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The fallacies of network neutrality regulation

  • Knieps, Günter
  • Zenhäusern, Patrick
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    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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    File URL: http://econstor.eu/bitstream/10419/47448/1/663376734.pdf
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    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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    1. Aberle, Gerd, 2005. "Zukünftige Entwicklung des Güterverkehrs : Sind Sättigungsgrenzen erkennbar?," Discussion Papers 106, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. 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.
    3. 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.
    4. 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.
    5. 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 20104, University of Munich, Department of Economics.
    6. 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.
    7. 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, vol. 6(2), pages 75-94, June.
    8. 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.
    9. 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.
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