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Telcos Pushing UN For Huge New Content 'Tax'
Telco Think Troll Toll Heads for the International Stage
by Karl Bode Monday 11-Jun-2012 tags: business · content
As international pressure again mounts to put Internet governance under UN control, several companies are pushing the UN to have content operators pay a "network tax." The proposal is being pushed by European Telecommunications Network Operators Association, which has among its clients France Telecom, Telecom Italia, Swisscom, and Spain's Telefonica. Telefonica has been among numerous ISPs we've noted who think they're magically entitled to charge content companies huge surcharges for absolutely no reason.

Now they've apparently tried to convince the UN of the same thing:

ETNO refers to it as the "principle of sending party network pays" -- an idea borrowed from the system set up to handle payments for international phone calls, where the recipient's network set the per minute price. If its proposal is adopted, it would spell an end to the Internet's long-standing, successful design based on unmetered "peered" traffic, and effectively tax content providers to reach non-U.S. Internet users.

CNet's language explaining the push makes it almost sound coherent, likening it to traffic peering or other such arrangements. However, if it's the same nonsense pushed forth by Telefonica in 2010, it's simply an international phone company attempt to create another troll toll, in the process jacking up prices for consumers.

Since 2005 or before, companies like AT&T and Telefonica have been trying to offload their network build and maintenance costs to content companies, hungrily eyeing content ad revenue they feel they'll entitled to. The fact this is seriously being proposed as a reasonable idea highlights the problems many have with these UN/ITU debates being held in private with apparently more than a little too much influence by the world's most powerful lobbyists.

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pnh102
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Uh...

The UN is NOT a government. Period. What power does it have to impose any tax on any person?
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Austinloop

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Re: Uh...

I, personally, have no problem with the U.S. withdrawing from the U.N. and giving the U.N. a reasonable amount of time to leave this country, say 6 months.
praetoralpha

join:2005-08-06
Pittsburgh, PA

Re: Uh...

That might be a rather legit way of imposing American "imperialism" on the world.

Besides, how much % of the UN's money comes from America? Shouldn't we own more of the place?
XIII

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Re: Uh...

The US is constantly behind on paying dues, but because we are a permanent member we wont get booted for non-payment. Though you are right in that we pledge the most money to cover UN costs.
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glyder

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N3OGH
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I bet that building they've got over there on the east side would make some nice condos.

Close to the tunnel, great view of the river.....
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said by Austinloop:

I, personally, have no problem with the U.S. withdrawing from the U.N. and giving the U.N. a reasonable amount of time to leave this country, say 6 months.

The US uses the UN to justify what ever we want to justify so it won't be moving anywhere.
zed260
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said by pnh102:

The UN is NOT a government. Period. What power does it have to impose any tax on any person?

the un is for the most part and has been since world war 2 acting as a goverment

in effect if the un security consul agrees to something all member states must follow or break internetal law and be subject to sanctions and or use of force in effect that makes them the law if they all agree to it (when a nation joined the un the treaty they signed agreed them to abide by the un secuirty council resolutions when they joined so they have no rights to decline to pay a tax if the council ruled to pass one effectivly giving the un unlimited power to levy taxes or anything they see fit)

definition of government
The governing body of a nation, state, or community.
The system by which a nation, state, or community is governed.

it sounds like the un has enough power to fall under the definition of a government just in that one body the security council not taking into account the other parts of its structure
qworster

join:2001-11-25
Bryn Mawr, PA

Double dipping?

Since I already pay for Internet to my ISP, why should I have to pay again for transport? The system works fine as is, and it seems to me that plenty of money is already being made by these turds.

Noah Vail
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Re: Double dipping?

said by qworster:

Since I already pay for Internet to my ISP, why should I have to pay again for transport?

Don't forget that you also pay taxes that fund a big chunk of that infrastructure - as do people in every country.
AstroBoy

join:2008-08-08
Parkville, MD

If anything, they have it backwards.

