联合国亚太经社会（UNESCAP）：网络中立性：新冠大流行期间太平洋联盟国家研究及对亚太经济的启示

No.233|2024

ESCAP

EconomicandSocialCommission

forAsiaandthePacific

NetNeutralityExceptionality:

ALookintothePacificAllianceCountriesduringtheCOVID-19PandemicandLessonsforAsiaPacificEconomics

JavieraCaceresBustamanteIgnacioA.SanchezGonzalez

FelipeMuhozNavia

ASIA-PACIFICRESEARCHANDTRAININGNETWORKONTRADE

WorkingPaper

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ThispaperisapolicyresearchpaperssupportedbytheFEALACfundedprojecton“SupportthestrengtheningofpoliciestomonitorandpromotetheparticipationofMSMEsincross-bordergoodsandservicese-commerceforinclusiveandsustainablepandemicresponseandrecoveryinEastAsiaandLatinAmerica”.

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iii

ASIA-PACIFICRESEARCHANDTRAININGNETWORKONTRADE

WORKINGPAPER

NetNeutralityExceptionality:ALookintothePacificAllianceCountries

duringtheCOVID-19PandemicandLessonsforAsiaPacificEconomics

JavieraCáceresBustamante1,IgnacioA.SánchezGonzález²,

andFelipeMunozNavia³

Pleasecitethispaperas:

JavieraCáceresBustamante,IgnacioSánchezGonzález,andFelipeMunoz(2024).“NetNeutralityExceptionality:ALookintothePacificAllianceCountriesduringtheCOVID-19PandemicandLessonsforAsiaPacificEconomics",ARTNeTWorkingPaperSeriesNo.

233,February2024,Bangkok,ESCAP.

Availableathttp://artnet.unescap.orc

Acknowledgement:

Thispaperisasubmissionforthe2023ESCAP-UNCTAD-UNIDO-ARTNeTcallforpapers,underthetheme“UnleashingDigitalTradeandInvestmentforSustainableDevelopment.”TheauthorisgratefulforthevaluablefeedbackandsupportfromthepeerreviewersattheESCAPSecretariat,whoseconstructiveinputwaspivotalinrefiningandfinalizingthiswork.Additionally,thispaperwasbenefitedfromtheESCAPimplementationoftheFEALAC-fundedprojecton“SupportingtheStrengtheningofPoliciestoMonitorandPromotetheParticipationofMSMEsinCross-BorderGoodsandServicesE-CommerceforInclusiveandSustainablePandemicResponseandRecoveryinEastAsiaandLatinAmerica."

1Instructorprofessor,InstituteofInternationalStudies,UniversityofChile.Legalresearchfellow,Centrefor

InternationalSustainableDevelopmentLaw(CISDL).Ph.D.(c)LondonSchoolofEconomicsandPoliticalScience,

UnitedKingdom.BAinEnglishLiteratureandLinguistics,PontificalCatholicUniversityofChile;MAinInternational

StrategyandTradePolicy;UniversityofChile.M.Res.InInternationalDevelopment,LondonSchoolofEconomics

andPoliticalScience,UK.javcaceres@uchile.cl.

2AdjunctResearcher,InstituteofInternationalStudies,UniversityofChile.Fellow,InternetCorporationforAssigned

NamesandNumbers(ICANN).AssociateFellow,CentreforInternationalSustainableDevelopmentLaw(CISDL).

LawDegreeandMAinInternationalStrategyandTradePolicy,UniversityofChile.iqnacio.sanchez.q@uchile.cl.

3Associateprofessor,InstituteofInternationalStudies,UniversityofChile.BAinEconomicsandMAinInternational

Studies,UniversityofChile.fmunozn@uchile.cl.

