Save #NetNeutrality

Sharing a few thoughts on the proposed repeal of the "NetNeutrality" rules by the current FCC Chairman.

The lay person needs to understand what this means. Net neutrality discussions invariably turn super technical and bring glazed looks from non-tech people. Here's my attempt to explain. One from a consumer perspective and another from a business perspective.

Consumer perspective

This is bad news for the consumer. Here's why. The reality is that today, most consumers have little to no choice when it comes to broadband internet. Usually, it's one broadband provider or in some rural areas - no providers. If you do have broadband, the technology has become fast enough that there is a whole generation of so called "cord cutters" who do not subscribe for TV or land line phone services and just rely on broadband for everything. I count myself in that category. Between Hulu, YouTube TV, Netflix, PS Vue and others - there are plenty of streaming options as are VOIP providers. Consumers can pick a provider of their choice and use the internet to consume.

If the rules as proposed passes, the broadband provider could in effect declare that you can only access their own streaming solution (which usually is inferior) with the broadband plan you are on. If you want to access the other examples mentioned earlier, they could charge you a big premium. In effect, they can force you to pay more or settle for a inferior service.

Business perspective

Every industry is being disrupted by tech today. Repealing today's net neutrality rules could prove to disastrous for the next generation of startups and disruptive companies. Here's a hypothetical scenario. Verizon has historically had a large yellow page business back in the day of land lines. Today, Yelp is a version of yellow pages but with user reviews. Yelp makes money by selling advertisements much like business could buy bigger ads on the old yellow pages to get more prominent placement. However, a company like Yelp could be put out of business if Verizon decides that this startup competes against their own business so therefore should be given lower priority. Obviously, the example I used above is hypothetical but there are a lot of different such examples.

The argument for the repealing the current rules is that there is currently competition and there is no rationale for treating the internet as an utility.

The reality is that

1. The rules are the reason for the competition and innovation.
2. The internet IS a utility that consumers and business alike have come to rely on.

Allowing the provider to decide who gets priority access would be akin to allowing power distributors to say who gets power and when unless you pay more.

Thanks for reading.