Around the Net

Internet Fast Lane Marginalizes Smaller Web Firms

USA Today spoke with several small businesses about the possible effects of an Internet fast lane on their business. Many of these companies are helping lead the push for "net neutrality" laws, which received a major blow a few weeks ago as one of many bills defending net neutrality was struck down by the House of Representatives. Internet service is currently "neutral" in most instances, meaning that content providers don't have to pay extra if their video service sucks up more bandwidth than, say, a blog. This is because network owners deliver information over their pipes to users' computers at the same speeds. If lawmakers fail to pass legislation guaranteeing network neutrality, that could all change--soon. "That would be a disaster for little companies like ours," a CEO of an online video startup told USA Today. The Web, the so-called "Great Equalizer," would no longer be equal for companies that can't afford to pay for faster delivery of their content. This would skew heavily in favor of larger companies like Google, because they could--however reluctantly--afford to pay these surcharges. But it might discourage them from spending on R&D in bandwidth-heavy areas like broadband video. The future of entertainment on the Web depends on faster speeds, and content providers agree that a "fast lane" would simply stymie competition--to the detriment of both consumers and the Web industry.

Read the whole story at USA Today »

Next story loading loading..