Hilarious fear-mongering. From the days of Alexander Graham Bell till 1984, Bell Telephone, with the help of the federal government, controlled the phone system in the US.
The result? One hundred years of painfully slow and painfully expensive innovation.
Since the Supreme Court ruling of 1984 that broke up the Bell Monopoly? Well, we all know things took off. And things got wild. But, overall, the changes were better than good.
Then the speedy pace of innovation was altered — in a bad way. Obama and Net Neutrality. The government — FCC — stepped in to mandate “equality” throughout the Internet.
The big players don’t object too much when new rules turn them into utility companies. Utility companies earn — by law — a fixed rate of return. But they are exempted from the highly competitive world of the free market.
It’s like immigration to a desirable place. Once the sketchy people get in the door, they’re willing to bar the door to sketchy people who arrive later. The companies on top of the telecom world will stay there in the world of Net Neutrality. They might not see their profits soar, but they will see profits that are pretty much guaranteed by law.
Net Neutrality is the start of ossification. It keeps the old in place. And guards against the new. What did innovation do for the competitive positions of IBM and Xerox and Polaroid? They’ve been hammered. Killed. Net Neutrality is a form of rent-seeking.
Innovation is handcuffed when government regulations are aimed at “fairness”.
Sure, in a market where the Net is not Neutral, there will be shifts in pricing. But that assures the possibility — though not the certainty — that innovators will be rewarded. Net Neutrality is good news for the big guys. For the status quo. But freeing the Net means those big players are exposed to the next Bill Gates, the next Sergey Brin, etc. Freeing the net means today’s leaders face threats they won’t see coming. Or are powerless to stop.
Think roads, tunnels and bridges. How many would not have been built if tolls had been prohibited? Drivers can take the free routes, often the scenic routes. Or they can take the direct routes, the speediest routes, if they want to pay.
Flying. Does anyone object to the existence of First Class and Coach? No. Recall those airlines that experimented with “Passenger Neutrality”. Where are they today? They’re gone.