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Operators caught out as net neutrality rules come into effect

Connectivity BusinessbyConnectivity Business
June 18, 2015
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Sprint has adapted its traffic policy in line with new net neutrality rules, while AT&T and Time Warner Cable (TWC) have come under fire for failing to comply with the regime.
Sprint has said it has stopped slowing internet data speeds for heavy users…

Sprint has adapted its traffic policy in line with new net neutrality rules, while AT&T and Time Warner Cable (TWC) have come under fire for failing to comply with the regime.

Sprint has said it has stopped slowing internet data speeds for heavy users when its network is busy following last week’s implementation of the FCC’s new net neutrality rules.

Like rivals, the country’s third-largest wireless player had been throttling data speeds for its heaviest users at peak times.

“At [congested] sites, we temporarily allocated resources away from the top 5% of heaviest users and to the 95% of users with normal usage, to try to allocate the effects of congestion more fairly,” the company said.

“Upon review, and to ensure that our practices are consistent with the FCC’s net neutrality rules, we determined that the network management technique was not needed to ensure a quality experience for the majority of customers.”

The 2015 Open Internet Order reclassifies ISPs as common carriers under Title II of the Telecommunications Act, banning the blocking and throttling of internet traffic, as well as paid prioritisation.

AT&T faces record fine in net neutrality case

On Wednesday, the FCC said it would fine incumbent telco AT&T US$100m for allegedly misleading customers on unlimited data plans by “severely” slowing internet speeds when the network is clogged without properly notifying them.

While AT&T no longer offers new customer these unlimited plans, introduced in 2007, the FCC said it had sold millions of existing unlimited customers new-term contracts.

The FCC alleges that this practice violates the transparency rule in the 2010 Open Internet Order.

An AT&T spokesperson said the company will “vigorously dispute” the allegations.

“The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it. We have been full and transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.”

TWC likely to face first complaint under new rules

Meanwhile, Time Warner Cable (TWC) reportedly looks set to become the first to face a complaint under the new net neutrality rules after a webcast provider accused it of charging it unreasonably high fees.

San Diego-based Cable Network Services (CNS) said earlier this week that it would file paperwork within days accusing TWC of charging it overly high rates to deliver its streamed videos to the cableco’s customers, the Washington Post reported.

CNS claims that TWC’s actions are reducing the quality of its videos, which include live streams of events such as a popular Fourth of July fireworks display and reportedly have a large military following.

CNS CEO Barry Bahrami was cited saying that TWC has committed a “blatant violation” of the new net neutrality rules.

While the new rules explicitly prohibit companies from charging fees to prioritise traffic, they are less clear about private agreements designed to ensure web traffic flows smoothly.

TWC told the paper that it will enter into ‘settlement-free peering’ deals, which do not involve money changing hands, with content partners who exchange large amounts of data at multiple locations with TWC.

The cableco contended that its interconnection practices are just and reasonable, as the FCC requires, and consistent with established practices and standards.

TWC said it is confident the FCC would reject any complaint based on the premise that every edge provider is entitled to enter into a settlement-free peering agreement.

CNS and TWC were not available for comment before press deadline.

 

Tags: AT&TSprint CorporationTime Warner Cable
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