Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Institute Slams Net Neutrality Legislation

      By
      Wayne Rash
      -
      June 20, 2006
      Share
      Facebook
      Twitter
      Linkedin

        WASHINGTON—Saying that proposed changes to the telecom bill currently working its way through the U.S. Senate will hurt consumers, the American Consumer Institute has announced that its pressing senators to leave any regulatory provisions out of their legislation.

        The public policy group, which studies a wide range of consumer issues, presented an economic study by Dr. Larry Darby, a former chief economist for the FCC, that said that current proposals for regulating payment for the Internet would make consumers pay the whole cost of upgrading and operating the Internet, while the companies that benefit the most, such as Google and Microsoft, would be given what is essentially a free ride.

        Darby presented his study by pointing out that net neutrality has lost any meaning because the term has been hijacked by a number of competing interests, some of which have opposite points of view.

        As a result, he said, he couldnt back net neutrality in any of its forms.

        He did say, however, that proposed changes to the rate structure of the Internet would put consumers in an unfavorable situation.

        The reason, according to Darby, is that broadband services, as well as content provisioning services, are what Darby calls a multi-sided market.

        This is an economic state in which all parties to a transaction gain something, and no one side is responsible for the full cost.

        In an interview today with eWEEK, Darby compared multi-side markets with how the broadcasting or newspaper businesses work.

        He said they provide information that benefits consumers, and also advertising that benefits the publisher and the ad-buyers.

        /zimages/7/28571.gifRead more here about proposed alternatives to net neutrality.

        As a result, no one side pays the full cost, and in many instances the consumers receive the product of service for free.

        “An Internet service provider that provides the infrastructure is in a multi-sided market,” Darby said.

        “It is providing access to me, but it is also providing a valuable service because it provides access to content providers and various enablers.”

        Darby said that because the content providers get to sell advertising and other services, both sides benefit.

        But he said that the net neutrality arguments are different since most of the proposals for changing the net neutrality portion of the telecom bill would include price regulation.

        “For a set of beneficiaries in a multisided market to say that only consumers should pay for it flies in the face of reality of the rest of how the economy actually price services,” Darby said.

        Darby said he thinks that the net neutrality changes are gaining traction because theres a lack of trust for telephone and cable companies by consumers who have been abused by those companies over the years.

        “There is a tradition of government involvement in companies like phone companies,” Darby said.

        Darby also said that he thinks the current provisions in the Senate bill—the ones that many of the major players are trying to change—actually work nicely to protect consumers.

        “I think theres enough rivalry between the parties, including the Internet providers, Google, Microsoft, Yahoo, etc., that youre going to have a classic case of offsetting market power,” Darby said, explaining that it will work in the same manner as credit card companies—in another multi-sided market—deal with major vendors such as car companies and other large organizations—all without a regulatory agency.

        The American Consumer Institute made its announcement yesterday.

        “Net neutrality is a bad deal for consumers, and regulating the Internet is a bad deal for investors, innovation and market efficiency,” said ACI president Stephen Pociask, summing up the organizations position.

        /zimages/7/28571.gifCheck out eWEEK.coms for the latest news, views and analysis of technologys impact on government and politics.

        Wayne Rash
        https://www.eweek.com/author/wayne-rash/
        Wayne Rash is a freelance writer and editor with a 35-year history covering technology. He’s a frequent speaker on business, technology issues and enterprise computing. He is the author of five books, including his most recent, "Politics on the Nets." Rash is a former Executive Editor of eWEEK and a former analyst in the eWEEK Test Center. He was also an analyst in the InfoWorld Test Center and editor of InternetWeek. He's a retired naval officer, a former principal at American Management Systems and a long-time columnist for Byte Magazine.

        MOST POPULAR ARTICLES

        Big Data and Analytics

        Alteryx’s Suresh Vittal on the Democratization of...

        James Maguire - May 31, 2022 0
        I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
        Read more
        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Cloud

        IGEL CEO Jed Ayres on Edge and...

        James Maguire - June 14, 2022 0
        I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
        Read more
        Applications

        Cisco’s Thimaya Subaiya on Customer Experience in...

        James Maguire - May 10, 2022 0
        I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
        Read more
        Big Data and Analytics

        GoodData CEO Roman Stanek on Business Intelligence...

        James Maguire - May 4, 2022 0
        I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2022 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×