Net Neutrality – Obamacare for the Internet?

Net Neutrality – it’s in the news again.  Net Neutrality made news headlines today as the President calls for regulations on the Internet to keep “a free and open Internet.” BUT … will these new regulations keep the Internet free and open?  Or, will they do just the opposite?  Will they discourage innovation?  Will they discourage new technology investment?  And, will they discourage new job creation?  Let’s look past the headlines and consider net neutrality vs. economic freedom right now …

First, what is net neutrality and what’s the real issue?  Net neutrality is a benign-sounding term for the regulation of the Internet by the Federal Communications Commission.  It’s an effort to micro-manage those companies that provide Internet services to Americans.  Rather than treat the Internet as an “information service” under Title I of the Communications Act, implementing Net Neutrality under the President’s recommendation would treat broadband services as a Title II ”utility” such as a phone service.  Thereby, preventing Internet Service Providers (ISPs) from managing their infrastructure carefully to maximize customer services and economic value.

Senator Ted Cruz offered an interesting tweet this week about this topic.  According to The Wall Street Journal, Senator Cruz tweeted: “Net Neutrality” is Obamacare for the Internet; the Internet should not operate at the speed of government.”

Of course, the impact of such Net Neutrality regulations are far-reaching.  Entrepreneurship, innovation, investment, new job creation can all expect to be diminished under such regulation.  Costs to consumers would likely increase as well.  The impact of most unnecessary regulations are the same.  They stifle economic growth, wealth creation, and prosperity.

Why should we rely on 1930’s era utility regulations for the Internet, our 21st century information super-highway?

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