Chilean telecom regulator starts enforcing new law on net neutrality

Author: Peter van der Veen - 22-07-2011

Subtel, the Chilean telecommunications authority has begun a thorough inspection of internet service providers (ISPs) and their broadband operations, to verify full compliance with the provisions on internet neutrality, set out in the country's restyled telecommunications law.

The Chilean government is particularly concerned of the interests of consumers. Specifically, Subtel will make sure that internet users are provided with all the information required by law about broadband subscriptions, and that ISPs do not block, delay or discriminate applications or content unless users request it.

The first step of improving the position of Chilean consumers –according to Subtel- is having legible terms and conditions and transparent subscriptions. Service providers were required to present a document clearly specifying the terms and conditions of their services, including the average real speed the customer should receive, which can be monitored by Subtel and the users themselves.

Subtel's inspection will focus on verifying the proper publication of technical and commercial details of internet plans; the aggregation rate or the proportion of users that share the same link when browsing; service reconnection time; link quality and availability; and traffic and network management. The inspection's results will be available within a week, after which ISPs would have to make the necessary adjustments to facilitate user access to information. The regulator is also planning to launch a campaign with users' organizations and local companies to make consumers aware of their new rights.

Last year, Chile introduced a landmark law on net neutrality - which advocates no restrictions by ISPs and governments on transmitting content. As some European countries – most notably The Netherlands – are also moving toward mandated net neutrality, it is interesting to follow closely how the pioneering Chilean telecom watchdog acts to ensure compliance and enforcement of this regulatory framework.

The regulations allow ISPs to introduce tiered pricing and service speeds for internet access, with the intention of moving the industry away from flat fee pricing schemes. Subtel is of the opinion that flat fee pricing favors a minority of heavy users - such as filesharing networks - that often facilitate copyright infringement, create congestion and slow down the internet for others.

Meanwhile in The Netherlands, major telecom operators announce price increases of (mobile) internet subscriptions in anticipation of the new regulatory framework, which is currently reviewed by the Dutch Senate. How prices develop in Chile is yet to be seen, but it will be an important factor, determining whether consumers really benefit from net neutrality on the long term.

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