Network Nuetrality: Much ado about nothing

Individual Liberty, National, Small Government

Oct 272009

Last Thursday, the Federal Communications Commission voted to construct basic “network neutrality” legislation designed to prevent ISP’s from favoring some content over other content.

Last November, The CATO Institute put out a 36-page policy analysis discussing the details of Net Neutrality and it’s unnecessity. From page 3:

Network owners who try to profit from discriminatory practices will encounter stiff resistance from an army of tech-savvy users who rapidly develop and disseminate countermeasures and workarounds. Network owners
will find that they lack the leverage to effectively control the behavior of online firms and users and that efforts to limit the activities of their own customers are financial and publicrelations disasters. Network owners who try to construct a “walled garden” of proprietary applications and content are likely to be similarly disappointed, as proprietary services fail
to keep pace with the open Internet. ISPs are likely to respect network neutrality not because they want to but because economic and technological constraints leave them little choice.

Regulations, by definition, are restrictions on freedom. We cannot maintain a free Internet by letting a government agency restrict it’s use, however noble it’s intention sounds. It is more “free” to let markets determine themselves, than to let the FCC get a taste of Internet regulation.

Network owners who try to profit from

tion industry into a government-run cartel.

discriminatory practices will encounter stiff

This and other examples suggest that policy-

resistance from an army of tech-savvy users

makers should be extremely cautious about

who rapidly develop and disseminate counter-

enacting new regulations when nonregulatory

measures and workarounds. Network owners

approaches might achieve the same goals.

will find that they lack the leverage to effec-

If there’s one thing that almost all sides of

tively control the behavior of online firms and

the network neutrality debate agree on, it’s that

users and that efforts to limit the activities of

there is inadequate competition in the broad-

their own customers are financial and public-

band marketplace. Given that consensus,

relations disasters. Network owners who try to

openists should think twice about demanding

construct a “walled garden” of proprietary

new regulatory regimes that could create barri-

applications and content are likely to be simi-

ISPs are likely to

ers to entry for new market entrants. Comply-

larly disappointed, as proprietary services fail

respect network

ing with regulatory regimes requires the ser-

to keep pace with the open Internet. ISPs are

vices of lawyers, lobbyists, accountants, and

likely to respect network neutrality not

neutrality not

other highly paid professionals. Every dollar

because they want to but because economic

because they want

spent on these activities is a dollar that cannot

and technological constraints leave them little

to but because

be spent on R&D or new infrastructure.

choice.

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Network Nuetrality: Much ado about nothing

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