Managing for better consumer experience
One mistake that Internet regulation proponents make is thinking only in terms of information when considering Internet policy, Spiwak says. They are forgetting the networks required to carry the information, how expensive they are to build, and how much more efficiently they operate when carriers build intelligence into their systems.
“If we learned anything from the bubble of the 1990s it was that you just can’t go out and build—it doesn’t work like that,” Spiwak says. “That’s particularly true for a wireless company. It’s not like you can just go out and buy spectrum anytime you want. This is not readily available.”
So wireless carriers and other broadband access providers have a better idea.
“Rather than build a massive new network, you put in some intelligence to make your existing plant work more efficiently,” Spiwak says. “But under network neutrality you couldn’t do that, because the government says that you have to treat every bit of information in the same way.”
That would be a real blow to the wireless broadband user. Wireless devices don’t have the same capabilities as computers; so wireless providers already use intelligent networks to move Internet traffic to their customers’ phones. Far from complaining about their experience, those customers are embracing it
in growing numbers because it is targeted to their needs.
“Carriers and handset manufacturers have partnered with various Internet content providers to customize the user experience in a way that is much more consumer friendly,” says Altschul. “We have seen the development in the competitive wireless side of MVNOs (mobile virtual operator networks), which actually benefit the consumer by narrowly targeting a set of services that meet certain needs better than a one-size fits all approach,” he continues. “Disney Mobile is an example of that. We have Spanish language companies that are focused on the Hispanic community and their unique tastes and interests. We have services that are targeted towards various age groups, such as Virgin Mobile for college kids or Jitterbug for seniors.
“Each of them in their own narrow way has a customized set of applications that consumers find more valuable than a generic one-size fits all approach that is what net neutrality advocates are seeking. The MVNOs attract by excluding content that the audience isn’t interested in and by providing content that they
want,” Altschul adds.
The Myth of Net Neutrality
At constantly falling prices, wireless consumers enjoy better products and services everyday. So-called "net neutrality" legislation would stifle the innovation and competition that has made it all possible. Two experts uncover the truth behind the misleading term "net neutrality" and describe how it would harm the wireless consumer.
