Censorship, unfair trade, or just business? As of January 6, 2008 Verizon will no longer be held by the restriction to comply with the “network neutrality” principle that has been a hallmark of the Internet since its inception.
The requirement and the expiration come from the Verizon/MCI merger that was recently completed. Acually, the date could come sooner for some, as the FCC mandated timeline for SBC/AT&T customers is a few weeks earlier. Without network neutrality, your ISP could block or reduce access speed to any content or service they see fit. Maybe they are against pornography, so they block all of that. No problem you think as you are not into online pornography. But what if they are fundamentalist right wing conservatives? Maybe they will block the “liberal” media and any site that mentions evolution.
What does this really mean for us? If they don’t do anything, it is no big deal. But if they excercise their right to restrict access or limit speed, then it could wipe out millions of customers from your business. Do you use a VOIP service? Maybe the ISP will block it because they want you to pay them for their version. Do you download movies from a legal online service? Maybe they will pinch the pipe to limit you to the equivalent of a 14.4K modem because they want to sell you their Video On Demand. Do you use iTunes? Not if your ISP wants you to buy from their online music store.
But what if they want to tap into the multi-billion dollar online shopping revenue stream of their users. Maybe they would block access to all merchants unless you buy through their online portal, which gets all the affiliate income. Now how do you feel as your program grows, but you now only have a few affiliates and overall sales drop because the smart affiliates went away. These firms will have a huge base of customers. Maybe they will want a license fee from the affiliate network to allow affiliates to refeer buyers, or else they just block all access. Same thing for advertising networks.
If you think this is extreme, consider this quote from SBC Chairman Edward Whitacre:
“For a Google or a Yahoo or a Vonage or anybody to expect to use these pipes for free is nuts!”
Considering that over 60% of households get high speed service from just four service providers (Comcast, Time Warner, Verizon, and AT&T), and that consolidation is continuing, this is a real and growing threat.
Well said. And Ed Whitacre’s latest comments (in Monday’s Financial Times) underscore how real this threat is.