Net neutrality rules are needed to prevent ISP price discriminati...
Net neutrality rules are needed to prevent ISP price discrimination that reduces content developer incentives to create for the Internet, said New York University’s Institute for Policy Integrity in a report released Thursday. Allowing ISPs to move to a…
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model like cable TV where service providers may charge for content access would lock out independent and startup content makers, said economics fellow Scott Holladay in a conference call Thursday. Permitting discrimination isn’t the way to promote broadband deployment, said Executive Director Michael Livermore. “Content providers are the last ones you would want to tax to fund the network, because [they] are generating positive externalities. You don’t go out and tax people that are basically creating free value for the economy.” Livermore endorsed the FCC’s proposed rules, which he said provide clear, high-level guidelines, while allowing the agency to take a case-by-case approach when necessary. “The [proposed] rule actually operates at a fairly high level of generality, and so it sets the stage and provides some degree of certainty for people making business decisions, but at the same time there’s lots of flexibility in the rule for the FCC on a case-by-case basis to adjudicate new questions.” The same rules should apply to wired and wireless networks, said Holladay, because they're both “limited resources that face the same type of constraints.”