iv

Abstract

ThegrowingrelevancethattheInternethastakenonthedevelopmentofpeople,businesses,andthedigitaleconomy,aswellasitsinfluenceinachievingtheUnitedNationsSustainableDevelopmentGoals,hasmotivatedStatestogeneratedifferentregulatoryframeworkstoensuretheproperfunctioningofthenetwork.Oneofthemostoutstandingelementsoftheseframeworksisensuringaccessandusewithoutdiscriminationforthoseonthenetthroughtheprincipleofnetneutrality.Thisprinciplehasbeenembodiedindomesticandinternationalregulations,includingpreferentialandfreetradeagreements.Nevertheless,inthecontextoftheCOVID-19crisis,somegovernmentsneededtodeviatefromthisprincipleduetotheincreasedInternetusageforeducation,health,andteleworking-relatedpurposes.Inthatcontext,thispaperanalyseshowthePacificAllianceeconomies(Chile,Colombia,Peru,andMexico)haveregulatedandmanagedthenetneutralityprincipleintheCOVID-19contextanddrawssomelessonsforAsiaPacificeconomies.Itfeaturescasestudies,focusingonhowthePacificAllianceinstrumentsanditsmembershaveaddressedandincorporatedthenetneutralityprinciple.ItalsobrieflyaddressesthestateofprogressinselectedAsiaPacificeconomies,APECandASEAN.ComparativematricesofhowtheMemberStatesofthePacificAlliancehaveusedtheirexistingpolicyspaceormodifiedtheirregulationsconcerningtheapplicationofthenetneutralityprincipleduringtheCOVID-19crisisaredeveloped.ThefindingsexposedthecriticalroleoftheInternetandnetneutralityindevelopment,promptingeffortstoensureequalaccessandcombattechnicaldiscriminatorypractices.IntheAsia-Pacificregion,discussionsexist,butconcreteregulationsarescarce.ThePacificAlliance’sbindingagreementsandworkinstrumentsonNNandRegionalDigitalMarketoffervaluablebestpracticesfortheregiontoovercomethischallengeandpromoteequitabledigitaldevelopment.

Keywords:Netneutrality,PacificAlliance,exceptionality,COVID-19,digitaleconomy,AsiaPacific

JELCodes:I18,L51,L96,O24,O53

v

TableofContents

Abstract iv

Introduction 1

TheNetNeutralityPrinciple:LiteratureReview 3

NetNeutralityandtheCOVID-19Pandemic 5

NetNeutralityandtheSustainableDevelopmentGoals 6

NetNeutralityinRegionalPerspective 8

5.1NetNeutralityinthePacificAlliance 8

5.1.1Chile 9

5.1.2Colombia 10

5.1.3Peru 11

5.1.4Mexico 12

5.2NetNeutralityintheAsia-Pacificregion 13

5.2.1TheAssociationofSoutheastAsianNations(ASEAN) 13

5.2.2TheAsia-PacificEconomicCooperation(APEC) 14

5.2.3India,Japan,andSingapore 15

LessonsforAsia-Pacificeconomies 17

FinalRemarks 27

Listofreferences 29

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Listoftables

Table1:RegulationofnetneutralityinthePacificAlliancemembers19

Table2:Regulationofnetneutrality(orsimilar)inselectedAsiaPacificeconomies...23

Table3:Addressingnetneutralityinintegrationfora:PacificAlliance,ASEANandAPEC

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1

Introduction

TheInternethasrevolutionisedhowpeoplecommunicate,accessinformation,andconductbusiness.Ithasbecomeanessentialtoolforindividualsandbusinesses,enablingthemtoconnectandcollaboratewithothersacrosstheglobe.People’sInternetusesvaryfromaccessingnewsandinformation,entertainment,socialmedia,e-commerce,onlineeducationortelehealthservices(Hargittai,2004;Pénardetal.,2013;Vromen,2007).Forenterprises,theInternethasbecomeacriticalcomponentoftheiroperations,facilitatingcommunication,collaborationandenablinge-commercetransactionswithcustomersandsuppliersatthedomesticandinternationallevels(Yadav,2014;Moini&Tesar,2005;Lawrence,2002).Thedigitaleconomy,whichencompassesalleconomicactivitiesthatinvolvedigitaltechnologiesanddata,hasalsobecomeincreasinglyimportant,drivenbythegrowthoftheInternetanddigitaltechnologies(Carlsson,2004;Brynjolfsson&Kahin,2002).Assuch,theInternethasbecomeanessentialtoolforpromotingeconomicgrowth,creatingjobs,andenhancinginnovationandproductivity.TheCOVID-19pandemichasfurtherhighlightedtheimportanceoftheInternetasanessentialtoolforpeople,businesses,andthedigitaleconomy.Ithasbecomealifelineformanyduringlockdownsandsocialdistancingmeasures(Muñozetal.,2020).

