Master Agent Featured Articles

Is the recent decision by the Federal Communications Commission (FCC (News - Alert)) to protect net neutrality a good thing or a bad change for telecoms?

Two weeks ago the FCC made the historic decision to regulate broadband as a Title II service, which classifies it similar to landline phone service and enables the FCC to ensure an equal playing field since broadband is considered essential infrastructure.

Prior to the classification, providers could offer a pay-to-play model where those wanting better Internet load times for their web sites and services could pay for it. This was one way that providers could help pay for the infrastructure of the Internet, which increasingly has shrinking margins thanks to consumers’ dual demands for more bandwidth at a lower cost.

Proponents claim that the FCC move ensures that all have equal access to the Internet, whether the company offering services over the Internet is Google (News - Alert) or a one-man part-time business. Big or small, everyone should have the ability to get equal service.

Opponents fear it is unnecessary regulation that actually hampers the development of the Internet and keeps back innovation.

Said Verizon’s (News - Alert) Michael Glover, senior vice president of public policy and government affairs, in a statement: "Today's decision by the FCC to encumber broadband Internet services with badly antiquated regulations is a radical step that presages a time of uncertainty for consumers, innovators and investors. Changing a platform that has been so successful should be done, if at all, only after careful policy analysis, full transparency and by the legislature.”

So is the recent move by the FCC good or bad for telecoms?

Network performance for private network solutions such as point-to-point, MPLS and fiber networks need the certainty that they have equal access, and companies that sell these services will benefit from the FCC regulation.

It also lets niche businesses flourish, and it protects innovation from up-and-coming companies that can help the industry grow long-term.

While regulation is worrying, and limits the ability of telecoms to fully monetize their networks, it also simplifies partner relationships and ultimately keeps telecoms from hurting their long-term interests for short-term growth. In some ways, it keeps telecoms from their worst instincts and ensures that the Internet keeps growing and thriving — something we take for granted, but which is not actually assured.

While most businesses do not want their options curbed, this one might ultimately be better for telecoms in the long run.