EC Poll Finds Little Enthusiasm for 'Fair Share' Payments From OTTs
Forcing over-the-top services to pay network costs for carrying content isn't supported by many stakeholders other than some e-communications network (ECN) providers, a European Commission consultation on the future of the ECN sector and its infrastructure found (see 2303220017). Its…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
report on the results of the poll said "while the majority (mostly digital platforms, [content delivery networks], consumer organisations and citizens) of the respondents expressed opposition to a mandatory mechanism of direct payments from [content application providers/large traffic generators (LTGs)] to contribute to the financing of network deployment, other respondents (primarily ECNs) supported the system as a tool to address the imbalanced bargaining power between them and LTGs." ECNs that want a mandatory mechanism for direct payments said LTGs generate revenue without helping with network costs, while ECN providers struggle to recover investments. For them, the mechanism could reduce that investment gap, incentivize traffic generation and benefit consumers. Such a mechanism would involve introducing the obligation to negotiate, a dispute resolution mechanism and price monitoring. The large majority of respondents to the question said if the mechanism is introduced LTGs should be the main contributors. Most of those who supported a payment mechanism -- "mostly ECN providers," the EC noted -- said network providers should benefit from the direct payment to the extent that they invest in network infrastructure in Europe. ECN providers said the payment would offer many benefits, but others, such as digital platforms, content providers and consumer groups, said introducing such compensation could undermine the principle of net neutrality, potentially cut incentives for innovation, particularly for small traffic generators, and mean higher consumer prices. The results prove "the vast majority of stakeholders agree: introducing network usage fees would be an unnecessary and damaging regulatory intrusion that is neither required nor justified." The European Telecommunications Network Operators Association, which backed fair share legislation earlier this month, didn't comment. The EC noted the views presented in the report are those of the respondents, not its official position.