Net neutrality leads to systemic risk

I have to admit that I have read Mr. Pethokoukis’ blog several times to try to understand his points. His statements show a lack of understanding of the issues as well as not understanding of how business models are changing due to the Internet.

The issue at hand is the ability of service providers to use technology to control the consumer’s experience while using the Internet . For example, certain providers slow down their competitors Internet Phone (VoIP) service using what is know as “traffic management”. While there are benefits to “traffic management”, the issue at hand is that it needs to be applied in a way that is service provider neutral.

Mr. Pethokoukis refers to consumer choices. While having choice among who delivers your Internet connection is certainly good, it is choice of content that is the focal point of this discussion and in fact the value of the Internet is to enable consumers to access a diverse set of content.

The telecom business has evolved over the past 100 years to meet changing consumer demands and competition. This has meant that telecoms needed to evolve their business models to adjust to geometric rises in demand, predatory pricing strategies and changing network traffic from voice to data.

Having spent most of my career building networks and developing business models for networks, I will say that keeping the Internet open will not lead to all the doom that we hear and read from people like Mr. Pethokoukis. I will say that telecoms will need to evolve to compete; otherwise they will be relegated to become just a low margin utility that passes high margin content over their “network plumbing”.

But, of course this is not the first time the telecoms have faced this challenge and they have been bruised a bit but still remain in business and very profitable. ... See all content Hide content

4 months, 1 week ago by Tom Golway on Wordpress

Telcos/isps are actually lobbying politicians to stop net neutrality from seeing the light of day:

http://www.pcworld.com/article/174280/su rprise_mccain_biggest_beneficiary_of_tel coisp_lobby_money.html

This is from a guy who doesn’t even know how to use a computer.

How is it best for people if there is no regulation of the big boys? We’ve already seen what a “market failure” is with the banking industry. Regulations were ripped down; the destruction of the Glass-Steagall is a prime example of this. Contrary to popular belief (this fallacy is also mentioned in the article) the FED is not government body; it is a privately owned organization owned by private banks. Alan Greenspan has admitted to this.

Check your facts Pethokoukis. ... See all content Hide content

4 months, 3 weeks ago by Bob Zinger on Wordpress

I hope the author got a good payout from whatever ISP or TelCOM company he chugs pole for.

One of the biggest factors in “broadband” becoming cheaper is the definition is being changed, but the author prefers to mislead people.

Basically instead of everyone getting access to cheap cable modems, which is what people think of as broadband, jerkoff corporations try to define DSL and other crap internet that are slightly better then dial up, as broadband.

Nice work around.

Watch out too because McCain is trying to destroy net neutrality as well. ... See all content Hide content

4 months, 3 weeks ago by Moose on Wordpress

Look at the open source movement and apply the same principles to technology.

The old saying is that “necessity is the mother of invention”.

These days people would like us to think that profit is the mother of invention. That is not correct.

Work is done to solve a problem or to fill a need. Profit as a motivator distorts the situation. Problems become opportunities to profit, but never become anything more than that. There is no need to recover the costs of building out new infrastructure directly by the builders because the amount of total business generated over those lines will allow all business to flourish across the board. This will more than make up for the individual costs of building out.

Businesses think only of their own survival and prosperity. They care nothing about the citizen. You are a wallet to them. That’s it. And if that wallet is empty then to hell with you.

So let the telcos bitch all they want. They only bitch because they want to be paid. And they are only too happy to ask for bail outs and other support from the very people they intend to gauge. We citizens have propped up a failing economy done in by liars and thieves of all sorts. We have had no bailouts. But we are expected to carry the burden for those that eat better and live better than we can afford to do.

And now we get more arguments from these profiteers that suggest that we should give up EVEN MORE by relinquishing the only consumer protection that keeps our Internet access open equally to all destinations.

Our money is worthless. And it’s business that has most of it anyway. So they can pay out to build for us. It’s not like we haven’t paid, gone without health care, gotten evicted from our homes, and been denied educations so that corporate America can profit.

It’s our time now. More and more people are waking up to the constant line bull shit being spewed on us and we aren’t accepting it any more. The many posts on this subject alone should be an indicator of this.C ... See all content Hide content

4 months, 3 weeks ago by Benny Acosta on Wordpress

used to think rather highly of reuters till I read http://bit.ly/4wFI1D Absolute FUD. for a great explanation #bol 1088 http://bit.ly/fR7ve

4 months, 3 weeks ago by Mark_thetrigeek on Twitter

Would you work for free? If the corporations don’t make money, they won’t innovate or they will get out. Screwing others is not any sort of way to get them to do more for the public good. Just saying.

4 months, 3 weeks ago by Jeremy Nicoll on Wordpress

You (writer) are ignorant and a fool

4 months, 3 weeks ago by noneofyour beeswax on Wordpress

James, you appear to have accidentally the whole article.

“Net neutrality rules would amount to a federal mandate that broadband providers cannot block or hinder the internet traffic of any web site or service, regardless of whether or not that site or service completes with a similar site or service offered by the ISP itself. In other words, a telco ISP could not limit bandwidth used for Skype VoIP traffic, while maximizing bandwidth available for its own VoIP service”

The internet should be open and available without big brother telling you what you can and cannot see/use. A set of regulations opens the door to raise prices on the already expensive service. From a company’s standpoint, this would be ideal, but America should not cater to a company’s desires since they only have the bottom line in mind.

Speaking of price, how did you conclude that the median cost is only $20? Comcast charges $60 for internet alone. Bundled with cable, the cost drops to $45. With phone, it most-likely drops further, but that is not the true cost of the service.

At the very least, misinformed or monetarily persuaded journalists will continue to skew the facts. Now there’s your systematic risk. ... See all content Hide content

4 months, 3 weeks ago by Jason on Wordpress

This guy said it best:

“What an absolute stupid article I didn’t expect to come from reuters. Network Neutrality has to remain in place for an open and fair network that doesn’t prioritise one set of information over the other. Sometimes things are more important than ISPs making profit. Network neutrality is one of them.

Do not fuck up a global network of information because of sheer greed.

- Posted by David “ ... See all content Hide content

4 months, 3 weeks ago by Cpl. Gaines on Wordpress

James,

Do you have kids? Because if you do, then you must be really, really stupid. Do you think that getting some money now to publish this nonsense is worth the trouble you are getting your kids in the future due to loosing the only way we have to express ourselves as individuals to the world? Money is not that important you moron.

4 months, 3 weeks ago by MoneyBuysStupidity on Wordpress

Ukraine opposition leader launches comeback bid

http://bit.ly/16m54l

4 months, 3 weeks ago by trapsreport on Twitter