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Digital Economy Bill - A Business Implication

Thursday, April 8, 2010

Are the UK government ignoring the business cost of the Digital Economy Bill? Attention has been focused on consumers' internet freedom, but has the Bill business implications?

Digital Economy Bill 101:


Many businesses are arguing that it's not only ISPs and mobile network providers that will incur costs from Bill compliance. Estimated costs for ISPs could be up to £500m, the most of this coming from the implementation of technical measures to restrict internet access.

If one person is suspected of downloading illegal content within a household, the entire household can be disconnected. What if another from the household worked for a company that allowed home working? This could be a cost to business productivity.

The Bill is unclear whether businesses will be classed as subscribers or providers. If businesses provide free WiFi in canteens, and an employee illegally downloads copyrighted content, who's liable and responsible? If responsibility falls to the business, does this also mean that universities and hotels will be classed as providers and face disconnection?

Potentially, this could lead to a choking of innovation in the long-term with these types of providers been treated like ISPs and made responsible for traffic on their networks. Ultimately it is sure to create unknown costs to businesses, universities, and other providers like these in the UK's worst recession.

On the flip side. Could there be a potential solution for businesses? Could this Bill also see the generation of a new area of service? The outsourcing of the monitoring of businesses internet activity to a third party company. What cost would these subscriptions be? It could also see businesses partnering with new ISPs that provide monitoring.

This Bill is set out to protect innovation in the music, film and software industries, but will it in fact restrict innovation in UK schools, universities, and business?

A Letter to Peter Mandelson:

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