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Broadband providers have no incentive to limit flow of traffic

Posted June 25th, 2010 in Broadband, FCC, Government Regulation and tagged , , , , by Alton Drew

Free Press has never showed evidence that net neutrality will spur investment. Economides is correct. Why change the traditional rules of broadband, which has been hands off for three decades. The global communications network Free Press refers to has been growing by leaps and bounds as a result of a deregulated telecommunications scheme implemented by the Telecommunications Act of 1996. In addition, the Act set the stage and premise for the deregulated approach that Congress mandated for the Internet.

The best pro-business argument for openness has been made by opponents to any additional regulation of broadband access, namely, that broadband access providers have no incentive to discourage the flow of traffic on their networks because increased traffic flow enhances the value of the network and the returns on investment. This is the main reason, contrary to Free Press’ unsubstantiated arguments, that broadband access providers such as Comcast and Verizon invest $80 billion a year into the deployment, maintenance, and management of their networks.

The investment into broadband networks, especially over the past decade makes Free Press’ conclusion that without net neutrality there would be no network investment all the more erroneous. Simple logic dictates that if there were no investment in networks, there would be no Internet over which Free Press and Color of Change could distribute their inconsistent rants

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