Net Neutrality: Oligopoly and Stagnation
There is a great article in the latest Technology Review that looks at the current Net Neutrality debate by examining the past. You can look at recent history, such as the cell phone networks of today, or go further back and look at what happened with Western Union and the Telegraph industry.
I would think that we all know how open the cell phone networks are today because we see so much innovation and new service popping up. And I’m sure you have been able to take your cell phone from one company to the next and have it operate flawlessly, right? Read this article on NewsForge from a cell phone technology insider and see how easy it is to work with them and innovate. Want a hint of the future of the Internet?
So why aren’t there a wealth of amazing and interactive services available for mobile devices? Why is there no MySpace, Craigslist, Amazon, Flikr, or eBay accessible through this network? Why are cell phone payment systems and email systems nearly nonexistent? Why haven’t charities raised money or awareness of their causes through this system?
It’s simple. Because the cell phone carriers control what services are allowed to use their networks. There is no net neutrality on the cell phone network.
And what about the Telegraph? Western Union expanded the network by buying rivals and focusing on business customers, and squashing innovation that could have brought the service to the masses.
We have all read how the Telcos need this tiered system so that they will have the incentive to innovate. But innovation is not what it used to be. Back in the day when nobody could put any device on a phone that was not approved by AT&T, at least AT&T had their Bell Labs that came out with great stuff, even if they were not for the telephone. But what about today? Telcos spend far less money on research and development than the computer and Internet industries, and according to the article, Telcos spend more money lobbying than they do on innovation.
I’ll leave you with a quote from the cell phone technologist:
It doesn’t take much imagination to imagine Verizon treating their Internet property just like their cell phone network — short-sightedly milking it for all it’s worth, at great expense to the public, and to the future.
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Jeff Perren
