ESEE Conference

1. ESEE Conference Louisa Gosling, EuroISPA President – October 29 2002

2. Introduction to EuroISPA • Born on 6 August 1997 in Brussels, it is the pan European association of ISP associations in EU Member States. • Grown from 6 to 9 members since its inception. • Represents an estimated 800 ISPs across the European Union. • EuroISPA is the largest ISP Association in the world.

3. Aims • To protect and promote European interests within global Internet. • To deliver benefits of new technologies to individuals whilst meeting legitimate concerns of parents and weaker members of society. • To encourage development of free and open telecommunications market. • To promote the Interests of our Members and provide common services to them.

4. Members & Partners Full Members International Partners US ISPA - United States Internet Service Providers Association APIA - Asia & Pacific Internet Association IIA- Australian Internet Industry Association CAIP - Canadian Association of Internet Providers HKISPA - Hong Kong Internet Service Providers Association TELESA - Telecom Services Association, Japan ISPA SA - Internet Service Providers Association South Africa Associate Member ECOMLAC - Latin America and Caribbean Federation for Internet and Electronic Commerce LINX - London Internet Exchange

5. Achievements • EU E-Commerce Directive – EuroISPA was a major force in ensuring the removal of ISP liability for illegal content when a ‘mere conduit’ • Closely involved in discussions about liability for caching and hosting • EU Copyright Directive - EuroISPA successfully lobbied to defend caching. • Spam – pressure from EuroISPA persuaded the European Commission to include opt-in in the first draft of the new Telecoms Data Protection Directive • Cookies – EuroISPA was asked by other high-profile industry members to make a presentation on this subject to the European Parliament

6. Achievements (cont) • Blocking – EuroISPA’s role was fundamental in the European Parliament’s adoption of a statement denouncing the use of blocking. • Participation in ICRA/INCORE • Co-ordinated industry consultations with European Commission in advance of ITU meetings on peering • Lobbied successfully for the .EU TLD • Its members are active participants in WorldISPA • EuroISPA was asked by the European Commission to play a major role in the EU industry consultations on cybercrime. • Addressed inaugural meeting of “E-ping!”, an Internet group for MEPs, along with EU Commissioner Erkki Liikanen.

7. PRIORITY AREAS EuroISPA has recently agreed 6 ‘Priority Areas’: 1)Local access transmission network and competition concerns (including IP connectivity / peering) 2) Legal liability for harmful or illegal content 3) Treatment of personal data and interception 4)Research & development / technical development 5)Network security 6) Maximising business opportunities

8. ISP ACCESS ISSUESDrawing from EU Experience? • Timing of Telecommunications Liberalisation in relation to Internet Revolution • Relevence of Data / Packet switched networks c.f. Voice telephony PSTN • Implications of wireless technologies?

9. ACCESS ISSUES FOR ISPS“stage 1”: Telecom monopoly • ISP must be defined as a “CUSTOMER” of TS - to protect against accusations of breaching monopoly or need for licence • But also a WHOLESALE customer: TS must be forced to provide fair and appropriate wholesale access to its monopoly assets to allow ISPs to compete with TS to provideretailservice.

10. WHOLESALE ACCESS OFFER • SUFFICIENTLY UNBUNDLED • NON-DISCRIMINATION: TS must provide access resource at same quality and cost to all ISPs – including TS own down stream internet service. • COST: retail minus or cost plus • TRANSPARENCY: of information, consultations, costs etc. • CONSULTATION: open, fair, transparent consultation process involving TS, regulator and ISPs • REGULATORY APPROVAL: standard access offer of TS to ISPs must be APPROVED by regulator and consequently PUBLISHED.

11. STAGE II ACCESS ISSUESTelecoms Liberalisationthe position of ISPs c.f. OLOs • ISPs strategy vis a vis access service: • buy regulated “wholesale” from TS • buy wholesale (competitive offer) from OLO • Buy unbundled interconnect product or bandwidth (regulated cost oriented pricing) • PROBLEM of blurred boundary between ISP and OLO. ISP “rights” versus OLO “rights”; ISP obligations (unlicensed) versus OLO obligations (licence). • Adjusting old “telephony” paradigm to new internet market (could EU problems be “leapfrogged”?)

12. EU REGULATORY FRAMEWORK • 1990’s: - A90 Liberalisation directives open the door to competition by outlawing legal monopoly; • ONP (open network provision) directives to address “bottleneck” access problem = interconnection risghts for OLOs, special access rights for VAS • 1999:- REVIEW; “regulatory roll-back”?; the big debate between competition law and sector specific regulation

13. NEW EU Framework • 2002:- Adoption of New Regulatory Framework for Electronic Communications (implementation 2003) • Directives on: Framework principles, access and interconnection, universal service, authorisations… KEY ELEMENTS • “SMP” • “candidate markets” • “remedies” • General authorisations not discretionary licences

14. Italy ISP Interconnect Issues • “non-discrimination” rights for ISPs to access and interconnect. • Telecom Italia “RIO” to be adjusted to meet access requirements of ISPs • DSL wholesale: retail minus 30%; improved SLAs, penalties • Leased lines: “Partial Private Circuits” (in RIO), wholesale leased lines

15. ISP issues in new EU Framework • Will regulated access offers (RIOs) be developed to fit specific needs of IP / Internet services? • Candidate markets blur the distinction between data and voice? • Paradigm shift needed • VOIP? • WIFI?