A week of Digital Reports ……

It has been a week of digital reports. On Tuesday the Digital Britain report was launched - introduced in the House of Commons at 15.30 and then a little later in the Lords. Lord Carter’s report has been much reported and commented elsewhere so the major points will be well known - particularly the proposal for a 50p per month levy (or tax!) on all landline telephone circuits to help to fund next generation networks and high speed broadband (fibre to the cabinet etc.) by 2017 and proposals for industry action agains file sharers.

But, as ever, the interesting bits are always in the details. Stephen Carter’s ‘Digital Britain’ report (you can download a copy here ) contains proposals for legislation to take actions against persistent file sharers. Here again is the three strikes route but there is recognition of the need for judicial review before termination - and there is also some recognition of potential for problems for the smaller ISPs.

But, in the media frenzy that accompanied Lord Carter’s report there seemed to be little attention paid to another digital report published this week, the ‘Digital Manifesto’ published by the Children’s Charities Coalition on Internet Safety. You can download a copy of the Digital Manifesto here. The Digital Manifesto, written by John Carr, Secretary of CHIS and Zoe Hilton of the NSPCC, is a new version of a document originally issued in 2004. Since that timere there have been substantial changes in the provision of high speed services and the availability of new types of content and service. It is apposite that the new Manifesto is now available, particularly in the run-up to the next General Election.

Of particular interest to those with an eye on the regulation of the Internet industry are the recommendations for action in the area of content blocking and filtering of access to child abuse content. Typically the sites containing abuse content are identified by the Internet Watch Foundation who are able to provide subscribing ISPs with a CSV blocklist.

The report suggests: “The Government should prepare a Bill that will compel all internet service providers based in the UK to adopt the Internet Watch Foundation list, or some other technical solution that blocks access to all known child abuse websites and newsgroups. The Bill should also detail or make provisions for a method by which compliance with this policy can be tested and publicly confirmed. If it becomes clear that some ISPs will refuse to implement a blocking solution unless compelled by law to do so, the Government should immediately put the Bill before Parliament.

In the meantime the Government should issue an instruction to all departments forbidding them from purchasing internet services from any ISP that does not deploy a solution that blocks access to all known child abuse websites. The Government should also encourage the remainder of the public sector to follow its lead. The Government should consider the use of tax or other incentives to encourage ISPs and other technology companies to develop and deploy new or speedier ways of tracking, blocking or destroying online child abuse images.

Some background is worth entering here. In 2006, the then Minister of State at the Home Office, Vernon Coaker, announced a Ministerial target for ISPs to introduce content filtering to block access to child abuse sites for all (ie 100%) of consumer broadband accounts by the end of 2007. This followed the trials conducted by BT with their ‘Cleanfeed’ system. It is estimated that now, in 2009, the implementation of content filtering is about 95% with predominantly consumer circuits filtered by the big 6 ISPs. There is now considerable pressure for action to be completed to close the remaining 5% gap - suggested as representing some 700,000 households.

There now appear to be some distinct groupings amongst ISPs. There is a group that have implemented filtering, there is a group that have fundamental philosophical objections to the process; there is a group that claim that they cannot afford the cost and there is a final group that will not take any action unless they are forced by legal mandate.

OK, the last group are clearly targeted by the Manifesto recommendations. The cost issue is a little more of a problem. The initial costs for large scale providers such as BT were not inconsiderable. Although costs have come down they remain potentially high for the smallest providers, particularly those who only have a few hundred, perhaps a thousand end user customers. For these the unit costs can be substantial and potentially more than the margin on circuits in the tight UK market. It is interesting to note a comment amongst the detail (the devil is always in the detail!) in the Manifesto (footnote 60 to be exact) with a suggestion that there should be central Government support for the smaller providers, perhaps included within the provisions of the upcoming Communications Data Bill. ‘The Crusher’ thinks that any such support would help those for whom the costs of filtering represent a disproportionately large element of overall provision and might be targeted at those with fewer than 1000 consumer connections.

‘The Crusher’ is aware of the pressure to close the gap. At the end of April ‘The Crusher’ had a meeting with a Home Office Minister who emphasised the Governments commitment to the 100% target and the need to see self-regulation deliver filtering across all consumer circuits within the next few months. If the self-regulatory model was to fail then there was clear indication that the Government would look to introduce mandatory legislation later in the year, perhaps in October. This would be likely to be seen as a non-contentious Bill that would attract cross-Party and media support.

The CCIS Digital Manifesto is a pointer for action by the ISP community. It is clear that the issue will not go away and that ISPs will need to take actions. There is now a European dimension to the issue with a proposal for a Framework Decision which includes, as Article 18, a clause requiring member states to introduce mandatory blocking of child abuse images.

The Manifesto recommendation that Govt. should include filtering as a requirement in public sector contracts is interesting - and would follow the inclusion of quality management and environmental management credentials. The forthcoming ISPA Awards will be interesting - and there may well be pressure on winners, particularly in consumer delivery categories to state and, if necessary, to justify their position in relation to the Govt. target and the Digital Manifesto recommendations.

