On 10 September, in the matter of Apple vs. Epic Games, the US District Court of California ordered Apple to stop prohibiting American app developers from steering their users to payment systems other than Apple’s. However, the decision, which applies nationwide, does not authorise developers to implement alternative payment systems in their applications. As the California judge could not rule that Apple was a “monopolist”, the company’s agreements with developers remain legal under existing antitrust laws.
This victory for Apple against Epic Games galvanised support for bills that seek to open up app stores and Big Tech companies’ payment systems, such as the Open App Markets Act, introduced in the Senate on 11 August. It also highlighted the need for federal legislation on app stores, with the judge’s ruling seen as added proof of the courts’ narrow interpretation of antitrust laws.
While the California judge extended Apple’s forced concessions to every application, restrictions on the app store model are being planned in other countries as well. In South Korea, the Parliament adopted a law in late August that forbids Apple and Google from requiring developers to use their payment systems, which carry a 30% commission.
In France, a complaint filed by the State (DGCCRF) and the France Digitale association, regarding Apple’s abusive practices towards French start-ups, came before the Commercial Court of Paris on 17 September. During the hearing, Apple objected to France Digitale’s involvement in the procedure, and thereby delayed the case by several months. The outcome of this complaint is highly anticipated: three months before France takes up the presidency of the European Union, it could carry tremendous weight, and so give greater heft to the European Commission’s Digital Markets Act.
“Children today spend an increasing part of their lives online: since 2011, the number of 12- to 15-year-olds who own smartphones has increased by more than 50%. The digital environment offers tremendous benefits to children, opening new channels for education, creativity and social interaction. But it also presents serious risks, including cyberbullying, sextortion and risks to privacy. Which is why, on 31 May, the OECD Council adopted a new recommendation on Protecting Children in the Digital Environment.
The text lays out the principles for creating a safe and beneficial digital environment for children, recommendations for overarching action plans, and underscores the importance of international cooperation. The recommendation also stresses stakeholders’ responsibilities – the key role played by public authorities, but also the crucial role of digital service providers – setting out separate guidelines for them. Digital service providers are, for instance, urged to take precautions to prevent children from accessing content and services that are not age appropriate. It is recommended that they work to ensure the adopted measures are effective, and to re-examine their practices on a regular basis to take developments in technologies and usage patterns into account.
The OECD’s approach aligns with initiatives to which Arcep is contributing, including joint monitoring with the French Broadcasting Authority (CSA) of commitments to prevent minors from being exposed to online pornography. An initiative which led to the launch of the “Protecting my child against pornography” platform in February 2021, to raise parents’ awareness of the dangers, and to help them to marshal parental control systems.
Mid-April 2021, South Korea’s three mobile operators, SK Telecom, KT and LG Uplus, announced they would be sharing their networks in a number of locations (covering 15% of the population) to facilitate 5G deployment. Two years after the first commercial launches, 5G continues to be deployed nationwide, and could extended into the country’s most rural areas in the near future.
At the end of February 2021, 5G already represented 20% of all mobile subscriptions, or 13 million in total. This figure has been climbing steadily since launch: KT, for instance, more than doubled its 5G subscriber numbers between the end of December 2019 (1.4 million) and the end of December 2020 (3.6 million). One dark spot: some users, disappointed by the quality of the service compared to the price being charged for it, are threatening operators with a class action lawsuit. But it has yet to be filed.
As it stands, the networks are still being deployed and optimised to enable the new use cases promised by 5G to emerge en masse, and particularly virtual and augmented reality. Also worth noting is that, even though they have already been awarded to Korean operators, millimetre wave bands are not yet being used.
On 23 February 2021, a federal judge in California rejected a suit brought by internet service providers such as Verizon and AT&T, seeking to block the California Internet Consumer Protection and Net Neutrality Act, or SB-822, and so enabling this law to come into effect. After the Biden Administration’s decision to drop legal action instigated in 2018 under the Trump presidency to block the California law, this suit filed by industry players was the final legal hurdle to its ratification. But the saga may not be over, as the ruling can still be appealed.
These decisions were hailed by Jessica Rosenworcel, Acting Chair of the Federal Communications Commission (FCC), who opposed the eradication of net neutrality policies back in 2018. But the path to the adoption of a single, federal net neutrality framework in the US is not yet clear cut, as the new Commission Chair has yet to be appointed.
Several internet companies, including Mozilla, Wikimedia and Vimeo, recently sent a letter to the American regulator, urging it to reinstate net neutrality. Despite these expectations, and regardless of its own point of view, the Biden administration will need to factor in the political climate, and particularly its very slim Senate majority, knowing that most Republicans remain opposed to any net neutrality regulation.
What will tomorrow’s networks look like? What does the future hold for regulators? What role with “agile regulation” play? All questions that are expected to shape the OECD spring meetings starting in March. These events will kick off the 2021 – 2022 workplans for the main committees and working groups that Arcep is participating in, notably the Committee on Digital Economy Policy (CDEP) and the Network of Economic Regulators (NER).
