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Martin Creaner
President & Chief Operations Officer
TM Forum

Martin Creaner has been working in the Telecommunications Industry for almost 25 years and is currently President of the Telemanagement Forum (TMForum). The TM Forum is the industry body for the the global Telecommunications industry. It has 750 member companies in over 185 countries, including all the major carriers and all the leading equipment and software Vendors.

Prior to joining the TM Forum Martin held a number of executive positions with Motorola and British Telecom.

Martin is widely published and is featured and quoted regularly in business and trade journals. Martin is also the author of the leading telecoms business book “NGOSS Distilled”.


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The Financial Cost of Net Neutrality

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What the net neutrality debate has been missing for the past few years are solid facts.  There has been a lot of emotion and moral philosophising, but very few facts to support the discussion.

I read this morning of a report by The New York Law School, that stated that imposition of net neutrality regulation could cost the US economy at least $62billion annually over the next five years and eliminate a total of 502,000 jobs. (Download the full report)

The report seems to work on the basis that if regulation is imposed there will be a retrenchment by the major operators who will reduce network capacity investment by somewhere between 10% and 30%.  This would obviously have a ripple through effect on the economy.  At the high end the negative impact could be as much as $80bn per annum.

As I’ve been blogging for past year, it is not unreasonable to assume that if you take away an operator’s ability to monetize its investment, it will stop investing.  I can’t really get my mind around how you equitably impose the so called “Google-tax”, but I can pretty clearly see that unless some accommodation is reached, the communications industry will go into stasis.  This isn’t rocket science!  


Posted 06-21-2010 7:11 AM by Martin Creaner
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Comments

Venu Venugopal wrote re: The Financial Cost of Net Neutrality
on 06-29-2010 5:55 PM

Very good report by NYLS. Thanks for pointing it out. I think the discussion on net neutrality has to have policy (and hence philosophical) dimensions too. Broadband access and Internet, in general, are increasingly getting tied to the economy, standard of living, socio-cultural changes and even education of the next generation citizens. Hence it cannot be left for the free-market dynamics to decide on what should happen to that infrastructure that supports all these essential drivers.

I heard a interesting NPR (National Public Radio) report yesterday on my drive back from work, on broadband penetration in the US. It is not new that the US is far behind the other industrialized countries in broadband penetration or average available bandwidth speed itself. However, it was interesting to hear that we are now behind a number of developing countries too, including Estonia. If one looks at what additional catalysts some of these countries had, other than normal market dynamics, what stands out is the involvement of the govenment and policy makers in making the building of such infrastructure a national priority.

Martin, you may want to add Government as a fourth stakeholder in your previous blog on "Google Tax". :-)

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