Financial Times FT.com

Why we should think twice about ‘net neutrality’

By Douglas Holtz-Eakin

Published: March 15 2006 20:24 | Last updated: March 15 2006 20:24

Web users around the world may be intrigued to see how members of the US Congress have developed an interest in managing internet pricing. Under the slogan “network neutrality” they propose to legislate to prevent providers of network capacity from discriminating in their charges to customers. “One price fits all” sounds benign – who could be opposed to ensuring neutrality in a network?

A minor glitch in this vision of utopia is that one cannot find a real-world network that operates neutrally. Try freight transport. If I want to buy a case of French wine, I can have it shipped ocean freight. If I want it quickly, I can pay more and have it flown to the US. A starker example is last-minute Christmas shopping. You can order basics, books or baubles and have them shipped normally – and slowly – and be in big trouble. Or you can pay extra to receive them the next day, averting a crisis.

internet law graphic

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