Net neutrality is the principle that says all information flowing across the Internet should be treated equally. But with more people streaming data-rich video and playing online games, the Internet faces congestion concerns. Should carriers be able to sell multi-tiered access to heavy users? Should sites that generate massive traffic -- like Google and Yahoo! -- pay extra fees? The U.S. Government is examining Net Neutrality and its financial, legal and social implications. Do we need federal intervention to ensure fairness, or is this an issue for the market to work out?
In a more perfect network, the telephone and cable companies would be investing in more capacity in order to render these issues moot. In a more perfect marketplace, there would be 4 or 5 high-speed broadband competitors offering consumers ample choice and providing a market-based check on violations of Net Neutrality – so consumers could pick a provider that respected the open Internet and didn’t interfere with open access.
But we all live in an imperfect world with a gross lack of capacity and competition. As a result, we need a referee to ensure networks remain open and the incentives to innovate and invest will continue to exist. Ceding this role completely to the network operators to decide will result in a different, more closed, and less useful kind of Internet.
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