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Europe’s top court slaps down ‘zero rating’ again

Published September 2, 2021

Europe’s top court has dealt another blow to “zero rating” — ruling for a second time that the controversial carrier practice goes against the European Union’s rules on open internet access.

“Zero rating” refers to commercial offers that can be made by mobile network operators to entice customers by excluding the data consumption of certain (often popular) apps from a user’s tariff.

The practice is controversial because it goes against the “level playing field” principle of the open internet (aka “net neutrality”).

EU legislators passed the bloc’s first set of open internet/net neutrality rules back in 2015 — with the law coming into application in 2016 — but critics warned at the time over vague provisions in the regulation which they suggested could be used by carriers to undermine the core fairness principle of treating all internet traffic the same.

Some regional telcos have continued to put out zero rating offers — which has led to a number of challenges to test the robustness of the law. But the viability of zero rating within the EU must now be in doubt, given the double slap-down by the CJEU.

In its first major decision last year — relating to a challenge against Telenor in Hungary — the court found that commercial use of zero rating was liable to limit the exercise of end users’ rights within the meaning of the regulation.

Its ruling today — which relates to a challenge against zero rating by Vodafone and Telekom Deutschland in Germany (this time with a roaming component) — comes to what looks like an even clearer conclusion, with the court giving the practice very short shrift indeed.

“By today’s judgments, the Court of Justice notes that a ‘zero tariff’ option, such as those at issue in the main proceedings, draws a distinction within internet traffic, on the basis of commercial considerations, by not counting towards the basic package traffic to partner applications. Such a commercial practice is contrary to the general obligation of equal treatment of traffic, without discrimination or interference, as required by the regulation on open internet access,” it writes in a (notably brief) press release summarizing the judgement.

“Since those limitations on bandwidth, tethering or on use when roaming apply only on account of the activation of the ‘zero tariff’ option, which is contrary to the regulation on open internet access, they are also incompatible with EU law,” it added.

We’ve reached out to Vodafone and Telekom Deutschland for comment on the ruling.

In a statement welcoming the CJEU’s decision, the European consumer protection association BEUC’s senior digital policy officer, Maryant Fernández Pérez, subbed the ruling “very positive news for consumers and those who want the internet to stay open to all”.

“When companies like Vodafone use these ‘zero tariff’ rates, they essentially lock-in consumers and limit what the Internet can offer to them. Zero-rating is detrimental to consumer choice, competition, innovation, media diversity and freedom of information,” she added.

Europe’s top court says net neutrality rules bar ‘zero rating’

Satellite internet startup Astranis books first commercial launch on SpaceX Falcon 9

Published August 26, 2019

Y Combinator-backed startup Astranis is now set to launch its first commercial telecommunication satellite aboard a Falcon 9 rocket, with a launch time frame currently set for sometime starting in the fourth quarter of next year. Astranis aims to address the market of people who don’t currently have broadband internet access, which is still a huge number globally, and they hope to do so using low-cost satellites that massively undercut the price of existing global telecommunications hardware, which can be built and launched much faster than existing spacecraft, too.

Astranis satellites are much more cost-efficient because they’re smaller and easier to make, which changes the economics of deployment for potential carrier and connectivity provider partners. Its approach has already attracted the partnership of Microcom subsidiary Pacific Dataport, an Anchorage company that was formed to expand satellite broadband access in Alaska. This will be the goal of the company’s first launch with SpaceX, to deliver a single satellite to geostationary orbit that will add more than 7.5 Gbps of capacity to the internet provider’s network in Alaska, tripling capacity and potentially reducing costs by “up to three times,” according to Astranis.

This isn’t the first-ever satellite that Astranis has sent up to space — it launched a demonstration satellite in 2018 to show that its tech could work as advertised. Astranis’ approach is distinct from others attempting to offer satellite-based connectivity, including SpaceX’s own Starlink project, because it focuses on building satellites that remain in a fixed orbital position relative to the area on the ground where they’re providing service, as opposed to using a large constellation of low Earth orbit satellites that offer coverage because one or more are bound to be over the coverage area at any given time as they orbit the Earth, handing off connections from one to the next.

