Friday, October 27, 2006

 

Netherlands resolves for Structural Separation

The Dutch Parliament this week passed two resolutions regarding communications infrastructure. The first
invites the government to propose within a year to parliament for changes in the Telecommunication law, by which the markets for infrastructure and services will strictly be divided by the introduction of a standing charge model as well as the prohibition of the conditional sale of network and services.
The second
invites the government to to propose within a year to parliament for a change in the Telecommunication law, leading to mandatory, open, non discriminatory access to all networks for all service providers.
This story, from Dirk van der Woude, a Dutch citizen and very knowledgeable observer, says both votes were unanimous. This story, from the International Herald Tribune, and several others too, says the resolutions passed by "a large majority."

I don't know how the legislative process works in the Netherlands. What's this about Parliament "inviting" the government to propose laws?

All the articles, including the AP's and this one from TeleGeography, seem to indicate that the European Commission will have a say, too, before the law goes into effect.

The first resolution is especially important to the US because, in my opinion, the only sustainable way to have enforceable network neutrality is to give force of law to the separation between operating the network and operating the services that the network carries. Otherwise, the temptation to gain advantage (.pdf) by tying certain services to the network is so great that US telcos and cablecos are spending an estimated $1.5 million per week to lobby for the privilege. And, unless there's clear and forceful separation, as per the Dutch resolution above, US telcos and cablecos will spend more lobbying, litigating and legislating against any compromise language about treating different applications differently, or about "deliberate" or "anti-competitive" discrimination.

The network carrier should be prohibited legally from knowing or caring what's carried on network -- the Dutch Parliament has proposed one way to do it.

I know that the de jure "standing charge" provision in Resolution #1 will draw the wrath of the market pricing folks. I am sympathetic. I'd prefer to simply mandate separation, and make it illegal for network operators to have any financial interest in service providing entities.

Thanks to Gordon Cook, without whom this news from the Netherlands might never have reached the US.

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Comments:
Hi David,

You asked I don't know how the legislative process works in the Netherlands. What's this about Parliament "inviting" the government to propose laws?

Invitation is just the polite way of saying 'strongly demanding' and 'instructing'. Both the cabinet as well as the parliament can initiate laws. When parliament does that it tells the government to draft the law, or proposes a draf itself. The former is called 'inviatation' In this case parliament instructed the cabinet to start drafting two laws. If the cabinet ignores it they can do so only at great political cost (including the fall of government) unless they can explain very convincingly why they did so. There is nothing optional about an 'invitation'.
In this case there is no risk of the 'invitation' being ignored, as parties both in and outside the govt coalition support it.

There can of course be obstacles in the path of these two proposals, such as EU regulations on trade. In that case the government will return to parliament explaining what they did, and where the obstacles are that could not be negotiated yet. Then parliament can get involved again, trying to find a way around it, or ammending their previous invitation.
 
I tried to find the voting record for both proposals, but the official minutes only say 'A' for Accepted.
 
Ok, I looked a bit deeper now.

The first proposal (separating networks and services) was carried by 148 votes out of 150, so near unanimous.

The second proposal (open networks) was carried by 150 votes, so unanimously.

This means that all government parties as well as opposition parties favoured the proposals.
 
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