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| A woman uses a computer in an internet cafe at the center of Shanghai in this January 13, 2010 file photo. In a report released on Monday in Geneva, Switzerland, the TMT firm Analysys Mason recommended that governments develop a robust Internet ecosystem while avoiding strict regulations. (Reuters Photo/Nir Elias) |
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A new
report released by a global telecommunications, media and technology firm
reveals that recent proposals to regulate the internet will harm growth and
innovation worldwide.
In a report
released on Monday in Geneva, Switzerland, the TMT firm Analysys Mason
recommended that governments develop a robust Internet ecosystem while avoiding
strict regulations.
The report,
“Internet global growth: lessons for the future,” authored by Michael Kende,
co-head of Regulation at Analysys Mason, examines the impact of proposals that
seek to apply the antiquated system for terminating international voice calls
through the payment of settlements to Internet traffic.
The
proposals in the report are addressed to the International Telecommunications
Regulations, which are being readied for the World Conference on International
Telecommunications to be held in Dubai this December by the United Nations’
International Telecommunication Union.
The report
highlights the Internet as a driver for growth and opportunity, noting its
increasingly central role to consumers, businesses and governments alike.
“Content
has transformed from largely text-based to multimedia delivery, global demand
and usage has exploded, and access has moved toward wireless over wired,” Kende
writes.
Kende says
that significant investments must continue to be made in response to these
trends, as current projections show that the number of Internet users worldwide
will increase from 2.2 billion in 2012 to 3.5 billion in 2020.
The report
confirmed the upward swing in Internet usage via mobile broadband throughout
the world, especially in Africa, Asia and Latin America, and that further
deployment of such technology is best achieved without internationally
sanctioned regulatory intervention.
Applying
unwarranted static voice regulations to the Internet would negatively impact
users across the globe and slow or reverse current growth trends. Furthermore,
the rate system would be difficult to design and expensive to implement, and
would increase the cost of content delivery and hinder network investment at
the expense of users.
Lastly, the
report offers specific suggestions for governments in developing countries,
including removing roadblocks to investment while stimulating demand, as well
as full liberalization of the sector while removing barriers to foreign
investment and ownership.
“Spurring
access and adoption of the Internet has the ability to transform and improve
entire economies, and no one stands to gain more than those in developing
nations,” added Kende. “Applying a settlement regime as some countries are
proposing is a solution in search of a problem, which would ultimately slow
Internet penetration and the availability of content.”
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