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The Fallacies of Network Neutrality Regulation

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  • G. Knieps
  • P. Zenhäusern

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 regulation of remaining monopolistic bottleneck components within the local loop 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.

Suggested Citation

  • G. Knieps & P. Zenhäusern, 2008. "The Fallacies of Network Neutrality Regulation," Competition and Regulation in Network Industries, Intersentia, vol. 9(2), pages 119-135, June.
  • Handle: RePEc:sen:journl:v:9:i:2:y:2008:p:119-135
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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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