Tag: Internet Service Provider

  • Obama wants FCC to remove roadblocks on internet, private sector disagrees

    Obama wants FCC to remove roadblocks on internet, private sector disagrees

    NEW DELHI: President Barack Obama has urged the American telecom regulator Federal Communications Commission (FCC) to keep the internet open and free.

     
    But this plea will give a blow to top US wireless carriers who are looking to control price and quality of internet services.

     

    The FCC is already in the process of considering new rules for how to safeguard competition and user choice. “Ensuring a free and open internet is the only way we can preserve the internet’s power to connect our world,” Obama said.

     
    “We cannot allow internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas. I am asking the FCC to answer the call of 4 million public comments, and implement the strongest possible rules to protect net neutrality,” said Obama.

     
    However, the Telecommunications Industry Association (TIA), an association representing the manufacturers and suppliers of high-tech communications networks, said: “We are concerned over President Obama’s endorsement of reclassifying the internet as a Title II utility-like telecom service. Such a move would set the industry back decades, and threaten the private sector investment that is critically needed to ensure that the network can meet surging demand.”

     
    “We saw a significant negative impact on investment the last time restrictive Title II regulation was in place, and no one will benefit from returning to that failed policy.  As manufacturers and suppliers who build the internet backbone and supply the devices and services that ride over it, our companies strongly urge regulators to refrain from reclassification that will guarantee harm to consumers, the economy, and the very technologies we’re trying to protect,” said TIA CEO Scott Belcher.

     
    Four years ago, the FCC tried to implement rules that would protect net neutrality with little to no impact on the telecommunications companies that make important investments in the economy.

     
    Earlier, the court reviewing the rules agreed with the FCC that net neutrality was essential for preserving an environment that encourages new investment in the network. The court ultimately struck down the rules because it believed the FCC had taken the wrong legal approach.

     
    Obama said there should be no blocking and throttling by ISPs. There should be more increased transparency. Some sites should not get more treatment.

     
    Some companies should not enjoy paid prioritisation. Wireless carriers should not keep some services in “slow lane” because it does not pay a fee. “That kind of gatekeeping would undermine the level playing field essential to the internet’s growth. I am asking for an explicit ban on paid prioritisation and any other restriction that has a similar effect,” Obama said. FCC should reclassify consumer broadband service under Title II of the Telecommunications Act — while at the same time forbearing from rate regulation and other provisions less relevant to broadband services.

     
    Referring to the White House proposal, AT&T senior executive VP, external & legislative affairs Jim Cicconi said, “If the FCC puts such rules in place, we would expect to participate in a legal challenge to such action.”

     
    Time Warner Cable, a top cable company, remains committed to an open internet, but disagrees with President Obama’s statement that an open internet can only be achieved by reclassifying broadband as a public utility.

     
    “Regulating broadband service under Title II, as the President proposes, will create uncertainty, lead to years of litigation and threaten the continued growth and development of the internet. The FCC has sufficient tools without reclassifying broadband to protect the openness of the internet, while at the same time encouraging continued investment and innovation in the internet ecosystem,” said Time Warner Cable chairman and CEO Rob Marcus.

  • Uniform licence fee of 8% of Adjusted Gross Revenue to be applicable for all ISPs

    Uniform licence fee of 8% of Adjusted Gross Revenue to be applicable for all ISPs

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has said a uniform licence fee of 8 per cent of the Adjusted Gross Revenue will be applicable for holders of all Internet Service Provider (ISP) license.

     

     

    The revenue for the purpose of licence fee for ISP licences shall include all types of revenue from internet services, allowing only those deductions available for pass through charges and taxes/levies as in the case of access services, without any set-off for expenses. Revenues from internet services shall also be included in the definition of AGR.

     

     

    The recommendations came by way of “Definition of Adjusted Gross Revenue (AGR) in Licence Agreements for provision of Internet Services and minimum presumptive AGR”.

     

     

    The Regulator said minimum presumptive AGR for the purpose of licence fee shall be applicable on the existing ISPs holding the BWA spectrum as applicable to the licensees who obtained access spectrum through competitive bidding.

     

     

    For the existing ISPs who are holding BWA spectrum from the 2010 auction, the value of presumptive AGR shall be equal to 5 per cent of sum of the total bid amount by the licensee for the respective service area, as applicable to the licensees who obtained spectrum in the auctions conducted in November 2012 and March 2013.

     

     

    The Department of Telecommunication had in a letter on 22 October 2012 sought TRAI’s recommendations on (i) the definition of AGR in the ISP License Agreements for provision of Internet Services granted the 1998, 2002 and 2007 guidelines, (ii) the applicability of minimum presumptive AGR and value, if applicable, for BWA Spectrum holders under internet service and (iii) the amendment in the “Format of Statement of Revenue and Licence Fee” to be reported by various categories of Internet Service Licensees.

     

     

    TRAI had thereafter issued a consultation paper on 28 December 2012 seeking the views of stakeholders on the above issues. The written comments received were placed on TRAI’s website www.trai.gov.in. An open house discussion was conducted by TRAI in New Delhi on 21 February 2013.

     

     

    The recommendations have been issued after considering the comments received from the stakeholders and further analyzing the various related aspects. Full details are available on the TRAI website.