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Note: Net neutrality is a distraction. If the FCC focused on creating real broadband competition, net neutrality would solve itself.
The FCC passed a net neutrality rule last December to prevent service providers from treating different types of Internet traffic differently. A "resolution of disapproval" raised in the U.S. Senate attempted to prevent the FCC from making rules about net neutrality, but that resolution was struck down last week by a slim margin of Democrat votes. It was a major victory for net neutrality, but should anyone care?
Not really. But before I explain why, here's some context for non-policy-wonks.
First, why do telecom service providers object to the December 2010 FCC net neutrality guidance? They say it prevents them from engaging in necessary "traffic management." In its most innocent form, traffic management can be used to make sure that malfunctions by endpoints don't unduly affect other endpoints. But a carrier could also use traffic management to gain an unfair advantage over competitors. For example, AT&T could slow down Vonage traffic in order to show its customers that AT&T's VoIP service is far superior. Or cable operators, freaking out customers defecting to Netflix, could create a bad Netflix customer experience.
Second, was the FCC addressing an actual problem? Kind of. In 2008, Comcast used traffic management techniques to stop customers from using peer-to-peer file sharing, which it argued was placing a heavy burden on its network for which it wasn't being compensated. The FCC objected and sanctioned Comcast. But in April 2010, a federal appeals court said the FCC had exceeded its authority. The net neutrality rules passed last year and...