bill threats Dutch telcos
law prohibits mobile network providers from charging extra for the use of Skype or Web-based instant messaging, reports The Wall Street Journal.
This could strike a blow to incumbent Royal KPN; which has been suffering from the increasing popularity of voice over Internet protocol (VOIP) applications.
The Dutch government believes that while increased charges for higher speeds and data limits for mobile Internet are acceptable, additional charges for VOIP services such as Skype or instant messaging applications such as WhatsApp go too far.
The proposed change would make the Netherlands one of the first countries in the world to statutorily guarantee net neutrality.
Telegeography states that KPN, earlier this year, claimed it may not meet its financial targets in fiscal 2011 and warned that it was looking to cut 5 000 jobs by 2015.
In reporting an 8.1% fall in first-quarter mobile revenue, KPN said it was concerned that customers are using fewer SMS text messages and opting for cheaper VOIP telephony services over its traditional PSTN-based services.
KPN, which has a roughly 49% share of the Dutch mobile market, wants to charge users extra for Skype. Vodafone charges its users for access to Skype and number three operator, T-Mobile, currently bars users from Skype and WhatsApp in its terms and conditions.
Blocking or charging users for services like Skype has been standard practice for some cellular providers, explains Deutsche Welle.
The concept of net neutrality dictates that all data on the Internet should be treated equally by Internet providers, telecom firms, and mobile phone companies.
Telcos have historically been resistant to ensuring net neutrality, as many of them say that they need to be able to "throttle" or "shape" traffic accordingly, particularly as online video and VOIP applications like Skype skyrocket.
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