UK report highlights changing gadget habits — and our need for an online fix

Published August 2, 2018

A look back at the past decade of consumer technology use in the UK has shone a light on changing gadget habits, underlining how Brits have gone from being smartphone dabblers back in 2008 when a top-of-the-range smartphone cost ~£500 to true addicts in today’s £1k+ premium smartphone era.

The report also highlights what seems to be, at times, a conflicted relationship between Brits and the Internet.

While nine in ten people in the UK have home access to the Internet, here in 2018, some web users report feeling being online is a time-sink or a constraint on their freedom.

But even more said they feel lost or bored without it.

Over the past decade the Internet looks to have consolidated its grip on the spacetime that boredom occupied for the less connected generations that came before.

The overview comes via regulator Ofcom’s 2018 Communications Market report. The full report commenting on key market developments in the country’s communications sector is a meaty, stat and chart-filled read.

The regulator has also produced a 30-slide interactive version this year.

Commenting on the report findings in a statement, Ian Macrae, Ofcom’s director of market intelligence, said: “Over the last decade, people’s lives have been transformed by the rise of the smartphone, together with better access to the Internet and new services. Whether it’s working flexibly, keeping up with current affairs or shopping online, we can do more on the move than ever before.

“But while people appreciate their smartphone as their constant companion, some are finding themselves feeling overloaded when online, or frustrated when they’re not.”

We’ve pulled out some highlights from the report below…

Less than a fifth (17%) of UK citizens owned a smartphone a decade ago; the figure now stands at 78% — and a full 95% of 16-24 year-olds. So, yeah, kids don’t get called digital natives for nothin’
People in the UK check their smartphones, on average, every 12 minutes of the waking day. (‘Digital wellbeing’ tools clearly have their work cut out to kick against this grain… )
Ofcom found that two in five adults (40%) first look at their phone within five minutes of waking up (rising to 65% of the under 35s). While around a third (37%) of adults check their phones five minutes before lights out (again rising to 60% of under-35s). Shame it didn’t also ask how well people are sleeping
Contrary to a decade ago, most UK citizens say they need and expect a constant Internet connection wherever they go. Two thirds of adults (64%) say it’s an essential part of their life. One in five adults (19%) say they spend more than 40 hours a week online, up from 5% just over ten years ago
Three quarters (74%) of people say being online keeps them close to friends and family. Two fifths (41%) say it enables them to work more flexibly

Smartphone screen addicts, much?

Seventy-two per cent of adults say their smartphone is their most important device for accessing the Internet; 71% say they never turn off their phone; and 78% say they could not live without it
Ofcom found the amount of time Brits spend making phone calls from mobiles has fallen for the first time — using a mobile for phone calls is only considered important by 75% of smartphone users vs 92% who consider web browsing on a smartphone to be important (and indeed the proportion of people accessing the Internet on their mobile has increased from 20% almost a decade ago to 72% in 2018)
The average amount of time spent online on a smartphone is 2 hours 28 minutes per day. This rises to 3 hours 14 minutes among 18-24s

Social and emotional friction, plus the generation gap…

On the irritation front, three quarters of people (76%) find it annoying when someone is listening to music, watching videos or playing games loudly on public transport; while an impressive 81% object to people using their phone during meal times
TV is another matter though. The majority (53%) of adults say they are usually on their phone while watching TV with others. There’s a generation gap related to social acceptance of this though: With a majority (62%) of people over the age of 55 thinking it’s unacceptable — dropping to just two in ten (21%) among those aged 18-34
Ofcom also found that significant numbers of people saying the online experience has negative effects. Fifteen per cent agree it makes them feel they are always at work, and more than half (54%) admit that connected devices interrupt face-to-face conversations with friends and family — which does offer a useful counterpoint to social media giant’s shiny marketing claims that their platforms ‘connect people’ (the truth is more they both connect & disconnect). While more than two in five (43%) also admit to spending too much time online
Around a third of people say they feel either cut off (34%) or lost (29%) without the Internet, and if they can’t get online, 17% say they find it stressful. Half of all UK adults (50%) say their life would be boring if they could not access the Internet
On the flip side, a smaller proportion of UK citizens view a lack of Internet access in a positive light. One in ten says they feel more productive offline (interestingly this rises to 15% for 18-34 year-olds); while 10% say they find it liberating; and 16% feel less distracted