GiventheimportanceoftheInternetforpeople,businesses,andthedigitaleconomy,governmentsworldwidehaveimplementedvariousregulatoryframeworkstoensuretheproperfunctioningofthenetwork(Ono&Aoki,1998;Feeley,1999;Toporninetal.,2021).Theseregulatoryframeworksaimtoprotecttheinterestsofconsumers,promotecompetition,andensurethattheInternetisaccessibleandavailabletoeveryonewithoutdiscrimination.OneofthemostdiscussedregulatoryframeworksrelatedtotheInternetistheconceptofnetneutrality.Netneutrality(NN)istheprinciplethatallInternettrafficshouldbetreatedequally,withoutdiscriminationorrestriction.ThisprincipleseekstopreventInternetserviceproviders(ISPs)fromblockingorslowingdownaccesstowebsitesorapplicationsorchargingconsumersextrafeesforfasterorprioritisedaccesstospecificsitesorapplications.NetneutralitycanbedefinedasessentialtoensurethattheInternetremainsanopenandlevelplayingfield,whereallusershaveequalaccesstoinformationandservices.Inadditiontonetneutrality,governmentshavealsoimplementedotherregulatoryframeworksrelatedtotheInternet,suchasdataprotectionlaws,cybersecurityregulations,andintellectualpropertylaws.Theseregulatoryframeworksaimtoprotectusers’privacyandpersonaldata,preventcyberthreatsandattacks,andpromoteinnovationandcreativityinthedigitaleconomy.Moreover,countrieshaveresortedtopreferentialtradeagreementstoincludee-commerceanddigitaleconomyprovisionstobuild,promote,andintegratedigitalmarkets(Muñoz&Cáceres,2022a,2022b;Muñozetal.,2021;Lópezetal.,2020).

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TheCOVID-19pandemichasfurtherhighlightedtheimportanceoftheseregulatoryframeworks,astheInternethasbecomeevenmorecriticalforpeople,businesses,andthedigitaleconomyduringthepandemic(James,2021;Bhandari,2020;Lai&Widmar,2021).However,thepandemichasposedsignificantchallengestotheseregulatoryframeworks.TheincreaseddemandforInternetusageputpressureonthenetworkinfrastructureandraisedquestionsaboutthepropermanagementandadministrationofthenetwork.TheCOVID-19pandemiccreatedunprecedentedchallengesforgovernments,includingamassivesurgeinInternetusageforeducation,health,andteleworking-relatedpurposes.Consequently,higherdemandsinhouseholds’broadbandaccess,shiftsinusageandtrafficpatternswererecorded(Stockeretal.,2023;Baumgartner,2020;Feldmannetal.,2021).Asaresult,somegovernmentshavehadtodeviatefromtheprincipleofnetneutralitytoensurethestabilityandreliabilityoftheirinternetnetworks(Triviñoetal.,2021;Garrettetal.,2022).ThissituationmayraiseconcernsaboutthepotentialimpactonInternetfreedomandaccess(El-Bawab,2021;Pandey&Pal,2020;Dixit,2021;Bellietal.,2020).Moreover,therelevanceofaccessingtheInternetduringthepandemicopenedquestionsabouttheimpactthisaccessandnetneutralitymayhaveonachievingtheSustainableDevelopmentGoals-SDGs-(Sambuli,2016).

