The Fallacy of Net Neutrality
"There is little dispute that the Internet should continue as an open platform,” notes the Federal Communications Commission. Yet in a curious twist of logic, the FCC has moved to upend the rules yielding that outcome, imposing "network neutrality” regulations on broadband-access providers. The new mandates purport to prevent Internet "gatekeepers” by prohibiting networks from favoring certain applications.
In this comprehensive Broadside, Thomas W. Hazlett explains the faulty economic logic behind the FCC’s regulations. The "open Internet”--thriving without such mandates--allows consumers, investors, and entrepreneurs to choose the best platforms and products, testing rival business models. Networks are actively (and efficiently) involved in managing traffic and promoting popular applications, making the entire ecosystem more valuable. This is a spontaneous market process, not a planned structure, and the commission’s restrictions threaten to stifle innovation and economic growth.
What people are saying - Write a review
We haven't found any reviews in the usual places.
America Online analysis Android anticompetitive App Store Apple applications band broadband market broadband networks broadband providers broadband services Bundling Business models cable modem subscriber Canadian carrier Comcast Comcast’s commission commission’s competition computer network consumers content providers customers dCLECs deregulation developed devices digital subscriber line discriminate DoCoMo downloads DSL subscriber growth economic edge empirical evidence Encounter Broadsides end-to-end FCC’s Google Goolsbee Goolsbee’s handset harms i-mode inno investment investors iPhone iPod launched line sharing mandates market power market rivalry marketplace MetroPCS million mistakes the benefits net neutrality network neutrality rules offered open access operating system peer-to-peer platform price regulation Q3 QI Q3 QI Q3 QI real Internet regime regulatory revenues rival firms rival networks scriber growth Skype subscribership sumer tion tively tomers traffic U.S. cable unduly squelched unlimited unregulated Verizon Wireless vertical integration video streaming VoIP walled garden websites wireless