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* Telecoms, cable groups say traffic management is essential
* EU member states debating net neutrality rules
* Specialised services key to innovation, industry says
By Julia Fioretti
BRUSSELS, Jan 26 (Reuters) - The European Union should notforce telecoms operators to treat all the traffic on theirnetworks equally as it crafts rules on "net neutrality", severalindustry bodies said on Monday.
The reaction comes a week after Latvia, which holds therotating European presidency, tabled a compromise text on netneutrality, the principle that all internet traffic should betreated equally, under which telecoms operators would facestrict rules on when they can intervene to manage traffic.
Four industry bodies representing the likes of Vodafone, Alcatel-Lucent, Orange and LibertyGlobal called on the EU to allow them manage internettraffic to meet the different needs of all consumers.
"It is not technologically efficient or beneficial forconsumers if all traffic is treated equally. Nor has this everbeen the case," the letter, seen by Reuters and signed by ETNO,Cable Europe, the GSMA and Make The NetWork, says.
Under the Latvian proposal, internet service providers wouldbe obliged to treat all traffic equally, except when theirnetworks face "exceptional ... congestion", or they are orderedto block some content by a court, or they need to intervene toensure the security of the network.
Providers would also be free to offer specialised services,typically at higher speed and guaranteed quality, as long asbroader internet access is not impaired.
Telecoms firms say the ability to offer specialised servicesis key to innovation in the digital sector, such as in the areasof connected cars and e-health, and that strict rules would onlystifle that.
But supporters of net neutrality counter that if leftunregulated, specialised services could crowd out other contentand degrade the quality of the Internet.
U.S. President Barack Obama has come out in favour of strictnet neutrality rules in the United States and said operatorsshould be banned from offering paid "fast lane" deals withcontent companies, for example Netflix.
The EU has been debating net neutrality for more than a yearas part of reforms to its telecoms sector.
EU lawmakers voted on strict net neutrality rules in Aprillast year and any eventual compromise text agreed among EUgovernments would have to be squared with the parliament'sposition. (Editing by David Holmes)
