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Seismic Shifts In International Data Markets Demand Broadband Internet Policy Update

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A global policy move to improve connectivity and bridge the digital divide has produced a report on international markets for data and related regulatory policies. These papers use the sometimes confusing terms usage, transit, peering, and interconnection. Each term has a specific meaning and practice. Policy makers can get an overview of policies and proposed measures, along with a thorough review of their national networks and practices. Here are some of the key findings from the report.

The rise of a parallel, unique, unregulated internet per platform

Germany’s Federal Network Agency has commissioned a study on competition in the transit and peering market (141 pages), note that this issue has not been investigated by European regulators for at least five years. According to the report, Internet traffic in Europe has grown by 25% year-on-year, with 80% of this traffic coming from video, social media and games, with 5-6 players (Netflix, Amazon Prime, YouTube, etc.) platform). It accounts for more than half of all traffic. These players have more international backbone capacity than their broadband providers in the world and have abandoned third-party transit in lieu of building their own backbones, undersea cables and data centers. did. As a result, the transit business declined. The platform mostly eschews price-transparent internet exchanges and builds a bespoke network for its own content, maximizing the efficiency and profitability of its services.

The massive development and expansion of backbone and delivery infrastructure by these players has permanently changed the overall global architecture of the Internet, the fabric of its interconnections, and the relationship between platforms and broadband providers, and forced carriers to compete. brings the above disadvantages. The sustained growth of Internet traffic continues to shape the dynamics of Internet architecture, with the continued disproportionate growth of video streaming and cloud services having the greatest impact. Despite the many advantages of private offerings of networks, conflicts can arise when parties exchange data, given the relative market power between discordant entities. While the Internet architecture has changed dramatically over the last decade or so, the legal and regulatory framework for traffic flows has changed little, and in these international data markets, the largest platforms are inherently unregulated. not. An exception is South Korea, which is recognized for its unique approach to broadband policy and global leadership in broadband.

Network Use and Termination

South Korea has had a compensation framework for network usage for almost a decade. The spirit of the policy reflects the recognition that broadband providers and content/application providers share responsibility for ensuring data delivery quality and user experience. In practice, policies ensure that the cost of installing and maintaining fiber from the content provider to the broadband provider’s core router is recovered. This provides dedicated bandwidth for specific content and protects against degraded network experience for users who do not access that specific content.

Importantly, this practice has nothing to do with terminating traffic to the end user. Apparently Analysis Mason, internet society, When others Network usage (which describes the relationship between broadband providers and content/application providers) is confused with the termination method of “sender network pays” (SPNP). In South Korea, SPNP is a historical regime applied between Tier 1 carriers only when the traffic exchange rate does not exceed 1:1.8.

Cost recovery is encouraged but not mandated in South Korea, leading US corporations to manipulate the regime. For example, Netflix has dismissed cost recovery claims, brought broadband providers to court, and paid for the broadband network upgrades required to manage Netflix’s content, which increased 26x almost overnight. I said no obligation. netflix lost And the case is pending appeal.

Similarly, Facebook has asked South Korean broadband providers to install Facebook servers within their networks for free. Broadband providers hesitated. After all, servers are expensive and cannot be repurposed for other content. Therefore, accommodating for free would be inefficient and redundant. To force the issue, Facebook shut off Some of these servers and traffic were rerouted to other countries and operators. Did. Facebook took the issue to court and won, but it caught the attention of the South Korean parliament.

Going forward, the General Assembly will consider: Revision of the Telecommunications Business Law Provide for companies to negotiate in good faith on data and price transparency requirements. There is no fee obligation on the bill.

Dataset required for validation

Policy makers have little data on international data markets. Useful information about international data traffic is available from Cisco and Sandvine at a global level aggregated, but little is known about the behavior of actors within traffic exchanges and the microeconomics of individual networks.

Preliminary efforts are underway to provide more data. Strand Consult We collect data on streaming video data over rural broadband networks and document the strengths and weaknesses of different methodological approaches.Importantly, Congress has passed an Affordable Internet Funding with Reliable Contributions Act or FAIR donation law This will allow the FCC to conduct the necessary investigation.

In any case, there is no data showing harm from South Korea’s broadband policy. On the contrary, the country is famous for having the highest penetration of home fiber (86%) and his 5G (47% adoption). The country is considered a pioneer in network innovation and a global force. Content development for local production for local consumption and exportAdditionally, Google and Netflix have made record profits in the country for a year. Fair cost recovery for broadband seems to go hand in hand with a thriving ecosystem.

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