Tech Manufacturers Rally Against Net Neutrality

An anonymous reader writes "Producers of networking hardware such as Motorola, Corning, and Tyco have come out against Net Neutrality. They support the current senate communications bill, and urge immediate action. 'Don't be confused by these spurious complaints about Net neutrality,' Tim Regan, a vice president with fiber optic cable manufacturer Corning Inc., said. 'Net neutrality is a solution in search of a problem.'" From the article: "Supporters say the Senate measure, which was approved by a committee vote in June but has since gotten hung up chiefly over Net neutrality, is crucial because it would make it easier for new video service providers--such as telephone companies hoping to roll out IPTV--to enter the market, increase competition for cable, and thus spur lower prices. Among other benefits, they say, it would also permit municipalities to offer their own broadband services."

Comments

Apple "iTV" and the handwriting on the wall

[TheWoozle]

Basically what this all boils down to is that the phone/cable companies want to make more money for offering us "new" services (that are basically services that they offer now, but *over the Internet*). Of course, by extension, the equipment manufacturers will reap profits by selling everyone new hardware.

The whole tiered Internet thing is based on the fact that they want to differentiate these "new" services from what we think of as the Internet right now (e-mail, web pages, etc.). They want to break up the current pricing structures so that they can charge more for certain bits.

They last thing that telcos/cable-cos want is to become generic bit pipes. If moving bits around becomes just another commoditized service (like deregulated electric in some places), then they'll have to compete on price and customer service. Competing on price impacts profits, and competing on customer service...well, I've been a customer of GTE/Verizon, Southwestern Bell, and AT&T at different times and if I were them, I'd be scared of competing based on customer satisfaction.