Arcep will follow the CDEP workstream through its participation in the Working Party on Communication Infrastructures and Services Policy (CISP) where it represents the French delegation alongside the Ministry of Europe and Foreign Affairs (MEAE), on matters that fall under its purview. CISP has worked in particular on the new OECD Recommendation on broadband connectivity, a text to which Arcep was an active contributor, supporting issues such as quality of service and environmental aspects.
The NER is another OECD body that Arcep follows particularly closely. Chaired by Anne Yvrande-Billon, Arcep’s Director of Economics, Markets and Digital Affairs, the network works on examining efficient and pro-innovation rules, as well as data-driven regulation. Arcep departments keep a close watch on this work, thanks in part to the “OECD 2020 Digital Economy Outlook,” published in late November. This document mentions data-driven regulation as a tool to complement a regulator’s traditional instruments. Both a tool and applications (J’alerte l’Arcep, Mon réseau mobile, Ma connexion internet) that Arcep has been developing continually since 2016, and supported by its new Chair, Laure de La Raudière, during her recent hearings.
Fratel, which is the network of French-speaking telecommunications regulators, held its 18th annual meeting on 3 December, centred around the topic of “Investment, technological innovation, competition: what are the new price regulation issues and challenges?”
The meeting provided an opportunity to elect the network’s new Coordination Committee. Abdoul Ly, Director-General of ARTP in Senegal, will become the Fratel Chair, taking over from Charles Millogo, Chairman of ARCEP in Burkina Faso, and Luc Tapella, Director of Luxemburg regulator, ILR, will be the Vice-Chair.
The new committee salutes the work that Sébastien Soriano has done over the past three years. Under his stewardship, the network worked on mobile coverage and quality of service, producing a guide for publishing data under good conditions, and launched a website dedicated to measuring mobile network performance, which is a key issue for regulation. Fratel also continued to reposition its stance on digital issues and updated its graphic identity and its website.
Sébastien Soriano salutes the vitality of the network which, in 2021, will work on universal service and access. It will also examine the implementation of an online tool for representing mobile coverage and quality of service in the network’s member countries.
“Internet for human resilience and solidarity”: this was the overarching theme of the 15th Internet Governance Forum (IGF) hosted by the United Nations and held entirely online, from 2 to 17 November. More than 6,000 registered participants from over 170 countries took part in close to 200 sessions on a variety of topics: data, the environment, trust and inclusion.
For the first time, environmental issues were front and centre at IGF. A workshop hosted by Anais Aubert – Deputy Head of Arcep’s Economic Analysis Unit, and Co-chair of BEREC’s Expert Working Group on Sustainable development – provided an opportunity to analyse best practices for improving environmental efficiency on each link of the internet value chain. On 15 December, Arcep will be publishing a report that it is currently co-authoring with stakeholders, as part of its “Achieving sustainable development” platform.
“The COVID-19 pandemic has shone a spotlight on the importance of digital technologies and transformation, and on the urgent need to enhance the role of the IGF as a platform for dialogue on proposed solutions,” declared UN Secretary-General, António Guterres, in his closing remarks. The next IGF annual meeting in 2021 will be hosted by the government of Poland, who had initially been scheduled to host this year’s event.
In February 2020, at the request of the federal government, the Australian Competition and Consumer Commission (ACCC) launched an in-depth, five-year inquiry into digital platforms. The process is set to include regular interim reports, every six months, up to the publication of the final report to the government, which is scheduled for 31 March 2025.
Search engines, social media and online messaging services will be the subjects of the first report. The second will concern the mobile applications market. It will draw on the results of surveys begun in September, aimed at both consumers and app developers. Although several app stores do exist, according to the ACCC mobile app sales remain heavily concentrated around the Apple App Store for iOS, and the Google Play Store, for Android devices.
Competitiveness, efficiency, transparency and how efficient the markets are in supplying application marketplaces will all be closely scrutinised. How data are used and shared, including those accumulated by Google and Apple thanks to their ownership of the main app stores, will also be examined. Expected to be published on 31 March 2021, this report could lead directly to legislative recommendations.
Maps and more maps! A great many French-speaking regulators from around the world plan on supplying users with maps to they can assess local mobile coverage and quality of service. The goal: to enable those users to make informed choices and so foster competition by comparing networks. And regulators’ work is about to get easier! After two years of joint endeavour, the members of the Fratel network of French-speaking telecommunications regulators launched a new website in late August, providing a veritable how-to for measuring these networks’ performance.
Designed as a tool for building awareness and expertise, and for sharing experience, the site is dedicated to answering the most frequently asked questions about data collection, usage and publication. Divided into three sections – “What to measure”, “For what purposes?”, “How to present the data?” – it provides definitions and explanations of coverage and quality of service, examines the different data sources, and details the objectives and choices available to regulators for their publications, notably when taking a map-based approach. Topped off with samples of publications from fellow Fratel member regulators.
Also available in English, the site was created with the support of the French Development Agency (AFD). It is aimed at regulatory authorities, but also at government agencies, operators, lenders, consumer associations and experts who will find invaluable information to help tackle connectivity issues.
If the quality of mobile telephone services in Burkina Faso has improved, especially after the launch of 4G and optical fibre rollouts, there are still a great many user complaints, which confirm that QoS remains a major challenge for the sector.
