Tuesday, June 12, 2012

European ISPs Suggest New Internet Business Models

Leading European ISPs said, more than once, that they wish to charge OTT content providers for delivering their content to subscribers, which may not match the ideas behind net neutrality (see "European Telcos do not Like Regulation and OTT!" - here; "European Carriers Ask [Again] to Charge Content Providers [Google]" - here and statements from DT, Telecom Italia).

So it is no longer just statements given to the press. ETNO,  an organization that represent 41 ISPs (including Belgacom, KPN, Orange, Telecom Italia, Telenor, swisscom, and Telefonica), submitted a proposal to the ITU "for changes to the ITRs providing for a new sustainable model for the Internet based on commercial agreements between undertakings".
"This contribution calls for a new IP interconnection ecosystem that provides end-to-end Quality of Service delivery, in addition to best effort delivery, enabling:
  • the provision of value-added network services, to both end-customers and over the top (OTT) players and content providers, and
  • a reflection of the value of traffic delivery over network infrastructures.
Moreover, the contribution states that in order to ensure an adequate return on investment in high bandwidth infrastructures, operating agencies shall negotiate commercial agreements to achieve a sustainable system of fair compensation for telecommunications services.
By endorsing the concept of “quality based delivery”, it will be possible to establish new interconnection policies based on the “value” of the traffic (not only on the “volume”), enabling new business models and implementing an ecosystem where operators’ revenues will not be disconnected from the investment needs made necessary by the rapid growth of Internet traffic". 

See also BEREC: "traffic management and differentiation practices are capable of being used for questionable purposes" - here.

See "ETNO proposes a number of changes to selected articles of the ITRs, in view of the WCIT (World Conference on International Telecommunications)" - here and the proposal text - here

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