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European Regulators Monitor U.S. Net Neutrality Debate

Net neutrality may be off the table in talks between EU governments and lawmakers over telecommunications regulation reform, but it’s far from a dead issue in Europe. With German operator T-Mobile reportedly blocking VoIP calls on its broadband network, the European Commission has come out strongly in favor of net neutrality and, along with national authorities, it’s watching developments in the U.S., they said. Information Society and Media Commissioner Viviane Reding promised to deal with the issue in the EU Digital Agenda due in March.

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Negotiations to resolve the impasse over the telecom package between the EU Council of Ministers and Parliament began last month. Lawmakers decided Sept. 28 not to reopen provisions some digital rights activists believe allow operators to block or prioritize Internet access, La Quadrature du Net said.

But the debate on net neutrality continues to simmer. Before the European Parliament adjourned this summer, one legislator asked Reding about T-Mobile’s plan, announced in April, to block Skype in order to run its network more efficiently. In her July 7 response, Reding said the EC is “taking a close interest” in reports about the situation. BNetzA Vice President Iris Henseler-Unger reportedly confirmed recently that the German regulatory agency is investigating consumer complaints about the situation.

The EC has monitored the conduct of mobile network operators with regard to new Internet-based services such as mobile VoIP since early 2008, Reding said. Overhaul of EU e- communications rules will allow consumers to switch providers more easily and give them more information before they sign a contract about the nature of the services they're getting, including traffic management techniques and bandwidth caps, she said. National authorities will be able to intervene to set quality of service requirements for network transmission services, strengthening the tools available against anti- competitive behavior and discrimination against VoIP applications, she said. The EC stands ready to deal with cases in which there is evidence of legal breaches, she added.

“I plan to be Europe’s first line of defense” in the face of real threats to net neutrality, Reding told the European Digital Media Association on Sept. 1. A priority for Europe’s next digital agenda is a “deeper look” into the issue, she said. Reding called for broad debate in 2010 on how the EC can use the new tools in its regulatory package to preserve an open Internet.

Current laws have been effective in tackling many net neutrality-related problems, Reding said, adding that she would be prepared to act in the case of continued blocking of VoIP services by certain mobile operators. The new regulatory framework is in many ways a “quite robust answer to such new threats” but technology and regulation will evolve further in the coming years, she said. How to safeguard net neutrality should be spelled out in greater detail in the digital agenda to be adopted next year, Reding said.

Europe’s net neutrality debate is in its infancy, said Bingham McCutchen attorney Axel Spies, speaking for the German competitive carriers association VATM. Although there are no concrete proposals yet to deal with the issue, Reding’s interest in an EU-wide approach is a positive sign, he said. An expedited debate on the EU and national level is needed to maintain customer confidence, Spies said. European regulators are watching how the debate in U.S. progresses, he said.

Non-EU member Norway is ahead of the game. In February, the Norwegian Post and Telecommunications Authority, ISPs, industry associations, consumer groups and content providers endorsed voluntary net neutrality guidelines. Its three principles include the right of Internet users to a connection whose traffic is transferred without discrimination.