On 15 May, the Electronic Communications and Postal Regulatory Authority (ARCEP) of Burkina Faso responded to these concerns by launching the Résomètre, an iOS and Android-compatible application that enables users to test the quality of their mobile internet and telephone services, as well as voice quality, either automatically or manually.
The results of these tests, which are transmitted via the application, will feed a common database for all of its users. All of the collected measurements will help supply an overall and more detailed picture of the coverage and quality of the services provided by mobile operators in Burkina Faso.
For the Chairman of ARCEP, Charles Millogo, Résomètre represents the best way for Burkinabés to hold operators to account, giving them no alternative but to take action to resolve the weaknesses detected on their networks.
Submarine cables are the channels that carry internet traffic from continent to continent. They form an unbroken chain which, in early 2020, measured 1.2 million kilometres installed along the ocean floors, over close to 406 cables ranging from 131 km to more than 20,000 km long. It is thanks to them that countries enjoy greater resilience and increased traffic capacity. Africa had long relied essentially on submarine cable links to Europe for its international connectivity.
It was in this context that, on 14 May 2020, a consortium of eight private international and African operators (China Mobile International, Facebook, MTN Global Connect, Orange, stc (Saudi Telecom Company), Telecom Egypt, Vodafone and WIOCC) announced the construction of the 2Africa submarine cable: measuring 37,000 kilometres and connecting 23 countries in Africa, the Middle East and Europe. With a capacity of up to 180 Tbit/s, which surpasses the combined capacity of all the submarine cables currently serving Africa, it will become operational in 2023 – 2024, and fulfil its purpose of improving connectivity in Africa and the Middle East considerably by that time.
OpenCovid19 is the name of initiative launched on the internet in early March by proponents of Open Science. Their goal: to go beyond local responses to the crisis, and provide a global and coordinated response to the acceleration of the pandemic.
Initiated by the Just One Giant Lab (JOGL) online platform, the project aims to develop and share open source Covid-19 detection and diagnosis protocols, to guarantee access for impoverished countries and small laboratories. Other projects have also emerged from the ongoing discussions, such as tracking the spread of the virus using open source software, and searching for the most inexpensive ways to fabricate masks and ventilators.
A collective science project that is open to everyone, OpenCovid19 is a response to the need of speed in battling the coronavirus pandemic, in addition to building a repository of technological knowledge that can serve as the foundation for battling any future epidemics. A double response to the Covid-19 crisis, which has become not only a health crisis, but also an economic and social one.
Last November, Senegal’s regulatory authority, ARTP, required Free Mobile Senegal to stop zero rating WhatsApp in all of its plans. The regulator concluded that not counting the traffic generated by this app (i.e. zero rating) was contrary to the stipulations of the Senegalese net neutrality code. Its Article 25 prohibits operators from favouring any one service, application or type of traffic over others with the same properties.
In Europe, BEREC guidelines on the European Open Internet regulation of November 2015 specify that these zero-rating offers are not prohibited by the regulation per se, but may have an impact on users’ rights. As in Senegal, they must be assessed by regulatory authorities, and comply with regulations.
In India, regulator TRAI already came out in favour of net neutrality back in 2016, by forbidding Face book from offering its Free Basics service for free, in other words applying different pricing for internet access, hence zero-rating offers.
In the United States, on the other hand, the FCC put an end to operators’ guaranteed equal treatment of data streams in 2017. Which means that operators there are now free to favour one service at the expense of another, and to offer zero-rating without prior approval.
Already launched commercially in several countries, most of 5G’s promises are yet to be fulfilled. In addition to increased speeds, a large part of its allure lies in the prospects it opens up for the economy’s “vertical” players, for new uses in factories, transportation, entertainment, construction and medicine.
While the first testaments of commercial success are coming to us from 5G pioneer, South Korea, other vertical players’ appropriation of the technology is still in its infancy. In Japan, public authorities and the sector’s stakeholders are working together within the “5GMF-Fifth Generation Mobile Communications Promotion Forum” to promote use cases. The commercial launch of 5G services, to coincide with the Summer Olympic Games in Tokyo in 2020 could deliver concrete solutions in areas such as augmented reality, autonomous cars, smart stadium streaming experiences…
Arcep and the French Government have begun a similar process, with the launch of more than ten trial platforms in October, in areas ranging from logistics, to smart cities, mobility and covering sporting events. These trials that are currently underway in many parts of the world and in France will help industry players to define the models that will weave their way into the country’s economic fabric. In addition to connectivity issues, these models, and the pace at which standards are established and compatible equipment made available, will allow 5G to fully keep its promises.
How to measure quality of service and coverage? What data should be collected? How to process them, ensure their accuracy and represent them? Drawing from a panorama of the countries who are part of the network of French-speaking regulators, Fratel, the best practices published during the network’s latest annual meeting in Bucharest proposes several elements of response: agree on a common vocabulary, from the scope of the field – which represents the power of the received radio signal – to a more faithful representation of the user experience.
In addition to monitoring operators’ obligations, these measurements can also serve to inform users and stimulate competition and investments, to obtain a digital snapshot of a country and to steer and/or anticipate rollouts, and in assessing public policies.
