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Wednesday, March 26, 2014

Net Neutrality Debate: Cold War of Reality vs. Illusion

Dr. Hossein EslambolchiInfluencer


I was intrigued by Netflix CEO Reed Hastings’ recent blog advocating the U.S. needs a strict form of Net Neutrality. Mr. Hastings definition of Net Neutrality is that bits should be treated roughly equally, with no tolls for certain kinds of content or for traffic that moves more in one direction than another. I wonder what Mr. Hastings’ reaction would be if the FCC mandated the pricing model and equality among all content creators, i.e., Netflix pays the creator (studio) the same amount for every movie regardless of the content value or the number of users viewing it?
It’s time to say it clearly: the simple idea of strict network neutrality needs to be set aside and we need a full dialogue on the right commercial frameworks for the future of better communications worldwide.
This simple concept worked for the basic Internet, as it emerged from the U.S. government and academia. In today's vast, global and commercial Internet, it is a concept that creates asymmetries in financial risks, burdens and rewards. (Actually, those asymmetries were always there, but at a modest scale. Today, they constitute large-scale distortions in the business of networks, and skew great wealth and great risk.)

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