Net Neutrality

If you are not familiar with the concept read up the wikipedia article on Network Neutrality at http://en.wikipedia.org/wiki/Network_neutrality . If you know about it read on........

So the fight is about network neutrality promoting welfare by providing the same underlying unbiased network infrastructure to competing content, applications and services versus the neutrality damaging the differentiating factors and competitive advantage for network providers. This seems like a paradox because both adopting net neutrality and rejecting it seems to be affecting fair competition.

I support the cause for network neutrality because I believe it preserves the freedom of choice for the customers and creates a level playing ground for all participants. However, it also worries me that the network providing business is then relegated to a commoditized offering. Commoditization of business can affect quality of service as price pressures increase with providers trying to grab larger market shares with similar or same set of offerings. Commoditization provides little enthusiasm for providers to expand or maintain their infrastructure, especially if large capital investment is required for these. Decreasing margins will also drive shareholder and market support away from these providers and render their business unviable in the long run.

Thus, if we don't have any incentives for the privately owned network providers or have government participation in this area, the way we have in our road and ports infrastructure we would be headed towards trouble anyway. We might be able to protect the freedom of choice but there may not be much left to exercise this choice.