Net Neutrality heats up in Europe as well as US

Net neutrality is heating up in Europe now as well as the US. Two of Europe's leading operators, Deutsche Telekom and Telecom Italia are trying to work with the European Union to develop regulations to charge leading Internet companies such as Yahoo and Google for using their networks. They argue that they are and plan to invest Euro's 100bn's on hi-speed networks and need to recoup costs to ensure future network quality.

Dubbed “net neutrality” in North America, the issue has pitted telecoms companies against internet visionaries who claim that a new charging structure would undermine the principle of openness on which the internet was built, and prompt internet companies to charge consumers more for their services.

European operators are poised to invest about €80bn ($100bn) over the next 3-4 years in high-speed, or so-called next generation, networks. They argue that profitable internet companies such as Google should be charged higher fees to help pay for the networks. The operators also argue that these fees are necessary as video services spread. But internet companies say any extra levy – they already pay for the data they push out – would stop tomorrow’s Google's from even starting.

It's a tough call. As Internet companies provide higher bandwidth services and more and more Voice applications, you can understand why operators want to charge them. They are after all undermining their own business models.

BUT, Internet innovation must not be stifled and telco's make plenty of money. Now want to eat some of the Internet companies lunch. I guess they're just not used to the heavy duty competition they face today from start up telco's, cable companies as well as the Internet folk.

I'm not sure that regulation is ever any smart way to fight back. Better services and value is. On balance I'm one for not seeing the Internet companies get charged by the telco's. Let's see if the US and EU regulators agree - I hope so, for all us users who ultimately pay the bills.