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The fallacies of network neutrality regulation

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  • Knieps, Günter
  • Zenhäusern, Patrick
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    Abstract

    In this paper, historical functionalities of the traditional Internet are contrasted with today's Internet functionalities of the 'smart' Internet architecture. It is shown that network neutrality regulation prohibiting congestion management and traffic quality differentiation is contrary to economically founded allocation mechanisms. By access regulation of local loop bottleneck components the transfer of market power from the telecommunications infrastructure into the complementary Internet access service markets can be avoided. Regulation between access service providers and Internet application service providers is not only superfluous but detrimental. --

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    Bibliographic Info

    Paper provided by University of Freiburg, Institute for Transport Economics and Regional Policy in its series Discussion Papers with number 115 [rev.].

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    Date of creation: 2008
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    Handle: RePEc:zbw:aluivr:115r

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Corsetti, Giancarlo & Devereux, Michael P. & Guiso, Luigi & Hassler, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2010. "The European economy," Munich Reprints in Economics, University of Munich, Department of Economics 20104, University of Munich, Department of Economics.
    2. Weiß, Hans-Jörg, 2005. "Die Potenziale des Deprival Value-Konzepts zur entscheidungsorientierten Bewertung von Kapital in liberalisierten Netzindustrien," Discussion Papers 108, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Knieps, Günter, 2006. "The different role of mandatory access in German regulation of railroads and telecommunications," Discussion Papers 104 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Birke, Franziska, 2007. "Universaldienstregulierung in der Telekommunikation heute: Herausforderungen, Chancen und Risiken ; ein historischer Ansatz," Discussion Papers 114, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Knieps, Günter, 2006. "Die LKW-Maut und die drei Grundprobleme der Verkehrsinfrastrukturpolitik," Discussion Papers 111, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Aberle, Gerd, 2005. "Zukünftige Entwicklung des Güterverkehrs : Sind Sättigungsgrenzen erkennbar?," Discussion Papers 106, University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. G. Knieps, 2005. "Telecommunications Markets in the Stranglehold of EU Regulation: On the need for a disaggregated regulatory contract," Competition and Regulation in Network Industries, Intersentia, Intersentia, vol. 6(2), pages 75-94, June.
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    Cited by:
    1. Stocker, Volker, 2013. "On the weal and woe of internet traffic management in Europe: A critical appraisal from a network economic perspective," 24th European Regional ITS Conference, Florence 2013 88542, International Telecommunications Society (ITS).

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