Mobile execs want to rip up net neutrality
By Barry Collins
Posted on 23 Aug 2010 at 10:09
More than half of mobile executives want to tear up the concept of net neutrality.
A survey of international mobile executives found that 55% believed networks should be allowed to charge content owners to prioritise their data traffic.
The survey, conducted on the behalf of law firm Freshfields Bruckhaus Deringer, is yet another sign that the mobile industry wants to ditch the concept of treating all traffic streams equally.
The attitude mirrors recent proposals from Verizon and Google, which suggested that "carriers should be able to make private arrangements with service and application providers to let them offer differentiated services outside of the public internet".
However, the legal firm admits that there will be regulatory hurdles to overcome before mobile networks could start discriminating between different types of traffic. "There’s a lack of clarity on how regularity bodies might handle that," said Natasha Good, a partner with Freshfields Bruckhaus Deringer. "The survey repsonses indicate that the greater the bandwidth used by a particular app or user, that’s when it would merit a different fee structure. [Traffic] prioritisation is likely to be looked at very closely by regulators.”
The survey also indicates that mobile networks are desperate to take a slice of the growing appetite for apps and video content. App downloads are likely to be the biggest source of revenue for mobile networks within three years, the survey's respondents claimed, with video and mobile payments also in the top five money earners.
No more unlimited data
Consequently, the days of "unlimited" data deals will come to an abrupt end. Almost half of the respondents agreed that "all you can eat" data pricing had harmed mobile networks' ability to increase data revenues, and 55% believed that tiered data pricing was the way forward.
“When you ask consumers to change the way of charging for consumption, there can be challenges," admits Good. "It’s not the first time a business model has been forced to grow up. I guess it does seem like the dark ages [of dial-up internet] when we were paying for what we consumed when we were plugged into a phone line.”
Both O2 and Orange have recently scrapped "unlimited" data plans on the iPhone, as the networks try and wring more money out of heavy data users.
From around the web
Double charging
Charge the user for downloading AND charge the content provider for sending...
Well, of course they would, given half the chance
By greemble on 23 Aug 2010 
They want their cake and eat it?
I would guess 100% of mobile users would like to rip up mobile executives....
Typical rip-off Britain again - not that there is anything resembling 'unlimited data' (unless you count upto 1Gb per month as 'unlimited'). And as for the operators wanting 'their slice' of the app market - would that not be like me downloading, for example, a new AV suite for my PC then my ISP asking me for a fee on top of my subscription as I used their network to do it?
By everton2004 on 23 Aug 2010
Either or...
Either they need to charge the user or they need to charge the host of the data, they can't have both, or they need to reduce all prices by 50%...
But you can say goodbye to the free Internet, only sites which make money will be able to pay to have their traffic delivered reliably...
By big_D on 23 Aug 2010
@everton2004
The proposal was by Verizon and Google, in America, as an American proposition, where Net Neutrality is currently being fought - and the telcos are doing a darned good job of twisting the term, so that the average customer sees true neutrality of the network as a bad thing!
By big_D on 23 Aug 2010
Greedy b**tards
At this rate, my choice of mobile provider will depend upon which sites I use and whether those sites pay these operators enough.
I can just see it now:
"Like to watch Vimeo, sir? You're better off with Orange instead of O2 then."
Or better still:
"Like to view your own blog? Sorry, but you'll have to pay us if you want to view it at a decent transfer rate".
By mviracca on 23 Aug 2010
They'll try to eat the whole cake!
Have to agree with big_D, this would be the end of 'free' internet. However if the telcos can find a way to make both the host and the consumer pay then they definitely will. Since when did any telco care if it was fair for them to have it both ways?!? I certainly can't see any sort of price reduction. Of course we can rest safe knowing Ofcom will be looking after our best interests in this surely....
By hevster on 23 Aug 2010
Sherlock?
Basically, when asked if they want to make more money, 55% of mobiles executives said yes...
Guess what the survey results were when consumers were asked if they believe mobile internet should be free?
By josephlck on 23 Aug 2010
asked if they want to make more money...
Perhaps what's more surprising though, is it seems 45% said no
By greemble on 23 Aug 2010
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