The Deal
Saturday, October 11, 
8:08 am


[Posted on May 2, 2006 - 4:18 PM]

It's time for the net-neutrality hype to die down. Reuters is reporting that financial institutions are on the verge of joining the fray. On any given day a simple news search will return multiple stories on the subject. Groups are organizing, lobbyists are salivating and most importantly politicians are calculating. Net neutrality is being set up as a hot-button issue, Democrats are "looking out for the common man, fighting to keep the Internet free," while the "stodgy" Republicans are dead-set against it.

This issue has morphed from a legitimate concern (before the new AT&T emerged when SBC CEO Ed Whitacre was mouthing off about his pipes), to an issue for debate a couple of years down the road (when AT&T pledged to uphold net-neutrality practices until at least 2007, probably until 2009), to what it is now...nothing more than a catch phrase to raise money and hopefully win over some voters by spreading doomsday theories.

To be clear: Tiered-pricing would be horrible for the Internet, it would stomp on the throat of start-ups and non-profit organizations, it would raise prices for the consumer. It's a terrible idea. However, the only way the government needs to get involved is if there is collusion among the broadband providers and consumers do not have a net-neutral option for broadband Internet access. The big companies are worried because if any companies switch to a tiered model they'll have to pay. The broadband providers have to know that if they make the switch the extra money they collect from the big players won't make up for the mass exodus of subscribers who will turn to net-neutral competitors. — Brian Ward

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