[Update: Boy, what timing — the Snowe-Dorgan amendment failed on an 11-11 tie in committee just now. This is great news, but it’s not over yet.]
Senator Olympia Snowe is one of three senators proposing to add so-called “neutrality” language to the upcoming Senate telecommunications bill. We recently went back and looked up her floor statement introducing her amendment in late May. And what we found only confirmed our suspicions that even the leading proponents of so-called “neutrality” laws don’t have a very firm grasp on what they’re proposing.
Part of her reasoning for introducing the amendment was:
“Because anyone, anywhere, can communicate with and transact business with virtually any other corner of the globe with an Internet connection, the benefits of the Internet on small business – and on rural places like my home State of Maine – cannot be overstated.”
We certainly agree with the substance of her statement. But we argue that her amendment would actually have the opposite effect. As we wrote here recently, new Internet regulations would have the effect of making it more difficult to deliver what’s called “last-mile” broadband service – that is, high-speed service up to each and every home. It costs a pretty penny to do this, and Senator Snowe’s proposal would put undue burdens on all parties involved.
She went on to say that in the 1990s, the Internet:
“…became a robust engine of economic development by enabling anyone with a good idea to connect to consumers and compete on a level playing field for consumers’ business. Anyone can send an e-mail or set up a Web site at little or no cost, and the marketplace has picked winners and losers, rather than an arbitrary gatekeeper.”
All of which sounds nice. But just because everyone had the same slow Internet speed did not mean that everyone was on the same playing field. Some companies and some individuals had more money to buy more access. It was true then, and it is true now. That’s just the nature of the market – and yet the Internet has still thrived, especially as the telecom industry delivered better and better broadband Internet access.
Which brings us to our real problem with her bill: Senator Snowe frets about individual companies having too much power to “pick winners and losers.” Because so-called “neutrality” laws would mandate that all packets move with exactly the same (lack of) care, what we are more concerned about is that government will step in and decide that everyone will be losers.