Mobile operators plan lobbying attack on Internet Companies

The mobile operators aim to seize the opportunity of a once-in-a-decade Ofcom review to argue they face unfair competition from internet-based communications services that do not face expensive regulatory hurdles yet rely on their network infrastructure to operate.

Britain’s mobile operators are preparing a lobbying attack on internet companies such as Facebook as part of a major review of communications regulations, amid growing international tensions between telecoms companies and Silicon Valley.

They will argue that "over-the-top" internet-based calling and messaging apps including WhatsApp, owned by Facebook, should be subject to the same regulations as their own more traditional telecoms services.

Apps such as WhatsApp, Skype and Viber have eaten into traditional mobile call and text sales, formerly the industry’s financial bastion. Apple’s iMessage and FaceTime apps have also had a significant impact.

The technological disruption has occurred around the same time as mobile operators have seen their own prices cut by regulators, increasing the challenge.

Now they will argue that Ofcom should create a more level playing field between operators and over-the-top services, whether by regulating the internet companies so they contribute to network investment or deregulating them so their costs are reduced.

A spokesman for EE said: “We would expect Ofcom to address the changing relationship between network operators and the over-the-top players that rely on operator investment and services to grow their globally successful businesses."

A spokesman for Vodafone said it was also preparing to lobby Ofcom on the issue, though both operators declined to provide details of their demands.

Ofcom’s announcement of the review took the telecoms industry by surprise this week. It is already being seen as a potential watershed moment, however.

There were instant calls for BT to be broken up, and any attempt to regulate internet companies more strictly would put the UK in the frontline of a global battle between telecoms operators and Silicon Valley.

Source link@Telegraph