The document also addresses a more practical aspect, and draws regulators’ attention to the principles and editorial choices that make for a high quality publication. The form of this publication will vary depending on the country: rankings, criteria-based scores, graphs, audit reports, maps, or raw data, notably open data, adapted to the different channels.
At a time when tech companies are competing to provide users with ever more services, submarine cables have become a vital link in the internet chain. Today, virtually all (99%) intercontinental internet traffic goes through them.
Which is why Google, currently gearing up to launch its game streaming platform, is installing the very high capacity Dunant cable between the Atlantic coasts of the United States and France. Although a great many undersea cables are already available on the transatlantic route between the US and Europe, Google’s desire to build and operate its own cable – running counter to the longstanding use of consortia – is a clear indication of what an integral part of Big Tech companies’ strategies submarine cables have become, in the same way as the datacentres that link them. According to American market research firm, TeleGeography, content providers account for more than 50% of investments in transatlantic routes in 2019, and around a third of spending on transpacific routes.
On 26 July 2019, the Australian Competition and Consumer Commission (ACCC) published a report on its investigation into online platforms. In it, the ACCC calls for increased regulatory action, with the creation of a branch dedicated to online platforms that is given increase investigative powers. Its recommendations also include taking better account of predatory takeovers and the market power obtained through access to data, when supervising mergers and acquisitions. It recommends that, despite the operational challenges involved, greater thought be given to solutions’ interoperability and data portability, which could help stimulate competition and innovation.
Platforms are also garnering more and more attention in the United States at both the federal and state level. The Department of Justice (DOJ), the Federal Trade Commission (FTC) and the US Congress are also conducting investigations into American Big Tech companies. At the same time, prosecutors in some 20 states have expressed a strong interest in launching a wide-reaching antitrust investigation into online platforms.
Back here in Europe, the Authority for Consumers and Markets (ACM) in the Netherlands launched an inquiry in April 2019 into Apple’s App Store practices. In tune with Arcep’s report on device openness, in a report published in August, the Dutch regulator also supports the introduction of an “ex ante intervention mechanism”. Lastly, the initiative undertaken by several French bodies, including Arcep, in the first half of 2019, made it possible to observe up close the methods that Facebook uses to counter hate speech on its platform.
Report on Facebook
Report on device openness
Following in the footsteps of Arcep and telecoms regulators in the UK and the Netherlands, Austria’s telecoms regulator, RTR, has delivered its own investigation of the device issue in a dedicated report.
Based on surveys of users and app developers, this report analyses OS, application and app store models, and shows how they can restrict innovation, competition and freedom of enterprise.
Among other things, the report raises the question of the lack of interoperability between several apps, highlights the phenomenon of users’ dependence on their OS, and calls out players’ lack of transparency.
It suggests increased supervision of the issue, along with specific remedies as it is sceptical about the “platform-to-business” regulation’s ability to resolve all of the problems it exposes.
On 19 March dernier, German regulator, BnetzA, began the procedure for allocating mobile frequencies for 5G networks, via auction. This includes renewing 2x60 MHz licences for the 2.1 GHz band and allocating new licences for 300 MHz in the 3.4 – 3.8 GHz band (the pioneer band identified for the first 5G rollouts in Europe).
Four candidates are taking part: the country’s three existing mobile operators (Deutsche Telekom, Telefonica, Vodafone) and one MVNO (1und1 Drillisch, a subsidiary of United Internet). After close to 30 days of bidding, the procedure is still not finished and all of the candidates, including new entrant 1und1 Drillisch, are still in a position to obtain licences in both bands. The bids thus far stand at more than 2.3 billion euros for the 2.1 GHz band, and more than 3.5 billion euros for the 3.4 – 3.8 GHz band. The valuation of the latter is amongst the highest seen in recent auctions (close to 15 eurocents – €/MHz/capita), but half the price paid in Italy last year. It is especially in the 3.4 – 3.8 GHz band that auctions are still ongoing, chiefly to obtain a differential on the total amount of spectrum, thanks to a marginal gain of a single block of 10 MHz.
In France, the Government has just shared with Arcep the direction it wants to take on 5G frequency allocations. The auction for the 3.4 – 3.8 GHz band is scheduled for late this year.
The 2019 Mobile World Congress that ran from 25 to 28 February in Barcelona can be summed up in three numbers:
- 107,000 visitors;
- 2,400 exhibitors;
- and the number 5 as in 5G, the star of the show!
An Arcep delegation, including Sébastien Soriano and Emmanuel Gabla – Chair and Executive Board member, respectively – travelled to Barcelona for the telecoms industry’s great annual gathering.
♦ What takeaways on 5G?
5G was on every stand. Equipment suppliers and telcos alike: everyone is getting on board to ensure that this disruptive technology becomes a reality. The most highly promoted use for now is tied to online gaming. The teams also had a chance to meet with a number of players that are currently testing industrial 5G connectivity solutions.
♦ Measuring network quality: a major issue for Arcep
Also on the agenda for the trip was a series of meetings with several players involved in testing and measuring network quality. A perfect opportunity to share Arcep’s data-driven regulation strategy, and to talk about the Code of Conduct published a few months back. This Code is aimed chiefly at those involved in online testing, to set minimum requirements in terms of the measurements’ relevance, presentation and transparency.
