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June 16, 2014

"Net Futility . . ."

In about 350 words Professor Munger explains a lot of what you need to know about net neutrality and, as a bonus, severely dents the analysis of a piece on the Jon Stewart Show

The problem is that, as always on the John Stewart show, silly and superficial ideology is substituted for actual analysis.  The FCC is trying hard to "protect" net neutrality, not to eliminate it. And the FCC should be our primary concern.  That is the real threat to the internet, folks:  The FCC is using net neutrality to try to control things.  Far from a benefit, they are the bad guys. 


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David Foster

The need for providers of Internet-based services to pay more in order to get enhanced priority is due mainly to congestion on the part of the network serving the end customers. If the pricing structure offered by ISPs (Verizon, Comcast, etc) properly and profitably covers variable as well as fixed costs of serving their customer, the congestion will rarely exist because it will be profitable to supply more bandwidth to eliminate it.

If a person who watches 2 Netflix HD movies over the Internet every day imposes extra costs on Netflix (to pay Verizon for priority such that the guy can actually see the movies without too much irritation), then of course NF is going to recover that money somehow. It would be much better for the end customer to just pay VZ for the extra consumption directly.

The use of the term "bandwidth cap" for a pricing structure in which more money is charged for more useage is misleading. If lunch comes with 1 beer included, and you can pay for extra ones, we don't speak of a "beer cap."


First comment (by Dave) to Professor Munger provides an excellent rebuttal to his point of view.


I've never heard of the Jon Stewart Show.... Perhaps you mean the Daily Show with Jon Stewart?

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