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Consumer Education, Not Heavy Net Neutrality Regulation, Is the Answer

Posted By Conn Carroll On October 21, 2008 @ 11:07 am In Economics | Comments Disabled

According to the Financial Times [1], the leading think-tank Copenhagen Economics will release a study next week showing that “broadband prices could rise by up to one-third if regulators in Europe insist on strict ‘net neutrality’ rules.” The reports warns that letting politicians dictate how internet service providers manage their traffic flows will “pass on the cost of scarcity to all consumers” and significantly increase broadband prices thus depressing broadband demand.

Also form FT:

A separate report, due out in the next few days from the Centre for European Policy Studies, also concludes that “mandating net neutrality would not be a desirable option”.

This suggests that softer regulation – for example, ensuring that end-users know about usage restrictions so that they can sensibly shop around – coupled with existing antitrust laws would address many of the potential problems.


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URL to article: http://blog.heritage.org/2008/10/21/consumer-education-not-heavy-net-neutrality-regulation-is-the-answer/

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[1] Financial Times: http://www.ft.com/cms/s/0/8d0c0df8-9ece-11dd-98bd-000077b07658.html?nclick_check=1

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