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Network neutrality and consumer discrimination: Comparing ISP's GTCs and DPI application

Author

Listed:
  • Grove, Nico
  • Agic, Damir
  • Sedlmeir, Joachim

Abstract

Network neutrality and alleged discriminatory practices on the part of ISPs regarding the transmission of Internet data packets has been the subject of notable scholarly discussion and appears to be a widespread phenomenon. However, it is noteworthy that actual consumer discrimination has only been proven in a small number of individual case studies. Hence, we aim to provide solid evidence for discriminatory behaviour of ISPS in our in-depth study. This lack of overwhelming evidence is not, as we assume, the result of an absence of discriminatory behaviour - on the contrary it may be whittled down to a number of grounds: the absence of studies comparing services offered by ISPs, the existence of high switching costs between operators accruing to consumers, and a lack of awareness on the part of consumer of the putative discriminatory measures, given the information asymmetry between ISP and consumers, where the consumer is not in a position, being able to distinguish between an impaired quality of service and potential discrimination behaviour by the ISP. The paper at hand examines ISPs' traffic management measures and determines whether such practices breach the ISP's contract with the consumer. Relying on an examination of services provided by European ISPs (France, Germany and Italy) we can conclude that data traffic is subject to discriminatory management. Our investigative model is based on M-Lab data (Glasnost Test) and related processing algorithms provided by The Network is Aware project. In order to corroborate our findings that ISPs are breaching their own contractual service agreements, the results regarding discriminatory measures are compared with the contractual General Terms and Conditions (GTC) as agreed between the ISPs and consumers...

Suggested Citation

  • Grove, Nico & Agic, Damir & Sedlmeir, Joachim, 2012. "Network neutrality and consumer discrimination: Comparing ISP's GTCs and DPI application," 23rd European Regional ITS Conference, Vienna 2012 60403, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse12:60403
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    References listed on IDEAS

    as
    1. Viktória Kocsis & Paul Bijl, 2007. "Network neutrality and the nature of competition between network operators," International Economics and Economic Policy, Springer, vol. 4(2), pages 159-184, August.
    2. repec:reg:rpubli:127 is not listed on IDEAS
    3. Barbara van Schewick, 2010. "Internet Architecture and Innovation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013975, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Network neutrality; regulation; General Terms and Conditions; telecommunications; user discrimination;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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