Thursday, November 10, 2011

Anti-Net Neutrality Resolution is Defeated!

From: http://www.aclu.org/blog/technology-and-liberty/it-was-close-we-won-viva-net-neutrality

Today marked a great day for the Internet and Freedom of Speech in the United States as the Senate's resolution to strike down the FCC's Open Internet Rules was defeated.  In case you are unaware, the FCC's rules are intended to protect net neutrality which in real world basic terms means that Internet Service Provider's (ISPs) cannot charge more for certain kinds of Internet traffic.  For example, ISPs could charge more for video streaming or give preference to certain websites/businesses that pay more.  It would be akin to the electric company being able to charge more for the electricity of your TV than the electricity for your electric shaver - not based on the amount of electricity used, but the actual use itself.

The Internet's greatest asset is its freedom of information flow and also an equal opportunity for individuals, organizations, and business in competing for our attention.  If ISP's were to get their way, they could, for example. allow Amazon.com's network traffic to be delivered to your computer in an instant while restricting Joe Small Seller's website from even showing up or showing up very slowly because he couldn't afford the additional fee to your ISP.  The cost could also have been put back on us.  If you want to watch video streaming, that is an additional $20/month.  Can you see the cable companies doing this?  The very same ones that deliver our cable tv and Internet?  I sure can.  The really scary part about not having net-neutrality is that it gives ISPs the power to restrict free speech on the Internet.

The vote came down pretty much to party lines with Republicans being for it and Democrats being against it.  The Republican's perspective is that without the restrictions of the FCC's rules, the market and ISPs will be free to adapt their services to better serve their customers and advance their technology, which is a noble intention and a vote on their principals of a free and unrestricted market which I understand.  In practice, however, there is a severe lack of competition in the space and the opposite will likely happen.  To not have net neutrality would mean much higher prices and a slow-down in the progression of services because there would be little to no pressure for advancement.  Necessity is the mother of invention, right?  The best examples are in Europe where the government has required Cable Companies to license their services to many competing providers in every neighborhood which increases competition and brings prices down to as much as 1/5 what we pay here in the United States - where most people only have 1 or 2 cable providers to their homes.  Another great example is in the mobile phone space.  GigaOm.com recently published a list of the top 20 global mobile operators.  Verizon and AT&T are #'s 13 and 16 in number of connections but are numbers 3 and 4 in mobile revenue.  There are many factors that influence this, but I propose it is a lack of competition that is the driving force behind American mobile carrier higher revenues per user.  As a side note, this is also why the T-Mobile and AT&T merger should not happen.

But regardless, the resolution was defeated and it is a great day for the Internet in the United States!

Here is the chart from GigaOm.com

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