The impact of (multifaceted and increasingly powerful and capable) smartphones can also be seen on some other types of gadgets. Though TV screens continue to compel Brits (possibly because they feel it’s okay to keep using their smartphones while sitting in front of a bigger screen… )

Ofcom says ownership of tablets (58% of UK households) and games consoles (44% of UK adults) has plateaued in the last three years
Desktop PC ownership has declined majorly over the past decade — from a large majority (69%) of households with access in 2008 to less than a third (28%) in 2018
As of 2017, smart TVs were in 42% of households — up from just 5% in 2012
Smart speakers weren’t around in 2008 but they’ve now carved out a space in 13% of UK households
One in five households (20%) report having some wearable tech (smart watches, fitness trackers). So smart speakers look to be fast catching up with fitness bands

BBC mightier than Amazon …

BBC website visitor numbers overtook those of Amazon in the UK in 2018. Ofcom found the BBC had the third-highest number of users after Google and Facebook
Ofcom also found that six in ten people have used next-day delivery for online purchases, but only three in ten have used same-day delivery in 2018. So most Brits are, seemingly, content to wait until tomorrow for ecommerce purchases — rather than demanding their stuff right now

What else are UK citizens getting up to online? More of a spread of stuff than ever, it would appear…

Less general browsing/surfing than last year, though it’s still the most popular reported use for Internet activity (69% saying they’ve done this in the past week vs 80% who reported the same in 2017)
Sending and receiving email is also still a big deal — but also on the slide (66% reporting doing this in the past week vs 76% in 2017)
Social media use is another popular but slightly less so use-case than last year (50% in 2017 down to 45% in 2018). (Though Twitter bucks the trend with a percentage point usage bump (13% -> 14%) though it’s far less popular overall)
Instant messaging frequency also dropped a bit (46% -> 41%)
As did TV/video viewing online (40% -> 36%), including for watching short video clips (31% to 28%)
Online shopping has also dropped a bit in frequency (48% -> 44%)
But accessing news has remained constant (36%)
Finding health information has seen marginal slight growth (22% -> 23%); ditto has finding/downloading information for work/college (32% -> 33%); using local council/government services (21% -> 23%); and playing games online/interactively (17% -> 18%)
Streaming audio services have got a bit more popular (podcasts, we must presume), with 15% reporting using them in the past week in 2017 up to 19% in 2018. Listening to the radio online is also up (13% -> 15%)
However uploading/adding content to the Internet has got a bit less popular, though (17% to 15%)

One more thing: Women in the UK are bigger Internet fans than men.

Perhaps contrary to some people’s expectations, women in the UK spend more time online on average than men across almost all age groups, with the sole exception being the over 55s (where the time difference is pretty marginal)…

Europe to cap intra-EU call fees as part of overhaul to telecoms rules

Published June 6, 2018

European Union institutions have reached a political agreement over an update to the bloc’s telecoms rules that’s rattled the cages of incumbent telcos.

Agreement was secured late yesterday after months of negotiations between the EU parliament and Council, with the former pushing for and securing a price cap on international calls within the bloc — of no more than 19 cents per minute. Texts will also be capped at a maximum of 6 cents each, Reuters reports.

While roaming charges for EU travelers were abolished across the bloc last summer, the parliament was concerned that charges for calls and texts between EU Member States is often disproportionately high — hence pushing for the cap, which was not in the original EC proposal.

The Commission proposed a new European Electronic Communications Code back in 2016, to modernize telecoms rules that had stood since 2009 — to take account of technology and market shifts, and align the rules with its wider Digital Single Market strategy.

The proposal broadly focused on pushing for consistency in spectrum policy and management; reducing regulatory fragmentation; ensuring a level playing field for market players and protections for consumers; and incentivizing investment in high-speed broadband networks.

And on the incentivization front, the new rules agreed yesterday update the powers of national regulators to act against dominant players — such as by being able to impose access to their network.

For a case study on why such interventions might be necessary you could look at the fiber investment and network-access foot-dragging of a former incumbent telco such as BT in the UK, for example, which has long favored eking out copper. While its network infrastructure division OpenReach was last year ordered to be legally separated — around a decade after it was functionally separated by the regulator. Yet complaints over BT’s lack of investment in broadband infrastructure and access for rivals to its networks have, nonetheless, persisted.

