Saturday, October 1, 2022

The Willie Sutton Rule and Taxes on App Providers to Support Access Networks

Some might be tempted to argue that efforts to add application providers to funding of access networks is bandied about as an example of the Willie Sutton rule: that's where the money is


Willie Sutton famously was asked why he robbed banks. Though untrue, he is said to have responded “because that is where the money is.” 


That has led to the Willie Sutton rule, which is that, when trying to solve a problem or gain an outcome, it is best to choose the most-obvious route. 


source: Market Business News 


For a variety of reasons, ranging from competition to the economics of bandwidth growth and charging for consumption, the internet access business model is strained. In some regions, government regulations also play a part, as in Europe, where regulators have forced price reductions on service providers in various ways. 


For regulators and internet service providers, finding new ways to fund infrastructure is simply an application of the Willie Sutton Rule: take the easiest route to solving the problem.


Raising prices on business and consumer users seems to them not to be the easiest route. Tying consumption to prices also seems not to be the easiest route. Convincing the government to levy taxes on some app providers is an application of the Willie Sutton Rule.


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