What is Really Going On Here?

Net Neutrality legislation is a solution in search of a problem that doesn't exist.

That’s why the "Internet Freedom and Nondiscrimination Act" (H.R. 5417) is opposed by nearly every conservative and free market organization, from FreedomWorks to the Heritage Foundation to the CATO Institute.    
 
As Rep. Lamar Smith (R-TX), and opponent of the bill, declared,  "This is a regulator's dream, but an entrepreneur's nightmare."

The idea driving the pro-Net Neutrality camp is that some companies may want to block users from competing web sites or services.  Like most socialist notions, the idea of Net Neutrality protections is appealing.  After all, most people want unfettered access to Internet sites and services (Although some people may prefer a family friendly ISP—and Net Neutrality mandates may eliminate this kind of choice from the market.)  

So what’s the problem?  Well, while the idea of Net Neutrality sounds reasonable, it will be far-reaching and disastrous in practice.

First, it is unclear how exactly broadband providers would comply with the vague rules in H.R. 5417.  Second, it locks in a single network design, instead of allowing alternative services to develop.

Most importantly, Net Neutrality mandates will be the proverbial “camel’s nose under the tent.”  Once federal regulators, politicians, and business lobbyists have regulatory leverage over the Internet, the Washington parlor game will ensue.  And the Internet will never be the same again.  Growth, investment, and innovation will all decline.

There are, or course, some problems today.  Existing federal and state laws limit competition among broadband providers—especially in cable broadband.  Congress should act to bring in more competing broadband providers.  Letting the market give consumers seven or more broadband choices will eliminate concerns about any one provider abusing its market power.

The Internet is growing—over a billion people are online worldwide-- and the people and firms who constitute the ‘Net community should be free to continue to build and innovate. There is no cause for new federal regulations that will neuter the Internet.

Please join us in telling Congress: Don’t Neuter the Internet!