An Arcep team led by Serge Abiteboul and Cécile Dubarry, Executive Board member and the Authority’s Director-General, respectively, travelled to South Korea and Japan in late January.
There were two reasons for this trip: to learn more about national 5G rollout strategies, and to take stock of current and past 5G trials in that part of the world.
- In South Korea
South Korea’s Ministry of Science and ICT (MSIT) and the “5G Forum” public-private partnership defined a 5G mobile strategy back in January 2014. It was designed as a seven-year strategy with a joint (government – private sector) investment programme of 1.5 billion dollars for research and development, standardisation and 5G infrastructure.
In mid-June 2018, the country held an auction for 5G frequencies in the 3.5 GHz and 28 bands, with allocations going to three operators: SK Telecom, LG Uplus and KT. All three will be launching their 5G services on “Korea 5G Day” which is scheduled for March of this year.
In South Korea, the Arcep delegation met with teams from the country’s telecoms regulator and from the MSIT. The team also travelled to Suwon to visit the Samsung digital city, a campus that serves as a full-scale trial space for the South Korean manufacturer to test new 5G applications and their impact on people’s daily lives.
- In Japan
The Japanese government has made 5G rollouts a top priority, as part of a bid to lead the world in innovation. The 2020 Olympic Games in Tokyo will act as a technological showcase. In its capacity of Ministry of Communications and national regulator, MIC is the main shepherd of 5G deployment in Japan. And the one that will be awarding operators licences in late March 2019.
The Arcep delegation met with the Ministry’s teams. It also took part in the 5G Symposium that provided an opportunity to meet the country’s four mobile operators (NTT DoCoMo, KDDI, Softbank and Rakuten) and with manufacturers involved in 5G pilot projects.
On 19 and 20 November, the Body of European Regulators for Electronic Communications (BEREC) and its Latin American counterpart, REGULATEL, hosted a joint conference in Lima on the new regulatory challenges that regulators are facing in the digital age.
At the heart of the debates: data-driven regulation! Regulators had an opportunity to share their experiences of working to provide users with greater transparency and more information.
The two-day event concluded with a joint declaration by BEREC and REGULATEL that underscores their dedication to continuing to share best practices in enforcing net neutrality, and the need to introduce new regulatory tools, such as data-driven regulation, to keep pace with the digital revolution.
BEREC engaged in similar cooperative actions over the course of the year, particularly in the area of net neutrality, with regulators from India and Canada.
The joint declaration
Several countries in Europe have begun allocating a range of frequencies that were identified for 5G rollouts. Italy is currently the only European country to have allocated all of the “pioneer” 5G bands, from low-band frequencies (700 MHz) by way of mid-band spectrum (3.5 GHz) up to millimetre-wave frequencies (26 GHz) that enable the most revolutionary speeds being promised by 5G, albeit with a much more limited range than the frequencies being used by mobile networks today.
Another example: in Germany, 100 MHz in the 3.5 GHz band will be reserved for uses linked to vertical markets and regional players.
What 5G frequencies have been allocated thus far in Europe? Check out the map (in French)!
In the United States
Millimetre-wave frequencies in the 24 GHz and 28 GHz band are being allocated at auction in November. The 600 MHz band is already being allocated to a mobile operator (TMO-US) to deploy 5G in the low-range bands. TMO is cooperating with broadcasters to enable them to release the band as efficiently as possible.
South Korea allocated 3.5 GHz and 28 GHz band frequencies to the country’s three mobile operators in June 2018.
In China, the 3.4 – 3.6 GHz and 4.8 – 5.0 GHz, and the 26 GHz and 40 GHz bands are expected to be allocated in the second half of 2019.
Japan has not yet released its timetable for allocations, even though 5G is due to be up and running for the Summer Olympics in Tokyo in 2020.
Italy has just awarded licences in the three frequency bands targeted for 5G: 700 MHz, 3.7 GHz and 26 GHz. A total 1,260 MHz of spectrum were allocated to Italy’s mobile operators for a period of 19 years, during these auctions that brought in more than 6.5 billion euros. Compared to the country’s population, the band was valued at two and half times what it was in the UK and eight times what it was in Spain.
As for France, Arcep will be launching a public consultation in late October, calling on economic stakeholders and local authorities to share their views on the methods and conditions to be applied to the allocation of 5G frequencies.
Arcep’s 5G roadmap
Fortnite is one of today’s most popular mobile games. According to Sensor Tower Store Intelligence, it was generating up to 2 million dollars a day after its iPhone version launched this past spring. Apple will earn close to a third of that amount ($600,000) via the iStore, according to the company’s revenue sharing rules. Which are similar to the rules that govern Google’s Play Store...
Taking advantage of the fact that Google allows users to download apps from locations other than its app store, publisher EPIC Games elected to distribute its game directly from its site. Which saves it from having to pay over a portion of its earnings to Google (the app is still not available on the Play Store). Despite it being more complicated to install the game, and a security bug in the early days (which was fixed within 24 hours), the game was download 15 million times onto Android smartphones in less than 21 days.
