ContentsExecutive summary11Introduction and context61.1 Proposals are emerging to regulate Internet interconnection and impose regulated networkusage fee payments from Internet companies to ISPs61.2 Internet interconnection is supported by investments by ISPs and Internet companies alike,and support a wide range of services including public cloud71.3 This paper contributes a historical perspective,with a focus on recent trends and the impactofregulated fees on European stakeholders including public cloud users8A brief overview of Internet interconnection102.1 Interconnection on the Internet has been unregulated since its creation102.2The fabric of interconnection on the Internet evolved to support new services,includingpublic cloud and video streaming,without the need for regulation122.3 Commercial interconnection between content providers and ISPs is based on a balance ofbargaining power that benefits all stakeholders3 Recent developments in the interconnection market173.1 The trends identified by BEREC in 2017 are progressing in a way that remains consistentwith earlier findings183.2 Interconnection disputes provide evidence of ISPs'termination monopoly233.3 Many European businesses access and use public cloud services,with traffic exchangesthrough negotiated interconnection arrangements274 Possible implications of network usage fees on European stakeholders294.1 Proponents of network usage fees have so far failed to provide convincing justification forregulatory intervention in Europe294.2 Regulation of Internet interconnection in South Korea has led to worse outcomes in tems ofSouth Korea's connectedness to the global Internet314.3 Network usage fees would disrupt the entire Internet,including European companies whorely on seamless,efficient interconnection to access and use cloud services33·analysysRef.658783998-391