NET NEUTRALITY

MERVE EVCİKATAR, 22 April 2014

Disclaimer

The views expressed in this presentation are the views from the speaker and do not necessarily reflect the views from AVEA.

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Telecommunications Today

• Play an increasingly important role in the world economy.

• Engine for innovation which owes much of its success to being open and easily accessible.

• The public policy challenge is to foster investment, innovation and competition while preserving the open and neutral character of the system.

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Outline

• Definition of Net Neutrality• Current State of Play in EU and Turkey • Differing Perspectives on Net Neutrality• Strategical objectives plan of AVEA in the

market and NGO level

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What is Net Neutrality ?

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EU Policy Objectives

• To promote effective competition • To promote the interests of citizens • To contribute to the development of the

digital single market MER

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What is Net Neutrality in EU?

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What does the European Commission propose?

Guidance on:• Transparency under fair and non-

discriminatory market• Some elements of traffic management• Switching• The responsible use of traffic management

tools

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What has been done until now?

• In 2009, the Commission set out in its Declaration on Net Neutrality its commitment to preserve the open and neutral character of the internet.

• In April 2011 the Commission published a Communication on the open internet and net neutrality in Europe.

• These rules modernise the provisions regarding ease of switching, transparency and quality of service across Europe, and give National Regulatory Authorities (NRAs) the tools to deal with net neutrality issues.

• Final agreement between the European Parliament and union member governments is needed.

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Net neutrality laws 2013Country Legal Approach

Netherlands 15 May 2012 (S.7.4.a of Telecoms Law)

Chile & Finland

Universal access to ‘unfiltered’ Internet

United States FCC Open Internet Order Sept ‘11

Norway Co-regulation – 2009 agreement

Canada CRTC rules 2009 (not implemented?)

Japan, UKFrance

Self-regulation unenforcedARCEP ‘Ten Principles ‘

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Two Lane model by WIK

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What is it at stake?

• Innovation and creativity• Market Competition• Information availability• Freedom of expression M

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Differing Perspectives on Net Neutrality

• Net Neutrality would reduce incentive for investment in broadband infrastructure.

• Mobile network operators face greater total capacity constraints (due to spectrum scarcity and the high costs of infrastructure investment)

• Limits on ability to invest in networks will restrict consumer choice because the networks will not be fast enough and become costly.

• “The rules proposed by the European Parliament are very restrictive and will hamper innovation,” said Luigi Gambardella, chairman of the European Telecommunications Network Operators’ Association.

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Top 10 Internet Countries in Europe June 30,2012

Source: http://internetworldstats.com

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Turkish 3G subscriptions reached 49,3

million at the end of 2013

Source: Turkish Information and Communication Technologies Authority Market Data Q4 2013

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What is Net Neutrality in Turkey?

• Mobile phone penetration in Turkey 88 %, as opposed to the Western European average of 138%.

• Mobile broadband connections will remain a key growth driver of the Internet economy.

• In fact, there are now significantly more mobile connections in Turkey than fixed connections.

• With the rising demand for mobile internet and data services Regulation Authority in Turkey should maintain fair infrastructure sharing which is key factor for the competitive market.

• There should be relevant proportion of mobile telecommunications investments, where the spending is related to building, maintaining, and facilitating broadband services.

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AVEA and Net Neutrality

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AVEA 2013 ANNUAL REPORT

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The number of smart phone owners has reached 4.6 million people with 63 % increase in 2013.

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AVEA and Net Neutrality• Working with European Union regulatory bodies and key industry trade associations

on public policy issues.• Safeguard the ‘net freedoms’ of customers by continuing innovation – in technology,

infrastructure services and in business models.• Making Technology Accessible to Everyone.• Expanding the capacity on both fixed-line and mobile networks simultaneously with

smart phones. • Continue to invest in new technologies to reduce the environmental impacts of

products and services.• Priority in the welfare of consumers, service quality and differentiation practices

enable to gain a degree of competitive advantage.• Customers should be offered different services depending on what they want to use

and the value they place on the services with the provision of transparent information to end users.

• Attract, develop and retain the qualified employee by offering a motivating and inclusive workplace in which talent is recognised and developed, and wellbeing is promoted.

We communicate with consumers in many waysas part of our normal business, for examplethrough our retail outlets, contact centres andcustomer research. Understanding the attitudes ofconsumers towards sustainability issues is criticalto getting our strategy right. having an important role to play in ensuringthat new regulations are appropriate for changing technologies,business models and consumer behaviours. We engageregularly on privacy with policymakers, regulators, civil societyand opinion formers at national and international levels.

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AVEA and NGO Relations• Continue to engage and cooperate European Union bodies, local communities,

decision makers, health bodies, government departments, media representatives, academics, industry associations and technology suppliers.

• Having an Industry leadership role in working with NGOs to prevent misapplication of net neutrality concept and unfair competition.

• Transparency in government relations and providing copies of any formal submissions in the public domain to regulators and governments on request.

• Contribution to the vision of information society by addressing society’s most complex challenges.

• Support for digital illiteracy eradication.

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Selected Pointers

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• The Digital Agenda for Europehttp://ec.europa.eu/digital-agenda/• How the Internet is transforming the Turkish Economy-The Boston Consulting

Grouphttp://www.turkiye-e-konomi.com/en/Turkey-Online-English.pdf• Commission Open Access Policieshttp://pt.slideshare.net/ccbuhr/access-to-scientific-information-the-role-of-the-eu-9446893• Network Neutrality: Challenges and responses in the EU and in the U.S. WIK

Consulthttp://www.europarl.europa.eu/document/activities/cont

/201105/20110530ATT20513/20110530ATT20513EN.pdf• Towards a European single market ,Speech by Dr Leonidas Kanellos,BEREC Chair

ECTA Conference, Brussels, 24 June 2013 http://www.eett.gr/opencms/export/sites/default/admin/downloads/SpeechPresent

/ECTA_2013.pdf

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THANK YOU FOR YOUR ATTENTION!