The content providers are getting requests for data from the ISPs (or customers of the ISPs). So, the ISPs should be paying for the content.

However, I agree with others. No tax is needed.

Noah Vail
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Re: If anything, they have it backwards.

said by AstroBoy:

the ISPs should be paying for the content.

100% of which is passed on to their customers - along with every other expense, fee and tax.

I'm not sure there is a way to 'stick it' to business.
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graniterock

join:2003-03-14
London, ON

Re: If anything, they have it backwards.

The only way I know of is to support a different business. Hard to do though if there is a monopoly.
praetoralpha

join:2005-08-06
Pittsburgh, PA

Google lobbying

Why hasn't Google started buying up politicians left and right like all other big companies?

Oh, right, "Do no evil."

Except Google is a lot less "no evil" than it once was, so what's a little more?
desarollo

join:2011-10-01
Monroe, MI

Re: Google lobbying

said by praetoralpha:

Why hasn't Google started buying up politicians left and right like all other big companies?

Oh, right, "Do no evil."

Except Google is a lot less "no evil" than it once was, so what's a little more?

You complain that Google is more evil than at the time of the motto's genesis, and yet you seem to be complaining (even if facetiously) that they are not evil enough so as to bribe people.

This is a shining example of why such a tax should not be put forth. There's never a shortage of surprising comments.

Mediamorphis

@rogers.com

Supposed UN Content Tax

Dear Karl,

Pls put away your nightmares. The ITU is not set to accept a 'tax' on internet content cos (FB, Google, Apple, etc.) to fund 'legacy telcos'. This stuff is being trumped up by a bunch of right wing technolib types, and there lure was swallowed by Cnet writers.

The particular proposal from ENTO you refer to is bad enough in its own right without labelling it as a tax. In fact, it is simply the AT&T, Comcast, Telefonica, etc. etc. dubious arguments that content cos want to ride on their pipes for free and the telcos ain't gonna let 'em, as ATT's CEO Whittaker waxed in 2005 and his predecessors at the pre-SBC/ATT said in 2001 before they blew up the company.

You might want to have a look at what I've written here »wp.me/pYiHj-EE and Milton Mueller's views here: »www.internetgovernance.org/2012/···ging-me/

cheers
Dwayne

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Re: Supposed UN Content Tax

Hey!

I love your blog, and your twitter feed. You might want to consider registering here on a more permanent basis. I'd love to hear more of you on a day to day basis.
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1 edit
said by Mediamorphis :

Dear Karl,

Pls put away your nightmares. The ITU is not set to accept a 'tax' on internet content cos (FB, Google, Apple, etc.) to fund 'legacy telcos'. This stuff is being trumped up by a bunch of right wing technolib types, and there lure was swallowed by Cnet writers.

No what the ITU is doing is planning a rate structure that would stick it to telcos and not content companies. And more specifically telcos that send a lot more traffic than they receive between countries. IOW, US telcos would see a vast increase in fees, since US telcos do the majority of sending due to most of the big content providers are in the US.

So what we have is a proposal to stick it to the US once again.

»www.nytimes.com/2012/06/11/techn···nted=all

Thus the real conflict is not over governance of the Internet, some analysts say, but over the division of the spoils, with international telecommunications operators trying to use the I.T.U. to extract revenue from American Internet companies.

Kearnstd
Elf Wizard
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Content owners already do pay

Do these telcos seem to forget that Google, Netflix, Amazon, Apple, etc all have to pay their own bandwidth providers? They act like media providers are getting a free ride. The Telcos and ISPs seem to forget that its the content is why people buy higher speeds and go over their caps causing overages.
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cabana
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tax- i

wait wait wait ... I have an idea ... sure ... let's tax the content providers for build out of the infrastructure ... and then ... lets tax the bandwidth provider for the cost of thinking up the content ... and then ...

