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New Business Models for Post-Net Neutrality Era

D

Deleted50669

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Sitting on the train to New York at the very a$$ crack of dawn, I thought it would be a valuable discussion to consider what new opportunities may emerge in the event net neutrality is gutted (which right now, looks imminent).

There will be mass hysteria, but the resilient minds will acknowledge and adapt. The earlier we plan a strategy to capitalize on political shifts, the more likely we are to find new success.

What will people have a harder time gaining access to? What services will be forced back into brick and mortar? What services will require a transformation all together?

- Cheers
 
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PedroG

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If anyone is interested in the other side of the argument, check out this interview about the economics of net neutrality.

 

Xavier X

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If anyone is interested in the other side of the argument, check out this interview about the economics of net neutrality.


The other side of the argument, as presented by this guest is mostly insufficient to justify it.

With statements like (paraphrasing) - "why shouldn't those who use more [bandwidth] be required to pay extra, to compensate those who use less?"

I don't see how that makes sense. Those who use more bandwidth AREN'T going to compensate those who use less, in any form.
They're only going to pay a premium to the ISP.
Those who use less will still face selectively throttled bandwidths, ultimately forcing them to "upgrade" and "add-on" regularly.

ISPs have historically handled increased bandwidth congestion by upgrading the infrastructure. The cost of this upgrade gets passed on to the subscribers over time.

If I have a 1Gbps connection, why on earth should I have to pay a "toll" to access parts of the internet at acceptable speeds?

We haven't arrived at some post-apocalyptic-bandwidth-crunch where bandwidth has to be severely rationed.
The ISPs have only lobbied in this direction to cash in big time. Just a new take on the business model. Nothing else.

From a business standpoint, I don't bedevil any company for wanting to increase profits. However, don't bullshit me about the intent.
 
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JSM

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Step 1: Be a cable provider company
There’s a NEED for this in rural America. Companies overload their servers so that the internet doesn’t work and their customer service might be the worst on the planet. At least 3 days a week for 3+ hours my internet just doesn’t work. I don’t know if satellite is the solution because it’s crazy expensive but there’s big money waiting for whoever figures this out.

Sorry to get off topic
 

PedroG

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  • You type in "www.google.com" into your browser and you get a pop-up message: "If you want to do a search on Google, you will be charged $1. But, if you'd like to use our new Comcast Search engine, it won't cost you anything! Would you like to continue to Google and be charged? Or do a free search? Of course, the choice is up to you!"

I understand the concern, but I think a lot of these examples are things that actually would never happen in the first place. Would Comcast really risk pissing off their customers by blatantly doing this kind of thing? I really doubt it.

Net Neutrality is fairly new. If they wanted to do this, couldn't they have done this a long time ago?

I'm seriously asking, because my mind isn't fully made up on this. To me, Net Neutrality is the government regulating the internet which I don't like the sound of.

Was the government in 2015 being pre-emptive by trying to solve problems that didn't really exist, to justify taking control of the internet so they can start regulating it as they regulate TV? That's a good question to ask ourselves.

Here's an excerpt from an interesting article I found (FCC Head Ajit Pai: Killing Net Neutrality Will Set the Internet Free)...

"Since the dawn of the commercial internet, ISPs have been investing as much as they can in networks in order to upgrade their facilities and to compete with each other," he says. "Outside of a recession we've never seen that sort of investment go down year over year. But we did in 2015, after these regulations were adopted."
...

today's proposed changes, which are expected to pass full FCC review in mid-December, return the Internet to the light-touch regulatory regime that governed it from the mid-1990s until 2015.
 
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Scot

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The argument being made here is: "There isn't unlimited bandwidth -- ISPs should be able to charge more for bandwidth intensive services/applications just like any other private company has the right to charge for their individual products and services."

The problem with that argument is that we've already implemented a solution to that problem! When you sign up for a data plan from your local cable or telephone company, you choose the bandwidth speeds you want and you pay based on that choice. Want high bandwidth (giving you decent streaming access to things like Netflix), you pay more. Want low bandwidth (i.e., you don't care about things like streaming services), you pay less.

