Pros And Cons Of FCC Rule On Net Neutrality

SUBJECT: Summary of FCC Rule on Net Neutrality

In 2015, the Federal Communications Commission published a rule that classified Internet Service Providers (ISPs) as common carriers. The main decision behind this rule was the idea of “net neutrality,” or the principle that Internet service providers should treat all Internet data as the same regardless of its kind, source, or destination. The concept of net neutrality has been the subject of debate and controversy for quite some time, and now that the digital age is advancing at an even quicker rate, this concept is challenged more and more. FCC recently proposed a new rule that would reverse the 2015 classification of ISP’s back to lightly-regulated information services. The rule hopes to

The rule will not only reverse the rules set by the 2015 decision, but will also decide whether the regulations were needed to begin with. Supporters of the other side (pro net neutrality) believe that this rule will destroy Internet freedom and worry about the true motives of broadband providers. They question whether or not these companies will put the best interests of the public first and foremost, over any sort of monetary gain. During the net neutrality era, wireless providers were not able to slow down the speed of competitor streaming services, and could not make a profit through “unethical” means (according to pro net neutralists). Now, these methods are technically allowed under the new rule, even though it is unlikely that ISPs will go to these lengths; many regulations and rules will still exist in order to prevent unethical business. However, it is argued that the government simply cannot keep up with current technology; just when they’re starting to enforce regulations on one type of technology, another kind pops up. The rapid pace of advancement is noted to be impossible to match, especially with strict regulations and rules. The idea of this rule is not to completely allow ISPs to have free reign

They will have fewer restrictions, can choose the speed of Internet given to customers, and can also voluntarily include details of privacy and regulation within their terms of contract. Aside from ISP’s, hundreds of companies might have their businesses be positively or negatively affected by this rule, depending on the size and revenue of the company. Smaller companies and startups with less money will most definitely struggle to keep up, and may have to reevaluate business plans in order to keep up with the new age of Internet. Larger companies and ISPs will thrive; these businesses have the money to be able to survive in a new environment that relies heavily on a firm’s ability to cover the cost of competition, and all that it entails. On the investment side, broadband investment was already down $1 billion after the announcement of the 2015 net neutrality rule. Although many consumers saw this rule as morally and financially efficient, firms saw the opposite. More regulation hinders a firm’s ability to innovate at a rapid pace; thus investors were less likely to put their money into broadband and wireless providers. It is clear that with this new rule, investment firms will be reinvigorated to circulate their money back into this industry. This positive benefit for investment firms (and ISPs as well) is a