Vodafone calls for A Framework for Responsible Use of Networks

Europe stands on the brink of a new digital era that will drive its next wave of growth, productivity, and innovation. Advanced 5G technologies are the necessary foundation of future digital services.

Yet an ongoing investment gap in Europe’s digital infrastructure threatens this future.

The problem is a classic “tragedy of the commons,” where telecoms networks are treated as a common resource.

But telecoms networks are not infinite.

And overconsumption of this valuable and finite resource is already putting them at risk of degradation and depletion. There are some overlapping problems that need to be examined.

Those that consume network resources, such as content providers, have few incentives to design their services in an efficient and responsible manner or to minimise network traffic waste.

Their business models, supported by advertising revenues, are designed to constantly increase engagement. They can grow traffic regardless of the consequences for networks, or the waste caused by autoplay, infinite scroll and pre-fetching of content.

Many platforms already apply compression to their content, using video codecs to reduce file sizes with negligible impact on quality. But their effectiveness varies and is impeded by incompatible or proprietary hardware, software and content formats.

The rapid shifts towards the digitisation of previously ‘analog’ activities and the growth of AI and Cloud has led to ballooning traffic volumes. In the last ten years, traffic on Vodafone’s UK network alone has increased by twenty-five times.

There is an environmental cost to consider as well. Telecoms networks consume a lot of power. Despite enormous efforts to improve energy efficiency, many telcos are struggling to keep their power consumption flat each year, let alone reduce it.

On top of this, it’s also difficult for telecoms companies to expand the ‘common’ to keep pace with traffic growth, particularly in the ‘last mile’ of the network that connects to customers.

On the one hand, telcos have been able to avoid significant congestion and maintain a high quality, reliable experience for end-users. But on the other, telcos are spending way too much of their limited capital on capacity expansion. This comes at the expense of other opportunities like rural development and building 5G Standalone.

Nor is it certain that telcos can keep expanding their capacity indefinitely. There are many obstacles, including availability of limited spectrum, restrictions on mast heights or securing enough suitable sites for infrastructure.

These challenges are compounded by Europe’s legacy policies and regulations that overly restrict telcos from technically or commercially managing their traffic. The Open Internet rules, for example, are highly prescriptive and only allow traffic management in exceptional circumstances.

Europe is in danger of a ‘capacity crunch’ on its networks unless we face up to these overlapping challenges. It’s an unpalatable topic to address, but we can’t just ignore it and hope for the best.

It is therefore time for Europe to take this challenge more seriously, and work to create meaningful incentives that directly encourage more efficient use of networks.

That’s why Vodafone is today calling for a new Framework for Responsible Use of Networks that would drive action in three areas:

A new industry Code of Conduct that sets clear, consistent guidelines on optimising internet traffic. If content services are better designed to optimise bandwidth and minimise ‘waste’, this would reduce pressure on networks for everyone’s benefit.

More flexible network management rules so that operators are allowed to dynamically manage traffic on their networks. This would include applying fair use policies and deploy technical traffic management tools that prevent congestion and deliver a high-quality experience.

A legislative framework, including a dispute resolution mechanism, to underpin the negotiation of commercial terms between network operators and large content providers. This would create the right economic incentives to improve internet traffic inefficiencies. It could also ensure network operators are fairly compensated for costs incurred in providing traffic conveyance services, including peering, caching, and transit.

Whilst this proposed Framework is new, the broader idea is not. It’s been done before.

During the COVID-19 pandemic, for example, content providers, telecoms operators and governments pulled together to ensure that society could continue to function.

We just need to formalise this concept, and adapt it for the critical situation Europe currently finds itself in.

The measures proposed by Vodafone would bring together policymakers, service providers, telcos, and end-users to address this complex challenge. Working together, we can realign the incentives that drive traffic growth and ensure a more responsible use of network infrastructure.

In return, this would create a more virtuous circle where less traffic growth creates opportunities for telcos to refocus their investment into the transformational digital services that Europe really needs.