Changing net neutrality laws isn't going to solve that problem any better (again, it's already solved!). What getting rid of net neutrality is going to do is create anti-competitive opportunities for ISPs that will hurt both their competitors and their customers.

Here are some examples of what could happen if net neutrality were to go away:

  • You type in "www.google.com" into your browser and you get a pop-up message: "If you want to do a search on Google, you will be charged $1. But, if you'd like to use our new Comcast Search engine, it won't cost you anything! Would you like to continue to Google and be charged? Or do a free search? Of course, the choice is up to you!"
There is nothing about doing a Google search that is bandwidth intensive. And certainly a Comcast Search isn't going to be less bandwidth intensive. But, again, it's not about bandwidth. It's about control.

  • The new season of everyone's favorite TV show comes out on Netflix in November 1, and suddenly, on October 31, you get a message from your ISP, "If you want to stream Netflix in November, there will be a $50 surcharge. Would you like to continue? Of course, the choice is up to you!"
While this is obviously bad for consumers, think about it from the content provider's perspective as well. When Comcast goes to the company that makes that TV that everyone wants to watch, and says to them, "Instead of signing a contract with Netflix to release that show, you should sign a contract with Comcast Streaming Services, and we'll release it under our new streaming brand. Of course, we're only going to pay you half of what Netflix offered, but if you say no, we'll ensure that nobody can afford to watch it! Now, what's your decision?"

  • You open up your Google Chrome browser and you get the message, "Comcast is now partnering with Microsoft! If you'd like to continue using Google Chrome, that's great...but your bandwidth will be throttled. For a higher bandwidth connection, please switch to Internet Explorer for your future browsing needs. Of course, the choice is up to you!"

Do I even need to address the downsides of this type of situation?

  • You open up Internet Explorer (after you decide you don't want to be throttled by using Chrome), and you type in "www.thefastlaneforum.com" to get your daily dose of motivation and knowledge. As soon as you do that, there's a pop-up on your screen that says, "Comcast is pleased to announce our new Comcast Entrepreneur Forums! Sign up today and get a $5 credit towards your next bill. Would you like to be redirected to www.ComcastEntrepreneurForums.com? Of course, the choice is up to you!."

For anyone out there that makes their money on the Internet, I would think you might have an issue with this.

Now, perhaps the actual result of losing net neutrality might not be this obvious or anti-competitive, but it should give you an idea of what could potentially happen. And, even if it happens to a much smaller degree, I think you can see how this could end up being anti-competitive and anti-consumer.


So what you’re saying is I should buy the domain comcastentreprenuerforum.com ...?
 
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Charnell

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I understand the concern, but I think a lot of these examples are things that actually would never happen in the first place. Would Comcast really risk pissing off their customers by blatantly doing this kind of thing? I really doubt it.

You're not familiar with monopolies, are you? Many areas are given one option for ISPs. Additionally, a lot of local ISPs are partially owned by the major ISPs. For instance, the major ISP where I grew up was Midcontinent Communications. A quick search show's that it's 49% owned by Comcast.

It doesn't matter if it pisses off their customers if their customers' option is deal with it or not have internet.
 

JAJT

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Would Comcast really risk pissing off their customers by blatantly doing this kind of thing? I really doubt it.

Here's a link to my reply in another thread on this subject on what Comcast (and others) have done DESPITE net neutrality laws: FCC is about to repeal Net Neutrality

So.... yeah....

Scary version: Comcast owns Hulu. They could very realistically block access to Netflix, block search results that point to Netflix, slow down Netflix, charge more for access to Netflix, etc...
 

Thoelt53

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Here's a link to my reply in another thread on this subject on what Comcast (and others) have done DESPITE net neutrality laws: FCC is about to repeal Net Neutrality

So.... yeah....

Scary version: Comcast owns Hulu. They could very realistically block access to Netflix, block search results that point to Netflix, slow down Netflix, charge more for access to Netflix, etc...
Let us not forget that Comcast owns NBC and CNBC...

Perhaps in the future they won’t want you to have access to “alternative” media.

The whole thing reeks of control and has nothing to do with limited bandwidth.
 
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