July 17, 2006 | Archived Post
Chances are, if you spend enough time on the internet, you've heard of 'net neutrality.' But what does it really mean, and why has it become such a contentious issue in political circles, the business world, and online forums? Here's a basic overview.
The debate over net neutrality splits into two main factions: on one side, you have telecom and cable companies, which provide Internet services to users, and on the other side are content providers like Google, Amazon, and organizations such as MoveOn.org and the National Religious Broadcasters. But what is at the heart of their disagreement?
The concept of net neutrality can be captured by a well-known adage: If it's not broken, don't fix it. However, what defines 'not broken' depends on your perspective, which often determines which side of the debate you align with. The editors of the "National Review" offer their explanation.
For telecom companies, regulating the free market would mean fixing something that isn’t broken. For net neutrality supporters, it’s exactly the opposite.
If net neutrality were defeated, telecom companies would gain the power to charge content providers like Google, eBay, and Amazon for using their bandwidth. Essentially, these content providers would pay for access to telecom subscribers, and in return, they'd get preferred access — better bandwidth and faster delivery of their content. Telecom companies argue that they need this revenue to fund necessary upgrades to the Internet infrastructure. They claim that as emerging technologies and media evolve, these improvements are essential, and the funding has to come from somewhere.
Regulation advocates fear that telecom companies would misuse their control and penalize companies unwilling to pay. Catherine Yang from "Business Week" explains that, "The network operators could block consumers from popular sites such as Google, Amazon, or Yahoo! in favor of their own. Or they could slow down the loading of Web pages from providers who don't pay extra. For example, Google's homepage might load slowly, while a search engine backed by the network company would load quickly."
To support this concern, Google made the following statement about net neutrality:
Two primary voices have surfaced, each advocating for a different side of the debate. Interestingly, both organizations are united in their mission to 'save the Internet.' HandsOff.org, or 'Hands off the Internet,' supports the telecommunications companies. On the other hand, SavetheInternet.com stands in favor of Net Neutrality. To better understand each stance, consider their arguments in their own words (for a more comprehensive overview, visit their websites).
Both websites offer a wealth of information, resources, and strong opinions, along with an online form to contact your representatives in Congress.
More Perspectives
This could lead to an Internet divided into two groups: those who can afford to pay network providers for priority service and those who cannot. The issue is that the 'have-nots' could include emerging content creators like mom-and-pop podcasters or video bloggers. Fewer innovative services would ultimately reduce the demand for broadband, and both network providers and the Internet as a whole could suffer as a result.
- Catherine Yang, "Business Week"
Imposing overly strict net neutrality regulations might be counterproductive. For instance, it would force the costs of building new networks to be borne solely by consumers, which could increase prices or dissuade investment.
While the two viewpoints may seem irreconcilable, there is actually a reasonable compromise that can satisfy everyone. A minimal set of net neutrality rules would still allow operators to test new premium services. It is unacceptable to block or interfere with existing internet traffic; however, operators should be permitted to create fast lanes alongside the current traffic if they wish to.
-"The Economist"
While the broadband market may lack sufficient competition, there’s no compelling reason to impose a specific set of federal regulations for that sector. The U.S. already has a comprehensive suite of antitrust laws to regulate competition and monopolistic behavior. Advocates of net neutrality argue that special rules are crucial because the internet and broadband are so essential to its ongoing development. They assert that Congress must prevent telecom companies from manipulating broadband delivery. However, the internet’s evolution wouldn’t have been possible if Congress had imposed restrictive regulations from the start. It should allow innovation and growth to flourish.
- The National Review
The fundamental reality that free markets require government regulation should be self-evident, but after decades of debate on the "regulation versus free markets" narrative, people still need reminding that the sky is indeed blue. Markets rely on the rule of law, meaning that the relationship between markets and regulation is not a binary choice but a spectrum. Extreme anarchy or excessive regulation both undermine free markets. Fair play in the market is only ensured when there are rules in place.
- Jon Hannibal Stokes, "Ars Technica"