In a week when we saw two digital reports, it may well be that the recommendations of the CCIS Digital Manifesto have a greater chance of becoming law.

Digital Britain - awaiting the outcome ….

Just another week to go before Lord Stephen Carter publishes his Digital Britain report. And with a week to go the various interest groups are positioning themselves ahead of the launch.

There have been numerous ‘trails’ which may turn out to be more positioning than actualities. We won’t really know until the document is in the public domain.

But things that are likely……

There is a recognition that broadband services are an essential part of modern life (recognised in a survey commissioned by Ofcom), as essential as water, gas and electricity. So broadband becomes the 4th service (do I recall the AA advertising themselves as the 4th emergency service?).

Broadband service providers (essentially that means BT) are to be encouraged to ensure a minimum level of service at 2Mbit. Easier said than done and will require some changes to the means of provision. Ofcom has today (11th June) removed the restrictions that prevented Openreach from operating electronic equipment within the network. This removal will pave the way for Openreach to operate fibre to the cabinet and direct ethernet to end users.

Ofcom recognise that there remains a significant group of internet Not users - typically older generation. They estimate that 20% of this group will sign up to broadband services if the cost and service is right. That might have to include some form of top-up education. Of course, 20% takeup leaves a remaining 80% of the group who do not see the need or do not want Internet access. Increasing takeup amongst this group will be difficult.

There have been moves from rights owners to suggest the introduction of a ‘three strikes and you’re out’ policy. With the recognition that broadband is now an essential service this is unlikely to be approved by Lord Carter - indeed, other Government Ministers have made it clear that the Government will not force ISPs to block access. There will have to be other ways found. Those might include some form of packet shaping to reduce the performance of the sharers - but not all ISPs will be in a position to do this. Certainly the smaller ISPs will find this difficult and will not have the flexibility of multiple central pipes to transfer heavy users to a specific ‘bad boys’ pipe.

So we wait. 16th June will be an interesting day.

French farce

A few postings ago we reported on the vote in the French Senate that introduced the ‘Hadopi’ law, providing for the 3-strikes and you’re out principle to be adopted by rights owners seeking the disconnection of persistent file sharers. After the initial vote in a sparsely attended house, the law passed on to the National Assembly where a rather larger house voted it down. Now it seems that the French authorities have adopted the European approach - if at first you don’t get the result you want, ask them to vote again until they give the right result!

The law was returned to the National Assembly for another attempt and this time it seems that there was a rather fuller attendance. Perhaps some ‘persuassion’ by the French equivalent of the Whips? There is clear intention by the French Government to push the law through and in advance of voting in the European Parliament on the Telecom Reform package.

A large number of amendments to the Bill made it impossible to proceed through the voting process by 5th May and the Bill must now return for further debate. It is seen as likely that this will be by mid-May so it is quite possible that President Sarkozy will see the new legislation in force by the end of the month. This will allow the setting up of a new agency (the HADOPI) which will deal with copyright infringement notices submitted by rights owners and will decide whether to warn or to disconnect users and place them on a list of blocked persons.

Quite clearly this will not be a popular piece of legislation. Civil rights campaigners will be campaigning and asserting that the law will be an infringement of the rights of the citizen. But the campaigners will have some powerful allies. MEPs voting in the European Parliament in Brussels and Strasbourg have indicated that they view internet access as a fundamental service and have voted down 3-strikes approaches.

When the Telecom Package came up for 2nd reading in the European Parliament, MEPs voted 407 to 57 for initial amendment 138 rejecting the Trautman report and reverting to the initial text which provided that only judicial authorities would be able to make decisions on cutting off users. The reversion to judicial authorities means that users accused of infringement would be able to submit a defence and to appeal any decision. It would seem that the HADOPI proposed in France would not be accepted as a judicial body and would not be acceptable under the European package.

Going further, it is interesting to read comments by Commissioner Redding responding to questions in Brussels: “The fourth element I would like to underline is the recognition of the right to Internet access. The new rules recognise explicitly that Internet access is a fundamental right such as the freedom of expression and the freedom to access information. The rules therefore provide that any measures taken regarding access to, or use of, services and applications must respect the fundamental rights and freedoms of natural persons, including the right to privacy, freedom of expression and access to information and education as well as due process?”

Now that makes the Commissioners view quite clear. Internet access is a fundamental right and any rules must respect fundamental rights and freedoms. That will make it difficult to impose any 3-strikes approach without their being a judicial process. Even then, there must be compelling reason to act - and, I suspect, copyright infringment will not be there as the most compelling reason. Perhaps use of the internet to download paedophilic content might be there.

So, how will this impact on the UK. There is discussion in Govt. and we are awaiting the final version of Stephen Carter’s ‘Digital Britain’ report. Trails suggest that that may include details of a Digital Rights Agency - amongst other things. The report is now unlikely to arrive before mid-June - it will not be published in the run-up to local and European elections at the beginning of June - and will probably be after voting in the European Parliament. Any agency that is then set up will have to accommodate the European Telecoms Package - so we are unlikely to see any 3-strikes here. Unlikely anyway as Govt. Ministers have now indicated that this is not favoured by Govt.