Net neutrality is bad for business
I think an editorial in the most recent issue of Computing Canada misses the point on the impact of net neutrality for businesses.
The editorial laments the fact that net neutrality has been handed losses in the US Senate and it is disturbed by statements from Industry Minister Bernier. Still, Computing Canada believes its readers’ voices need to be heard to convince government to pass laws requiring all Internet traffic to be treated the same by ISPs.
Net neutrality is indeed an important issue for business users large and small. If anything, the business community needs to clearly shout its rejection of net neutrality. While superficially, the objectives of net neutrality may sound noble and democratic, its effects are bad for business. Not only should carriers be concerned, but customers too.
Among the most problematic statements in the column:
As enterprises shift to more Web-based applications for everything from sales force automation to self-service customer tools, the need for a level online playing field is more important than ever.
In fact, the last thing companies deploying Web-based enterprise applications should want is vanilla-flavoured net neutrality restrictions.
Business-grade web-based applications often have to perform better than average. Enterprises and applications providers are happy to pay for the performance that matches their requirements. Enterprises often demand flexibility to leap-frog ‘best-efforts’ internet. Businesses want their applications to be handled in a discriminatory manner.
Net neutrality restrictions would preclude preferential treatment.
Enterprise customers don’t just want a two-tiered internet; they demands two, three and more tiers. Business requirements dictate a complete spectrum of internet services, a continuum of performance metrics, variable business models.
The editorial says
This is not the same thing as choosing between a T1 connection and dialup service: this is putting a premium on some URLs over others, a cost and legal burden that would not easily be borne in a country made up largely of small businesses.
Small businesses are precisely the kinds of customers that should oppose net neutrality.
Net neutrality would provide no better service for hosted banking than for movie downloads. Travel agents looking to grab a seat for their clients will compete with every other application on the internet, because net-neutrality will prohibit the reservations system from securing preferred treatment. Work at home virtual call-centre agents would have no choice but to put up with voice quality that may be less than acceptable, because net neutrality would forbid assigning a priority for that integrated application.
If net neutrality is imposed by legislation, large enterprises will return to more costly private networks to ensure their competitive edge. As a result, it is small business that could suffer the most. The answer isn’t for small travel agents and SOHO operations to be forced into dedicated data access lines. The answer is to let carriers and their customers work it out in the marketplace.
It is precisely because Canada is so dependent on the health of Canada’s small business engine that enterprises, large and small, should be so strongly opposed to net neutrality legislation.
Minister Bernier fully understands the importance of net neutrality, not just for carriers, but for the economic performance of Canada’s business community. That is why the Minister of Industry, charged with the responsibility of policy to support an information economy, understands why he cannot support net neutrality.
It’s more than just bad for business; net neutrality is bad policy.
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net neutrality, Computing Canada, Industry Canada, Maxime Bernier