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Understanding Network Neutrality: Economic Impact, Supporters, and Challenges

Network neutrality remains a pivotal discourse, particularly concerning its economic implications and regulatory challenges. This analysis explores transitions in the telecommunication landscape over the past two decades, including the shift toward Internet-based technologies and the adoption of open standards. It examines voice traffic dynamics within the networks, traditional telecom operators' resistance to network neutrality, and new entrants' support for it. The conclusion underscores the transformative nature of telecommunications, predicting an eventual shift to free or subsidized services, crucially guided by new economic models.

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Understanding Network Neutrality: Economic Impact, Supporters, and Challenges

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Presentation Transcript

  1. Network Neutrality,operators and regulators GrigoriSaghyan VP ISOC.AM

  2. Introduction • Why is the Network Neutrality a subject of discussion? • Economical aspects of Network Neutrality

  3. Topics to be discussed • Changes in the telecomm sphere during last 20 years • How many voice traffic is there in the networks ? • Mutual settlements between networks • Who is against Network Neutrality and who supports it? • Conclusion

  4. Changes in the telecom sphere during last 20 years • Movement of operators to Internet technologies • Implementation of Open Standards • Asynchronous technologies • Switching on fiber optic lines – capacity increases 10exp6 times • Moore’s law – increasing of IC capacity 2 times during each 18 months • Slight regulation in 2.4 5.2, 5.8 GHz band • Demonopolization of telecom in Europe • New system of mutual settlements in telecom • Price for Mbyte goes down, up to zero.

  5. How many voice traffic is there in the networks ? • There was 46 Exabyte (10ехр18 bytes) monthly in the Internet in 2012 • International TDM voice traffic was 501 billion minutes or 8*(10ехр15) bytes with G.729 Codec • Traditional telecom companies turnover was 1.6 trillion dollars from voice • Data turnover was 0.4 trillion dollars • Voice traffic was less than 100 times in global traffic, but costs 3 000 times more.

  6. Mutual settlements in telephony • Network 1 Network 2

  7. Imbalance reasons

  8. Imbalance reasons 2

  9. Who is against Network Neutrality • Traditional TDM operators – 1.6 trilion dollars will dissolved • Regulators in development countries – do not know from where it will be possible to find money for network development • Countries, who do not want to accept dominant role of US on network and application level • ITU – there is no any model for mutual statements, only model for telephony

  10. Who supports Network Neutrality • New operators – Skype, Viber, Gogle, Facebook, others • Countries, where competition is supported • Countries, who do not have any ideological resistance against content on English

  11. Conclusion • Current situation is transitional, there is no any doubts, that traditional operators will move to the Internet based technologies and will have huge financial loses • High tariff for TDM minute is artificial • Networks will be developed based on cross-financing, and this cross financing will come not from telecom services, but from other sources • Telecommunications will be free of charge, it will be something like free of charge supplement for other services.

  12. Questions? • Grigori Saghyan • gregorsag@gmail.com

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