On the consumer front, the new EU telecoms Code also includes measures intended to make it easier to change service provider and keep the same phone number; measures around tariff transparency to make it easier for people to compare contractual offers, and the ability to terminate a contract without incurring additional costs; as well as additional protections around bundled services.

For operators there are deregulation measures for co-investments — intended to promote “risk sharing in the deployment of very high capacity networks”. And the Code sets wireless spectrum licenses at at least 20 years — also intended to give carriers the “predictability” they need to speed up 5G and fiber deployments.

Though this is shorter than operators had hoped, and the European Telecommunications Network Operators’ Association (ETNO) — whose membership is made up of incumbent telcos such as BT — has been quick to voice its displeasure, describing the code as a “missed opportunity“, and complaining that it adds extra complexity while also failing to incentivize investment.

“The Code will not ignite the much needed rush to invest in 5G and fibre networks and it will add complexity to an already burdensome system,” it writes. “The agreed law foresees only limited progress on spectrum policy, a complex and watered down compromise on incentivising fibre investment, uncertain triggers for imposing regulatory remedies and no fair playing field for digital services users and providers.”

Smaller, fiber-to-the-home broadband players are sounding much happier though…

The FTTH Council Europe congratulates the co-legislators for reaching today’s agreement on the #EECC and welcomes the regulatory push to #fibre investments & end-user benefits. More info: https://t.co/azx0VW8R6q pic.twitter.com/gCLk2pNKZr

— FTTH Council Europe (@FTTHCouncilEU) June 6, 2018

Congratulations for the results of the new telecom code. The wholesale only model will boost investments in FTTH in Europe. No more conflicts of interest of incumbents @delcastillop @GabrielMariya @ViolaRoberto

— Luigi Gambardella (@lgambardella) June 6, 2018

ETNO also criticizes what it describes as “the unfortunate decision to regulate intra-EU calls” — arguing this is an unjustified, populist measure, and sniping that it creates legal uncertainty by setting what it couches as “a highly dangerous precedent for all other European industries”.

That’s not the view of the European Consumer Organization, BEUC, which describes the measure as “a good next step towards a real single market for consumers”.

“Consumers should no longer have to worry about excessive costs when calling another EU country from home. The end of roaming charges was a big first step, but it did not deal with the high costs of phone calls to another EU country when at home,” its director general, Monique Goyens, told us in a statement.

“Market concentration is bad for prices and consumer choice. A small group of players should not be able to take control of the market. Thanks to what has been agreed, national regulators can take measures to intervene and maintain a healthy level of competition,” she added.

“Telecom services regularly rank among the top most complained-about markets. This new law upgrades some important consumer protection measures. Telecom clients will for instance be able to end their contract early and choose a better deal.”

And of course the Commission is putting a positive spin on the outcome, two years on from its proposal to modernize the rules.

In a statement welcoming the end of the negotiations, Andrus Ansip, the VP in charge of the Digital Single Market, said: “This agreement is essential to meet Europeans’ growing connectivity needs and boost Europe’s competitiveness. We are laying the groundwork for the deployment of 5G across Europe.”

In another supporting statement, Mariya Gabriel, commissioner for digital economy and society, described the new rules as “bold and balanced” — saying they would provide “faster access to radio spectrum, better services and more protection for consumers, as well as greater investment in very high speed networks”.

While political accord on the new telecoms code has indeed been reached between the EU institutions, members of the EU parliament and Council still need to vote to adopt it — after which the bloc’s Member States will have two years to transpose it into their national laws.

Startups and nonprofits set sights on closing the achievement gap through internet access

Published March 2, 2017

Internet Login Field With the dawning of the digital age, low-income students face a new, unprecedented challenge: access to high-speed internet. Startups and nonprofits across the country are stepping up to help low-income families connect to the internet. They deliver programs that aim to facilitate the personal, academic and professional growth of their local communities. Read More

Thiel Fellow Raises $25M For OYO Rooms, A Network of Branded Budget Hotels in India

Published April 6, 2015

oyo-rooms In the largest funding round to date for a Thiel Fellow project, Ritesh Agarwal has raised $25 million from Lightspeed, Sequoia and others to build a branded budget hotel network across India. Called OYO Rooms, the company partners with property owners across India and makes sure that their facilities meet a baseline of requirements from linen quality to breakfast to Internet access for… Read More