Consumers, App Providers and Service Providers All Lose from Net Neutrality, Stratecast Argues

Some network neutrality proponents say users will benefit if all forms of packet priority are prohibited. In this view, more innovation and value will be produced if no applications can be given  favored use of the access pipe.

That would include streaming video, voice or any other real-time service.

Analysts at Stratecast do not believe the argument. Their analysis suggests application providers themselves, as well as end users and service providers, will be harmed if such policies are adopted.
In truth, nobody knows what might happen if all ability to prioritize bits were prohibited. The key thing, says Stratecast, is that there would be so much uncertainty that service providers would likely behave as though the downside were quite large in magnitude.

Higher prices for end users, less movement towards higher-speed access and ultimately even application experience degradation would occur, long term. The main reasons are the higher costs to "over-provision" physical networks, lower returns for such investment and less robust development of new services and revenue streams, Stratecast argues.

read the full position paper here
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