Competition, Not Regulation

In the recent posting “We Still Need Net Neutrality Legislation €? David DeJean appears to be living in a different world than the rest of us as he rails, without any supporting facts, against high-speed Internet service providers.

DeJean conveniently ignores the environment of competition in the broadband market that has increased speeds, reduced prices and expanded consumer choices. Wireless broadband is now the fastest growing segment of the marketplace. Power companies too are jumping into the fray. The dominant cable providers have seen a significant erosion of their market share €”not due to government regulation, but a policy environment that invites vigorous, diverse investment in the nation’s broadband infrastructure.

The post dismisses the fact that the nation’s more than 1,000 broadband service providers (a market he says is not competitive!) will contribute to over $70 billion in investment in North American infrastructure in this year alone. These investments make applications like telemedicine and distance learning possible. They also help get at the real challenge today €”getting broadband infrastructure out to remote rural areas €”so opportunities exist for all Americans.

The author views with skepticism a recent report by the Federal Trade Commission. The FTC concluded that in the absence of specific consumer complaints (another conveniently overlooked fact), regulation of the Internet is arguably the worst innovation policy America could pursue today. By stifling investment it certainly would impede our nation’s global competitiveness.

The post also clearly misrepresents the position of the Communications Workers of America. Yes, they want to see strong investment in diverse broadband infrastructure across the nation. But they are crystal clear in their opposition to Internet regulation and its dangers to our economy as well as to consumers.

Lastly, I did have to laugh at the comical implication that significant lobbying money is being spent only on one side of this issue. Ever heard of a company called Google? They are spending millions to argue that the government should declare companies that invest in broadband “dumb pipes, €? so that only companies like (surprise) Google are free to innovate. It’s a much harder argument to sell, which is why they stick to the vague claim that they simply want a “neutral €? net.

The stakes are high in this debate. It deserves close examination and straightforward dialogue from all sides. In America, you don’t get ahead through government intervention. You invest, you innovate and you succeed if consumers respond to your products. That’s just what’s happening in the broadband market today. Diverse choices are coming online virtually every day. Prices are coming down. New services are rolling out. We can do better in rural America, and there is a role for government there. But mass regulation of the Internet is hardly the answer. Hopefully cooler heads will prevail in this important debate, so we can continue rather than curtail the extraordinary progress underway today.

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