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Is Net Neutrality Helpful or Harmful to Internet Business?

NetThe concept of network neutrality is a highly controversial one. Advocates maintain that Internet service providers should not be allowed to manipulate Internet traffic provided by their competitors in order to speed up their own service. ISPs say they need their freedom to choose, for business development purposes.

The argument is growing in intensity as efforts increase to introduce a national broadband plan. Broadband services will receive a huge boost as a result of the recent fiscal stimulus package. More than $7 billion was included in the legislation to fund improvements in broadband infrastructure across the country.

There are strong feelings on both sides of the net neutrality debate and it does not appear as if the argument will be resolved anytime soon. Major Internet service providers are strongly against any intervention, citing freedom to innovate and invest. Leading provider AT&T has filed a 30 page document with the FCC attacking those who advocate net neutrality. They feel that the FCC should only get involved on a case-by-case basis, should network discrimination be charged. As a most recent example, Comcast was punished in a high profile case when they were found to have used “invasive” traffic shaping practices.

The big carriers and ISP providers alike agree that if net neutrality rules were to be implemented it would severely restrict their ability to manage their networks and maintain their service levels. Some proponents believe that a network must discriminate, as quality levels vary so much taking no action would be even more counter productive. They are adamant that government neutrality is the best way to create a robust and competitive broadband market.

Key figures on the opposite side of the argument say that “the essence of the Internet is that it carries all packets that follow its protocols regardless of what kind of data the packets carry.” They fear that the major players could stifle a truly open Internet. The “it’s the Internet, stupid” campaign insists that the FCC maintains full non-discrimination and network interconnection obligations within a nationwide broadband plan. They maintain that networks will then have to allow users access to any Internet content of their choice so long as it is lawful, to connect using any device and to run any web applications they want. Carriers may not discriminate or exercise preferential treatment.

Internet business in general has a vested interest in this argument. Whilst broadband access for all is a universally held goal, it is in the interest of Internet business to ensure that the major carriers do not have an unrestricted playing field. In a free-market society nobody likes to think that government is intervening too much and whilst widespread developmental restrictions would also be bad in the long term, a common ground must be achieved. The FCC is due to release its final plan in February 2010 and until then it seems that the battle to determine our Internet future will continue.

Do you agree with the activists stance or the ISP big guys? Let us know.

Adam Toren

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