Is this the shape of things to come? Already back in 2016, Spotify blocked users’ ability to subscribe using an app (despite it still being available on app stores), also as a way to get around these revenue sharing rules. And Netflix is currently testing a similar strategy.
Attempts to circumvent app stores is one of the issues that Arcep raises in its report “Devices: the weak link in achieving an open internet” that was published in February. The report contains several proposals designed to help lift, more directly, some of the restrictions imposed by the device market’s key stakeholders.
An initiative launched in 2014, the Aquila drones designed by Facebook were to deliver internet access to the world’s most hard to reach regions, thanks to a 4G LTE signal on the ground.
If Facebook announced in late June that it was halting production of these drones, it has not pulled the plug on its project. Connectivity in remote areas remains a crucial issue for the company, but it has elected to hand it over to one of the project’s manufacturing partners. The technology has made tremendous strides since 2014, and other companies have gained greater experience than Facebook in this area. It therefore chose Airbus to produce the drones from now on.
Titled “Restoring Internet Freedom,” the text fully reverses course on the provisions contained in the “Open Internet Order” that was adopted in 2015. This includes the ban on blocking, throttling and paid prioritisation. What does this mean? ISPs in the US can now, for instance, sell access plans that include differentiated treatment or pricing for certain types of content. The only condition is that they mention these practices in their contracts. The arguments that the American regulator has used to justify its actions are, paradoxically, rather similar to the ones employed by net neutrality’s proponents, including going back to a very relaxed regulatory framework which, according to the FCC, has enabled the Internet to develop as it has; as well as giving emphasis to permissionless innovation, but this time more for ISPs than content and application providers. It would be impossible for this type of back-tracking to occur in Europe where net neutrality is guaranteed by a European regulation, which is the highest level normative text in Europe. To make things clearer, Arcep – the protector of net neutrality in France – offers a pictorial map of current debates.
Elsewhere around the world, to demonstrate their commitment to net neutrality, and make it an entrenched, shared value, Europe and India have achieved a significant joint action: BEREC and India’s regulator adopted a joint statement a few days ago that sets out their common vision, along with a Memorandum of understanding for furthering net neutrality around the globe.
Close to a year after Europe, will roaming charges soon be a thing of the past in 19 countries in the Americas? This is what the Inter-American Telecommunications Commission (Citel) decided at their Assembly in March. This decision, whose implementation date still remains to be determined, would allow people travelling in the signatory countries to roam like at home, i.e. to use their mobile phones under the same conditions as those they enjoy at home.
So European regulation on the matter has gained some followers. It put an end to roaming fees across the EU on 15 June 2017, which has been a veritable revolution for Europeans. Mobile data traffic across Europe has exploded since then: + 435% between summer 2016 and summer 2017 according to figures from BEREC, the Body of European Regulators for Electronic Communications. Consumption rates for French people travelling in Europe have also risen considerably. They generated close to 20,000 Terabytes of data between July and September 2017, compared to 5,000 for that same period in 2016.
The countries involved in the trans-American agreement are: Argentina, the Bahamas, Barbados, Belize, Brazil, Canada, Colombia, Costa Rica, Ecuador, El Salvador, the United States, Mexico, Nicaragua, Panama, Paraguay, Peru, the Dominican Republic, Trinity and Tobago and Uruguay.
Japan’s lead in 5G is the stuff of headlines. But it is to France that the country has turned for inspiration when rethinking spectrum management. So several observations can help put France’s supposed “lagging behind” into perspective.
- Despite very proactive announcements of commercial 5G rollouts starting in 2020, the first plans will be delivered more using e-LTE than with “true” 5G which will only become available later on. Some of Japan’s economic stakeholders are already concerned about the lack of clarity on future allocation rules.
- Japan shares France’s crucial challenge of achieving nationwide connectivity and coverage. Because it is an archipelago, Japan needs to ensure consistency between densely populated, profitable areas and the thousands of islands whose geographical remoteness and low population density are not likely to attract private sector rollouts.
- This is why Japanese authorities are especially interested in the New Deal that was recently put into place in France, which offers an alternative between beauty contests and classic auctions to ensure that all spending on frequencies constitutes an efficient investment that benefits network rollouts everywhere.
These conclusions can only encourage Arcep to stay the course, and maintain the roadmap set for 5G: calling on vertical industry players and operators to come together on pilot projects in 2018, followed by allocations and service rollouts in 2020.
The Mobile World Congress (MWC) 2018, the mobile industry’s largest annual trade show, was held in Barcelona in February. In the spotlight this year: 5G, artificial intelligence and virtual reality.
Confirmed: virtual assistants’ growing prominence in the consumer market, the widening array of connected products… Like ever year, there were sneak peeks of new smartphones from heavyweights such as Samsung, Nokia and Sony.
One key area of focus on the manufacturer side: 5G. MWC was an opportunity for them to showcase their upcoming equipment and provide an update on network rollouts and their applications: smart cities, factories of the future, connected cars… Several manufacturers announced pioneer trials of 5G chipsets, thus paving the way for the launch of compatible smartphones by early 2019.
Arcep’s Chair and teams were in attendance. The Authority’s work on 5G, devices and mobile coverage attracted a great deal of attention, and were very well received by the many stakeholders they met with.
