Net Neutrality Will Hurt Financial Firms! No, It Will Help Them!

from the still-missing-the-point dept

Last week, there was talk about a memo circulating among financial services firms about how they should support net neutrality regulations, or the cost for all companies doing business online might increase drastically. It appears that the telcos aren’t thrilled about that view, and have shot back with Verizon’s chief lobbyist threatening financial services firms that if net neutrality laws are put in place, that the telcos may refuse to supply them with secure, high speed data connections. That seems like a threat, doesn’t it? Network neutrality isn’t about stopping the ability to set up such a network, but about using such a network to discriminate against certain services. Again, though, the debate is missing the real point — which is that if there were real competition in the market, this wouldn’t be an issue. The lack of competition means that the telcos are in a position to have service providers pay twice. While it pays to be skeptical on any net neutrality legislation which could make the situation worse — the telcos aren’t doing themselves many favors with their lobbying efforts, making arguments like these that are clearly misleading and inflammatory.


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Comments on “Net Neutrality Will Hurt Financial Firms! No, It Will Help Them!”

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3 Comments
Frank says:

Davidson brings need for neutrality into stark con

Am I the only one that sees a tremendously obvious example in favor of net neutrality here? Financial services worry that prices might go up, so they consider supporting neutrality legislation. Telcos return fire by threatening to punish them in a way that is only possible in the absence of neutrality. Huh!?

Wait, Mr. Davidson, so your plan to get the financial services on your side is to scare them by flexing muscle that you have only if you have your way in Congress? As a financial institution, I think that would pretty much solidify a pro-neutrality position, because Davidson has clearly displayed the lengths to which he’s willing to go.

SarahS says:

hang on

Nobody favors monopolies, except those that profit from them of course. But I have been following this issue and see a lot of contradictory information out there. And I have heard the opposite of what Frank wrote. Wall Street balking at investing in the future of the Internet if Net Neutrality through government regulation becomes reality.

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