IXP providers wade into network cost debate

An association representing the internet exchange point (IXP) industry warned of potential negative impacts from regulation which could force large content providers to pay operators for network access in the European Union.

In a letter to the European Commission, which is widely expected to launch a consultation [1] into the issue this year, European Internet Exchange Association outlined concerns about various elements in mobile provider proposals [2] around changing the funding make-up of providing network connectivity.

Referring to the so-called Sending Party Network Pays (SPNP) part of proposals, the association claimed the policy could be “detrimental to the correct functioning of the internet connectivity and peering market and distort competition therein”.

It added, the organisation: “believes that when considering the SPNP model, policy makers should exercise a high level of care to avoid accidentally creating new systemic weaknesses in critical infrastructure.”

Costs
On the subject of network rollout costs, which have been cited by the mobile industry as a key reason for a new charging model, European Internet Exchange Association stated it: “remains neutral on the question of whether some form of regulatory adjustment is justified.”

“We do, however, believe that policy-makers should give paramount priority to protecting the integrity of critical infrastructure: no policy changes aimed at improving investment returns should be considered without complete certainty that they are safe in terms of the [European] Union’s and the public’s vital interests,” it added.

The comments follow calls from mobile operators in Europe to force major, largely US-based, technology companies to contribute to network infrastructure costs given the high proportion of network traffic caused by users accessing their services.

Last year regulators in the region voiced scepticism [3] on the proposals which also prompted Google to defend its record [4].

[1] https://www.mobileworldlive.com/featured-content/top-three/eu-plots-tech-giant-network-consultation/
[2] https://www.mobileworldlive.com/featured-content/top-three/european-players-ask-us-tech-giants-for-rollout-help/
[3] https://www.mobileworldlive.com/featured-content/top-three/regulators-sceptical-on-operator-network-funding-calls/
[4] https://www.mobileworldlive.com/featured-content/home-banner/network-funding-row-rolls-on-as-google-defends-record/

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