of ISPs have often referred to firms like Google and Skype as ‘freeloaders’ for making money using networks that they have provided at a cost of billions. Secondly, many suggest what we have right now isn’t in fact net neutrality at all. The biggest firms can invest in higher bandwidth deals and server replication to provide faster access for its users in comparison to smaller sites that wouldn’t be able to afford such infrastructure, for net neutrality isn’t even something that exists to uphold. Thirdly, the increase in rich media means infrastructure providers have far more pressures on their resources than was once the case.
Bret Swanson of the Wall Street Journal suggests Youtube streams as much data in three months as the world’s radio, cable and broadband television channels stream in one year, i.e. 75 petabytes. By
extension he believes telecommunications firms are simply not ready for the era of ‘exabyte’ delivery and something needs to give.
What’s next? In a recent bill introduced in Congress, U.S. House Democrats failed to win Republican support needed for legislation giving regulators temporary authority over how companies led by Comcast Corp. and AT&T Inc. provide Web service, Representative Henry Waxman said. A measure that would let the U.S. Federal Communications Commission enforce net-neutrality rules for two years won’t be introduced immediately, Waxman, a California Democrat and chairman of the House Energy and Commerce Committee, said on September 29, in an e-mailed statement. “This development is a loss for consumers and a gain only for the extremes,” Waxman said. “We need to break the deadlock on Net Neutrality.” The bill aimed to ensure the FCC has the power that was called into question when a U.S. court in April ruled it lacked authority over Internet-service providers. Republican leaders decided “there is not sufficient time to ensure that Chairman Waxman’s proposal will keep the Internet open without chilling innovation,” Representative Joe Barton of Texas, the top Republican on the committee, said in an e-mailed statement. Congress is to adjourn within days to campaign for the Nov. 2 elections. “It is not appropriate to give the FCC authority to regulate the Internet,” Barton said The bill may be introduced after the elections,
Waxman said. The measure would restore the FCC’s authority to prevent the blocking of Internet content, bar phone and cable companies from unjustly or unreasonably discriminating against any lawful Internet traffic, and apply strictures to wireless providers, Waxman said.“Under our proposal, the FCC could begin enforcing these open Internet rules immediately, with maximum fines increased from $75,000 to $2,000,000 for violations,” Waxman said. FCC Chairman Julius Genachowski in September 2009 proposed rules aimed at
ensuring net neutrality. He hasn’t sought a vote while the commission considers its reaction to the April court ruling.
Today’s development prompted renewed calls for Genachowski to proceed with his idea to claim power over Internet service using rules written for monopoly telephone service in the 20th century. AT&T and Verizon Communications Inc. oppose such action and say it may prompt more regulation, including price controls. Lawmakers and advocacy groups have urged Genachowski to proceed, saying customers need protection. Waxman’s bill would bar the FCC from using the phone rules during its two-year duration. “If our efforts to find bipartisan consensus fail, the FCC should move forward,” Waxman said.
Complete freedom of open access on the Internet or tiered payment approaches to stimulate corporate innovation.- you decide.
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C. Cohn
The Cohn-Reilly Report
When the Fed buys long-term government debt from the private market, it shifts interest rate risk from bondholders to taxpayers," Minneapolis Fed President Narayana Kocherlakota warned last week. There are fears that rushing to buy additional assets will do little to spur hiring or spending in an economy already awash in excess cash, one in which nervous consumers are saving more and paying down debt. "Asset purchases in our current economic environment can do little if anything to speed up the return to full employment," Philadelphia Fed President Charles Plosser said in a recent speech. "Because I see little gain at this point, and some costs, I would prefer not to engage in further asset purchases at this time." Many economists echo Plosser's doubts about the Fed being able to jumpstart the economy with more money."I think the impact [of additional purchase] will be minimal," said Bernard Baumohl, executive director of the Economic Outlook Group.
