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End of net neutrality is bad for Nevadans

Heather Murren
Heather Murren
Opinion
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Digital internet and security graphic

With the end of net neutrality, broadband Internet service providers (ISPs) can legally slow down web experiences. This applies not to our own connection speed, but rather to the interface we have with content providers. At their discretion, they can make their own content appear to perform faster and better than their competitor’s content. Conceivably, they could even block us from seeing content from their competitors.

How is this different from a world with net neutrality? Providers could previously offer one person slow service, and offer someone else faster service — but speed was based solely on the price tier you chose. The “pipes” were required to be dumb, meaning they were not allowed to use what they knew about your Internet usage and favored content to shape your online experience. All users in a particular price tier were treated the same. Now, they can change the speed of your connection based on what you are doing, what content you search for or what content you are using.

Imagine NV Energy owning the GE appliance business. And then imagine that the company was allowed to give you full power to operate your GE appliances, but only half power to run your Whirlpool appliances. Even worse, imagine that it was permitted to provide you with no power at all for yet a third appliance brand. Which appliance brand would seem “better,” and which would you likely begin to buy over time?

Concerns with the new net neutrality rules include the possible impact on access to online education, but that effect should be muted, at least initially. There is less of a concern about ISPs changing their treatment of online education content providers because none of the ISPs presently own online education businesses.

However, in theory, if the overall ISP landscape puts some content providers out of business and there is less competition, price increases are likely to occur. This will affect everyone who uses the Internet, including families with students who have online education needs. It’s an indirect effect, but the cost of schooling may well increase because families will have to pay more for Internet access in general. Among these are students at the 13 K-12 charter schools approved by the Nevada Department of Education and that provide distance (online) education. There are 13,880 students enrolled at these K-12 schools as of the 2017-2018 school year (out of a total of 492,416 students enrolled in total in K-12 schools in Nevada). Online universities such as University of Phoenix could also potentially be subject to price inflation.

Startups and small businesses will be disadvantaged relative to large corporations, and some startups will die on the vine. Internet or app-based startups in Nevada will have a much harder time establishing themselves, if they can do so at all. In order to expand their app or website while maintaining decent speeds and a good user experience, they will have to pay more — and so will the customers seeking to access their service or product. Higher prices mean lower demand, especially when competitors are offering the same or better for less money.

Prices will likely increase for content services such as Netflix, Hulu and Amazon Prime (because of their streaming and high-volume shopping). Netflix last year accounted for 35 percent of downloaded traffic on the Internet during prime time. This makes them a prime target for throttling down speeds so an ISP's customers can watch their in-house programming more quickly and readily.

Additionally, now that ISPs have the power to charge you for packages corresponding to what websites you want to visit, as cable providers package sports channels, premium channels (HBO, Showtime, etc.), and others already do, overall costs will likely increase in order to maintain the same portfolio of viewing options.

The end of net neutrality means the rich get richer, the big get bigger and the powerful consolidate their already strong positions. This move stifles innovation and widens the information and access gap for individual Americans. It is the antithesis of what the Internet was envisioned to accomplish, which was to allow all people to access information and communicate equally, to encourage innovative ideas to spread and flourish and to create a more efficient and cost-effective national economy.

Heather Murren served as a Commissioner on the White House Commission for Enhancing National Cybersecurity, a 12-member commission charged with identifying the steps our nation must take to ensure our cybersecurity in an increasingly digital world. The commission report was submitted December 2, 2016 and made recommendations relating to consumer rights and responsibilities in the digital age, the internet of things, building cyber workforce capabilities, and better equipping the government to function securely and effectively in the digital age, among others.

Disclosure: Murren volunteers her time and expertise to The Nevada Independent as an analyst and special correspondent. She is married to Jim Murren, Chairman and CEO of MGM Resorts International, a significant donor to The Nevada Independent. We disclose all our donors here.

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