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calendar   Sunday - June 18, 2006

Net Neutrality

I have not been faced with such an odious choice since the Sixth Grade when I was faced with two ugly girls who both had crushes on me. This was long before I got old, overweight, long in the tooth and slightly gray-haired. I hope they both found husbands worthy of their devotion. Nevertheless, I am faced with a similar choice today and the two gals are extremely ugly ... in fact they’re both FUGLY. I’m referring to the current kerfuffle over “Net Neutrality”.

First, let me introduce the two “gals”. On one side we have Google, Microsoft, Yahoo, eBay, Disney, Amazon, and Apple. This group is known as the CBUI (Coalition of Broadband Users and Innovators). On the other side we have the Bell telephone companies, AT&T, Verizon, Comcast, Charter and all the major access providers. I shall refer to them heretofore as the APG (Access Providers Group).

Second, let me explain in simple terms what the two “gals” really want.

Now, you may be asking yourself what this means to you. Let me add a little more background information first. Currently, even though we invented the darned internet ...

… the United States is 16th in the world in broadband use (behind Liechtenstein!) with East Timor catching up fast. The French may burn Citroëns, but they get 10 megabits for 10 euros--50 times your “fast” Internet access for half the price. That’s just not right.[1]

What the CBUI really fears though is that the APG folks will deny access to certain providers or just limit certain content, thereby depriving them of unfettered access to your home computer. The problem I have with this “fear” is that it just won’t wash in a free market. If Charter refuses to give me access to Disney’s latest movies, I’ll drop them like a hot potato and sign up with another access provider. That’s how a free market really works - we have a choice.

Consumers will consider some restrictions, such as a prohibition on the release of viruses on a broadband network, trivial and entirely acceptable. Other restrictions, such as a restriction on access to the website of a competitor or a specific advertiser, will be considered an intolerable restraint by many. But the important question here is whether any of this should be considered illegal discrimination and prohibited by law.

Must regulators adopt regulations governing the underlying infrastructure of broadband networks or the overall architecture of the Internet to ensure that “openness,” “neutrality,” and the “end-to-end” character of the Internet are preserved? And what would the impact of such regulations be in terms of the economic incentives for current and future broadband operators to innovate and invest in expensive new networks? Do the property rights of network owners come into play here? Do high-tech network operators even have property rights in this case?[2]

Are you sufficiently confused yet? I’ve worked in Information Technology for twenty-five years and have watched the network grow from ARPANET to the INTERNET (and Al Gore had absolutely nothing to do with it). My access speeds have gone from 300 bps to 3Mbps (bps - bits per second for those of you who aren’t geeks). Prices have gone down considerably. In 1982, I was paying Compuserve $6.95 per hour for a 300 bps dial-up connection - today I pay Charter Communications $43.00 per month for 3Mbps broadband.

So where does that leave us? Well, all I can do is give you my opinion. Personally, I’ll take the ugly APG “gal”. I have many reasons for taking their side in this: (1) the CBUI wants government to regulate “net neutrality” and I don’t like the government sticking its nose in business any more than it absolutely has to; (2) I believe the free market will keep the APG folks under control like it has done for the last twenty years as evidenced by the steep drop in access prices quoted above; (3) finally, the deciding factor for me is the fact that MOVEON.ORG is backing the CBUI group. So there! Here are links to the two opposing sides if you want more information ....

References:

[1] The Weekly Standard: “Give Me Bandwidth”

[2] The Cato Institute: “Net Neutrality” - Digital Discrimination or Regulatory Gamesmanship in Cyberspace?


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Posted by The Skipper   United States  on 06/18/2006 at 11:41 AM   
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Not that very many people ever read this far down, but this blog was the creation of Allan Kelly and his friend Vilmar. Vilmar moved on to his own blog some time ago, and Allan ran this place alone until his sudden and unexpected death partway through 2006. We all miss him. A lot. Even though he is gone this site will always still be more than a little bit his. We who are left to carry on the BMEWS tradition owe him a great debt of gratitude, and we hope to be able to pay that back by following his last advice to us all:
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