Thursday, April 27, 2006

Deja Vu

Havn't we been here before?

LA Times Article on 'Net Neutrality'

This article discusses current legislation being proposed to allow telecom companies to charge larger fees to certain internet companies/entities for usage of what is now public or open access. As it stands, the fee structure for the internet works like this: you pay money to an ISP, which manages a network of regional servers and communication links, which is then linked to a wider (geographically) network with 'bigger' pipes, which then links to a global network with the biggest pipes and the widest reach. Your money pays for access to the small network, who then pays for whatever access to the larger one, etc. Larger companies can buy into higher levels of this system to ensure wider bandwidth, if need be. What this bill does is allow the companies that control the biggest networks that serve as the 'backbone' to the internet to asses fees to users on the lower end.

Basicly, the people with their hands on the biggest and most important switch get a bigger say in what and how much goes over the internet.

I say we've been here before because we have. Back in the day, (the 1920s, 'gilded age') there was vertical integration of the means of transportation over railroads. A few companies had the ultimate control over what went over the rails, and were able to charge higher amounts to farmers for the basic transportation they needed to survive as farmers. In a world where information is the new 'grain' and material for the economy, this bill creates a similar situation for digital farmers. It sets a higher (more expensive) threshold for use of the internet, and allows for the assessment of variable fees for use. The new funding structure can just as easily bankrupt new and small business (or any group trying to distribute 'subversive' content) as railroad companies were able to milk and destroy farmers leading up to the Great Depression.

This is the reason we have a Sherman Anti-Trust act, this is the reason AT&T was broken up years ago. Anyone able to assess fees in this way makes the economy more fragile and more expensive to consumers.

Think of it as a flat-tax on the internet.