Don't Discount the Investments in Internet Infrastructure that Content and Application Providers are Making

Should network usage fees be imposed on content and application providers to support internet infrastructure? New research from Analysys Mason shows such a mandate would be harmful to end users and the global internet ecosystem. The internet is a network of networks, which must all be connected (directly or indirectly) to one another to enable traffic delivery from any source to any destination around the globe. Its evolution has been driven by a combination of competition, collaboration, and innovation by all the stakeholders in the value chain. Policymakers should consider the potential impact of network usage fees holistically when evaluating regulatory proposals that would mandate the introduction of such fees.

[David Abecassis is a Partner in Analysys Mason’s London office.]