Proposed Net Neutrality Legislation Limits Competition, Creates Corporate Welfare System, Says NETCompetition Chairman

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NETCompetition.org chairman, Scott Cleland, speaks out against Net Neutrality. Letter to Congress dispels myths about Internet regulation, network neutrality legislation and competition.

Scott Cleland, Chairman of NETCompetition.org, in a letter to Commerce Committee Chairman Ted Stevens and Co-chairman Daniel Inouye reveals how network neutrality hinders Internet competition, provides corporate welfare for companies like Google, Microsoft, Yahoo and eBay and increases government control of the Internet. Read Cleland’s full letter at: http://netcompetition.org/docs/news/letter_052406.pdf

Net Neutrality is anti-competition

According to Cleland, network neutrality legislation would ban broadband companies from competing the way e-commerce companies compete currently. “Why do Microsoft, Google, Yahoo, and eBay have the freedom to use digital and IP communications technologies to differentiate, customize, personalize, bundle and vertically integrate their businesses, but it should be illegal for competitive broad telecom, cable or wireless companies to use the exact same technologies to differentiate, customize, personalize, bundle, and vertically integrate their businesses?” Cleland concludes that net neutrality regulation would enable e-commerce to converge into communications but ban communications to converge into e-commerce.

Network Neutrality is corporate welfare for e-commerce giants

Growing consumer demand for video content requires increased bandwidth. Cleland argues e-commerce giants want to gain from distributing this content but don’t want to pay competitive rates for the bandwidth they use. “They want net neutrality to guarantee them a low regulated wholesale price so that the consumer has to foot the entire bill for their new expensive business practice.” He goes on to say, net neutrality translates into a large government subsidy for e-commerce companies. To learn more about the economic motivations behind the net neutrality legislation visit: http://www.netcompetition.org/cgi/doc_news/display.cfm?doc=14

About Scott Cleland

Scott Cleland is one of nation's foremost techcom analysts and experts at the nexus of: capital markets, public policy and techcom industry change. He is widely-respected in industry, government, media and capital markets as a forward thinker, free market proponent, and leading authority on the future of communications. For more information visit: http://netcompetition.org/docs/about/#chairman

About NETCompetition.org

NETCompetition.org is an e-forum created to promote a rigorous debate on the merits of net neutrality legislation and regulation. NETCompetition.org is funded by a wide range of broadband telecom, cable, and wireless companies who believe the best way to guard a free and independent Internet is free and open competition, not more government control of the Internet. To learn more about NETCompeition.org and network neutrality visit: http://www.netcompetition.org

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