Ofcom UK Drops Net Neutrality Probe of Three UK and Vodafone

The UK telecoms regulator, Ofcom, has today dropped their investigation into possible breaches of the EU’s Net Neutrality rules by Three UK and Vodafone. The move comes after both mobile network operators made key changes to related products and services.

The rules, which are applied via a self-regulatory approach in the UK under the 2016 Open Internet Code, have been designed to protect the open internet from abuse (here). Essentially this means that broadband ISPs and mobile operators cannot impose excessive restrictions against legal internet traffic, albeit with some caveats for general network management and security etc.

However earlier this year it became clear that Ofcom were taking a closer look at some of Three UK and Vodafone’s recent product changes or services (here). A particular focus was placed on Vodafone’s new “Passes” that offer “endless” 4G data usage for certain specific apps (here), albeit while also restricting the resolution of video traffic, and Three UK’s move to prohibit Tethering on some tariffs, while also slowing down certain roaming traffic.

Today the regulator has announced that they are closing both of their related investigations after receiving “written assurances” from the operators (here and here), which confirm that key changes have been made to placate Ofcom’s concerns about their conflict with Net Neutrality.

Ofcom’s Statement on Three UK

Ofcom has … secured written assurances from Three that it has made changes to its tethering and traffic management practices to address our concerns with its compliance with net neutrality and roaming rules.

Since we opened our investigation in March 2018, Three has confirmed that it has already:

* withdrawn restrictions which slowed down speeds of Peer-to-Peer and Virtual Private Network traffic for customers when roaming within the EU; and
* withdrawn restrictions on the use of handset SIMs in dongles and mifis.

Three has also confirmed that, from December 2018 (or earlier), it will:

* cease to restrict video quality to Standard Definition when its customers are roaming in the EU;
* remove any specific tethering or hotspot allowance for new or upgrading customers, to allow for unrestricted tethering (within the UK or EU);
* remove any requirements for customers to purchase a Data Passport to tether when roaming in the EU;
* allow customers on all Advanced Plans to tether without restriction; and
* allow customers on Essential Plans to tether on their current plan, or to migrate to the nearest equivalent Advanced Plan available at that time.

Based on the information gathered and the assurances received from Three, we are satisfied that there is no need for further action at this time and have decided to close the investigation.

Ofcom’s Statement on Vodafone Mobile

Ofcom has today closed its investigation into Vodafone’s compliance with net neutrality rules in respect of its Vodafone Passes products, having received written assurances from Vodafone that it has stopped restricting video quality to Standard Definition in these products.

Vodafone Passes are “zero-rated,” meaning that the data subscribers consume to access and use applications offered in the product packages is not counted toward their general data cap. However, there are certain functions within some applications included in the Passes (such as making voice calls from within a Passes messaging service) that are not zero-rated; data consumed to use those functions then counts towards the subscribers’ general data allowance

The transparency of these exceptions was another concern in the investigation. In order to address our concerns, Vodafone has also agreed that it will maintain at all times accurate information about these exceptions, and will send a text message with a link to this information to subscribers when they activate their Pass.

During the investigation, we also identified concerns with potential restrictions on tethering (for example, using a smartphone to connect a computer or tablet to the internet) for the products under consideration, but Vodafone has clarified that it does not impose restrictions and is clarifying that in its messaging to consumers.

The outcome will make it difficult for similar situations to occur again in the future, although Three UK has reserved the right to re-introduce traffic management measures in the future. Vodafone also said the same for video optimisation.

Equally Ofcom has warned that if such features are re-introduced again in the future then they would expect them to be assessed against the regulations and will open another probe should it prove necessary.