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Research: Phoenix Center Committee on Technology Testimony

By 16 December 2009 No Comment

Phoenix Center for Advanced Legal & Economic Public Policy Studies
New York City Council Committee on Technology in Government
“Establishing Strong Network Neutrality Principles in Order to Protect the Internet”
President Lawrence J. Spiwak
November 20, 2009

You can find the full text of this document here.

Toward the end of November the New York City Council Committee on Technology in Government held a panel on the subject of Network Neutrality.  Larwence J. Spiwak was one of many who provided testimony at the event.

Key points from testimony:

  • Net Neutrality is an idea, and ideas are not policy.  Ideas have to be formed into policy by fallible people, and must still be enforced by the FCC through words that will also be imperfect.
  • Intervening on behalf of Net Neutrality is difficult because it is a difficult concept to fully realize on paper.  ‘Theory, empirical evidence and professional experience lead the Phoenix Center to believe “bright line” rules will result in higher prices, increased transaction costs, less deployment and increased industry consolidation.’
  • “Open Access” requirements produce a 32% reduction in profitability.  Forcing “open access” industry wide in the mobile arena could force market players out of business and increase pricing and market stranglehold.
  • The American Recovery and Reinvestment Act desires a plan for nationwide broadband.  But this will be impossible without major subsidies and non-discrimination rules will increase costs and barrier of entry for ISP start ups.
  • “Reasonable Network Management” is a subject to various definitions, and some will argue that it should be defined narrowly, while others will argue for more leeway.
  • It is unreasonable to oppose both network management and congestion pricing solutions.

You can find the full text of this document here.

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