The EDRi papers - Issue 08 on Net Neutrality's Myths
By EDRi
“Net neutrality”
is a very basic principle which emphasizes on individuals free access to all
content and applications equally, regardless of the source, without Internet
service providers discriminating against specific online services or
websites. In other words, it is the
principle that the company that connects you to the internet does not get to
control what you do on the internet. So, in this article we will try to discuss
some of the myths associated with “Net Neutrality” and will try to rationalize
it for better understanding.
Myth 1: Net Neutrality is bad for the development of infrastructure – who is going to pay?
The availability of content is a factor that stimulates broadband investment. Revenues from broadband and mobile access are dependent on demand for web-based content and applications. This has been empirically proven through the PLUM[1] study, which found that “the ability of consumers to access Internet content, applications and services is the reason consumers are willing to pay Internet access providers. Access providers are dependent on this demand to monetize their substantial investments.”
Some Internet access providers argue that application and content providers “free-ride” on network investment made by others. This claim is baseless, because users already pay for content and applications, which allows access providers to profit from their investment in networks. Content and applications providers buy services from access providers, purchase network access and services. Moreover, consumers’ demand to use high-bandwidth applications, such as peer-to-peer and streaming music and video, creates demand for faster Internet connections, more revenue for access providers and, ultimately, fuels investment in infrastructure.
Myth 2: Net
Neutrality legislation would mean no network management, causing problems for
the quality of the Internet.
It is not true
that legislation protecting Net Neutrality would prevent access providers from
managing their networks. In fact, the Transmission Control Protocol (“flow rate
fairness”) that is at the core of Internet engineering has been one of the
greatest congestion management tools that has helped make the Internet such a
success.
What Net
Neutrality would prevent is not traffic management, but rather arbitrary
restrictions implemented by access providers that are designed to undermine the
openness of the Internet as a short term measure to make extra profits
Myth 3: Charging
application and content providers will help promote broadband investment
Some access
providers time and again have publicly expressed their will to charge content
and application providers – in addition to access charges already paid by end-users
– arguing that this will help investment in next generation networks. This is a
dangerous approach because there are no existing obligations that would
guarantee that access providers use any additional revenue for investment. In
fact, they might even prefer to opt for less investment, since lower quality
for basic Internet service may encourage the adoption of non-neutral (and more
expensive) “premium” services.
Myth 4: Net
Neutrality legislation isn’t necessary, since customers can “vote with their
feet”.
If a company
is restricting your access, whether blocking websites or services, the European
Commission repeatedly stated that customers can switch companies to those who
are offering the “full” Internet. However, if I am running a Belgian web
service and it is being blocked by access providers in, say, Poland, Greece and
Spain, I have no choice as I am not a customer of the foreign providers that
are blocking my freedom to conduct business.
For consumers,
good switching is insufficient in an industry where they are tied into lengthy
contracts, as their ability to switch providers may not be feasible in
practice. End-users can be left in a restricted, low quality slow lane, or a
fast lane with fewer destinations to reach, without even knowing about it.
Myth 5: There
is no need for regulation, let the market decide
This is a
false dilemma. While competition is a necessary mechanism to construct a
healthy market, it does not effectively prevent access providers from adopting
non-neutral practices. The regulatory framework cannot solely rely on
competition and transparency.
It is clear
that competition law moves too slowly, and is demonstrably not effective in
curbing the problem at hand. In light of the growing, overwhelming evidence
that access providers are tampering with end-users’ ability to access the
Internet, relying solely on market forces will lead to the development of a
multiple-tier Internet, to the detriment of citizens.
Myth 6: Costs
are exploding because of data growth
This is untrue
for both fixed and mobile network connections. For fixed telephony networks,
traffic-related costs are a small percentage of the total connectivity incomes
because they have a single line per household, so traffic growth over this
segment involves no additional costs. The question is different for cable and
mobile networks because the cable and radio access network is shared by users
and the costs of adding capacity are significantly higher than they are for
fixed networks. However, the progress from 2G to 3G to 4G for mobile and to
from EuroDOCSIS 1.x to 2.0 (and soon 3.1) for cable has lead to important
reductions in the cost of carrying traffic. This means that even if costs for
mobile access are higher, cost per unit is declining. In this case, not only
does data traffic growth contribute to profitability for access providers, but
it may contribute to lower average costs per data unit carried by the network.
Myth 7: Net
Neutrality will harm innovation
It is not true
that Net Neutrality would stifle innovation, quite the opposite in fact: a
failure to enact Net Neutrality protections will undermine content and
application providers’ freedom to do business. As explained in chapter 3, a
non-neutral regime would hinder innovation in content, as start-ups and smaller
companies would suddenly be faced with barriers to enter the market – and
uncertainty about what new barriers may be created. The innovators’ freedom to
impart information is therefore limited – as is their freedom to do business,
being protected by the Charter of Fundamental Rights of the EU.
Myth 8: It’s
our network; we can do whatever we want with it.
The Internet
is a “truly public place” that enables a new frontier of freedom, and serves as
a tool to exercise this freedom.” [2] Citizens have grown to depend on the
stability, openness and integrity of the Internet to exercise their fundamental
rights, including their freedom of expression, access to information and
freedom of association. These responsibilities are internationally recognised
under the UN Framework, which acknowledges the corporate responsibility to
respect human rights. Moreover, the EU Delegation to the 7th International
Governance Forum (IGF) stated in 2012 that “the Internet is not just a
technology or a digital market space.
Myth 9: Net
Neutrality is a problem in the US, not in Europe
There is
overwhelming evidence that European access providers, particularly in the
mobile sector, are using technical measures to tamper with end-users’ ability
to access the Internet for their own commercial interests.
For example,
recent findings from BEREC (the Body of European Regulators for Electronic
Communications) show that this is indeed a problem in Europe, where more and
more operators are restricting access to content (such as P2P sites), services
(such as VoIP) and degrading the quality of Internet connections. In addition,
the evidence collected through citizen platforms such as Glasnost[3] and
Respect My Net [4] provides a crystal clear picture of the numerous, harmful
neutrality violations already taking place in Europe.
Publication Details:
The
EDRi papers - Issue 08 – Creative Common License 3.0, Download The Paper - LINK
References:
1 PLUM study 2011 http://skypeblogs.files.wordpress.com/2011/10/plum_october2011_the_open_internet_-_a_platform_for_growth.pdf
2 Joint
Statement of the EU Delegation to the 7th International Governance Forum (IGF)
in Baku http://europa.eu/rapid/press-release_MEMO-12-852_en.htm
3 Glasnost
data visualised in a Net Neutrality map http://netneutralitymap.org/
4 Respect my
net: http://respectmynet.eu/list/
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