European consumers say 'no' to network fees

Two days before the European Commission's consultation on the upcoming Digital Networks Act ends, 81 organizations representing European consumers' interests (including BEUC!) published a statement against the revival of network fees / "fair share" within the framework of the upcoming Digital Networks Act:

We regret that these proposals, first put forward by some telecom operators in 2022 as part of broader “Fair Share” mechanisms1, are still being actively considered in ongoing discussions on the future of the EU telecoms sector. As described by the large telecom operators themselves2, the goal of such a mechanism is to implement a so-called “fair share” settlement regime, whereby content and application providers (CAPs) would be required to pay telecom companies mandatory fees for delivering traffic.

Member State representatives in December: "we can handle dispute resolution matters ourselves"

As we previously reported, Member State representatives at the Transport, Telecommunications and Energy (TTE) Council expressed clear and strongly negative views on efforts to revive the "fair share"/network fees debate - this time framed under the guise of "IP interconnection dispute resolution mechanisms". Their position was crystal clear: the current system works, national regulatory authorities are fully capable of handling disputes, and there has been neither sufficient analysis of the need for new mechanisms nor of their potential economic impact. Excerpt from the TTE Council’s resolution

NOTES the proper functioning of the Internet Protocol (IP) interconnection market in the EU and ACKNOWLEDGES the experience of national regulatory authorities in handling dispute resolution matters. In case of future deficiencies of this market, STRESSES the importance of a comprehensive, thorough analysis and impact assessment as foundation for any mitigating initiatives, including a dispute resolution mechanism. Any potential measures should be in line with the open internet principles

Since December, numerous polls and studies (commissioned by telecommunications' associations) have emerged urging the European Commission to revisit the "fair share" debate. European mobile operators remain eager to cash in on any form of network fees, yet, as usual, there are no guarantees the funds will be used to address consumer needs, such as closing connectivity gaps or upgrading networks.

Find our previous articles on why the ideas of "fair share", "level playing field" within the framework of Digital Networks Act debate are more dangerous than they sound:

Bad ideas resurface: expanding telco rules to digital and cloud and rebirth of ‘fair share’

Brussels is back to business, so are the discussions on the European Commission’s White paper “How to master Europe’s digital infrastructure needs.”

EU Tech LoopEgle Markeviciute

Digital Networks Act, digital network fees & extending telco rules to digital services: what to expect in 2025?

One of the key agenda points for the upcoming Polish Presidency of the Council of the European Union (starting on the January 1, 2025) will be the Digital Networks Act (DNA). The Polish objective is to have an orientation debate and progress report.

EU Tech LoopEgle Markeviciute

Outcomes of introducing network fees in South Korea: the impact on consumers and internet experience

Imposing network fees (a newer concept for ‘fair share’) is not an idea exceptional to the European Union. South Korea, a country known for its technological innovation and global leader in internet infrastructure, introduced network fees back in 2016.

EU Tech LoopShrey Madaan