Fast Lane in the Works

For a long time the Internet had a good ideological home in America, but that time is over now. The FCC, the national communications agency, has introduced its proposal for the future of net neutrality. If things go the way the regulators want them to, then the Internet will no longer be neutral in America in the future. It could then even be said that it will no longer be free, no longer equally bound to all of its users, and a government sponsored two-class society will prevail.

In a 99-page document, the government agency is recommending that in the future, Internet service providers allow their data packages to travel through the wires at different speeds. It is a document of failure, a concession of a market failure, because even though the request for a fast Internet is ongoing, corporations have so far not created the necessary infrastructure.

In the past few years, the societal and economic importance of the Internet has grown significantly — so significantly that massive investment would be necessary. If an entire society begins to shift its communication, purchasing and TV viewing habits, how is that supposed to happen without large investments? It won’t.

The Internet Creaks in Prime Time

In a capitalist state, one would normally assume that a large demand would generate a large supply, but Internet expansion escapes this simple market logic. For Internet providers to install Internet cables in streets and houses is rarely economically lucrative, particularly in view of the fact that the United States is much more sparsely populated than other industrial nations.

If the market were to fail, it would actually be the state’s job to jump in and encourage investment, especially if such an important infrastructure is involved. But that has not happened in the U.S. The consequences of this bad policy have long been noticeable: In prime time, the Internet creaks under the burden that is being imposed on it.

To find a way out of the plight, the FCC has now suggested giving up one of the most important principles of the Internet. The equality of data traffic is draining companies’ freedom. They now have a great advantage: In future, they will legally be able to ask users to pay. Whoever wants to have faster service and use data-intensive services should pay more. That sounds lucrative, not only for American companies.

Net Neutrality Is Also Endangered in Europe

For a long time, telecommunications companies in Europe and Germany have been fighting net neutrality. In fact, with its vote a week ago, the European Parliament has set boundaries on this greed for the time being, but the decision still has to go through the European Council. Even if the members of the European Parliament agree to it, the issue might be a frequent part of the political agenda because there are also regions in Europe in which data traffic jams are an everyday occurrence.

The new rules help providers and those who can afford faster connections. They do nothing for infrastructure. The U.S. already has experience of paid privileges in another area: In major American cities, there are already “fast lanes,” roads on which drivers who are willing to pay a toll are allowed to drive. They quickly put extra money into the public coffers. However, these lanes change nothing when it comes to regular traffic gridlock. The same thing could happen with the Internet.