mech1164
I'll Be Back

join:2001-11-19
Lodi, NJ

Soak them all

Is the mantra coming from the world telcos. We have this and you will pay us even though we requested it from you. Gotta love the twisted logic there. Best response if this goes through is have Google and other content providers send a standard page to any and all requests from the ajoined parties. "We are sorry but due to your Providers unreasonable demands. We are forced to deny all requests made to your system. Please contact your provider for a resolution." Do that for a day or two worldwide and I bet you hear these guys cry uncle. Of course that won't work in places like Syria (or and other jack booted dictator). It will cause the bigger players to get stop this idiocy.

skeechan
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End users already pay for content delivery

As others have mentioned, end users already pay for content delivery. This is just double dipping. There is no content being sent to Telefonica that wasn't requested by users there.

And Telefonica should get a taste of ESPN3 from Google and Facebook. This pay system can work both ways and they should tread lightly. Telefonica needs content producers far more than content producers need Telefonica.

Transmaster
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Has little to do with the Internet

As I said above this has very little to do with the internet. For decades the UN as tried to find away of taxing the 1st world countries so they can have a independent source of income that gets around donations from member nations, mostly the United States. As it is now the US can and has put a hold on these moneys in order to make a stab at controlling the corruption that is the UN. Having such a tax, any such tax, would be a dream come true for the 3rd world thug's and crooks that run the joint now.
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skeechan
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Re: Has little to do with the Internet

Of course but that could be said about ANY tax...it's all a money grab and rarely if ever goes to "combatting" whatever evil they claim they're stealing the money for.

Transmaster
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Re: Has little to do with the Internet

said by skeechan:

Of course but that could be said about ANY tax...it's all a money grab and rarely if ever goes to "combatting" whatever evil they claim they're stealing the money for.

This is exactly what I said. They want to extract money in the form of a transfer tax, from the evil 1st world. They almost had it with the human caused global warming hoax, That fell through. 3rd world leaders who had their hands out for the moola bitched all of the way home.
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Kearnstd
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Re: Has little to do with the Internet

I actually wonder, Unless the UN forced Google off the web do they even have any authority to levy taxes or fees. Unless they stated they would somehow shut off the links to a content provider a company like Google could tell the UN to go fsck itself unless the fees where also backed by laws in countries they operate in.
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Kamus

join:2011-01-27
El Paso, TX

Amusing...

I've said this before, and i'll say it again, we need an ultracheap/realiable way of "last mile" connectivity that telcos have NOTHING to do with. Not much more expensive than buying a wifi router and that works on unlicensed spectrum.

Telcos and "big content" providers are doing one thing obvious: We need to go back to the 90's ISP's. Of course the only thing preventing this from happening is the dreaded last mile.

Our internet prices would drop significantly. And maybe we can finally get the internet to evolve on par with everything else technology wise. It's unbelievable that there's people stuck at 1-3 mbps (DSL users) in the year 2012.
uteck

join:2009-12-30

It's not a tax...

Call it what it is, corporate welfare.
These companies want money from someone else to pay for their infrastructure so they can have more for profits. Let the market decide and if the telcos are losing so much money then let them fold and be bought up by the content producers who will still need to deliver bits to people.
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woody7
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hmm.............

All I can say is FTUN.............................................../
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BlooMe

NOCTech75
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Easy way to get this adopted

Simply say it's for the children

shawn808

@rr.com

No taxation without representation

No taxation without representation

PERIOD.

mediamorphis

@rogers.com

Big New Global Threat to the Internet or Paper Tiger, PII

Hi All,

Glad to see my comments on this post sparked quite a few others. I've parlayed my early thoughts into two longer posts for those interested.

You and find them here:

»dwmw.wordpress.com/2012/06/10/bi···-part-i/

and

»dwmw.wordpress.com/2012/06/11/bi···elecoms/

txpatriot

@or.us

Internet working fine as-is

I don't pretend to know all the details behind peering and how ISPs compensate each other for trading packets, but it seems to be working fine just the way it is.

So please tell the UN: if it ain't broke, don't fix it!

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