Wheeler Goes Over to the Dark Side

April 24th, 2014 by · 4 Comments

Remember the new network neutrality framework FCC Chairman Tom Wheeler promised to come up with? Well, according to the Wall Street Journal, those rules will make their grand entrance in three weeks, but of course they’ve ‘leaked’. If accurate, I’m not sure calling them ‘net neutrality’ rules fits anymore.

darth-vaderThe FCC will apparently endorse preferential treatment by ISPs for content providers who pay up. Yep, fast lanes with toll booths here we come. I have a feeling the net neutrality side of the fence is going to be a tad peeved tomorrow, while service providers express cautious optimism publicly and celebrate privately.

There’s still the caveats that ISPs can’t actually block anything while preferential treatment would have to be available on “commercially reasonable” terms whose appropriateness would be decided on a case by case basis.  But defining such terms is what lobbyists are for, right?  I hope the actual order is a bit more specific, as these bars appear to be not just low but covered with nerf foam.

Now the question the industry and its regulators have to answer is this: How do you get the big content providers to pay for preferential treatment without stifling the small content providers of tomorrow who can’t pay for it yet? In other words, under this paradigm why would anyone even try to create the next Netflix or Facebook? Long before they have the scale to do it, their model can be copied by a big content player that already has the scale to pay up and do it better.  The real risk is not to the likes of Google or Apple or even Netflix here.  The big guys can take care of themselves, and actually these rules could help them insulate themselves from future competition.  It’s the little guys with a website or an app and a dream that have no voice in all this.

Helmets & goggles on, this could get messy. I don’t think anyone quite comprehends just how complicated this will get or how fast.

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Categories: Government Regulations · Internet Traffic

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4 Comments So Far

  • Cost Causation Lover says:

    Not only does Wheeler have some explaining to do put POTUS does also. (On a separate note, if you missed the subtext to this FCC story, the CMCSA acquisition of TWX has been approved.)

    This is almost too unbelievable. After the appeals court ruling on Net Neutrality back in February TheVerge.com wrote the following story about POTUS’s position on Net Neutrality:

    ‘Barack Obama has once again reiterated his commitment to network neutrality, offering support to the FCC after a legal defeat last month. In response to a White House petition, Obama laid out a message that’s more concrete than his previous statements, which affirmed his belief in the FCC’s work but refrained from making specific suggestions. As before, he also made an emphatic argument for net neutrality. “Preserving an open internet is vital not to just to the free flow of information, but also to promoting innovation and economic productivity,” Obama wrote. “Absent net neutrality, the Internet could turn into a high-priced private toll road that would be inaccessible to the next generation of visionaries.”‘


    • Rob Powell says:

      Yeah, those comments from Obama are hard to reconcile with what the WSJ says is the new normal. I wonder if Senator Franken’s head has exploded yet.

  • Anon says:

    I thought I could keep my doctor also… Lol

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