Prime Minister Lobbied to Overhaul Net Neutrality Regulations
Prime Minister Andy Burnham is facing pressure from telecommunications giant Virgin Media O2 to amend what the company describes as 'outdated' internet traffic rules. The new Labour government leader, who succeeded Sir Keir Starmer on Monday, has been asked to reconsider net neutrality regulations that require service providers to treat all internet traffic equally.
The company argues that these rules are negatively impacting small businesses and consumers, particularly in high-footfall areas where payment apps and taxi services are not prioritised during network congestion.
Impact on Small Businesses and Taxi Services
According to Virgin Media O2, small businesses are suffering because payment applications are not given priority in crowded markets. Similarly, taxi passengers may experience delays as map and taxi apps are not prioritised when networks are congested. The current net neutrality framework prevents operators from offering differentiated services based on user needs.
Lutz Schüler, boss of Virgin Media O2, stated: 'Outdated net neutrality rules limit innovation and hold back the full benefits of the infrastructure we’re building. We’re not able to help customers by prioritising taxi and map apps when travelling home at night and can’t prioritise payment apps for sole traders in crowded markets. No one is winning.'
Investment and Technological Advancements at Stake
Virgin Media O2 is investing £700 million this year in its mobile network to improve connectivity across the UK. However, Schüler warned that without regulatory reform, the full potential of these investments cannot be realised. He highlighted that new technologies like Agentic AI could enhance online experiences but are hindered by current rules.
'To unleash private sector investment, improve consumer and business services, and deliver the UK’s 5G ambition, government should use its mobile market review to remove these antiquated roadblocks to innovation so we can bring about better connectivity and services for all,' Schüler added.
Expert Calls for Modern Regulation
Stephen Howard of Communications Chambers echoed the need for updated regulations. He said: 'The UK will get the telecoms industry it regulates for – the question is whether that’s one embracing innovation, technological advances and new opportunities, or one that’s stymied by out-of-date rules. If we want a mobile sector pushing the boundaries with the latest technologies and services like 5G and agentic AI, then we need modern regulation that’s fit for purpose, with rules that preserve the open internet, but which give operators the freedom to get creative and experiment.'
The call for reform comes as the government conducts its mobile market review, which could pave the way for changes to net neutrality rules that have been in place for years.
