Information Policy

European Commission launches consultation on net neutrality

by Robin Wauters

The European Commission this morning launched a consultation on key questions regarding the contentious issues of net neutrality and the open Internet.

The consultation covers such issues as whether ISPs should be allowed to adopt traffic management practices, prioritizing one kind of Internet traffic over another. This has become an issue with the onset of broadband and Internet services which require more bandwidth, such as VoIP or online TV. Essentially, the EC wants to find out whether these practices would create any problems (economical, technical or otherwise) and have ‘unfair effects’ for users.

Basically, the EU wants to piece together whether they should get involved or let the industry sort it out. The Commission also wants to know whether the new telecom rules are sufficient to tackle any problems that could arise.

The consultation comes just a week after UK regulator Ofcom published a draft discussion paper on the subject.

European Commission Vice-President for the Digital Agenda, Neelie Kroes (pictured), announced in April 2010 her intention to launch this consultation in order to advance Europe’s net neutrality debate.

The consultation will feed into a Commission report on net neutrality, which should be presented by the end of this year.

Kroes commented as follows:

“I am committed to keeping the internet open and neutral. Consumers should be able to access the content they want. Content providers and operators should have the right incentives to keep innovating.

But traffic management and net neutrality are highly complex issues. I do not assume that one approach or another should prevail. We need input from all sides so we can examine all the issues carefully, in a very objective way, strike the right balance between all the interests involved and work out what new measures, if any, may be needed.”

Until 30 September 2010, all interested parties – meaning service and content providers, consumers, businesses and researchers – are invited to respond to the consultation. The Commission will then analyze the responses to the consultation and the views raised in other forums, and ultimately publish a Communication on net neutrality by the end of 2010.

This document will set out the Commission’s thinking on whether additional initiatives or guidance are required.

Let’s hope a level playing field is maintained throughout Europe.

http://eu.techcrunch.com/2010/06/30/european-commission-launches-consultation-on-net-neutrality/

Elevation Partners buys $120 million in Facebook shares

Private equity firm Elevation Partners purchased $120 million in Facebook stock from private shareholders, valuing the company at $23 billion, according to a person familiar with the matter.

The stock purchases represented Elevation's second round of investments in shares of Facebook through the secondary markets, giving the firm a 1.5 percent stake in the world's largest Internet social network.

With nearly 500 million users, Facebook ranks as one of the world's most popular Web sites, alongside established Internet giants like Google Inc and Yahoo Inc, and is closely watched by investors eager for a blockbuster initial public offering.

Facebook generated between $700 million and $800 million in revenue in 2009, two people familiar with the matter told Reuters earlier this month.

A vibrant market for shares of privately held Facebook has developed in the past year.

In April, Facebook barred its employees from selling their shares in the company to outside investors, except during specified periods. Facebook is not currently in a period during which employees would be permitted to sell shares, another source familiar with the situation told Reuters.

Elevation Partners and Facebook declined to comment. News of the funding was first reported by the technology blog TechCrunch.

Facebook's backers include Digital Sky Technologies, Microsoft Corp Corp, Hong Kong tycoon Li Ka-shing and venture capital firms Accel Partners, Greylock Partners and Meritech Capital Partners.

Elevation Partners, whose partners includes U2 frontman Bono, committed to invest up to $100 million in online review site Yelp in January. The firm also invested $460 million in smartphone maker Palm over a period of several years. In April, Hewlett-Packard announced plans to acquire the struggling Palm for $1.2 billion.

Elevation acquired its latest batch of Facebook stock in a series of transactions over the past couple of months, the source said.

The firm had already purchased $90 million worth of Facebook shares based on a $9 billion company valuation in November. Elevation has invested in Facebook at a $14 billion blended valuation, based on the two investments, the source said.

(Reporting by Alexei Oreskovic; Editing by Gary Hill)

http://www.reuters.com/article/idUSTRE65S0CZ20100629

infoDev Releases Survey of ICT for Education in India and South Asia

In order to better inform governments, donors and practitioners who plan to use ICTs in educational initiatives, in 2009, infoDev commissioned a “Survey of ICTs for Education in India and South Asia.” By unifying and comparing on-the-ground information, and illustrating successes and challenges, this report will help in planning, coordinating, and evaluating ICT4E initiatives.

Report Highlights

The “Survey of ICTs for Education in India and South Asia”, supported by the Finnish Trust Fund, emphasizes that successful schools utilize ICTs throughout the curriculum, not only for basic computer literacy. This means paying more attention to curriculum and content development, teacher capacity building, and creative approaches to better maintain hardware and software.

ICTs can be a means to overcome some of the chronic problems in the education system - like poorly trained teachers. If designed properly, ICTs provide a useful platform for kick-starting needed innovation in the education sector.

