13/10/2009

Net neutrality: current situation in the Netherlands

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May an internet provider interfere with the online applications a consumer can use? Or with the web pages a consumer can view? Such questions are central to the debate on Net Neutrality. While this debate has taken place mainly in the United States in recent years, it is now becoming relevant in the Netherlands (and the rest of Europe) as well. Recently, it was revealed that some mobile providers do not allow the use of Skype, and that fixed providers throttle P2P traffic at certain times of the day.

Transparency
Commissioned by the Ministry of Economic Affairs - Telecommunications Market Directorate, Dialogic conducted research on Net Neutrality in the Netherlands. The research first focused on whether violations of Net Neutrality occur in the Netherlands. They do — as evidenced by the examples mentioned earlier — although most internet traffic is transmitted without being influenced. The second (and more interesting) question was how the government should position itself on this issue. In the United States, there have been several attempts to legislate against violating Net Neutrality. Although such legislation has never passed, a situation has de facto emerged where influencing internet traffic (mostly through throttling P2P traffic) is not allowed.

It remains to be seen whether such a ban is necessary in the Netherlands. A fundamental difference between the American and Dutch internet markets is the higher level of competition here; in the United States, there is essentially a duopoly. In theory, this competition forces providers to be much more cautious in influencing internet traffic because consumers could easily switch to a provider that allows, for example, Skype. However, what is lacking in the Netherlands is transparency: consumers often do not know whether their (mobile) internet provider influences traffic or not, and therefore cannot act accordingly. Dialogic has therefore advised the ministry to request internet providers to be more transparent about Net Neutrality. The effectiveness of such a strategy was evident from the Skype case mentioned earlier: shortly after various media outlets reported that Skype was not allowed, several mobile providers adjusted their terms and conditions.

More Information
For more information, please contact Rudi Bekkers, Reg Brennenraedts or Stein Smeets. The report Net Neutrality: current state of affairs in the Netherlands is available on the Dialogic and Ministry of Economic Affairs websites.