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