The proof of the pudding is in the eating

Nico van Eijk, 'The proof of the pudding is in the eating', Internet Policy Review 10 februari 2014.
The Netherlands is among the few countries that have put specific net neutrality standards in place. It was the first country to do so in the European Union. It remains to be seen if these rules are working or if they are just another example of symbolic regulation: the proof of the pudding is in the eating.

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THE DEVIL IS IN THE PUDDING

It is my impression that the regulator either did not think about these issues or did not want to deal with them. However, this is what net neutrality — more specifically network neutrality — is about. What do we mean with vague notions such as ‘congestion’ or giving dedicated space to specific services (the ‘managed’ versus the ‘unmanaged’ internet, the debate about allowed forms of discrimination)? A decision like this raises more questions than it answers.

In a study, we concluded that the future of the net neutrality debate will be dominated by video. Today, it is video that requires substantial amounts of capacity and therefore creates the most interesting challenges (also from a commercial perspective, as the video consumption/exploitation model seems to change). This T-Mobile case is a typical example.

On fixed networks, we will see the same kind of problems. Netflix and YouTube together make up 50% of peak-time internet traffic in the United States. In The Netherlands, Netflix was introduced in December 2013. Cable operator UPC reported that already 5-10% of its traffic consists of Netflix binge viewers. New ‘congestion’ issues will be on the table soon.

Of course, it is not about congestion exclusively. This is why I prefer to use the broader term ‘net neutrality’. ‘Network’ neutrality is only one element in a complex value chain that regulators have to deal with. We will have to wait and see what the future brings: the proof of the pudding is in the eating.

Nico van Eijk