WhileamongsttheSDGsthereisnospecificobjectiveorreferencetonetneutrality,ithasbeenrecognisedthatduetotherisingimportanceoftheInternet,itmayhaveanimpactontheachievementofvariousSGDs,includingSDG9(Industry,Innovation,andInfrastructure)andSDG4(QualityEducation).Forexample,asSDG9focusesonbuildingresilientinfrastructure,promotingsustainableindustrialization,andfosteringinnovation,Internetanddigitalinfrastructureaccessiscriticalforbusinessestooperate,innovateandgrow(Alexandrova&Poddubnaya,2021;Ardolinoetal.,2018.).Inthisrespect,thenetneutralityprinciplewouldensurealevelplayingfieldforallbusinessesregardlessofsize,location,ortype.Itwouldpromotefaircompetition,whichisessentialforsustainableindustrialisation.TheobjectiveofSDG4istoensureinclusiveandequitablequalityeducationandpromotelifelonglearningopportunitiesforall.DuringtheCOVID-19pandemic,schoolsanduniversitieshaveshiftedtoonlinelearning,increasingthedemandforreliableandaffordableinternetaccess.Also,theamountofdatadedicatedtolearningactivitiesincreasedexponentially,questioningwhethertheprincipleofnetneutralitywouldhold,asonemayprioritisethiskindofcontentoverothers(Crick,2021;Bogdandyetal.,2020).Hence,theanalysisoftheapplicationofthenetneutralityprincipleinthecontextofaCOVID-19pandemicrecuperationisessentialtoensuretheachievementoftheSDGs,asitmaycontributetothedevelopmentofsustainableinfrastructure,promoteinnovation,andensureequitableaccesstotheInternet,butalsolimitpolicyspaceintimesofcrisis(Layton&Jamison,2023;Georgeetal.,2022).

Againstthisbackdrop,thispaperaimstoanalysehowthePacificAllianceeconomies(Chile,Colombia,Mexico,andPeru)haveregulatedandmanagedtheprincipleofnetneutralityduringtheCOVID-19pandemic.Thisanalysisincludesadiagnosisofhow

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thePacificAlliance,itsinstruments,andmembereconomieshaveaddressedandincorporatedtheprincipleofnetneutrality,aswellasanassessmentofhowthepandemichasinfluenceditsapplicationinthePacificAlliancecountries,withreferencetotheachievementofSDG.AcomparisonismadeherewithIndia,Japan,andSingapore.TheseeconomieshadbeenselectedfromtheAsiaPacificregionastheyareamongstthemostdevelopedregardingtheirregulatorystructureregardingNNandhavebeenwidelyrecognisedfortheirtechnologicalandinnovationcapabilities.Thepaperaimstodrawsomelessonsonusingnetneutralityprinciplesduringexceptionalcircumstances,suchastherecentpandemic.Theresearchwilluseathree-stagequalitativeanalysisapproachtoachievetheseobjectives.ThefirststageinvolvesaliteraturereviewtoidentifytheexistingregulatoryframeworksrelatedtonetneutralityinthePacificAlliancecountries.ThesecondstagefocusesonacasestudythatexamineshowthePacificAllianceinstrumentsandindividualmembercountrieshaveaddressedandincorporatedtheprincipleofnetneutrality.ThethirdstageinvolvesanassessmentthroughcomparativematricesofanalysistoincorporatetheCOVID-19factorandhowmemberstatesofthePacificAlliancehaveusedtheirexistingpolicyspaceormodifiedtheirregulationsconcerningtheapplicationofnetneutrality.Moreover,acomparisonwithselectedAsiaPacificeconomiesandtheregion'stwomainregionalintegrationprocesses(ASEANandAPEC)arediscussed.Furthermore,thepaperexaminesthecurrentnetneutralitydebate,whichiswidelydiscussedinmajorinternationalforumsrelatedtothedigitaleconomy,suchastheUnitedNationsInternetGovernanceForumin2022andICANN76in2023.

Followingthisintroduction,thepaperexplorestheimplicationsofthisdebateonmanagingtheprovisionofdigitalgoodsandservicesduringtheCOVID-19pandemic,withparticularattentiontotheirimpactonachievingtheSDG.Thefirstsectionreviewstherelevantliteratureonnetneutralitytoestablishtheanalysisframework.Then,thesecondsectionpresentsananalysisoftheinclusionofthenetneutralityprincipleinagreementsintheAsia-Pacificregion.Itisexpectedthattheprincipleofnetneutralityhashadagreaternormativedevelopmentandclarifyingcriteriasinceitisnecessarytoestablishnetworkmanagementandadministrationmeasuresthatareauthorisedtomaintainthestabilityofthenetworkduringemergencies.Toconclude,somefinalremarksderivedfromtheanalysisarepresentedontheeffectivenessofnetneutralitypoliciesinensuringequitableaccesstotheInternet,especiallyduringtimesofcrisisfortheAsiaPacificregion.

