WASHINGTON-Requiring network neutrality would thwart investment in high-speed networks, Wall Street analysts warned lawmakers.
Network neutrality generally refers to the ability to run any lawful application or connect any lawful device to the communications network. For content providers, it means not being required to pay pipe owners-even if the pipe is spectrum-to have their content carried or given priority.
“The notion of net neutrality will dampen network investment,” said Craig Moffett, vice president and senior analyst of U.S. cable and satellite broadcasting for Bernstein Research.
Moffett testified at a Senate Commerce Committee hearing examining whether and how the Telecommunications Act of 1996 needs to be changed.
Proponents of network neutrality believe policymakers should make it illegal to block or degrade any lawful application, software or device. Wireless carriers already manage access to their networks, arguing that such controls are needed to protect against overloading.
Wall Street’s view echoed the refrain coming from the Telecommunications Industry Association.
“TIA believes that the FCC has jurisdiction to vigilantly monitor the broadband Internet access service market and expeditiously review any complaint of anticompetitive activity. However, as no significant evidence of a problem exists at this time, it is not now necessary for the commission to promulgate detailed rules in this area,” reads TIA’s Broadband Internet Access Connectivity Principles.
