Ofcom on net neutrality in Europe and the United States
Ofcom is the regulator of the Internet in the UK. Its position on net neutrality has a clear description
of the potential need for governance on this issue.
The concept of net neutrality The issue of net neutrality concerns whether and where there should
be a principle of non-discrimination regarding different forms of internet traffic carried across net-
works. The communications sector is entering a period where there is rapidly increas- ing traffic on
the internet, such as video and peer-to-peer applications (for example, games and VoIP services).
This rapid increase in traffic is generating substantial congestion in some parts of the internet
. Moreover many of these applications are time-sensitive and are far less tolerant of delay than, say,
email or web browsing. To respond to these new applications and their associated demands, service
pro- viders are developing a range of business models that facilitate the prioritisation of different
types of traffic. This is enabled by improvements in network technology that are allowing greater
identification of internet packets associated with different applications, which can then be
prioritised, accordingly. Ofcom goes on to explain the arguments for and against net neutrality and
the current position in Europe. Arguments for and against net neutrality Proponents of net neutrality
argue that it is fundamental to the protection of con- sumer choice and innovation on the internet,
and advocates in the US have cited the First Amendment to the constitution, arguing that net
neutrality is necessary to ensure freedom of speech. Some large internet application and content
companies tend to be advocates of net neutrality, alongside some consumer rights groups.
Opponents to net neutrality argue that they should be able to offer different quali- ties of service,
both in order to recover their infrastructure investment costs and to enable quality of service
guarantees to improve the consumer experience for ser- vices such as VoIP or video streaming. In
the United States, cable and incumbent telecom operators have also claimed that the First
Amendment supports opposition to net neutrality, arguing that they cannot be compelled to
promote speech with which they disagree.
Differences between the European Union and United States A contrasting set of circumstances
exists in the European Union, compared to the United States. Specifically, the net neutrality debate
was triggered in the United States by the deregulation of wholesale access services, including access
to the internet. In the EU there are obligations to offer unbundled local loops and bit- stream access
and these continue to be seen as key tools in addressing competition problems.
As part of its proposals to amend the existing EU regulatory framework, the European Commission
has proposed a range of measures to ensure that consumers have access to lawful content including
proposals to ensure that consumers are made aware of changes to the terms of service offered by
their communications provider and the ability to switch contracts with penalty. In addition, the
Commission proposed to empower national regulators with the ability to impose minimum quality of
service obligations on communications providers subject to a set of standards agreed at European
level.