What "net neutrality" actually means is that certain people, including apparently the President, want to tip the balance in this negotiation towards the content creators (no surprise given Hollywood's support for Democrats). Netflix, for example, takes a huge amount of bandwidth that costs ISP's a lot of money to provide. But Netflix doesn't want the ISP's to be be able to charge for this extra bandwidth Netflix uses - Netflix wants to get all the benefit of taking up the lion's share of ISP bandwidth investments without having to pay for it. Net Neutrality is corporate welfare for content creators.
Check this out: Two companies (Netflix and Google) use half the total downstream US bandwidth. They use orders and orders of magnitude more bandwidth than any other content creators, but don't want to pay for it (source)
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Why should you care? Well, the tilting of this balance has real implications for innovation. It creates incentives for content creators to devise new bandwidth-heavy services. On the other hand, it pretty much wipes out any incentive for ISP's (cable companies, phone companies, etc) to invest in bandwidth infrastructure (cell phone companies, to my understand, are typically exempted from net neutrality proposals). Why bother investing in more bandwidth infrastrcture if the government is so obviously intent on tilting the rewards of such investments towards content creators? Expect to see continued lamentations from folks (ironically mostly on the Left, who support net neutrality) that the US trails in providing high-speed Internet infrastructure.
Don't believe me? Well, AT&T and Verizon have halted their fiber rollout. Google has not, but Google is really increasingly on the content creation side. And that is one strategy for dealing with this problem of the government tilting the power balance in a vertical supply chain: vertical integration.
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