TheNetNeutralityPrinciple:LiteratureReview

NNisaprinciplethatcallsfortreatingallinternettrafficequallywithoutgivingpreferentialtreatmenttocertaincontentorservices.TheconceptisrootedintheideathattheInternetshouldbeanopenandaccessibleplatformforcommunication,innovation,andexpression.TheprinciplewasdevelopedbyColumbiaUniversitymedialawprofessorTimWuinhis2003paper“NetworkNeutrality,Broadband

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Discrimination”(Wu,2003).Inhisseminalpaper,WuarguedthatInternetserviceprovidersshouldberequiredtotreatallinternettrafficequally,withoutdiscriminatingorchargingdifferentlybasedonuser,content,website,platform,application,typeofattachedequipment,ormethodofcommunication.HearguedthatsuchdiscriminationwouldthreatentheopennatureoftheInternet,limitinnovationandcompetition,andharmconsumerchoiceandfreespeech.ThisprincipleimpliesthatallcontentthatcirculatesontheInternetmustreceiveequaltreatment,keepingthenetworksopentothefreeflowofinformation,whichshouldnotbediscriminatedagainstbasedonorigin,use,orapplication,withISPsguaranteeingaccessandconnectionbetweenusersandnotestablishingrestrictionsonthecontentthatcirculates(Gendler,2015).

NNproponentsarguethatwithoutnetneutrality,ISPscouldbecomeInternetgatekeepers,controllingaccesstoinformationandstiflingcompetitionandinnovation.Therefore,NNisnecessarytopromotedemocraticparticipationinthedigitalage(Faulhaber,2011).OpponentsofNNarguethatISPsshouldbefreetomanagetheirnetworksastheyseefitandthatregulationsmandatingnetneutralitycouldstifleinvestmentandinnovationinthebroadbandindustry.Moreover,itisarguedthatmarketcompetitionissufficienttoensurethatISPsdonotengageinanti-competitivebehaviour,andwhetherthepresenceofcompetitionintheISPmarketcanmitigateanyproblemsassociatedwithdiscriminationandmakenetneutralityregulationirrelevant(PilChoi&Kim,2010).AlthoughconfrontingopinionsmaybefoundconcerningtheregulationofNN,asstatedinaSpecialIssueoftheInternationalJournalofCommunications,“[e]venthosewhoareinclinedtobeinfavourofnetworkneutralityregulationrecognisedangeringoingtoofar.Atthesametime,mostofthosewhoareinclinedagainstnetworkneutralityregulationrecognisethedangerinaworldwithnoregulatoryprotectionforopenaccess”(Pehaetal.,2007,p.710).

Wuinitiallyidentifiedproblemssuchasblockingapplications,thetendencytowardsISPmonopolisationatcustomers'expense,theprioritisationofcertainservices,providers,applications,orcontentbasedonagreementsandcontracts,andalackoftransparency(Wu,2003;Ruiz,2014;Sánchez,2022).Currently,thenetneutralityprincipleprovidesuserswithfourfreedoms,asstatedin2004bytheUSFederalCommissiononCommunications(FCC):toconnectdevices,runapplications,receivedesiredcontentpackets,andobtainrelevantinformationaboutthecontractedserviceplan(Powell,2004;Fernández,2014;Castelletetal.,2014).Ultimately,NNpreventsdiscriminationinelectroniccommunicationsandensuresthatthequalityofaparticularserviceisnotaffectedbyarbitrarymeasurestakenbyaserviceprovider,whetherbyslowingdowncommunication,conditioningaccesstotheuseofspecificequipment,orobstructingaccesstocertainservicesorcontent(Riveroetal.,2019).

TheprincipleofNNhasbecomeawidelydiscussedtopicinpolicyandregulatorycircles,withmanycountriesadoptingsomeformofnetneutralityrules(Krämeretal.,2013;Chengetal.,2011;Greensteinetal.,2016;Nguyenetal.,2020).Moreover,thisprinciplehasbecomepartofthenegotiatingmandatesofvariouseconomiesintheirfreetradeagreements(FTAs)negotiations,assomecountrieshavesoughttoinclude

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provisionsrelatedtonetneutralityintheseagreements(Burri,2016,2017;Gao,2022;Scasserra,2022;Sánchez,2022).AmongsttheargumentsforincludingnetneutralityprovisionsinFTAsarethatsuchprovisionswouldensurethatISPsdonotdiscriminateagainstcertaintypesofcontentorservices,thuspromotingcompetitionandinnovation.

