Netflix and the FCC’s Camel’s Nose

[Commentary] Regarding L. Gordon Crovitz’s “Netflix Recants on Obamanet” (March 9): Having been subject to the broadband Internet service providers’ (ISPs) price demands with little recourse, Netflix is entirely consistent in agreeing with the Federal Communications Commission that the ISPs function as monopolies. However, Netflix can still be against the FCC’s attempt to remedy that situation through across-the-board regulation instead of using its powers to let the marketplace control prices through competition.

For example, in Europe, where broadband is cheaper, telephone and cable companies are often required to grant wholesale leases for access to their wire networks at prices consistent with their capital investment to ISP providers who then compete with the telecommunication giants on rates and services. The range of available choices is greater than choosing between de facto unregulated monopolies and a “Ma Bell” version of the Internet.