New Heritage Report: “Broadband Regulation: Will Congress Neuter the Net?”
by James Gattuso on June 2, 2006 · 2 comments
In case you haven’t had your fill of net neutrality yet, here is a new paper of mine, published today by The Heritage Foundation, surveying the issue. My conclusion:
Proposed network neutrality rules would impose comprehensive, unnecessary, and harmful mandates on broadband networks. Such unnecessary mandates–the most extensive regulation of the Internet ever considered by Congress–would stymie the efficient use of scarce Internet capacity, discourage investment, and even threaten the growth of competition among broadband networks.
Despite the grim scenarios painted by the supporters of regulation, there is little or no evidence of market abuse by network owners. This is for good reason: Today’s broadband market is competitive, and any network abusing its position would quickly lose customers. Moreover, if any abuse does occur, existing competition law is more than sufficient to address the problem.
Advocates of neutrality regulation argue that the future of the Internet is at issue in this debate. They are correct. This is why such regulation of the Internet should be rejected.
In other words, regulation would be a bad thing.
James Gattuso / James Gattuso is a Senior Research Fellow in Regulatory Policy in the Roe Institute for Economic Policy Studies at The Heritage Foundation. Gattuso also leads the Enterprise and Free Markets Initiative at Heritage, with responsiblity for a range of regulatory and market issues. Prior to joining Heritage, he served as Vice President for Policy at the Competitive Enterprise Institute and also as Vice President for Policy Development with Citizens for a Sound Economy (CSE). From 1990 to 1993, he was Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission. From May 1991 to June 1992, he was detailed from the FCC to the office of Vice President Dan Quayle, where he served as Associate Director of the President's Council on Competitiveness. He lives in Alexandria, Virginia with his wife Dana, 8 year-old son, Peter (whom he relies upon to operate his VCR), and his four year-old daughter Lindsey (who does the DVD player.) He has no known hobbies, but is not nearly as boring as he seems.
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