Broadly,themulti-sectoralcommunityrelatedtoglobalInternetgovernanceconsidersNNanessentialelementinmaintainingthefreeandopenarchitectureoftheInternet(InternetSociety,2016).ConsideringtheimportanceoftheInternetforimplementingoperationalandunobstructedtrade,havingsharedprinciplesandlegalinteroperabilitybetweenvarioussystemsensuresareductionintransactioncostsandbarrierstocross-bordertrade.Itgeneratessignificantbenefits,suchasenablingabetterdigitalspaceforexercisingandguaranteeinghumanrightsandabetterenvironmentfordevelopingfreecompetition(Belli&DeFilippi,2016;Wohlersetal.,2014).Thus,thisprinciplesafeguardsthearchitectureofopenaccesstotheInternetandensuresequitableandnon-discriminatorytreatmentoftrafficonthenetworkanddatapackets.Inparticular,aregulationthatenshrinesthisprinciplewouldhaveimplicationsfordailycommercialtraffic,asitusuallyrequiresinternetserviceproviderstoinformtheirusersaboutvariousaspectsoftheserviceprovided,suchastheobligationnottointerfere,hinder,discriminateagainst,orarbitrarilyblockauser’srighttousetheservice.

MostoppositiontoincludingnetneutralityprovisionsinFTAsarguethatsuchprovisionswouldinfringeoncountries’sovereigntyandlimittheirabilitytoregulatetheirtelecommunicationsmarkets.Forexample,itisarguedthatcountriesneedtobeabletomanagetheirnetworkstoensuresecurityortoprioritisecertaintypesoftraffic,suchasemergencyservices.Additionally,ithasbeenstatedthatincludingnetneutralityprovisionsinFTAsmaylimittheabilityofISPstoinvestinnetworkinfrastructure,astheymaynotbeabletochargehigherfeesforprovidingfasteraccesstocertaintypesofcontent.

NetNeutralityandtheCOVID-19Pandemic

DuetotheriseoftheCOVID-19pandemicandtheemergenceofsanitaryrestrictions,includingrestrictionsonthemovementofpeopleandtheclosureofactivities,internetusageskyrocketed(Muñozetal,2021).Ontheonehand,thepopulationusedtheInternetforcommunicationandleisurepurposes,includingvideocallsandstreamingservices.Ontheotherhand,variousactivitiesmovedintovirtualenvironments.Educationservicesweresuppliedthroughdifferentelectronicplatforms,includinglivesessionsthroughZoom,Skype,MicrosoftTeamsorGoogleMeet,anddigitalinformationrepositories(Tadesse&Muluye,2020;Mouratidis&Papagiannakis,2021).Teleworkingbecameanindispensabletooltokeepproductivestructuresfunctioning,andallthoseactivitiesthatcouldbeprovidedthroughelectronicmeansbenefitedfromtheInternet(Mouratidis&Papagiannakis,2021;Haider&Anwar,2023).Nevertheless,thisunprecedentedincreaseinusageofthenetworkslimitedthecapabilitiestoprovidetherequiredbroadbandwidthforallactivities,particularlyin

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developingeconomiesandruralareas(Lai&Widmar,2021;Whitacre,2021).Hence,questionsregardingtheprincipleofNNemerged,asitwasdebatedwhetheraccesstoeducationresourcesorteleworkingshouldhaveprivilegedaccesstothenetworkoverleisureorcommunicationactivities,suchasYouTubeorotherstreamingservices(Finlay,2020;Triviñoetal.,2021).

Totackletheproblemsthatemergefromthisexceptionalsituation,countries-imposedpoliciestoensurecitizens’accesstotheInternet,particularlythosedigitalanddigitallyenabledservicesconsideredcritical.Accesstoeducationapplications,personalcommunication,telemedicine,andgovernmentserviceswereincluded.Thiswasachievedbytheimpositionofzeroratingsandprioritisation,bothofwhichcouldbeunderstoodasinconsistentwithNNprinciples.Zero-ratingsarepricediscriminationbetweendigitalpackage