Vodafone Group continued to press European authorities for a fairer regulatory deal, this time arguing the forthcoming Digital Networks Act (DNA) could enshrine outdated rules which favour OTTs over traditional service providers.

The operator highlighted a host of requirements operators must meet which OTTs and digital platforms do not.

It highlighted emergency service connectivity as an example of the imbalance, explaining people expect the function to be available no matter the app they use.

Vodafone stated traditional operators are also held to higher account in terms of maintaining open and resilient internet access, despite an increased reliance on “cloud providers, content delivery networks and large platforms that sit outside equivalent oversight”.

It asserted growth in the amount of fraudulent activity which “originates or is amplified upstream, across digital platforms and online services”, noting this is not subject to the same requirements placed on operators to prevent it.

Vodafone noted telecom service providers “invest heavily” in “network-level controls” and “cooperation with authorities”.

Customer verification is another bone of contention, with “overlapping” systems which “often duplicate” checks conducted by digital platforms and payment service providers. Operators also face various quality of service, security and “dispute handling” regulations for their customers.

“This asymmetry is often dismissed as a sector complaint, but the impact is most clearly felt by consumers,” Vodafone argued.

Proposed fixes
Vodafone called for the DNA to include “an explicit functional-equivalent principle” to enable regulators to apply rules equally in areas where broadly the same service is being provided.

It argued there is a lack of reality in the DNA proposals, stating the “distinction” between communications services using a telephone number and those which do not “no longer maps neatly onto user experiences or market dynamics”.

Vodafone believes fraud and internet access rules must equally cover cloud platforms, content delivery systems and messaging services.

It argued levelling the playing field would promote innovation and give consumers greater confidence in digital services.

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