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The New Yorker: NET LOSSES

The “New Yorker has a great commentary”:1 on exactly why we are fighting for network neutrality.

bq. The logic of the tiered-access approach is simple: broadband companies do the work of providing Internet access, so they should be able to charge what they can for it. Telecom executives say that the revenue from tiered access would let them invest more in adding bandwidth and improving download speeds, and argue that Web sites are parasites taking, as A.T. & T.’s chairman, Edward E. Whitacre, Jr., put it, a “free ride” on the pipes the broadband companies own. But these companies have pipes into people’s homes in the first place only because of a long history of government regulation, and people want to use those pipes only because of all the value the so-called parasites have created. And it’s that value which tiered access—even if it does improve the Internet’s infrastructure—will put in harm’s way. The Internet has become a remarkable fount of economic and social innovation largely because it’s been an archetypal level playing field, on which even sites with little or no money behind them—blogs, say, or Wikipedia—can become influential. If the Internet turns into a zone of tiered access, it will be harder for noncommercial sites or startup companies to compete with bigger firms.

bq. Broadband providers insist that they have no plans to block access or degrade service to those who don’t pay a premium rate. But if some companies are getting better service, then all the others are getting worse service. Besides, there have already been examples of active discrimination. Last year, a rural telecom company in North Carolina blocked its users’ access to the Internet-based phone service Vonage, and in Canada the telecom company Telus blocked access to a Web site supporting the telecommunications workers’ union. Market forces will offer some check to this kind of interference—if a particular provider goes too far, customers will take their business elsewhere—but, in the world of broadband, market forces are weak, because most cities have only two major providers. More than ninety per cent of Americans get Internet service from either their local phone company or their local cable company, and A.T. & T.’s newly announced acquisition of BellSouth means that there will soon be only three major phone companies in the entire U.S.

bq. …

bq. Decisions that once were made collectively by hundreds of millions of Internet users would now be shaped in large part by a handful of telecom executives. It used to be said that the Internet was all about “disintermediation.” With the end of network neutrality, the middlemen are striking back.

[1]http://www.newyorker.com/talk/content/articles/060320ta_talk_surowiecki

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Filed under: Network Neutrality, News, Policy

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