European Regulatory Report Debunks Arguments for Network Fees
The Body of European Regulators for Electronic Communications (BEREC) has recently released its final report on the IP interconnection ecosystem, analyzing market dynamics and technological trends between Internet access service providers (IAS) and content and application providers (CAPs) in Europe.
Covering the period from 2017 to 2023, the report highlights key findings, such as the decline in data transit costs and the evolution of Internet traffic. It confirms that transit costs in Europe continue to drop, driven by technological advancements and market competition.
According to BEREC:
“It should be noted that, in general, transit prices have seen a significant decline over the past two decades.” This directly weakens the argument put forward by major telecom companies, which cite high costs as justification for proposals like fair share or Internet tolls.
Another claim dismissed by the report is the supposed impact of increasing network traffic attributed to content providers. BEREC reaffirms:
“Since its inception, the Internet has been able to handle traffic growth and sharper traffic peaks, both reflecting changing usage patterns and the increasing spread of IAS across societies. BEREC considers that, given the progress mentioned above, there is currently no indication that this is likely to change in the future.”
Additionally, the report clarifies:
“Data traffic growth is a confirmed trend, with stabilization following a major peak during the COVID-19 pandemic. The peak-to-average traffic ratio appears to have remained stable between 2019 and 2023.”
This finding contradicts the narrative pushed by some telecom operators that traffic has been accelerating since the pandemic. For Brazil, BEREC’s conclusions provide critical evidence against network fee policies, demonstrating that these proposals are solutions to a non-existent problem.
The data make it clear that proponents of network fees rely on arguments disconnected from the realities of the interconnection market. These proposals are designed to maximize profits at the expense of end users, compromising service quality and national market competitiveness.
BEREC’s report sends a clear message: regulators should prioritize evidence-based policies that foster a fair and sustainable market, resisting corporate pressure that threatens the future of connectivity.