More than anywhere else, Android smartphone users in India suffer from a strange lack of internal storage (affecting one out of three smartphone owners in India, compared to one in ten in the United States). The reason? A custom in India of wishing everyone in India a good day with gifs and other images… that take up a lot of room! If this little titbit is rather adorable, Google employees had to find a solution, and quickly. Mission accomplished with the creation of a dedicated app that allows users to delete these images with a single click.
What happens when user behaviour steers the market…
Find out more in the Wall Street Journal article
Our smartphones contain apps that cannot be deleted. Are they indispensable? Since 2014 South Korea’s telecommunications ministry has worked to give users the ability to delete any apps that are not vital to their telephone’s operation. By adding this recommendation to the Telecommunications Business Act in 2017, the Korean Communications Commission forbids handset suppliers, developers and operators from blocking the deletion (or installation) of applications, and gives users the power to make this choice.
On 14 December, US electronic communications regulator, the Federal Communications Commission (FCC), decided to put an end to net neutrality in the United States, through a decision entitled, “Restoring Internet Freedom”. Under this new scheme, only ISPs’ obligation be transparent about their practices remains, and they will now be supervised by the Federal Trade Commission (FTC).
In India on the other hand, on 28 November the Telecom Regulatory Authority of India (TRAI) adopted a series of recommendations aimed at strengthening net neutrality, which are very close to the European regulation of 2015, ensuring a more open internet in the EU.
- European Open Internet regulation will protect Europeans – Statement by Andrus Ansip, Commission Vice-President for the Digital Single Market (in French)
- “Europe has a message for Americans on Net neutrality” – Op-ed by Arcep Chairman and BEREC Chair Sébastien Soriano in Slate US
- “Net neutrality means no censorship” – Sébastien Soriano answers questions from Usbek & Rica (in French)
- “Killing net neutrality would be a sad turn of events” – Sébastien Soriano interviewed in l’Obs (in French)
- “Net neutrality means having access to the real internet ” – Sébastien Soriano interview with Meta-Media (in French)
- "The internet in France is more neutral than it is elsewhere” – Sébastien Soriano interview in Le Monde (in French)
- Interview with Sébastien Soriano in “Les Matins de France Culture” (in French)
In Japan, the mobile operating system (OS) market has attracted the attention of the country’s Fair Trade Commission (JFTC) and its Ministry of Economy, Trade and Industry (METI). Both of these authorities have elected to follow through on the investigation they conducted on the matter last year.
Concerns are galvanising around the ability to develop competing OS, and the issues created by having certain apps installed by default on devices or given preferential treatment.
Expert panels will be created to take a deeper look into the matter. This will be followed by proposals for possible solutions through revised consumer or trade laws.
Japan Fair Trade Commission report from 2016
Europe is not the only place where roaming charges are being phased out, and Africa could soon follow suit. Reducing international roaming charges for people travelling between African countries, to stimulate mobility amongst the population and unlock their use of mobile technology, is a real priority for the continent.
In early October, the fifteen members of the Economic Community of West African States (ECOWAS) took a major step in this direction by approving draft regulation whose goals are:
- to eliminate call termination and roaming charges within the ECOWAS area;
- to set a cap on calling charges within the economic area.
Initially, the charges that apply in the country being visited, including for international calls (“roam like a local”), will apply to travelling users. The ultimate goal is nevertheless to fully abolish roaming charges across the region, i.e. to allow users to “roam like at home”.
This initiative follows through on the "Free Roaming" initiative introduced jointly by six countries in the region in late March 2017, and supported by the West Africa Telecommunications Regulators Assembly (WATRA).
One Web, Space X, Google and its Loon project… There are a number of projects using Low Earth Orbit (LEO) space technology to connect the planet to the internet. Their advantages:
- the ability to meet the connectivity needs of those areas poorly served by wireline and radio networks;
- enable much shorter latency for high-speed and telephone services than with geostationary orbit solutions (which are currently being used by broadband access services in France).
Questions nevertheless remain over the projects’ concrete feasibility. For instance, LEO spacecraft have a relatively short lifespan (averaging just over five years) which means they will need to be replaced on a regular basis. Frequency coordination would also need to be especially rigorous within the International Telecommunication Union (ITU) to avoid interference between the different satellite constellations.
But the sector is shifting into gear. SpaceX met with Arcep Board member, Jacques Stern, to discuss this very topic at the Global Symposium for Regulators that ITU hosted in July. Arcep Chairman and BEREC Chair for 2017, Sébastien Soriano, also spoke with the teams from OneWeb.
A joint summit on the topic of connectivity between BEREC and the Eastern Partnership Electronic Communications Regulators Network (EaPeReg), the Latin American Forum of Telecommunications Regulators (REGULATEL) and the Euro-Mediterranean Regulators Group (EMERG), was held on 31 May in Portugal. A total of 45 regulators from the world over were represented.
They discussed the investments needed to provide connectivity across their regions, spectrum-related difficulties and net neutrality challenges that needed to be addressed. A joint declaration was adopted at the end of the Summit. In it, the regulators declare their support for competition as a driver of increased connectivity. They also reiterate their dedication to net neutrality, recognising every person’s right to access and distribute the content and applications of their choice, without discrimination, unjustified slowing down or blocking.
