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.”
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.”
A recent study by Entropy Economics also indicated that contrary to assertions by “open internet” advocates, net neutrality would not increase jobs. Analysis of the effect of proposed net neutrality regulation comes as Federal Communications Commission Chairman Julius Genachowski continues to pursue its implementation.
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