Network Neutrality and Industry Structure

NETWORK NEUTRALITY AND INDUSTRY STRUCTURE
[SOURCE: Phoenix Center, AUTHOR: George S. Ford, Thomas M. Koutsky and Lawrence J. Spiwak]
One of the most heated debates in the current efforts to re-write the Communications Act has been whether the federal government should impose Network Neutrality requirements on broadband service providers. While the authors argue neither for nor against the need for Network Neutrality legislation, their analysis claims to shows that policymakers should avoid Network Neutrality mandates that have the intent or effect of “commoditizing” broadband access since such a policy approach is likely to deter facilities-based competition, reduce the expansion and deployment of advanced communications network networks, and increase prices. Given the economic characteristics of local communication networks, policies that promote commoditization of broadband access could lead to the monopoly provision of advanced broadband service in many markets. This outcome would harm consumers substantially.
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