The report surveys and compares eight countries in South Asia: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Each country case study examines:

• The national education system and ICT setting;
• Policy framework and delivery mechanisms;
• Important education initiatives using ICTs;
• Major constraints; and
• Key insights.

The first draft of the survey was presented and discussed in Delhi, India on April 21, 2010 in conjunction with a lively Oxford-style debate about the subject. The event was webcast around the world on infoDev’s Educational Technology Debate (ETD) site where you can find much more ICT4E discussion and material.

ICT for Education in India and South Asia - Some notable findings:

* Most of the countries in the South Asia region realize the need for ICT teacher training and have launched various professional development initiatives to meet the need. However, many of these trainings focus primarily on computer literacy instead of enabling teachers to integrate ICT in their day-to-day teaching practices.

* ICT4E initiatives are successful in South Asia because they are able to pull together different elements in an organic and integrated manner, supported by a robust yet flexible policy framework. Strong national policies can translate into an ecosystem of initiatives and schemes by both public and private providers.

* Technologies as mundane as radio or as innovative as mobile phones can be powerful tools in both formal school and informal learning. However, common constraints – including infrastructure, cost, and poor institutional frameworks – can hamper progress.

http://infodev.org/en/Article.552.html

Online ad industry unites against Greek tax

The Greek Government has proposed a law, which would introduce a 21.5 % tax on online advertising, payable to the journalists' pension fund. IAB Europe calls upon the Greek Government to stop its plans.

It is expected that the bill will be adopted on Thursday next week and will tax online advertising with a 21.5 % levy. The tax will be payable for online ads on news portals that have their legal seat in Greece and produce their own news (but not e.g. other portals or forums). There are serious doubts, whether such a tax, payable to a third party, the journalists’ pension fund, is lawful. In any event, such plans would impose a serious competitive disadvantage to Greek news portals.

The proposal disregards the nature of the Internet, since online advertising markets are far less distinct and advertising clients can reach the same user on different platforms or sites. If that can be achieved at lower costs via non-news portals (or by news portals not based in Greece), advertisers will choose that option to the detriment of the Greek news publishing industry. News portals which invest in the production of owned content will not only lose advertising revenue share but, as this is their most important -if not unique- source of income, their very existence may be threatened.

However, the consequences are clear: Europe’s Digital Agenda would suffer a blow in Greece, as the production of high quality content is likely to decrease, leaving millions of users with significantly less choice. Moreover, quality content and the development of the digital economy tend to be intertwined so, through this tax, Greece risks damaging a key growth lever for its overall economy. This ought to be a crucial consideration particularly in a recessionary environment.

“Any tax on the Internet risks negatively impacting its growth. The European Commission has identified the Internet as a growth medium, which contributes positively to the overall economy and helps to create jobs. Instead, the Greek Government should propose measures that would foster entrepreneurship in the Greek online sector and generate employment and additional tax revenues,” said Alain Heureux, President IAB Europe.

“The plan to tax advertising is understandably very appealing to the Greek Government, which fights to rescue the country’s finances. However, it may prove a short-sighted measure that will do lasting damage to its Internet economy, an eventuality that will more than offset any immediate gains. Any tax on the internet -particularly the specific measures that introduce multiple market distortions- bears the risk of causing severe damage to the country’s digital future. We will consult with the European Commission and assess further actions,” said Kimon Zorbas, Vice President, IAB Europe.

Background

The Greek Government introduces in an article of the pension scheme law a tax for online advertising of 21.5%. The tax is payable only by companies with a legal seat in Greece and only if they publish news they created themselves. It disadvantages Greek news portals and to other Greek web sites. The revenue of this tax goes to a third party, the journalists pension fund. Such taxes for third parties have been under scrutiny by the European Commission and were in many cases abolished.

The Greek online market share was less than 5% in 2009. While Greece is one of the less mature markets, it WAS on track, catching up with a 40+% growth rate in 2009. According to the Eurobarometer (E-Communications Household Survey, Publication June 2008), Greece has one of the lowest Internet penetration rates and ranks 26th in the EU 27 with only 22 % of households having Internet access (compared to a 49 % average in EU 27) and only 14 % of all households that have access to broadband. The broadband Internet access (compared to an EU average of 36 %).

http://news.hostexploit.com/hosts-and-registrars-news/4084-online-ad-industry-unites-against-greek-tax.html

Over 20 million VoIP subscribers in the United States

By Matthew Lasar

VoIP users take note—you now command a noticeable share of wireline telephone service in the United States. The Federal Communications Commission reports 21 million subscriptions to Voice over Internet Protocol accounts provided by companies like Vonage, as well as the telcos and cable providers.

These represented 13 percent of the nation's 162 million wired connections as of December 31, 2008. The overwhelming majority were residential. Only one percent of those VoIP lines served businesses.

http://arstechnica.com/telecom/news/2010/06/over-20-million-voip-subscribers-in-the-united-states.ars