Net neutrality regulation of the internet?
Strict net neutrality means that any data packet of any service should be treated strictly equal, independent of origin, destination and type of service, no matter what the economic value of congestion-free conveyance actually is. There is a broad consensus that any blocking or retardation of data packets for reasons of censorship or restraining substitutive services should be prohibited. The problem then focuses on dealing with temporary internet overload. It will be argued that the negative effect of congestion on quality varies strongly among services. If user flat rates and net neutrality come together, some quality-sensitive high value services might be crowded out by quality-insensitive low value services, which is inefficient. The optimal solution is the application of priority pricing, where higher prices are paid for higher priorities in case of overload. It will be concluded that the European approach, which relies on trusting in market forces combined with the soft regulation of adequate transparency rules and a sufficient degree of competition, will lead to an efficient outcome.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 2 (2011)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID==259|
When requesting a correction, please mention this item's handle: RePEc:ids:ijmnec:v:2:y:2011:i:1:p:3-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley)
If references are entirely missing, you can add them using this form.