BT denies new Internet offer to create 2-tier Web

(Reuters) By Georgina Prodhan

A new service from British telecoms provider BT that allows Internet service providers to pay for higher-quality video delivery will not create a two-tier Internet, BT said on Tuesday.

BT was responding to concerns raised in a Financial Times article that its new wholesale offering violated the principle of "net neutrality," which says all Internet traffic should be treated equally.

Allowing powerful content providers to pay for premium delivery could put smaller players at a competitive disadvantage to the likes of Google's YouTube or the BBC's iPlayer television catch-up service.

The FT said BT's Content Connect would give broadband providers the tools to create a two-tier Internet.

But BT replied: "Contrary to recent reports ... BT's Content Connect service will not create a two tier Internet, but will simply offer service providers the option of differentiating their broadband offering through enhanced content delivery.

"BT supports the concept of net neutrality but believes that service providers should also be free to strike commercial deals should content owners want a higher quality or assured service delivery," it said in a statement.

Click here to read the Reuters article.

FCC Adopts Net Neutrality Rules

(Reuters)

U.S. communications regulators adopted Internet traffic rules on Tuesday that prevent providers from blocking lawful content but still let them ration access to their networks. 

Click here to read the Reuters article.

The Rules can be read in full here. 

EC opens formal probe into Google's search, advertising services

The European Commission has decided to open an antitrust investigation into allegations that Google Inc. has abused a dominant position in online search, in violation of European Union rules (Article 102 TFEU). The opening of formal proceedings follows complaints by search service providers about unfavourable treatment of their services in Google's unpaid and sponsored search results coupled with an alleged preferential placement of Google's own services. This initiation of proceedings does not imply that the Commission has proof of any infringements. It only signifies that the Commission will conduct an in-depth investigation of the case as a matter of priority.

Click here to read the EC press release.

Cloud Computing and Data Protection

Neelie Kroes, European Commission Vice-President for the Digital Agenda, gave this speech on "cloud computing's relationship with individuals' privacy and the right to personal data protection," and how to "best build the trust and security essential for digital success."

Click here to read her speech.

OFT launches Domestic Electrical goods review

The OFT today launched a review of competition regulation for the sale of Domestic Electrical goods and sought views on a possible market study into warranties and repairs in the sector.

It plans to focus its work on 'white' goods such as washing machines and fridges, and 'brown' goods like TVs, but not 'grey' goods such as computers.

The OFT would appreciate it if parties could provide their comments by 12 January 2011 so that it has sufficient time to consider their responses. Responses may be emailed to degs@oft.gsi.gov.uk.

Click here to read the press release.

Click here to read the complete Invitation to Comment

Net Neutrality or Differentiated Access

Indications are that calls for "net neutrality" are being rejected in favour of "differentiated access". The critical issue now will be the development of a commercial proposition that satisfies the needs of downstream players, and is non discriminatory and transparent, in line with existing UK regulation and competition law. 

Click here to read The Register article.

AT&T To Refund 'Internet Taxes' To Customers With Data Plans

(The Wall Street Journal) By Roger Cheng

AT&T Inc. plans to provide refunds to customers with wireless data plans as part of a settlement of a class-action lawsuit.

The refund pertains to "Internet taxes" that were charged for data services required for smartphones such as the Apple Inc. (AAPL) iPhone or Research in Motion Ltd.'s (RIMM) BlackBerrys, as well as laptop USB aircards, and affects customers who signed up for such a plan from late 2005 to September.

The settlement, however, still needs court approval. A hearing is scheduled for March 10, 2011.

Click here to read more.

Click here to read AT&T's settlement FAQs

The Economics of Cloud Computing for the EU Public Sector

This paper assesses the economics of the cloud by using in-depth modeling and analysis. Microsoft then uses the framework to better understand the long-term IT landscape and what it means for governments.

Download the Executive Summary and Full Report here.

Europe Takes Up Debate on Universal Internet Access

(The New York Times) By Kevin J. O'Brien

At a summit meeting in Brussels this week, network operators and large online companies will face off over net neutrality — or who should pay for using the Internet.

Click here to read the article.