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Net Neutrality and The Oatmeal November 21, 2014

Posted by Peter Varhol in Strategy, Technology and Culture.
Tags: ,

I can understand why Matthew Inman doesn’t accept email on The Oatmeal, but it does make it difficult to raise an important issue. In this case, I would like to explore his take on net neutrality. Yes, I agree that Senator Cruz is probably an idiot, or at least pandering. But beyond that, I’m wondering just who the bad guy is here. Is it Comcast Xfinity, who would like to charge premium prices to companies with real time content delivery needs? Perhaps. Or is it Netflix, who is abusing an infrastructure not designed or operated for streaming high-quality video? Hmm.

Today we tend to think of the Internet as more or less a public utility, akin to our electrical service. That’s not quite correct. Actually, not at all correct. There was a time, when I was in college, where the Internet was a private, elitist academic network, yet funded entirely by the government. If you as an individual wanted access, you had to be an academic, a government-funded researcher, or at worst a paying student at a really good university. And there was some decent content on the Internet, albeit all text-based. That was the world at the time.

In the early 1990s, the powers-that-be (I really don’t know or care to assign it to one political party or the other, and neither should you (and no, Al Gore did not create the Internet, despite his resume)) decided to commercialize it.

That, I think most people would agree, was a Good Thing. We got ISPs (okay, we had AOL and Compuserve before that, but they specifically weren’t on the Internet until later), we got decent graphics tools, and we got modems to use with our phones. It provided for a burst of innovation, an explosion of content, and a democratization of access.

The phone companies made a half-assed attempt to offer higher access speeds, but DSL was expensive, difficult to buy and configure, and slow. The cable companies realized that they already had fat pipes into homes, and rushed to compete, spending hundreds of billions of dollars (granted, our subscription dollars, but a significant investment nonetheless) on network upgrades.

So here the Internet ceased being a public utility, if it ever was one, and became a commercial venture. I agree that the exclusive contracts still oddly provided by municipalities to cable companies makes it seem that way, but there is little reason for these to still exist. And in any case, they should be up for re-bid every few years, once again making it less of a utility.

So a business like Netflix comes along, and reduces its operating cost by offering a very high usage delivery on what is at worst a low-cost fixed-price medium. Is Comcast wrong by wanting more money for this type of use? To support the Netflix business model of making money from us?

I don’t know. Apparently Matthew Inman does. Good for him.

In theory, I believe net neutrality is the way to go. But it supports some businesses over the expense of others. Just like the alternative. So I simply don’t see a compelling reason to discard either concept.



1. Free Basics and Why Zuckerberg is Right | Cutting Edge Computing - December 29, 2015

[…] principles, and supports Facebook’s commercial strategy. Both true.  But net neutrality is a two-edged sword; mostly it’s supportable, but it does tend to favor some activities over others, despite its […]

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