Seismic Shifts In International Data Markets Demand Broadband Internet Policy Update

A global policy framework to promote connectivity and close the digital divide has produced reports on international markets for data and related policy initiatives. These journals sometimes present complex terms: use, travel, tourism and connection. Every word has meaning and action. Policymakers can benefit from a collection of suggested policies and tools – in addition to a thorough analysis of the network and practices of their country. Here are some key findings from the report.

The rise of the Internet, owned and not controlled by the platform

Germany’s Federal Network Agency ordered a study on competition in the passenger and peer market (page 141), noting that European regulators have not investigated the issue for at least 5 years. The report says that traffic Internet traffic in Europe is growing 25 percent every year, and 80 percent of this traffic is video, social media, and games, with only 5-6 players (such as the Netflix platform, Amazon Prime, YouTube etc.). accounts for more than half of all traffic. These players have more international backbone capacity than the world’s broadband providers and have undermined alternatives by building their own backbones, submarine cables, and data centers. because of this. The platform avoids online exchanges where prices are clear, but instead builds a network of claims for their content that maximizes the efficiency and value of their services.

The massive development and expansion of backbone and transmission infrastructure by these players has completely changed the global structure of the Internet, the structure of connections, and the relationship between platforms and broadband providers, creating Weak competition for workers. The steady growth of Internet traffic continues to shape the Internet architecture, continuing the exponential growth of video streaming and cloud services. maximum effect. Despite the many benefits of the introduction of private networks, conflicts can arise when parties exchange data, due to the lack of market power between companies. Although the Internet industry has changed significantly over the past decade or so, the legal and regulatory framework for traffic has changed little, and the largest platforms are largely unregulated and international data markets. The exception is South Korea which has a unique approach to broadband policy and is a well-known world leader in broadband.

Network usage vs. Termination

South Korea has had a system of compensating internet usage for almost a decade. The policy reflects the recognition of the scope of work between broadband providers and content / application providers to ensure data delivery and user experience. In practice, the policy makes recovery pay for the installation and maintenance of cables from the content provider to the main broadband provider. This provides dedicated bandwidth for a given content and protects against degradation of the network experience for users who are not accessing the content.

Importantly, this action has nothing to do with stopping traffic to stop workers. It appears that Analysys Mason, the Internet Society, and others are confusing the use of the network (which defines the relationship between a broadband provided and the content / application provided) with the abolition of the government of “to- send one network charge” (SPNP). In South Korea, SPNP is a historical regime that only applies among Tier 1 broadcasters if their traffic exchange rate does not exceed 1:1.8.

Although joint recovery is encouraged in South Korea, it is not necessarily the case that the major players in the US are playing the government. For example, Netflix rejected claims for cost recovery and brought the broadband provider to court, saying it had no obligation to pay for the broadband network upgrades needed to handle Netflix’s 26-fold increase in content. night. Netflix lost, and the case is on appeal.

Similarly, Facebook wants South Korean broadband providers to install Facebook servers in their networks for free. Broadband providers recover; After all, the server has a cost and cannot be replicated for other content, so it is ineffective and useless if it is placed for free. To enforce this issue, Facebook shut down some of these servers and redirected traffic to other countries and users. This degraded the end-user experience, and the Korean telecom operator sued Facebook for what it considered intentional harm. Facebook took the matter to court and won, but the abuse drew the attention of the Korean Parliament.

Moving forward, the Assembly considers updating the Telecommunications Business Code to state that the company is involved in a good dialogue with the requirements for data and price transparency. The debt has no right to be paid.

Data set required for verification

Policymakers have little data about international data markets. Although the information that contributes to international data traffic is available at the aggregate, global level from Cisco and Sandvine, it tells us little about the behavior of the actors involved in the traffic exchange. and the microeconomics of individual networks.

Early efforts are underway to provide more data, notably from Strand Consult which collects data for video streaming and rural broadband networks documenting the pros and cons of various approaches. Congress needs to consider addressing this through the Trusted Internet Financing and Trusted Contributions or FAIR Contributions Act. which will enable the FCC to conduct the required study.

In any case, there is no data showing harm from South Korea’s broadband policy. On the contrary, the country is celebrated for the highest number of installations for cable at home (86 percent) and 5G (47 percent). The country is considered to be the first to deploy new networks and global capabilities in content development for local consumption and export. Also Google and Netflix have had a year of record profits in the country. It seems that the recovery of broadband signal costs is associated with a growing ecosystem.

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