Virgin Media O2 has urged the UK government to amend existing neutrality laws, saying the current regulations are preventing investment in 5G and stifling innovation. A report by Stephen Howard of Communications Chambers, which has been cited by the telecoms giant, states new guidelines could help unlock hundreds of millions of pounds in value.
Net Neutrality Rules
Net neutrality rules were introduced in the UK in 2016, when the UK was still part of the EU. The European Union’s Open Internet Access Regulation replaced a voluntary Open Internet Code of Practice and dictates that, apart from in a few very limited cases, all internet traffic should be treated equally.
The rules mean websites and apps all load at the same speed while sites and services cannot be given favouritism. It also prevents throttling. Internet data usage experienced significant growth when the act was initiated.
Monthly average internet usage in 2012 was around 25GB. This figure has grown to 513GB in 2022. The growth has been driven by several factors. Home streaming of content like 4K video is data intensive. The downloading of games and other content is also significant, with some modern video games being 100GB or more, in size.
General internet usage is up, as with smartphone useage across age groups. More poeple than ever now use social media, and enjoy various forms of online entertainment, including online gaming. UK bingo sites are more prevalent than ever before, showing how businesses are moving online, offering a wider range of games and features. They can also be played on mobile devices, often with mobile apps too, which contributes to a need for greater internet access.
To Repeal Or Not To Repeal
When the UK left the EU in 2020, it kept net neutrality rules. In his study, Net Fatality, Howard says the government should readdress these rules. The report claims that the current regulations stifle 5G innovation.
Operators and the government, have come under fire for the perceived slow rollout of 5G. Although Virgin Media O2 recently announced it had completed the installation of its 500th Giga site this year, further advances are still required to ensure adequate national coverage.
The current rules do allow for some preferential treatment for emergency services, but Howard’s report, which was commissioned by the telecoms company, wants to prioritise time-sensitive applications. These would include IoT devices as well as autonomous vehicles. The government has continued to try and position itself as a leader in autonomous vehicle innovation.
Virgin Media O2 is one of several companies and groups calling for a relaxation of net neutrality laws. Fellow operator, BT, has made similar calls in the past, along with trade association Mobile UK. There have been similar calls in the EU, while net neutrality regulations in the US have been completely reversed, although discourse continues between state and federal regulators.
However, despite the pushback from telecoms companies, consumer groups and watchdogs claim that reversing the rules would lead to a two-tier internet and would give ISPs the power to prioritise internet traffic that generates them higher revenues. The government has yet to respond to these latest calls.
