The group’s preliminary view is that mandating a financial contribution from tech firms poses risk for the internet ecosystem and net neutrality
A lively debate before the official consultation has even started: BEREC has released its preliminary assessment in relation to the ‘fair share’ – or ‘direct compensation’ – debate that is taking place across Europe. It deals a fairly significant blow to the telecoms sector’s proposal in just 15 bullet points and comes after Europe’s largest telcos called for those firms driving the majority of data traffic (and operators’ costs) to make a direct contribution to network investment. The issue has seen lively discussions among stakeholders at recent events in Brussels and has support from senior figures at the EC, including Commissioner Thierry Breton who has stated that it is necessary to “reorganise the fair remuneration” of telecoms networks. He has been holding meetings with the CEOs of Europe’s telcos ahead of a public consultation on the matter in early 2023.
BEREC has poured cold water on the telcos’ proposal: BEREC has noted that the proposal, which would see the implementation of a ‘sending party network pays’ (SPNP) charging regime, is not new. Back in 2012, it concluded that adopting this model could significantly harm the internet ecosystem as operators could exploit their termination monopoly (in a similar way to voice call termination on their networks). While BEREC recognises Europe’s data traffic growth over the past decade, and the concentration of traffic generation among certain large content and application providers (CAPs), it stresses the mutually-dependent relationship between operators and CAPs – going as far to suggest that telcos are using their content to increase their revenues. With no evidence so far that CAPs 'free-ride’ on telecoms infrastructure, BEREC has come to the provisional view that its 2012 conclusions on a SPNP regime remain valid, also adding that several operators do not back the calls of the region’s major telcos.
‘A risk for the internet ecosystem and net neutrality’: Small and medium-sized operators have expressed concerns that a financial contribution to the telecoms sector from CAPs could endanger the principle of net neutrality (something the industry has yet to meaningfully show wouldn’t be violated) and create a competitive distortion in the market, putting them at a disadvantage. Responding to BEREC’s preliminary view, ETNO has said that not all the evidence and arguments have been presented – referencing, for instance, the impact the metaverse could have. Until the formal public consultation arrives, we are likely to see further interventions from stakeholders as they position themselves. Even BEREC is due to follow up with a more detailed paper on its views.
