Posts Tagged ‘Entropy Economics’

Capitol Confidential

Study: Net Neutrality Bad for Innovation, Investment and Consumers

by Capitol Confidential

A study released Tuesday by the American Consumer Institute contains some bad news for proponents of net neutrality. Whereas advocates of “open internet” rules often argue that the institution of the policy is necessary to preserve innovation and would benefit consumers, the study finds that “new Internet regulations, including those now under consideration by the FCC, would restrict technology advances, innovation and job growth.”

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The study further notes that “broadband network providers are a leading source of both innovation and new investment in Internet infrastructures.” Innovation and investment are often seen by tech policy observers as integral efforts that will help ensure that a broader base of consumers benefits from high-quality broadband service.

Study co-author Larry F. Darby explicitly tied proposed net neutrality regulations to a likely diminution in “motive” that would, under present circumstances, propel Internet companies to innovate and invest. Said Darby, “All indications are that these well intended regulations would dampen both incentives and opportunities for firms in the Internet ecosystem to continue to invest and to embed new technologies in core networks on which downstream applications and content providers depend.”

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Capitol Confidential

Study: Net Neutrality Won’t Increase Jobs

by Capitol Confidential

Net neutrality supporters have long argued that institution of “open internet” rules is critical for job retention and creation.  However, according to some opponents of the proposed policy, a study released on Friday by Entropy Economics undercuts that assertion—just as much discussion in the political world is re-centering on the topic of job creation and as the Federal Communications Commission (FCC) continues to move closer to a decision on controversial, proposed net neutrality rules.

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The study, entitled “What Would Net Neutrality Mean for U.S. Jobs?”  analyzes comments submitted by companies within the Internet industry to the FCC as of January 15, 2010.  It excludes those submitted by trade associations, individuals, and academics, and breaks commenters down into two categories: Supporters and Skeptics.  It also attempts to exclude “non-U.S. employees of foreign-based Skeptics” but includes “any foreign employees of Supporters.”

The results are bound to unsettle net neutrality advocates: Even with the filtering out that Entropy conducted, Skeptics—many of whom have expressed concern about the negative ramifications of net neutrality on their businesses— employ nearly ten times the number of employees that Supporters do.  More specifically, Skeptics directly employ 1,440,021 workers, whereas Supporters directly employ just 148,936 workers.

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