Fighting for the Future of the Open Internet: EU Net Neutrality is Fair Game at MWC
The Mobile World Congress (MWC) has arrived in Barcelona, and along with the usual fanfare of new devices and 5G talk, a renewed battle over net neutrality is unfolding in the EU. Telecom operators—led by the likes of Vodafone—are turning up the volume on their familiar call for a so-called “fair share” payment from content providers. This time, however, the gloves are really off, and net neutrality is “fair game”.
Wait: Are content & services suddenly a bad thing?
Vodafone and other big telcos argue that streaming services are overloading their networks and that they need direct contributions from these platforms to finance infrastructure rollouts. But critics see it differently. As CCIA Europe (Computer & Communications Industry Association) points out, this “fair share” scheme would effectively amount to a double charge (once by the end user and once by the content provider), while also erecting dangerous tollgates that could throttle innovation. After all, net neutrality is about ensuring a level playing field for every online service—whether it’s a household name or tomorrow’s startup.
Throwback to the “Killer App” Dilemma
Ironically, telcos themselves once feared a lack of compelling content and services when they shelled out billions for 3G spectrum auctions in the early 2000s.
PriceWaterhouseCoopers and Goldman Sachs famously warned of a potential lack of killer apps that could justify this massive investment. The New York Times even described 3G as “an expensive, unwanted albatross rejected by consumers” as “most people use their cellphones just as they did in 2000 – to make calls”.
Many telcos were caught in a FOMO (fear of missing out) mood when (over)bidding for 3G spectrum auctions, and the entire value chain was left with a serious hangover. Put simply, the networks alone weren’t enough: vibrant apps and services would be the real catalysts for 3G adoption.
The reality: Riding the wave of mobile data
Eventually, smartphone innovation and improved user experiences spurred the leap to mobile data. As Vodafone’s then Chairman put it in 2011, “Data has been the key driver of growth over the last year. Our customers around the world are increasingly drawn to the experience of the mobile internet and related services.” In 2012, AT&T’s then CEO openly admitted that an outdated pricing model, not content providers, was largely to blame for network congestion, at a time when AT&T was operating at 41-42% margins.
The rhetoric: Conveniently flipping the script
Today, those same telcos seem to have flipped the script, insisting that over-the-top (OTT) players are a burden to their networks. Their main arguments:
- “We can’t afford the network investments.” (Yet, annual reports tell a different story.)
- “Content providers use too much bandwidth.” (But that’s precisely what end users are already paying for.)
- “We’ll safeguard innovation.” (But in practice, these fees gatekeep new entrants.)
- “We’re protecting local content.” (A pay-for-priority scheme often hurts smaller players who can’t afford the toll.)
The virtuous circle—and the scorpion-frog lesson
What really fuels telco growth is a virtuous circle: great content, competitive innovation, and wide consumer uptake. By stifling the platforms that drive demand, telcos risk harming themselves—like the scorpion that stings its own ride in the fable “The Scorpion and the Frog.” Even worse, ultimately, the whole Internet ecosystem could sink.
Bottom Line
As the MWC buzz fills Barcelona, let’s remember and preserve what made the Internet the transformative engine it is: openness. Double tolls and special fees threaten that foundation. We should keep the Internet a vibrant place—fair, accessible, and worth connecting to—for everyone, telcos and innovators alike.
Written by Caroline De Cock, LL.M. , Head of Research.
March 3, 2025
