Bye Bye to Net Neutrality?

netflix-2705725_640

Skirmish has begun a while back

Happy Thanksgiving!

Even the smiley Federal Communications Commission (FCC) chief Ajit Pai failed to simplify for viewers to understand ‘what is net neutrality.’

But one thing is clear, he does not like net neutrality.

Net neutrality was a rule created in 2015 that prevents internet service providers from blocking or discriminating against internet traffic.

To simplify, wireless, cable firms can affect the quality of videos being streamed to customers by increasing or slowing one’s (like Netflix’s) internet traffic unless Netflix (or customers?) pay up to the service.

This event is not a possibility. It has already happened.

wapo-netflix-comcast-graph

Some two or three years ago, Comcast slowed down Netflix’s streaming until Netflix and the former agreed to an arrangement.
On July 2017, Verizon ‘tested’ and slowed down YouTube, Netflix, and other video streaming services.

Meanwhile, Verizon, AT&T, Comcast, and Charter altogether value to about $660.5 billion, while YouTube operator alone is now valued at $725 billion. Netflix is valued at $85 billion, on par with Charter Communications.

As a former lawyer for Verizon, some of Ajit Pai’s accomplishments were as follows:

  • Stopped nine companies from providing discounted high-speed internet service to low-income individuals
  • Withdrew an effort to keep prison phone rates down
  • Scrapped a proposal to break open the cable box market

Anyhow, all these findings may be to make Mr. Pai’s image look bad as the source is the New York Times.

In 2014, Mr. Pai also hit Netflix with allegations of the video streaming company was working to “effectively secure” Internet “fast lanes” for its content. Netflix pacified this later, saying that its tools do not advantage its content.

Nonetheless, FCC rolling back net neutrality rules should interest even a less discerning internet user. December 14 is a critical date as the FCC votes on this critical issue.

Disclosure: I have shares in Verizon, AT&T, Comcast, and Google.

One thought on “Bye Bye to Net Neutrality?

  1. Pingback: Comcast: Consider Adding More? | Perennial investing by Mark Y.

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