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 Channel Futures

Sales & Marketing


The Good, the Bad and Net Neutrality

  • Written by Elliot Markowitz
  • November 14, 2014

So the debate over net neutrality is rising again after President Obama recently said he is calling for the Federal Communications Commission (FCC) to regulate broadband services. While the basis of the president’s argument hinges on the idea of protecting all consumers’ ability to access content through the Internet, does that make the idea of net neutrality a good one? It is fair? Will it empower consumers and users, or handcuff service providers and innovation?

So the debate over net neutrality is rising again after President Obama recently said he is calling for the Federal Communications Commission (FCC) to regulate broadband services. While the basis of the president’s argument hinges on the idea of protecting all consumers’ ability to access content through the Internet, does that make the idea of net neutrality a good one? It is fair? Will it empower consumers and users, or handcuff service providers and innovation?

These are all good questions and opinions vary. I will share with my thoughts. This not necessarily the position of The VAR Guy. Please also keep in mind this issue is not a political one to me, as I do not relate to either major political party. It’s a business and free market issue to me, plain and simple. And while some government oversight is necessary for fairness in every sector, there is a fine line between federal overreach and consumer protection.

In short, the president is prodding the FCC to adopt a new set of regulations giving the government greater oversight over Internet providers. As part of this effort, he wants the FCC to stop ISPs from blocking or having the ability to slow content and ban paying for “fast lane” access, therefore assuring all content is available at the same speed and rate regardless of where it comes from.

"We cannot allow Internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas," Obama said in a statement released by the White House. "I believe the FCC should create a new set of rules protecting net neutrality and ensuring that neither the cable company nor the phone company will be able to act as a gatekeeper, restricting what you can do or see online,” the statement said.

While on the surface it may sound reasonable, those in the IT business, especially solution providers, know that this utility approach to Internet access is a government overreach and will dampen innovation and ultimately be harmful to ISPs, solution providers and their customers. More government involvement drives inefficiency and waste and deters the way the laws of supply and demand should work.

Core to this net neutrality problem is the fact that it would eliminate competition and eliminate pricing structures based not just on need but value. Solution providers make their living off a value pricing model, tailoring their services to the exact needs and affordability of their customers. Take away service competition and the ability to price at value and you destroy the innovation that has catapulted the digital world.

Industries do need some sort of regulation to make sure consumers are protected and there are no biases. But more government involvement—whether it is in the transportation industry or health care or IT—will slow the wheels of progress, stifle innovators and competition and ultimately hurt the consumers. And when consumers are hurting, businesses are hurting. And when businesses are hurting, solution providers are hurting.

You agree? Let me know.

Knock 'em alive!

Tags: Agents Cloud Service Providers MSPs VARs/SIs Sales & Marketing

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4 comments

  1. Avatar Anonymous November 14, 2014 @ 10:02 pm
    Reply

    How does removing the
    How does removing the equality we’ve had for 30+ years make things better? Only the ISP’s are lining up on this- not the innovators like Google, Amazon, et al. If you’d allowed ‘fast lane’ we would still be paying exorbitant fees for AOL access to AOL Time Warner properties which would have crushed the Googles/Amazons/Youtubes before they even had a chance.

  2. Avatar Anonymous November 16, 2014 @ 7:20 pm
    Reply

    The internet is fine, leave
    The internet is fine, leave it alone.

  3. Avatar Anonymous November 16, 2014 @ 7:52 pm
    Reply

    In short: bulls**t! How does
    In short: bulls**t! How does “We are going to keep you from throttling and restricting broadband access” harming innovation and/or competition? It doesn’t. My honest opinion: The Broadband companies (Cable, Telecom et. al) want to retain their customers, but don’t want to build their infrastructure at the expense of innovation.

  4. Avatar Anonymous November 17, 2014 @ 3:48 pm
    Reply

    I disagree. You are glossing
    I disagree. You are glossing over the fact that telecommunication companies are not currently a part of our free market system. They have been granted monopolies by the government meddling you wish to avoid (and I understand and support that). But there are effectively no market forces at play on these entities. Which is why our Internet infrastructure is an embarrassment. Breakup AT&T, Verizon and any other internet provider with over 60% market saturation in any given town and city into four different players… Then let’s talk. But, it’s too late. They have already proven to be retarding progress and have severely crippled the potential of the economy that created the Internet in the first place with their greed and sloth.

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