Mobile Operators Want to Break Net Neutrality

Several mobile operators plan to block advertising on their networks, setting the stage for a battle with digital media companies such as Google, AOL and Yahoo. One European wireless carrier told the Financial Times that it has installed blocking software in its data centres and planned to turn it on before the end of 2015.

An executive at a European carrier confirmed that it and several of its peers are planning to start blocking adverts this year. The executive said that the carrier will initially launch an advertising-free service for customers on an opt-in basis.

The executive at the mobile operator considering “the bomb” acknowledged that targeting Google could be risky from both a legal and public relations perspective. Under “net neutrality” rules in the European Union and the US, telecoms companies are forced to treat all data that flow through their networks equally.

Many mobile operators are frustrated that digital media companies profit from their high-speed networks without having to invest in the infrastructure behind them. 

Source: Financial Times


WireTech Comments

Mobile operators are facing a huge problem, which can be is simply called "profit". Their original business model was based on service delivery (phone calls, text mesagges, etc.). However they missed the changes in the whole IT industry. Mobile operators were originaly considered as a platform for other services for many years. However this situation has been recently changed. This "platform" is represented nowadays by big companies like Google, Yahoo, Facebook. These companies offer everything what mobile operators can do and they are able to reach more consumers all over the world. They are only missing the hardware infrastructure which have mobile operators.

One way how to prevent falling of mobile operators revenue is to "break" the net neutrality. If mobile operators had a deal with some "content supplier" or with some massive social platform like Facebook, they would be able to offer better connection between this source and the customers. This simply means offering more price plans, more "packages" and at the end also more expensive internet delivery.

The main problem of net neutrality is not about the privacy or copyright (but of course it is also the big part of this problem), but it is mainly about the technological limit of IP protocol. This protocol was designed many years ago for completely different services than we can see and use nowadays. IP protocol doesn't guarantee the delivery of each packet in the real-time. It's more like a transportation service - it delivers everything you want, but all at once (not little by little). And last but not least is that IP doesn't have any preference of the content, nor recipient.

IP protocol has actually reached its technological limit thanks services like VOIP, live TV streaming, etc. Internet Service Providers (ISP) have two options how to keep running their business:

1. Improve the infrastructure - increase the bandwidth. People will be able to use more services, but ISP earnings will grow very little.

2. Break the net neutrality - ISP wouldn't have to invest so much money into their infrastructure. They simply split one route into multiple ones. Some of them will be more expensive than the others, which will cause artifical needs for various price plans and packages.




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