The Fallacy of Net Neutrality

by Thomas W. Hazlett

“There is little dispute that the Internet should continue as an open platform,” notes the U.S. Federal Communications Commission. Yet, in a curious twist of logic, the agency has moved to discontinue the legal regime successfully yielding that magnificent platform. In late 2010, it imposed “network neutrality” regulations on broadband access providers, both wired and wireless. Networks cannot (a) block subscribers’ use of certain devices, applications, or services; (b) unreasonably discriminate , offering superior access for some services over others. The Commission argues that such rules are necessary, as the Internet was designed to bar “gatekeepers.” The view is faulty, both in it engineering claims and its economic conclusions. Networks routinely manage traffic and often bundle content with data transport precisely because such coordination produces superior service. When “walled gardens” emerge, including AOL in 1995, Japan’s DoCoMo iMode in 1999, or Apple’s iPhone in 2007, they often disrupt old business models, thrilling consumers, providing golden opportunities for application developers, advancing Internet growth. In some cases these gardens have dropped their walls; others remain vibrant. The “open Internet” allows consumers, investors, and innovators to choose, discovering efficiencies. The FCC has mistaken that spontaneous market process for a planned market structure, imposing new rules to “protect” what evolved without them.

Genres: Economics, Technology

60 pages, Kindle Edition

First published November 1, 2011

Reviews

[Devin Attig · Rating 3 out of 5]

This book brings about a strong argument against net neutrality. It does this through realistic examples of where a net neutrality policy could be bad. This book shows how regulations of networks is not necessarily the best idea. The book focuses on the capitalistic opportunities that are available without net neutrality. That is that consumers would be able to pick their provider based on what they offered and that this selection process would prevent providers from becoming overly restrictive.

While this book is great for pointing out some of the flaws in net neutrality, it does not look at the benefits of net neutrality. Because of this, it does not create a complete representation of the issue. For example it overlooks the fact that monopolies exist inside of the broadband access providers. With flaws like this, the argument was not enough to persuade me personally. It certainly pointed out some issues that I had not thought of, but again, it was not enough to change my beliefs on the issue.

[James Granger · Rating 4 out of 5]

Hazlett would present a strong case against net neutrality if he didn't sing the Neoliberal lines about competition, let the market decide, and regulations bad. The essay does present more substance than flash which unusual for neoliberal economic writings. Sadly, I'm reading this in 2021 and the essay hasn't aged well due to the monopoly power of Big Tech.

[Złota Pochodnia · Rating 4 out of 5]

This is a concise and targeted essay attacking the poorly considered concept of Net Neutrality (NN) with facts and data. Hazlett is pretty much the foremost expert on the topic, and this gets right to the point in showing how NN damages both innovation and access to the Internet. It's a bit dated now, but the essential arguments are timeless. Thankfully, we seem to have escaped NN, hopefully permanently, and the Internet is more accessible than ever.

[Daryl Thompson · Rating 4 out of 5]

A good read to understand with we need to leave the internet open and unregulated as technology grows

[Seth · Rating 3 out of 5]

Pretty dry, technical, and not overly-friendly to the lay reader, but it does an adequate job explaining academically (without the overblown rhetoric that often clouds this issue) why net neutrality is unnecessary at best and harmful at worst.