"... the regulations could reverse the competitive downward pressure on broadband prices that has enabled Latinos and communities of color to connect to the Internet and even kill the next generation of online applications that are so critical to online innovation."I have to say the concept of net neutrality sounds progressive and has all the outward appearances of the right thing to do, so much so that in some circles being against net neutrality is like being against motherhood.
But everyone who uses the Internet forgets that there's a real infrastructure behind it all - stuff that amounts to telephone lines dedicated to data. To you and me, that infrastructure is basically free. Users pay for access to the net and web sites pay for access to the net, but the connection that ultimately links the two is free. That low-cost distribution is fueling some of the most profitable companies on the planet. Googlezillionaies! But the companies that are building and supporting that infrastructure would like a slice of some of those riches.
Here's de Posada again.
"The corporate giants pushing the proposal — Internet companies like Google and eBay — say that the rules are needed to prevent broadband providers like the telephone and cable companies from blocking access to or discriminating against certain Web sites."Yes, they could very well assert their power over the distribution network to milk some money out of it. What if they did? Some smart person would invest in a company that circumvents that distribution power. Unless of course some idiot politician passes a law that prevents it.
The critical question is can we ensure true competition for services in the United States. I have to say no. De Posada makes an assumption that we could have true competition right here and now. Consumers face tough switching costs in going from one provider to another because of limited choices. There are limited choices because businesses face high barriers to entry to provide access to individual households.
There's good capitalism and bad capitalism. Good capitalism forces competitors to become more efficient for the benefit of most of us. I'm no economist, but to me net neutrality matters when the infrastructure is controlled by one company, especially the last mile. For example, take anywhere outside of the most developed countries.
The EU just sanctioned Telefonica in Spain for being anti-competitive. (see my earlier post by clicking here.)In Mexico, TelMex has a stranglehold on the market.
If there's no competition in building out infrastructure then Net Neutrality IS CRITICAL!
NY Sun story
http://www.nysun.com/pf.php?id=58924&v=4115545811
No comments:
Post a Comment