Net Neutrality and Carrier Incentives To Invest
An anonymous reader writes "In policy debates before Congress and the FCC, the big ISPs and wireless carriers (Verizon, AT&T, Comcast, Cox, Sprint) argued that net neutrality rules would give them less incentive to upgrade their networks. The reality is just the opposite, says Infoworld's Bill Snyder, citing a game-theoretic work done by two researchers at the U. of Florida's business school. If carriers can charge premium prices for expedited service, they have an incentive not to invest. Hmm, this reminds me of the agriculture business, where prices are sometimes propped up by paying farmers not to grow crops."
With wireless technology developing as it is, is there any chance that some day we can create our own ad hoc internet without relying on expensive cables and thus expensive carriers?
I suppose we would still need some kickass routers, but it's not like open source projects are completely devoid of money. Wikipedia has tons of hardware, no?
I wish as much as anything, we could get the Feds to stop all farm subsidies, especially corn.
WTF should we be doing this? It isn't like we have food shortages in the US. Let's grow all we can...sell it to other countries, but there is no need for taxpayers to pay someone to NOT grown something.
Especially since so many of the farms are large corporations now....
But, sadly, it'll never happen...there's always an election around the corner, and they won't want to piss off states like Iowa, etc.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
...is what you used to call 'regular service' yesterday.
Case in point: Data caps. there were no data caps before, services wee running just fine...and somehow, a couple of years later, you need to pay more for the same data transfer.
It's artificial shortage is what it is.
I am glad that someone did some academic research to prove this, but it seems unnecessary. Isn't the entire point of eliminating network neutrality just so that carriers can charge more for their existing bandwidth? They slow down a site, then charge you to restore the speed back to what it originally was. Or they charge you a fee to make your packets a higher priority than your neighbor's. Either way, no infrastructure changes were required. The highway analogy the article uses is spot-on.
Can someone explain to me why Republicans keep spewing this illogic about Net Neutrality? Why all the hate and rhetoric? It's really a very simple, and should be a non-partisan issue.
Industry is a bunch of spoiled children these days. They cry and scream and throw a tantrum, threatening to take their ball and go home unless they get bribed with candy to behave. Remember a time when all it took to get a business to make a wise move was prove it would make them more money? Neither do I.
If you upgrade your base quality of service, you are going to eat into your revenue from selling quality for particular services A la carte. If a carrier is charging you and or netflix to provide a quality connection why would they invest in making the network "better".
I, for one, am totally shocked.
Shocked I tell you.
What do I know, I'm just an idiot, right?
They aren't providing a service; they are manufacturing a scarcity of service. Any producer or provider will ultimately do this if they are not regulated in some fashion. They will build out a minimum of infrastructure for a maximum of profit. And they will never stop raising fees. Our great-grandparents understood this, so electrical utilities and such are government-regulated monopolies. Some things can't be covered by free market economics. Wiring all homes is one of those things.
Here's simple logic on 'carriers' or ISPs:
ISPs either have a monopoly or pseudo monopoly (in practicality) or they have competition. Therefore, there are two types of situations:
1. Monopolistic - Upgrading networks not necessary
2. Market-based - Carriers must upgrade networks to compete or lose customers
In either situation, there are two types of sub-situations:
1. Net-neutral - Carriers must upgrade networks to satisfy bandwidth demand, content decided by individuals
2. Prioritized - Upgrading networks not necessary, low-priority traffic dropped, content decided by corporations
What we have now in most of America is Monopolistic, Net-neutral. Carriers are arguing for Monopolistic, Prioritized. Consumers demand Market-based, Net-neutral. What should we get? Market-based, Either. What will we get most likely? Monopolistic, Prioritized.
The fact we even need a study to prove that the carriers are lying is ridiculous. The best incentive to force ISPs to upgrade their networks is MORE and DIVERSE competition. It is not free-market competition when the only 'normal bandwidth' Internet access at home for a consumer is a choice between either the local cable company or local telco. It is not free-market competition when the only cellular bandwidth is a choice of 1 of 3 major carriers that control hardware and software of the devices and lobby in unison to our government. Carriers are essentially arguing to continue a monopoly and ignore advances in technology that allow unlimited upgrades in bandwidth.
Instead of arguing net neutrality at all, if our lawmakers started making it easier for some competition in the marketplace, ISPs that do not deliver all traffic quickly would die off.
--- We need more Ron Paul!
you start a business, and we impose regulations to prevent you from abusing your tacit monopoly be it global or regional. Comply with them or spend more lobbying dollars.
do not threaten the customers hoping they will back you. verizon and AT&T subscribers enjoy some of the shittiest wireless service in the first world, comcast customer experience is comparative to that of an internet subscriber in rural india. cox service, if it ever gets installed, is just as bad. Sprint does nothing more than bait-and-switch its customers hoping they remember the CEO chortling about some amorphous unlimited everything plan on paid advertising.
Good people go to bed earlier.
Today most homes is either hooked directly up on fiber or hook up on cobber with translation to fiber not very far away... I'm guessing here, but I think ad hoc wireless networks, would be crazy unreliable, slow, insecure and have an extreme latency...
Require some truth in advertizing from them. Enact legislation where if they do not meet there advertized speeds one average during peek times they are fined and eventually loose there monopolies. There networks are cash cows network upgrades are a simple matter of trending and re engineering for wired networks. They want to suck all the money they can out and avoid capx purchases to make there bonus bigger. Honestly most monopoly services should be bid out where the carrier offering the most for the least gets the contract. I would love to see AT&T loose out on DSL and have to give up that franchise, they have no cost of bandwidth (paying your sister company does not count) but aggressively limiter there subscribers.
No sir I dont like it.
is that there's a good reason to prevent over farming. Over farming tobacco turned Virginia into a desert in the 1800s. Plus in agriculture you sometimes have to get people to grow food that's not profitable but that people need to eat, e.g. it might be a bad year for potatoes, but we still need potatoes.
The trouble with net neutrality, indeed with any concepts on the Web, is that we're brushing up against a post-scarcity economy here. There really isn't any analogy that works because we've never done that before.
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1934
"I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
Because the FCC can send men with guns around to arrest you and take your stuff.
Except it doesn't work that way in reality. The simple fact is that the ISPs don't WANT to compete with each other, because it is too costly to do so. On slashdot you hear a lot of whining about monopolies keeping competitors out, etc. Ever hear an ISP complain about that? In my area Verizon was making a lot of noise with FiOS. They sent out all kinds of advertising, got people to urge their local governments to allow them to offer service, etc. Then, when they actually got permission to deploy, they sent out letters saying 'on second thought, we can't make enough money competing against the local cable companies, so we are not going to deploy'.
No company (that wants to stay in business anyway) is going to invest the huge capital required to build a competing network if the only way they can get customers is compete on price. That is how the government-created monopolies got created in the first place: the choice is either monopoly service, or no service at all.
So that leaves the 'make them share the wires' option. Have you ever met anyone whose phone bill went down when they allowed you to pick your own provider (other than for a brief period of time when all kinds of fly-by-night outfits showed up offering low rates, before they went out of business)?