Verizon switch is proof that Net neutrality legislation is not needed
Verizon originally rejected Naral text messages, as Tim notes below, but it quickly changed its tune when the news became public. That’s because there is competition in the marketplace and public pressure made Verizon act faster that it probably has on any other issue in the last year. This is one more example of why Net neutrality advocates should relax and focus their efforts on problems that actually exist, such as the waste and corruption in the Universal Service system.
Also, I have been meaning for a while to post PRI’s new paper on Net neutrality, so here it is.
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Your post begs and obvious question. Verizon is unilaterally attempting to define the nature of the the traffic on its network to the detriment of some users. The problem is that they were caught. If a company has been caught with its hands-in-the-cookie charge, to use an analogy, that implies that it can not be trusted. In the future, Verizon could attempt to block text messaging from "Friends for the Ethical Treatment the Aliens from Mongo". Laws will not make a company trustworthy, but they may allow those who have been screwed to have recourse.
On the Universal Service system, the post by Vince Vasquez lacks credible substance. From the perspective of a taxpayer, subsidies are an anathema. However, from the perspective of business subsidies are free money, corporate welfare. Were the marginal cost (of selling product to a customer who could not otherwise afford the product) is low - subsidies create demand for the product and increase a companies profits. Vasquez has not demonstrate how subsidies have hurt the telecoms.
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