Understanding Net Neutrality: What if your kitchen appliances only worked with a Power Company

11:05:00 AM
Understanding Net Neutrality: What if your kitchen appliances only worked with a Power Company -

in the United States, the regulation on net neutrality is to come to a showdown on February 26 for such a boring name, it has enormous implications, well beyond the Internet. Imagine that your electrical kitchen appliances only worked with a power company in particular? That's what you get without net neutrality - or gate neutrality, as it would in this case

households had electricity for a little less than a century, so we're good. aware of the advantage - self-evidentness, actually - that whatever electrical device you plug into the mains, the unit will accept power from the grid and just run on it. And if it was not? What if the grid is not neutral?

At this time, two corporate cultures collide. On one hand, you have the Internet team, which requires neutrality, which requires that everything should work with anything else, and that none of the companies can not be allowed gatekeeper role and the right to determine who has access to markets and which does not. The concept of the garage commissioning is sacred in the culture of the Internet, and it allows access to everyone the service they prefer.

On the other hand, you have the Telco cable and culture, which is exactly the opposite. This culture is called a walled garden, where you need to be able to answer all needs every , either through your own services or through the services you have signed. There is no free choice here. You get the whole package in the walled garden, but only things in there, or you get nothing.

Both cultures are coming to a shock on net neutrality, which is what the Internet requests and demands, and that each fiber will be the Telco and cable industries.

In the jargon of the business, the philosophy is called Walled Garden vertical grouping . It is good for the company to do so, at least in the short term, because it creates blocking effects and greatly increases the transaction costs. It is bad for everyone for the same exact reason.

Vertical consolidation means you take an offer at a level and consolidation with an offer to another level. It could be a combination detergent with a store that sells laundry products, for example (only stores selling private label products). It could be bundling a laundromat with detergent (requiring customers to use only their own detergent, a heavy markup). It could be bundling a mobile phone subscription with priority access to Pandora or Spotify (and lock the competing offers as Grooveshark).

To understand why the lack of neutrality is bad, look at the example of electricity. If your utility company made the vertical grouping, you would have to buy anything that ran on electricity them . They provide kitchen appliances, lamps, electric motors, everything ran on electricity, and remind you often enough on the innovative way they were, by offering this great selection. Meanwhile, we reject this scenario as quite ridiculous - the time that a company would be able to provide a better choice than the overall market, and that would be a desirable situation for everyone, but utility

The lock. -in effect would be enormous. If you wanted to change your power company should be replaced every piece of power equipment . This would be a situation of the power company would salivate; it would be prohibitive to change electricity supplier. It would shock everyone, for the same reason. In addition, the power companies would be guardian of position to determine who has access to the market all with all powered devices.

This is the situation the Cable & Telco team is salivating. They see the potential for lock-in by giving preferential access to their favorite services, creating an artificial garden, and a lock-out or degrade competing services on the Internet. But it will not just against the whole concept of the Internet - everyone is equal online; it also creates a huge economic damage to the whole society, and it puts the Cable & Telco team in a caretaker position to determine who gets access to the market all .

This is why we need net neutrality, as we take electric grid neutrality for absolutely granted.

If you are based in the US, take a minute of your day today to call on Congress to this. The FCC vote on February 26.

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