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Economics

Refusal to back Net Neutrality should even the playing field

November 17, 2010 by Richard in Economics, Internet, Media with 2 Comments

Consumers clicks will be less guided by Google without Net Neutrality

Yesterday’s announcement by the UK government that they will not back net-neutrality principles could perversely give the internet a more even playing field.

The main proponents of net neutrality, the principle that ISPs should not give preferential access to any single content provider, are Google and the BBC. These organisations already wield too much power over internet traffic, and they stand to lose out the most from the government’s decision.

ISPs such as VirginMedia and AOL will be free to encourage traffic to visit sites that pay them. While at first glance, this seems to not be in consumer’s interest, I would argue that it is, since it reduces the influence of Google over where traffic is directed. Google dominates search and content providers already pay Google many millions of dollars to deliver traffic. Now those content providers have an alternative means of buying traffic, and such competition has to be a good thing. In the long run, if ISPs become too prescriptive, consumers will lose trust in them and vote with their clicks

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2 Comments

  1. New BT Scheme Breaches Net Neutrality | Purecontent.comJan 19, 2011 at 8:52 pmReply

    [...] On Tuesday, British Telecom was accused of breaching net neutrality by creating a system which would allow its content providers to charge extra for delivering video at faster speeds. Under the new two-tiered system called “Content Connect”, ISPs who use BT to deliver their internet service are given the chance to charge content owners for enhanced delivery, or what they are calling “premium service.“ In an interview with the Independent, Jim Killock, a member of Open Rights Group warned that the new service could eventually lead to less choice for customers; with the scheme opening doors for ISPs to “lock” customers into arrangements; impacting competiveness and making it more difficult for smaller companies to gain a market foothold. He says,” “The question here is that if ISPs are competing with companies on the internet and are locking their users into content delivery, they are going to damage competition and limit the development of the internet – that’s a danger here,” he said. “Some of the services – particularly bundled services that might get offered – could be very damaging to competition and customer value.” Mr Killock goes on to say that “small efficient internet companies” which deliver film and TV content particularly could face difficulties. “It could quickly stop being a level playing field,” Killock says. “Given that BSkyB are already part of the ISP market, it does not take a lot of imagination to see how that might happen.” According to the Independent, the Government has already indicated that it is prepared to support a two-tiered internet. [...]

  2. Google Spends Millions Lobbying US Government | Rev2.orgJan 19, 2011 at 9:04 pmReply

    [...] its interests on cyber security policy, internet privacy regulations as well as FCC regulations on internet neutrality. Internet privacy in particular is a big topic of concern for the social networking company who has [...]

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