RIP, Net Neutrality   Leave a comment

Net Neutrality is gone.  Yay!

Let’s try to understand what Net Neutrality is really all about.

Image result for image of net neutrality destroying the internetContrary to popular belief, the evil ISPs were not creating a have/have not divide in Internet access prior to Barack Obama’s interference in the Internet. What Net Neutrality really did was create massive subsidies to the biggest bandwidth hogs on the planet – Facebook, Google, Twitter, Netflix and … yeah, the porn industry.

Under Net Neutrality these platforms flourished along with the rise of the mobile internet, which is now arguably more important than the ‘desktop’ one in your home and office.  Google and Apple control access to the mobile web in a way that net neutrality proponents can only dream the bandwidth providers like Comcast and AT&T could.

Comcast & AT&T never had that power. Ultimately, consumers decide how much bandwidth costs. We decide how much we can afford for these creature comforts like streaming Netflix while riding the bus or doing self-indulgent Instagram videos of our standing in line at the movies. The ISPs can’t charge us more than we’re willing to pay and a great many of us were not willing to pay, so Netflix and Google began advocating for Net Neutrality, which took the pricing of bandwidth out of the hands of consumers and handed the profits from it to Google and Facebook and their advertisers.

By mandating ‘equal access’ and equal fee structures the advertisers behind Google and Facebook could spend their budgets without much thought or care.  Google and Facebook ad revenue soared under Net Neutrality because advertisers’ needs are not aligned with Google’s bottom line, but with consumers’.

Because of that, the price paid to deliver the ad, i.e. Google’s cost of goods sold, thanks to Net Neutrality, was held artificially low.  And Google, Facebook and the Porn Industry pocketed the difference, allowing Google and Facebook to grow more powerful.  That difference was never passed onto the ISP who could then, in turn, pass it on to the consumer. Thus our Internet access costs increased, while Facebook’s advertising costs were held stable.

All thanks to Net Neutrality.

With the rise of the mobile web, bandwidth should have been getting cheaper and easier to acquire at a much faster rate than it has.  Net Neutrality didn’t allow for that. It kept rates of return on new bandwidth projects and new technology suppressed. Money the ISP’s should have been spending laying more fiber, putting up more cell towers, building better radios went to Google to fritter away on endless projects that never see the light of day.

Net Neutrality guaranteed that the infrastructure for new high-speed bandwidth would grow at the slowest possible rate, still governed by the maximum the consumer was willing to pay for bandwidth, rather than what the consumer actually demanded.

Think it through, Net Neutrality not only subsidized intrusive advertising, phishing scams and on-demand porn but also the very censorship these powerful companies now feel is their sacred duty to enforce because the government is now controlled by “the bad guys”.

Getting rid of Net Neutrality will put the costs of delivering all of this worthless content back onto the people serving it.  YouTube will become more expensive for Google and all of the other content-delivery networks.  Facebook video will eat into its bottom line.

The ISP’s can and should throttle them until they ‘pay their fair share,’ which they plainly have not been. Yes, your ISP may temporarily charge you more for Netflix or Hulu … although it’s more likely Netflix and Hulu will have to charge you more. We’ll then find out the real cost of delivering 4k streaming content to your iPhone actually costs.

Meanwhile, those costs will filter down to the ISP’s such that they can respond to demand for more bandwidth.  Of course AT&T will overcharge us because they are just as bad as bad as Google and Facebook, but … here’s where the rubber hits the road … consumer have a right to say “no” and stop using the services the way Net Neutrality’s mispricing of service encouraged us to. If the ISP’s want more customers then they’ll have to bring wire out to the hinterlands.

Net Neutrality proponents kept telling us this was the way to help keep the Internet available to the poor and the rural.  That’s ridiculous. I’m surrounded by rural and can say confidently that Net Neutrality kept the Internet from expanding properly into the countryside. While Fairbanks has cable and DSl, my brother who lives only about eight miles out of town has neither. He’s 10 or 15 years behind everyone else in getting decent bandwidth, yet he lives in a fairly densely built neighborhood. He has never streamed Netflix because the wiring to his house cannot support it. Instead,  he gets cable television from Dish Network, with a signal so weak it’s been known to cut out during a spring rain. (That’s not Dish’s fault, really, but a factor of their satellites barely being over the horizon at this latitude.

 

We’re still waiting for the phone provider in our residential area to upgrade the bandwidth.  We even installed a second line for Internet service, but the service is so overloaded, it dropped two or three times every evening. So we switched to cable, even though we don’t want cable television. Why are we still a half-decade or more behind the rest of the nation? The return on new lines isn’t high enough for them.

If Google was passing some of the profits from Adwords onto the ISPs, I’d have multiple choices for high-speed Internet versus just one DSL provider, and maybe I’d also have more than one choice for cable. And maybe it would be affordable. I currently pay $90 a month for Internet only, no cable television. It would be another $80 if we wanted to watch television. But we can stream Netflix and Hulu if we’re willing to pay the price.

As always, whenever the political left tries to protect the poor they wind up making things worse for them.

The news of Net Neutrality’s demise is good for a variety of reasons. With Net Neutrality gone, a major barrier to entry for content delivery networks is gone. Blockchain companies are building systems which cut the middle man out completely, allowing content creators to be directly tipped for their work versus being supported by advertising no one watches, wants or is swayed by.

Services like Steemit and the distributed application already built and to be built on it point the way to social media cost models which are sustainable and align the incentives properly between producers of content and consumers.

Steem internalizes the bandwidth costs of using the network and pays itself a part of its token reward pool to cover those costs.  So, all that’s left is content producers and their fans.  Advertisers are simply not needed to maintain the network.

Net Neutrality was a Trojan horse designed to replicate the old shout-based advertising model of the Golden Age of print and TV advertising.  It was a way to control the megaphone and promote a particular point of view.

Look no further than the main proponents of it.  George Soros and the Ford Foundation are two of the biggest lobbyists for Net Neutrality.  Only the political left and its Marxian fantasies of evil middle men creating monopolies fell for the lies.

The rest of us were like, “Really?  This is not a problem.”  And it wasn’t until you looked under the hood and realized all they stood to gain by it.

Now, with Net Neutrality gone the underlying problem can be addressed; franchise monopolies of cable and phone companies in geographic areas.  These laws are still in effect. They still hang like ice fog over the entire industry.  Like Net Neutrality, these laws concentrate capital into the hands of the few providers big enough to keep out the competition.

So, instead of championing the end of franchise monopolies, which county governments love because they get a sizable cut of the revenue to fund non-essential programs, the Left made things worse by championing Net Neutrality.

That also needs to end.  Even if you believe that franchise monopolies were, at one point, necessary, they aren’t now.  IP-based communication is now fundamentally different than copper wire for discrete services like phone and cable.  Let people run all the copper and fiber they want.  There’s plenty of room in the conduit running under our sidewalks and streets.

Then and only then will the Internet be free.

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Posted January 9, 2018 by aurorawatcherak in Common sense

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