The Sun Will Rise on Monday Even With the Sunset of Network Neutrality

By all accounts, the prior Network Neutrality regime will evaporate on Monday June 11, 2018.  The earth will spin on its axis and  it will not be curtins for the free world.  On the other hand, the absence of a referee does mean that at some future date, certain unscrupulous Internet Service Providers may test  the reach and scope of their freedom to discriminate and operate biased networks.

In the short run, ISPs are too smart to reduce the value proposition of their services, even though they probably could get away with it like the airlines.  In the longer term, I expect ISPs to create more service tiers, to offer "better than best efforts" routing opportunities and to come up with more zero rating/sponsored data upselling propositions.  This outcome will have a mixed impact on consumers.

On one hand, comsumers might want  prioritization of "mission critical," "must see" video.  On the other hand, the potential exists for ISPs to extort surcharges from small ventures, with content volumes nowhere near Netflix.  In kinder, gentler times, these ventures could expect ISPs to route their traffic without objection and demand for surcharge payments.  ISPs used to be content with the subscription payment of their downstream subscribers.  Now these ventures, operating in a two-sided market want payment from both upstream content providers and downstream broadband subscribers.

This reminds me of the adage that bulls make money in the stockmarket as do bears, but pigs get slaughtered.

It's Still the Phone Company (cont.)

            During the holiday lag, what better time for Verizon Wireless to sneak in a multi-million dollar revenue enhancement, called a convenience fee for the privilege of using a credit card to pay a bill.  If the airlines, cable television operators and wireless carriers previously could insert special bill line items, then why not use holiday distraction to inject another revenue “enhancement”?

            I’m sure some well-paid, self-congratulating MBA calculated millions for something that did not suddenly cost Verizon more.  Haven’t consumers become inured to bogus ala carte line items?  I must be one of the few who won’t do business—if I can afford to do so—with a venture that pads it bills with fees for what used to be called overhead.  Several national car repair companies impose a 10%  “shop fee” on top of everything else.  Who’s going to notice another line item in a cellphone bill that already contains one half dozen?

            Think again.

            With a little extra time on our hands, social networkers can generate the kind of publicity Verizon thought would not occur, what with better things to do during the holiday season.  These very same executives also thought no one would notice a $52 million overcharge for inadvertent data sessions caused by an ill-placed handset button.  Recall that Verizon managed to forestall any consequence for over fours years!

            I’ll leave to others commentary on the power of social networking.  I’ll just list this event as one more indication that you can add wireless to phone company, but you still have a phone company.  Verizon management must have thought that they could get cover when all the other carriers would quickly follow Verizon’s lead and add the $2 convenience fee.  Who knows which carrier doubled the ten cent per text fee?  No penalty when ever carrier adds insult to injury?  The other wireless carriers must have read the angry tweets before following Verizon’s lead.