Tuesday, February 4, 2014

Net-Neutrality Overruled! A Win for Everyone!

Why this is good for everyone?

  1. Market Reality
    1. Service Providers are public companies
    2. Broadband is not classified as a "common carrier"
      1. If it was it wouldn't have been deployed
    3. Google, et al, get a free ride and they generate tons of cashs
      1. No one seems to complain about this.
  2. It's not unfair to the small company
    1. No difference than numerous other industries
      1. Not everyone can afford to, or wants to, buy a Superbowl ad.
        1. No outrage here?
    2. This will force small companies and strat-ups to innovate harder
      1. The consumer will benefit more.
        1. FCC is all about protecting the US consumer
  3. Service providers will have the incentive to invest in last mile bandwidth
    1. They will get a fair return on their investment
    2. Consumers will benefit again
      1. So will Google
  4. Consumers will benefit
    1. More bandwidth
    2. Better services
  5. Yet, FCC must TRUST but VERIFY
    1. FCC needs to ensure policies and "tariffs" are fair, equitable and non-discriminatory
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  1. How interesting. The "take" on this varies widely. In reading the ruling by that Judge I saw the judge laying the legal foundation for Net Neutrality to be on solid footing. I saw it as "back to the drawing board". It almost looks like a hat trick, where he says one thing but causes another. Wheeler (FCC Chair) now has to establish a solid foundation that, once and for all, can't be challenged. In the meantime, the ILEC's and large cable companies have been given a victory. I am not sure that is good for the consumer, even more so if it leads to more consolidation, higher prices and less competition. The concentration of lobby power is not in the consumer's best interest and I believe that does cross party lines. I could be wrong but technology won't wait on the government to figure it out. On the other hand, the huge investment needed for infrastructure almost makes the case for a regulated utility, like power. So much to this argument and so easy for it to be confused with other issues: back haul, capacity planning and parasitic applications that devour bandwidth.

    1. Since I wrote this, the Comcast - Netflix agreement mitigates the need for FCC regulations. It's fair to all. Be careful with the regulated utility argument. Under regulation the depreciation cycle (Hence innovation cycle) was 25-30 years. With an unregulated competitive market, the innovation cycle is 3-5 years.