Network Usage Fees Not Needed, Ofcom Says

Evidence of a need for network usage fees is insufficient, the U.K. Office of Communications (Ofcom) said Thursday in a net neutrality review statement. "A charging regime would be a significant step" and it's not clear that approach would support net neutrality objectives. ISPs can't impose fees on over-the-top services under the current net neutrality regime because there's no legal or regulatory obligation on content providers to negotiate with them, Ofcom noted. While charging OTTs could theoretically have benefits because it might give them stronger incentives to make efficient decisions, the extent to which they determine the timing of traffic and the choice of delivery approach (that is, network providers' costs) can be limited. In addition, many content providers, including some of the biggest ones, are already making decisions and investments that tend to improve the efficiency of traffic delivery, the statement said. There's also "material uncertainty" about how a charging system could affect retail broadband prices and content subscription charges, as well as uncertainties about the scale of future network investment. Ultimately, Ofcom noted, any decision to allow content-carrying fees is up to Parliament and the government. The review, which began in 2021, found that the U.K. approach to net neutrality supports consumer choice and allows content providers to deliver content and services to consumers: "However, there are some areas where more clarity will enable ISPs to innovate and manage their networks more efficiently, which will improve consumer outcomes." Under the new guidance, ISPs can offer premium quality retail offers, such as for low latency, as long as they're transparent with consumers about what they can expect from the services. ISPs can develop new specialized services for delivering specific content and applications, such as real-time communications and virtual reality. The guidance updates how network providers can use traffic management for their networks to maintain a good quality of service. It allows most zero-rating offers (where the data used by a particular website or app isn't counted toward a customer's overall data allowance). The updated rules should give ISPs enough flexibility that a charging regime isn't needed, Ofcom added.