Ofcom relaxes net neutrality but rejects ‘fair share’ payments by content providers

Ofcom’s HQ (Source: Ofcom)

UK regulator Ofcom has revised its net neutrality rules to give some additional flexibility to network operators.

The regulator has however rejected the idea of allowing service providers to charge content providers for the use of their network, at least for now.

Providing clarity around existing rules, Ofcom said that ISPs can offer premium packages, for example offering low latency, as long as they are sufficiently clear to customers about what they can expect from the services they buy.

The regulator said it would allow most zero-rating offers. Zero-rating is where the data used by certain websites or apps is not counted towards a customer’s overall data allowance. The updated guidance clarifies that we will generally allow these offers.

Ofcom said that traffic management can be used by ISPs on their networks, so that a good quality of service is maintained for consumers. “Our updated guidance clarifies when and how ISPs can use traffic management, including the different approaches they can take and how they can distinguish between different categories of traffic based on their technical requirements,” it said.

The watchdog has updated its guidance around the ability of service providers to offer ‘specialised services’ to deliver specific content and applications that need to be optimised, which might include real time communications, virtual reality and driverless vehicles.

Regarding allowing ISPs to charge content users, the regulator said there was not sufficient evidence to force content providers to pay a “fair share” of network costs.

“We have concluded that while in principle there could be benefits to a charging regime in the UK, particularly in incentivising content providers to deliver traffic more efficiently, we recognise the difficulties that designing an effective scheme raises, the risks, and uncertainty such a change could create, and the unclear impact on consumers. We conclude that we have not seen sufficient evidence that a charging regime would support our objectives,” it said.

“The net neutrality rules are designed to constrain the activities of broadband and mobile providers, however, they could also be restricting their ability to develop new services and manage their networks efficiently,” said Selina Chadha, Ofcom’s Director of Connectivity.

“We want to make sure they can also innovate, alongside those developing new content and services, and protect their networks when traffic levels might push networks to their limits. We believe consumers will benefit from all providers across the internet innovating and delivering services that better meet their needs.”