanced debate in the United States might help us to
make progress on our own debate. In 2005, the Federal Communication
Commission (FCC) of the United States outlined four principles to encourage
broadband deployment and preserve the open and interconnected nature of the
public internet. These were rights for consumers: to access lawful internet
content of their choice; to run applications and services of their choice,
to connect devices of their choice and to have competition.

I can fully subscribe to these principles.

Moreover, the FCC is now proposing two additional principles, concerning
non-discrimination and transparency. While the importance of increased
transparency is clear, the real meaning and consequences of the
non-discrimination principle should be carefully considered.

In fact, some are interpreting the non-discrimination principle as
essentially preventing telecom operators from seeking commercial payments or
agreements with content providers which deliver their highly
capacity-consuming services through broadband networks and require a certain
level of service for their transmission to be effective. That prospect
raises a number of delicate and complex issues. These issues must be very
carefully assessed before the EU gives any possible regulatory response.

Europe's new regulatory framework

Turning now to the EU's new regulatory framework adopted in 2009, it is
useful to underline a couple of points which are relevant for our debate.

First, under the new framework, National Regulatory Authorities are required
to promote “the ability of end-users to access and distribute information or
run applications and services of their choice”. This sets a very important
principle for net neutrality, as it recognises and safeguards the basic
freedoms of internet users.

Secondly, our new framework explicitly foresees the possibility for National
Regulatory Authorities, after consulting the Commission, to set minimum
quality of service requirements if there is a problem. This should ensure
that traffic management and possible prioritisation does not lead to
degradation of content and services provided by non-commercial actors or by
new entrants. In that respect, I would also like to underline that we are
developing a strong broadband policy to promote, in particular, investment
in new generation networks which will allow the provision of very high
quality services. Furthermore we have launched a public consultation on
universal service which addresses the question of whether universal service
has a role in advancing broadband coverage.

Thirdly, our new framework provides strong transparency measures to ensure
consumers understand and get what they pay for. I think too many consumers
currently feel cheated, for example when they get internet speeds far lower
than advertised. Transparency is therefore essential. For instance,
consumers should be clearly informed of the traffic management systems that
are in place and should be able to choose their providers taking this into
account.

These are not issues up for discussion, but clear rules already agreed and
adopted. I will be vigilant to ensure that they are correctly transposed and
implemented by the EU's Member States.

Next steps

The EU's revised telecoms rules will be complemented by our forthcoming NGA
Recommendation and Spectrum Policy, both of which will foster investment in
efficient and open networks.

Together this provides a good framework to deal with net neutrality issues.
Therefore, in my opinion, any further regulatory intervention should be duly
justified by the need to tackle specific problems which could possibly
emerge.

To this end, the Commission is carefully monitoring the impact of market and
technological developments on net neutrality and will report to the European
Parliament and the Council by the end of the year.

The Commission will hear all interested stakeholders and I can announce my
intention to launch a public consultation before the summer, in order to
progress Europe's net neutrality debate.In that context, I am encouraged by
the fact the BEREC already has a project team working on these issues and I
look forward to that useful input.

Principles I bring to the table

Let me now explain the principles I myself will use to examine the technical
and political issues raised in this debate.

My first general principle is not to make assumptions. I do not make the
assumption that one side or another should prevail in this debate, or even
that further Commission intervention is required.

I think that we should avoid giving rushed answers before having carefully
examined the potential problems, if any, and the more appropriate and
proportionate solutions. In particular, I think that we should avoid taking
unnecessary measures which may hinder new efficient business models from
emerging.

Given that so much of this debate is about different forms of traffic
management, let me use a road traffic analogy. There are many ways to manage
traffic: by improving infrastructure, adding tolls, creating junctions or
roundabouts to improve bottlenecks. But creating new rules and crowding the
street with signs does not automatically help the traffic to flow. Indeed,
putting a police officer at a busy corner can often deliver the slowest
traffic of all.

So, I will not be someone who comes up with a solution first and then looks
for a problem to attach it to. I am not a police officer in search of a busy
corner.

More specifically I will respect the following principles:

1. Freedom of expression is fundamental

I will not support any outcome that puts into danger freedom of expression.

2. Transparency is non-negotiable

This is already addressed in the new regulatory framework, but the principle
is worth re-stating: in a complex system like the internet, it must be
crystal clear what the practices of operators controlling the network mean
for all users, including consumers.

3. We need investment in efficient and open networks

We have to adopt clear regulatory measures to foster investment in new
efficient and open networks. Deploying such networks and promoting
infrastructure competition may be the best way to avoid bottlenecks and
monopolistic gatekeepers, thereby ensuring net neutrality.

4. Fair competition

Every player on the value chain should be free to fairly position themselves
to offer the best possible service to their customers or end users. Any
commercial or traffic management practice that does not follow objective and
even-handed criteria, applicable to all comparable services, is potentially
discriminatory in character. Discrimination against undesired competitors
(for instance, those providing Voice over the Internet services) should not
be allowed.

5. Support for innovation

There must be opportunities for new efficient business models and innovative
businesses. And over time, we should continue to monitor whether traffic
management is a spur to future network investment, and not a means of
exploiting current network constraints.

Conclusions

It may sound obvious, but my primary concern is to strike the right balance
between the parties concerned.

First and foremost, users should be able to access and distribute the
content, services and applications they want. While content providers and
network operators should have the right incentives and opportunities to keep
investing, competing and innovating. And everyone deserves certainty about
how this world will take shape.

On that note, I wish you well for the rest of your discussions here today
and look forward to your constructive input.
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