Monday, December 15, 2008

Net Neutrality's Slippery Slope

This is what CEO Henry Blodget had to say about net neutrality in his recent article on Silicon Alley Insider:
One of the most kneejerk Internet causes in recent years has been "net neutrality"--the absurd conviction that phone and cable companies who paid hundreds of billions of dollars to lay the cable that Internet data travels over shouldn't be able to charge different rates for different tiers of data service.
Absurd? What a ignorant, dick thing to say. His lame site may have never gotten off the ground if carriers were charging tiered service for internet access.

Public dollars paid a big part in the development of the net and the companies pipes' through massive tax subsidies. The inherent competition and level playing field is the backbone to the success of the net.

When his readers call him out for his asinine quote, Henry fires back, "FedEx charges different rates for different delivery times. Is that so horrible? Where are the cries for 'Mail Neutrality'?"

Is he kidding? When you see all this loss on Wall St and Ponzi schemes behind $50 billion house of cards, just know that these guys are in charge.

Equating FedEx with the internet makes no sense. If you charged FedEx access to the highways for every mile they use, or if FedEx were allowed to take over a lane of a public highway for a competitive edge, then you have a case. His analogy is useless.

This is about content. FedEx doesn't ask what's in the box and charge you different rates. A box is a box.

And as for true competition for internet access, we only have one pipe coming into our homes. There are not 100s of wires outside at your curb. ISPs pay for access to that pipe. The government regulates this, they have anti-trust laws.

Hopefully Net Neutrality and it's greedy opponents are a done argument with the new Obama administration.

Source: SAI

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