As is often the case, when technology in one field or industry improves, it can have the added benefit of passing along improvements to other areas. As faster wireless networks are deployed around the world, the flow is that people can download more data and stream videos in HD quality. Unfortunately, as speeds become faster leading to the use of larger data packages, providers want to find a way to profit from it.
We have seen a lot of growth and innovations with respect to the Internet. Possibly, one of the biggest reasons for this is that most Internet providers have treated Internet traffic equally. This principle is known as “net neutrality.” In essence, it makes it possible for an entrepreneur's fledgling company to have the same access as established corporations. In addition, net neutrality allows that access to a high school student's blog should not be unfairly slowed down to make way for advertisers with more money.
This has led to a lot of discussions concerning net neutrality over the past year. President Obama feels that there should be no gatekeepers between you and your favorite online sites and services. In November 2014, the president stated that a free and open Internet was as critical to Americans’ lives as electricity and telephone services and should be regulated in like manner to protect consumers.
This concept of net neutrality is something that has worldwide influence. Additionally, it is not just about being able to watch a movie or download a file faster, as Voice over IP (VoIP) usage increases in India, service providers want to charge additional fees and this has brought about discussions concerning net neutrality. As you can see, this is a concept that has global implications.
Similar to the U.S. having the Federal Communications Commission (FCC), which is at the head of the net neutrality discussions, there is the European Council and European Union (EU), the Canadian Radio-Television and Telecommunications Commission among other who have taken up the discussion.
According to Eric Abbruzzese, who is a research analyst at ABI Research, “Historically, Europe has had a consumer-oriented focus for Internet usage, with regulated prices and required shared infrastructure. Now there are concerns surrounding the EU Single Market, and how new regulations could impact service providers, as well as a large portion of the population.”
I mentioned above that improvements, or even changes in field can have an effect on a variety of other areas. A case in point here is that many companies have been reallocating wireline technology resources to other areas, mostly wireless technology. A major reason for this shift is that investment models for carriers could significantly be altered based on net neutrality rulings.
“Carefully planning investments and balancing wireline and wireless portfolios, will prove necessary for companies to continue to see success during this wireline-focused regulatory restructuring period. Operators or carriers that have a heavy focus on wireline, such as CenturyLink or Cisco, may find it difficult to see growth with some regulatory outcomes, while companies with a more balanced portfolio, including Verizon, AT&T, and Ericsson will simply steer resources to the highest return markets.” These were the remarks of Sam Rosen, who is practice director at ABI Research.
President Obama said “For almost a century, our law has recognized that companies who connect you to the world have special obligations not to exploit the monopoly they enjoy over access into and out of your home or business. It is common sense that the same philosophy should guide any service that is based on the transmission of information — whether a phone call or a packet of data.”
It is obvious that any decision on net neutrality will worldwide implications. The debate continues and it may hinge on whether Internet access is considered a necessity, like electricity, or more of an often-costly option, like cable TV.
Edited by
Stefania Viscusi 
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