Net Neutrality

There’s an interesting article I came across, albeit from Sept 2010, in the Economists’ Voice. It’s written by two academic economists but by full disclaimer have
consulted for telecommunications companies in regulatory proceedings.

They make the argument that telecoms (and business in general) are sitting on large amounts of liquid assets afraid to make capital or labor investments due to the fear of increased regulation.  One interesting analogy they make is comparing net neutrality and premium automobile options:

As laid out by the Commission, non-
discrimination (i.e., “net neutrality”) under
the FCC’s proposal means that ISPs cannot
offer enhanced services to content providers
at any price except zero. That some content
providers may not afford priority service at a
positive price does not constitute discrimina-
tion; there are many upgrades in life—from
navigation systems on cars to private lounges
in airports—that are not free.

Read the complete paper here (only 5 pg): Net Neutrality Is Bad Broadband Regulation

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