The joint declaration
Africa’s mobile market is now one of the largest in the world, with some 1 billion active SIM cards being used by close to 1.3 billion people. According to a GSMA report published in July 2016, the continent was home to 550 million mobile subscribers at the end of 2015, a figure that could climb to 725 million by 2020.
The mobile market has been the chief driving force behind an entire digital ecosystem capitalising on this connectivity:
- The banking sector, which has been shaken up by the arrival of operators such as Orange Bank and M-Pesa. With a relatively small banked population (i.e. people with a bank account) and the fast-growing adoption of mobile services, mobile banking services in Africa have proven a popular alternative to traditional bank accounts.
- The trade sector is also benefitting from this healthy momentum, with the advent of online shopping sites such as e-commerce platform, Jumia (a subsidiary of Germany’s Rocket Internet).
The expansion of this new digital ecosystem raises several questions: regulatory, notably regarding mobile operators’ banking activities, the security of transactions and the fight against money laundering.
India’s mobile market which, with more than a billion subscribers, is the second largest in the world after China, and has been going through some major changes in recent months. Changes ushered in by the arrival of Reliance Jio which has upset the balance of power. Thanks to very aggressively positioned mobile plans, Jio reached the symbolic threshold of 100 million subscribers in a matter of months, which set off a wave of mergers: Bharti with Telenor in February, Vodafone with Idea Cellular in late March. Here, it is worth remembering that there are around a dozen operators in India.
At the same time, some operators are going after the newcomer, and have filed a complaint with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) regarding the new plans. A TDSAT hearing is due to take place in early May 2017.
NB: Sébastien Soriano, the BEREC Chair in 2017, was in India in late March and met with the Chairman of the Indian regulator, TRAI – who himself had been in Paris a few weeks earlier – and with key Indian market players, as part of a BEREC fact-finding mission.
Sébastien Soriano’s interview with the Economic Times (Indian daily newspaper)
In January 2017, Ajit Pai took over as chairman of the US telecom regulator, the Federal Communications Commission (FCC), of which he had been a member since 2012.
Known for his opposition to the Open Internet Order adopted by the FCC in 2015, one of his first decisions was to put an end to investigations into several zero rating offers that were initiated under his predecessor, Chairman Tom Wheeler.
Zero rating refers to a commercial practice that consists, for instance, of operators not deducting the traffic generated by a given service or type of service from customers’ data allowance, whereas all other uses are.
Consequence: an outcry from more than 170 organisations which signed an open letter calling on the FCC to continue its actions to defend net neutrality.
Read the open letter
AT&T’s 2G network in the United States was shut down in January. Why? The carrier wants to reassign all of the frequencies used for 2G to 3G and 4G LTE networks. AT&T thus plans on better serving new mobile behaviours and the connected objects sector which requires ever faster connections.
AT&T press release
Making broadband internet access a basic telecom service for all Canadians: this is the new ruling handed down by the Canadian Radio-Television and Telecommunications Commission (CRTC). Believing that it is a true measure of economic competitiveness, the CRTC wants to ensure that a high-speed (minimum 5 Mbps) internet connection is made available to everyone in Canada, one of the vastest countries in the world.
To achieve this, the Canadian government will be investing 750 million CAD (or €535 million) over five years to build or upgrade the country’s fixed and mobile internet access infrastructures.
Find out more
Since 7 November 2016, the IAB (Internet Architecture Board) - the committee in charge of overseeing and guiding the internet's evolution through various organisations such as IANA, IETF and IRTF - has recommended that, from hereon in, internet operating standards be designed and enhanced solely for IPv6, without seeking backwards compatibility with IPv4.
Arcep welcomes the IAB decision, which is a major milestone in the adoption process for IPv6, which must usher in simplification, security and innovation.
IAB statement on IPv6
Government report on the rollout status of IPv6 in France (in French)
Arcep scorecard on the transition to IPv6 (in French)
A few weeks back, Google and Facebook announced the construction of the Pacific Light Cable Network, a submarine cable measuring close to 13,000 km that will run from Los Angeles to Hong Kong, whose construction is set to begin in 2017 and be complete by 2018. An announcement that echoes other projects recently put into action by Microsoft and Amazon, two internet companies that are also investing in submarine cables, which are a vital part of the internet's global mesh and which today are paid for by telecom carriers. For internet giants, submarine cables represent an important path to gaining control over their data traffic and quality of service.
Created in California in 1998, ICANN (Internet Corporation for Assigned Names and Numbers) has a symbolic role on the global internet, namely as supervisor of the IP addressing system and domain name registry. It is the body that manages the allocation of .com, .net and .org domain names. After having operated under a contract with the US government since its inception, after three years of debate, on 1 October it became a self-regulating, non-profit international entity, in a bid to guarantee a more transparent and more democratic operation.
Find out more
Measure 3G, 4G and Wi-Fi connection speeds in real time? Already a reality in India thanks to the application rolled out by the country's telecoms regulator, TRAI, this summer. All of the tests performed by users are aggregated on the regulator's portal, which then provides a complete snapshot of the quality of mobile services across the country.