small Internet Service Provider HELP

[*lulu7*]

I run a small Internet service provider (ISP) in the UK. We’re running into some financial problems and could do with some advice.

Our chief engineer says that we could save money by using ‘open source’ software, but I’m not sure what it means in legal terms. I know that Open Source Software gives us more flexibility as flaws can be detected easier and initial cost is free. Would you recommend we take out insurance to cover our backs?

We’re also losing a lot of money through denial of service attacks – can we stop them legally with an injunction?

We have heard through the Association of ISPs that we now have to retain user records. I know the new EC directive has been extended to ISPs and that we are to retain records for 12 months? That sounds expensive; I know why we have to do this as the government feel this will increase national security etc, however there has been debate as to whether small ISPs will be reimbursed by the government?

Can we use the data we collect to provide targeted advertising? as long as we have consent, are there any laws that cover this besides the Data Protection Act.

Finally, about network neutrality, will it affect me here in the UK and what is the current state of the law and the future for my business being a small ISP?

[Brian Turner]

Sorry to hear about the DDoS attacks - I know from experience what a pain these area, and can be very costly to deal with.

Open Source is a non-issue, really - it's just a choice of software, really. It removes licencing costs.

As for targeted advertising - you could fall foul of doing so, through data protection and general distrust by users - just Google Phorm to see what happens.

Network Neutrality isn't being changed at present.

Hope that helps, and welcome to the forums.

[Felixcatuk]

Sorry to hear about your problems. Open source is a sound choice, but get your own legal advice on the t&cs. There are many open source licences, and many variations. Some permit commercial use, others don't. Concerning behavioural targeting, you might want to consider the RIPA Part 1, Data Protection Act, Fraud Act, Computer Misuse Act, Trademarks, and the Copyright Act... as well as European Communication Privacy Directives, all of which would tend to suggest interfering with, monitoring, or copying the content of personal/commercial communications is a crime. Remember there are two parties to your communications, and without the consent of both, you have no right to intercept or use the content of the communication. But again, seek your own legal advice. Apart from the legality... the reputational damage could be immense. As BT discovered to its cost. Bear in mind too, there are otherways to differentiate your business than just lowest price. Making an unequivocal commitment to protect your customers against systems like Phorm will have significant appeal to many. Providing a guarantee of network neutrality will also attract some. Pricing by consumption will prevent heavy P2P loads (and allow low volume users to enjoy your service with confidence). Offering other value added services like legal access to movies, IPTV, music is another that has been tried by some.