Sunday, March 01, 2015

What Net Neutrality Really Means

Forget all the talk about equal service, freedom and little-startups vs. telecoms. Here's what the decision is really about.

Netflicks is the biggest single user in the Internet. It represents at least 20% or all Internet traffic. The Telecoms had to add a lot of capacity to handle all that traffic and they charge Netflicks for preferred treatment. Those costs are passed on to their customers.

The FCC decision means that Netflicks gets to use 1/5 of the Internet free and the costs for the additional infrastructure will be passed on to all Internet users through higher fees. This is a huge windfall for Netflicks.

It also means that the government can regulate other Internet traffic. This was sold as promoting freedom for all but, as Google and others have pointed out, the next step will be government officials deciding what is and what is not in the public interest.

Under Operation Chokehold, the government has tried to cut off access to banks from legal businesses it disapproves of including gunsmiths. Do you trust these people to regulate the Internet?

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