End of the Web as we know it?

[Commentary] Last week, while the media was focused on whether the U.S. government would shut down, another piece of legislation passed the House of Representatives with critical implications for small business. The bill would end the Federal Communication Commission’s (FCC) ability to insure what’s called “net neutrality.” It was a pure “David versus Goliath” bill, and the House voted to protect Goliath.

If the House bill becomes law – or the Supreme Court eventually decides the FCC doesn't have the authority to enforce network neutrality – the game changes radically. Without network neutrality, telecommunication and cable companies can tilt the playing field. And it won't be in small businesses and start-ups favor. What are the possible effects for small businesses and entrepreneurs?

• Fewer innovative new businesses. Virtually every company today depends on the Internet. When new companies are shunted to a slower Internet than established large corporations, they'll have a harder time starting or succeeding.
• Higher costs. Since the Internet companies will be able to create “tiered” services, they'll charge for them. If you want to be sure you get faster Internet service for your business, you'll pay for it.
• Worse service. If you don't pay for higher tiers. Over time, Internet companies will spend their resources developing the infrastructure for the higher tiers, neglecting enhancements in lower tiers. You'll be in the “economy” cabin while others are in business or first class. At best, you'll get peanuts.
• Dramatically inhibit the growth of cloud based services. Right now, we are in the infancy of what is certain to be an explosion of “cloud-based” or Internet-based services. I'm a huge fan of these services as they provide small businesses with far greater power and capabilities at low, predictable costs. But the diversity and cost of these cloud-based services depend on lots of scrappy new companies starting. Without net neutrality, there will be far fewer innovative cloud companies created.