This idea of “Net Neutrality” has been all over the news lately. In fact, just a quick google search will turn up numerous articles published in all the top news sources including Washington Post, the NewYorker, Fox News, Huffington Post and NBC News. And after doing some research, its very clear why net neutrality is on the forefront of so many articles- the new rules proposed by the FCC “may be the end of the Internet as we know it” (Gerry Smith, Huffington Post).
What is Net Neutrality?
Net neutrality is the concept that Internet service providers (ISP’s) should allow access to all content and applications without favoring or blocking some sources, products, or websites. As of right now, we have net neutrality. Meaning that today, ISP’s like Verizon, Comcast, Time Warner Cable, and AT&T have to treat all content on the internet the same- whether a user is trying to reach Netflix, Facebook, Google, or a small tech startup application, the ISP’s provide the same service to the end user.
How Does the New Proposal Change Net Neutrality?
According to Nathan Wheeler of Huffington Post, “Last week, the media began to report on FCC Chairman Tom Wheeler’s new proposed rules. The specifics have not been released yet, but according to the news reports FCC will allow ISPs to negotiate individualized discriminatory deals with different websites and Internet services (like Netflix).”
This means that if the proposal takes effect, the ISP’s will have the authority to create “fast lanes” and “slow lanes” for the internet and companies will have to pay to be in the “fast lane.” This tiered level of service for some websites and applications over others is why so many people are against the proposal.
What are the possible results of this?
There is widespread debate over what exactly the end result of these new regulations will be. However, the three main concerns seem very logical to me:
- The end of net neutrality will bolster large corporations while snuffing out small businesses
- It will give ISP’s a means to discriminate against certain content
- The end result will be increased prices across the internet
1. End of Net Neutrality = End of Small Businesses and Innovations
In my opinion, this argument is the strongest and most probable to come about if the new FCC regulations pass. As most people in the E-Commerce world know, Speed = Money. As seen on one of our recent infographics, “Web Performance Impacts Conversion Rates” just a one second delay in page load time results in a 7% loss in conversions, 11% fewer page views, and 16% decrease in customer satisfaction. Small e-commerce businesses aren’t going to be able to afford the “Fast Lanes” occupied by Amazon, EBay, and Google. Therefore, many will be forced to close and thousands of people will lose jobs.
According to John R Quain of Fox News:
Innovative startups would also be stifled due to slower speeds. “I don’t think that Reddit as we know it, and especially the next Reddit, the next small company, will be able to develop and thrive” under the new Open Internet rules, says Reddit general manager Erik Martin (The Verge).
If you have any doubt that slowing down small businesses has the potential to force them out of business, take a look at our recent infographic for more statistics about how site speed has a marked effect on profits.
2. End of Net Neutrality = ISP’s Discriminating Against Certain Content
While many ISP’s have made statements that they do not intend to block any web content to their subscribers, many people fear that the new regulations will give ISP’s the power to discriminate against or even block content they dislike or disagree with. Some have gone so far as to state that ending net neutrality is opening the door to Internet censorship in the United States.
While that slippery slope argument is a serious concern, I want to address the much more likely scenario that ISP’s will simply not allow content they don’t like into their “fast lane.” I go back to my argument that people do not use slower sites as much as they do fast sites. For example, if a very liberal CEO of an ISP chooses to not allow Fox News into the “fast lane,” the users will have much slower page load times on Fox News and a large percentage will go elsewhere to find their news. In her Huffington Post article, Betsy Isaacson states: “Now, with net neutrality gone, ISPs can discriminate, favoring their business partners while delaying or blocking websites they don’t like. Think your cable CEO hates free online porn? Now you’ll know for sure!”
3. End of Net Neutrality = Higher Prices Across the Internet
As it stands right now, the new regulations would only require COMPANIES to pay for access to the fast lanes. But as anyone who took an economics class knows, raising the costs to companies almost always passes on as a price increase to the customers. Many people also speculate that down the road, ISP’s will also charge individual users for high speed access to specific sites. Reddit user Quink created a scary infographic of what internet charges could look like without net neutrality. View the full infographic here.
Who is Fighting the End of Net Neutrality?
At the time of this article, over 130 companies have signed an open letter to the FCC fighting the latest proposal. According to Chris Merriman, “The letter refers to the FCC proposal as ‘a grave threat to the internet’, going on to say, ‘Instead of permitting individualized bargaining and discrimination, the Commission’s rules should protect users and internet companies on both fixed and mobile platforms against blocking, discrimination, and paid prioritization, and should make the market for Internet services more transparent.’” The companies who have signed the letter include most Tech Giants: Amazon, Cogent, Dropbox, Ebay, Etsy, Facebook, Foursquare, Google, Kickstarter, Level 3, Linkedin, Lyft, Microsoft, Netflix, Reddit, Tumblr, Twitter, Vonage, Yahoo and Zynga as well as roughly 110 other large internet firms.
Additionally, Reddit co-founder Alexis Ohanian is urging people to contact Congress and the FCC. His advocacy group Free Press will also be holding a protest in Washington on May 15th. In a video he states: “We can’t get it wrong, everyone. The internet is too valuable and too important. So please, help me, one more time, save the internet.”
How Can I Get Involved?
Nearly 60,000 people have petitioned the White House to protect and maintain true net neutrality. You can sign it here now. Nearly 100,000 have signed a petition to reclassify internet broadband providers as common carriers.