Regulation and the Evolution of the Global Telecommunications Industry
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Regulation and the Evolution of the Global Telecommunications Industry

Edited by Anastassios Gentzoglanis and Anders Henten

After decades of liberalization of the telecommunications industry around the world and technological convergence that allows for increasing competition, sector-specific regulation of telecommunications has been on the decline. As a result, the telecommunications industry stands in the middle of a debate that calls for either a total deregulation of access to broadband infrastructures or a separation of infrastructure from service delivery. This book proposes new approaches to dealing with the current and future issues of regulation of telecommunication markets on both a regional and a global scale.
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Chapter 12: Efficiency and Sustainability of Network Neutrality Proposals

Toshiya Jitsuzumi


1 Toshiya Jitsuzumi INTRODUCTION 12.1 Recent times have witnessed the phenomenon of increasing congestion on the Internet; this is characterized by the ‘crowding out’ of average users by peer-to-peer (P2P) users due to a rapid spread of bit-intensive applications (Cisco Systems, 2008a, 2008b, 2008c; Swanson, 2007; Swanson and Gilder, 2008), and further, it is sometimes accompanied by the possibly anticompetitive conduct of network operators. In an attempt to deal with this, ‘network neutrality’, a term coined by Wu (2003), has come to be a focus of discussion among operators, academics and telecom regulators. For example in parallel with a series of controversial events, for example, blocking of Voice over Internet Protocol (VoIP) by Madison River Communications LLC in March 2005 and the allegedly discriminatory treatment of P2P by Comcast since 2007,2 the US Federal Communications Commission (FCC) has issued important statements. First, in 2004, the then FCC Chairman Michael Powell challenged the broadband network industry to preserve the four ‘Internet Freedoms’: freedom to access content, freedom to use applications, freedom to attach personal devices and freedom to obtain service plan information.3 Secondly, on 23 September 2005, the following principles were incorporated into a policy statement.4 ● ● ● ● Consumers are entitled to access lawful Internet content of their choice. Consumers are entitled to run applications and use services of their choice; subject to the requirements of law enforcement. Consumers are entitled to connect their choice of legal devices that do not harm the network. Consumers are entitled to competition among network providers,...

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