TMCnews Featured Article
June 11, 2012
European Mobile VoIP Limited by Internet and Cell Providers to Shut out Competition
By Susan J. Campbell, TMCnet Contributing Editor
The ability to use VoIP services such as Skype (News 
- Alert) over cell phones has opened up a whole new way to communicate with others. That is, if your mobile provider allows you to use it. Those trying to access services overseas should learn to expect a certain amount of red tape when trying to use what should be easily accessible.
According to this ARS Technica report, approximately 20 percent of worldwide broadband users accessing VoIP services on their cell phones will have to sort through technical difficulties or contractual obligations of some sort, and 33 percent of cell phone users in Europe face limits on peer-to-peer (P2P) usage.
A survey released by the Body of European Regulators for Electronic Communications (BEREC), shows that some providers occasionally constrict Internet speeds as a means of regulating traffic due to limitations in P2P usage. However, there is not typically a limit on mobile VoIP services.
A legitimate fear from some companies is how wireline operators control traffic on their networks in order to provide specialized services such as AT&T’s (News - Alert) U-verse TV offerings. It is estimated that 35 percent of such companies may be compromising Internet service for others offered over the same network.
The goal of the survey was to find out if further means were necessary to maintain a more competitive Internet environment. Specifically, should mandatory regulations be imposed to ensure this occurs? To find out the answer to this question, BEREC quizzed hundreds of European cell phone users and well as fixed-line Internet operators.
Results showed that even though the Internet is a pretty free entity, providers of cellular service in Europe are not shy when it comes to shutting out competitive offerings such as mobile VoIP and SMS. A prime example of this is was when popular KPN (News - Alert) tried to introduce mobile VoIP and SMS to the Dutch as a means of increasing revenue. The county’s parliament in turn passed a neutrality law banning the services. To make up for the lost revenue, KNP increased its rates.
The survey conducted by BEREC shows that there may be value in monitoring European Internet providers – such as preserving the use of mobile VoIP and other service offerings. BEREC, however, hopes that intervention is not necessary and that providers will regulate themselves as new competitors force their way into the market.
The European Union supports the sentiment, advising customers that the most powerful way to initiate change is to let their provider know that they won’t stand for such practices by dumping them for a company that will meet their needs.
Such silent means of sending a message might not work in all of Europe. Countries such as France still have mobile VoIP restrictions in place for all providers, and in some parts of Europe only one provider may exist. This just goes to show that, in many areas, mobile providers and Internet operators, not consumers, still maintain the upper hand.
Edited by Stefania Viscusi
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