Neutrality or Not… You Decide
Its one of the most divisive issues of recent months.
In a 3-2 vote late last week, the FCC ruled in favor of rolling back current net neutrality laws.
This decision reverses longstanding protections that in recent polling appear to be very near and dear to the hearts of the public.
A University of Maryland study reports that an overwhelming 83% of people surveyed across all party lines were in favor of net neutrality protections.
Another recent public poll conducted by Mozilla, creators of the Firefox, found similar sentiment.
Three quarters of Americans (76%) polled agreed in favor of net neutrality across party lines.
Proponents for the protections claim rolling neutrality rules back allows companies to create “fast lanes” for preferred content providers.
Or to slow down a specific website’s traffic if it’s not preferred content.
Comcast, for example, could decide that Netflix isn’t paying them enough for the amount of traffic they generate. Comcast could slow down Netflix’s streaming speed in response.
Ultimately, this would disrupt the customer’s ability to stream shows and movies until Netflix ponies up to Comcast’s demands.
On the other side of the debate are those who feel the amount of manpower and resources devoted to maintaining internet networks is not scaled properly.
Companies like Comcast and Verizon claim they aren’t compensated fairly for the investments they make to maintain networks and expand access.
It’s a classic debate. On one side is the call for protections to promote fair use and new innovations.
On the other side, you have the call for fairer returns on investments for the companies that develop and maintain these networks.
It’s a complicated issue, certainly. And last week’s FCC vote is just the beginning of a battle sure to grab headlines throughout 2018.
The issue of net neutrality, and internet availability generally, is also bullish in the long term for Ray Blanco’s “Halo Fi” thesis in Technology Profits Confidential.
Fiber based internet is on its way out. Next generation internet comes from the sky.
Now, turning to the markets this morning…
Market Rundown for Mon., December 18
S&P 500 futures continue to rise, up 9.75 this morning at 2,675.
Oil’s up a tick at $57.61. Gold’s looking to recover, up slightly to $1,259.28.
The Russell 2000’s up 1.56% this morning at 1,530.42.
Bitcoin looks to break the $20,000 threshold trading at $19,086.98 on Coinbase.com.
Talk with you again on Wednesday.
For the Rundown,