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VoIP services may be at a disadvantage in the two-tier Internet trend |
Recently, Internet Service Providers (ISPs) have begun to break the principle of “net neutrality” in the online world, transitioning to a “two-tier” Internet – allowing them to prioritize network traffic to compete with other rivals.
Lawmakers want ISPs to cooperate in investigating cybercrime, parents want them to filter harmful content, and customers demand they block spam… However, the ISP community has previously succeeded in maintaining a neutral stance, meaning they would transmit data bits without discrimination, bias, or inspection of content. This principle provides service providers with a reasonable basis to escape legal liability for the content passing through their systems.
Websites, e-commerce companies, and others also apply the principle of neutrality to ensure that companies, regardless of size, are treated equally. This measure creates opportunities for companies with the best products and services, rather than those with the deepest pockets, to emerge victorious in the market.
Internet customers also benefit similarly as they gain more choices and access to a rich variety of content and applications, regardless of which ISP service they are using.
Providers can compete on price, service, and speed, while online content is evenly distributed among all. Thus, the principle of neutrality allows ISPs to invest deeply in infrastructure, enhance competitiveness, and provide fair access to content for Internet users.
Meanwhile, a two-tier Internet means that ISPs can prioritize certain content traveling through their networks. This trend is forming in various forms around the world.
Many countries have blocked Internet telephone services to protect the interests of telecommunications companies. This method, occurring in countries such as Panama, Oman, the United Arab Emirates, and Mexico, will limit choices for telecommunications services and exclude customers from one of the fastest-growing areas online.
In Europe, some ISPs have also begun to refuse VoIP, such as Vodafone, which has turned the popular Skype program into “inappropriate content.” The Motion Picture Association of America (MPAA) is also pressuring European providers to implement filtering technology to shut down peer-to-peer systems like BitTorrent, which they claim “essentially facilitates the downloading and sharing of files illegally.” They have even proposed that European ISPs limit bandwidth usage for customers.
Recent developments in the United States and Canada indicate that ISPs may go even further in developing a two-tier Internet system. For instance, Canada’s Shaw cable service announced it would allow customers to use competitors’ VoIP services for a monthly fee while providing their own service for free.
Earlier this year, at least one ISP in the U.S. restricted VoIP traffic from competitors until the Federal Communications Commission intervened to stop such actions. Telus, another Canadian ISP, has also blocked access to over 600 websites from the U.S. and Australia.
For several months, customers of Rogers, Canada’s largest cable provider, have claimed that the company has blocked access to the BitTorrent program as well as podcast downloads from iTunes software. Rogers acknowledged that they prioritized online activities. Consequently, applications that the company rated as low priority may stop functioning.
However, blocking services, websites, and certain applications is not necessarily a good solution. Some ISPs see greater revenue potential by charging customers if they want to access certain sites and services on a priority basis.
William L. Smith, Chief Technology Officer of BellSouth (U.S.), recently mentioned a project where Yahoo might pay more for their website to load faster than Google. BellSouth and AT&T are urging the U.S. Congress to approve the right to create a two-tier Internet system to compete more effectively against rivals.
This development, while promising some economic benefits, will have multifaceted impacts on Internet companies, users, and regulators worldwide.
