Tag Archive for 'net neutrality'

RESULTS: Who should own the Internet?

The Question:

The Net Neutrality debate is about who controls the Internet: businesses through competition and contracts, or government by turning it into a utility. What do you think?

2% - The government should be in control of the Internet.
74% - The government should leave the Internet alone.
19% - There should be a way to balance control between these two.
5% - Undecided.
Jim’s Comments:

Should the Internet become a utility?

As you may remember, I’ve been reporting on the Net Neutrality issue for over a decade, including all the significant players in the debate.

Most reasonable people agree that one of the reasons the Internet has been such a phenomenal success is because it has been so lightly regulated. However, as I reported recently, President Obama has taken executive steps to make the Internet a public utility, subject to all sorts of government oversight.

When we asked our small business audience what they thought about this plan, almost three-fourths reject the president’s idea, with only 2% who think his plan is good.

One reason for this overwhelming response against the president is because small business owners have benefited on many levels, directly and indirectly, from an unencumbered Internet. And since over half of the U.S. economy is produced by small businesses, the president should pay attention to what this sector thinks.

In case you missed them, here are links to three articles I’ve written about the president’s  behavior regarding the Internet.

Why you should care about the net neutrality debate

If you like your Internet, you may not be able to keep it

Obama’s Internet words don’t match his actions

Obama’s Internet words don’t match his actions

“You will know them by their fruits.” This ancient wisdom is from the author of the Gospel of Matthew.

Sixteen centuries later, in his book “Will and Doom,” the Rev. Gershom Bulkeley, paraphrased Matthew with, “Actions are more significant than words.”

In the 21st century this timeless maxim continues to serve as we hear President Obama say, “I intend to protect a free and open Internet.”

In the past I’ve reported my concerns about the future of the Internet under the Obama administration. If you believe the Internet is one of mankind’s greatest inventions, if you like its current low barrier to entry for personal and professional benefit, if you’re responsible for the future of a business, then you should share my concerns.

CC Photo via Pixabay

CC Photo via Pixabay

1.  President Obama treats the Internet as a political and diplomatic bargaining tool. After the U.S. government was embarrassed by Edward Snowden’s theft of secrets, the President announced intentions to relinquish U.S. control of Internet governance to a “global, multi-stakeholder community,” even though there was time left on the contract with ICANN (For more on this, see my 3/23/14 column, “If you like your Internet, you may not be able to keep it”).

It’s no secret the U.N., a global, multi-stakeholder community, covets control of a ubiquitous asset through which it can exert more influence and levy a global use tax. Nothing fits that profile better than the Internet. If Obama’s governance plan for the Internet comes to pass, his words, “protect a free and open Internet … so innovators and entrepreneurs can reshape the world,” won’t match his actions.

2.  The commercial Internet has flourished for more than 20 years thanks to a very lightly regulated environment. By definition such broadband laissez-faire is unacceptable to President Obama, who wants to impose his own version of net neutrality.

Consequently, the President’s FCC chairman and straw man, Tom Wheeler, has announced plans for an “Open Internet Order” to reclassify broadband access as a “telecom service” under Title II of the Communications Act. This means the Internet would become a government regulated – and ultimately taxed – public utility. Turning the Internet into a utility would be like performing a heart transplant on someone who just needs a baby aspirin. (For more, see my 11/16/14 column “Why you should care about Net Neutrality”).

Today the Internet is not without governance and usage issues, but none that can’t be handled by marketplace participants large and small through contract, creativity and competition.

Write this on a rock … If Obama’s plans for the Internet come to pass, his words, “I intend to protect a free and open Internet,” will not match his actions.

Why you should care about the net neutrality debate

As policy battle lines are being drawn in Washington, there’s one important issue being debated that might not stay on your radar like Obamacare and immigration.

It’s called “net neutrality,” and I’m concerned it might not get the attention it deserves, even though it could have significant long-term implications. My goal here is to simplify net neutrality so you understand how it can impact your business and how to join the debate.

The term is pretty intuitive. Net neutrality means all Internet traffic gets treated the same, which is what we’ve had for over 20 years; there’s essentially no government regulation of the Internet and no Internet taxes. Also, there’s no preference for, or discrimination against any sender or receiver of email, web pages, music or movies, regardless of bandwidth used via fixed or mobile networks.

Photo credit to SavetheInternet.com

Photo credit to SavetheInternet.com

Three groups have a stake in net neutrality: carriers, content producers and a regulator.

Carriers fill two roles: 1) Local Internet service providers (ISP) connect you to the Internet; 2) national networks, like AT&T and Sprint, own the “backbone,” the physical infrastructure - fiber - that hauls digital traffic between ISPs. Carriers want to charge different rates based on content quantity and speed, which is contrary to net neutrality. Without targeted revenue for their finite bandwidth inventory, they argue, innovation and investment will stall.

Content producers include Google, NetFlix, Facebook and virtually every small business. If you have a website, sell a product online, conduct email marketing or have an instructional video on YouTube, you’re a content producer. Content producers love net neutrality because turning the Internet into a toll road increases business costs and could make small businesses less competitive.

The regulator is the Federal Communication Commission (FCC), led by Chairman Tom Wheeler. Some content producers have asked the FCC to defend net neutrality. But here’s what that request looks like to a politician: President Obama wants the FCC to reclassify and regulate broadband Internet connection as a utility, which is not the definition of net neutrality.

Net neutrality is complicated because it’s easy to appreciate both business arguments. Plus, some even have a stake in both sides of the issue, like a cable company that owns TV stations and movie studios. But inviting the government to referee this marketplace debate is a Faustian bargain because what government regulates it also taxes, and once started, won’t stop.

Write this on a rock … A regulated and taxed Internet is not net neutrality.




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