It has been a year since the Federal Communication Commission repealed net neutrality rules created by Obama’s FCC in 2015. Yet, the Internet miraculously survives. In fact, it is running 36 percent faster now that the meddlesome feds have been removed from the equation and the free market has been allowed to compete and innovate.
Net neutrality resurrected 1930s-style Ma Bell regulations to prohibit Internet service providers from charging anyone different rates, even the bandwidth gluttons such as Netflix and Google.
Back in May the Senate even passed a resolution seeking to bring back net neutrality. Though the effort fortunately stalled, Nevada’s Democratic delegation to D.C. was all for putting the Internet under the heavy hand of the central planners.
Sen. Catherine Cortez Masto took to the Senate floor in support of the resolution, saying, “Net neutrality has leveled the playing field for every American consumer, allowing everyone to access and enjoy an open Internet. … We can’t afford to repeal net neutrality. (FCC) Chairman (Ajit) Pai’s misguided decision to repeal net neutrality protections threatens to change the Internet as we know it. It threatens our small businesses, access to online education, job growth and innovation by giving those who can afford to pay more the ability to set their own rules.”
Rep. Dina Titus declared, “I agree with the vast majority of Americans who want the internet to promote innovation, access to information, and a competitive economy. All of that is at risk without strong net neutrality protections.”
Then Rep. Jacky Rosen, now a senator-elect, stated, “This administration’s reckless decision to repeal net neutrality gives internet service providers the ability to stack the deck against Nevada’s hardworking families and small businesses who could be forced to pay more to connect to an internet with slower speeds. This resolution would reverse the FCC’s misguided ruling, which places large corporate profits ahead of people, and restore access to a free and open internet for Nevadans.”
Sen. Dean Heller at the time reasonably argued for the free market approach. “I do not want the federal government to determine content. …” Heller said. “I also don’t want the federal government to tax the Internet. I believe the Internet is the last bastion of freedom in America, frankly both good and bad, but it’s freedom. … Access to free and open internet service providers is especially important for Nevadans living in rural communities.”
Heller was right. Rosen was wrong.
According to Speedtest, fixed broadband speeds in the United States are rapidly increasing. Data for 2018 revealed a 36 percent increase in mean download speed and a 22 percent increase in upload speed. This meant the U.S. ranked seventh in the world for download speed and Nevada ranked seventh in the nation.
Back when the net neutrality rules were jettisoned many in the news media predicted doom and gloom. CNN declared it was “the end of the internet as we know it.”
But The Wall Street Journal correctly stated at the time that net neutrality created uncertainty about what the FCC would allow and thus throttled investment in new technology, because it prohibited paid prioritization — under which bandwidth hogs, such as video streaming companies, could have opted out of heavy traffic and switched to a toll road — which could increase profits to pay for innovation and greater speed.
The newspaper predicted both content providers and consumers would benefit from increased investment in faster wireless and fiber technology in the free market.
The invisible hand of the free market has again proven itself superior to the heavy hand of the central planners.
As economist Milton Friedman once said: “When government — in pursuit of good intentions — tries to rearrange the economy, legislate morality, or help special interests, the cost come in inefficiency, lack of motivation, and loss of freedom. Government should be a referee, not an active player.”
Be forewarned, when Democrats take control of the House, expect another ill-advised attempt to resurrect net neutrality, despite empirical evidence to the contrary.