Broadband Providers Will Win with Net Neutrality

02. 07. 2007 | 7/2007 | Komentáre čitateľov [0]

Broadband Providers Will Win with Net Neutrality.

Broadband Providers Will Win with Net Neutrality

IDC predicts regulation around net neutrality will be decided in favor of facilities-based broadband providers like AT&T, Verizon, and Comcast. However, unlike most observers, IDC believes that keeping the Internet free from net neutrality regulation will ultimately benefit large scale Internet incumbents like Google, eBay, and Amazon – the very companies leading the charge against net neutrality regulation.

Core to the net neutrality debate is the issue of control and monetization of broadband networks by facilities-based broadband providers. Led by an explosion in Internet video, IDC forecasts that the U.S. consumer Internet generated IP traffic is going to be three times heavier in 2011 than it is today. The magnitude of this growth of IP traffic signals an obvious and critical need for broadband network upgrades. IDC says aggressive versions of net neutrality regulation would have a dampening effect on this upgrading effort as facilities-based providers would be prevented from architecting their networks to offer new services that require higher speeds or quality of service (QoS).

In IDC's opinion, net neutrality proponents like Google will realize that quality of service (QoS) is essential to the delivery of new services and quietly modify their position and join the network prioritization environment they now oppose. “Google will likely maintain a public-facing resistance to network control in the short term, but should be making behind the scenes plans to act quickly when the matter is settled and the opportunity materializes,” advises Matt Davis, program director of IDC's Consumer Multiplay Services program. “Being caught flat-footed when a game-changing development occurs makes disruption from smaller, hungrier players willing to deal with facilities-based providers much more likely.”


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