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[ NNSquad ] Europeans told that net neutrality "will raise broadband prices"


------- Forwarded Message

From: David Farber <dave@farber.net>
To: "ip" <ip@v2.listbox.com>
Subject: [IP] Europeans warned that 'Network neutrality' could raise
 broadband prices 
Date: Tue, 21 Oct 2008 10:51:52 -0400


Begin forwarded message:

From: dewayne@warpspeed.com (Dewayne Hendricks)
Date: October 21, 2008 10:13:32 AM EDT
To: Dewayne-Net Technology List <xyzzy@warpspeed.com>
Subject: [Dewayne-Net] Europeans warned that 'Network neutrality'  
could raise broadband prices

EUROPEANS WARNED THAT 'NETWORK NEUTRALITY' COULD RAISE BROADBAND PRICES

Broadband prices could rise by up to one-third if regulators in Europe  
insist on strict "net neutrality" rules that would block carriers from  
charging content providers premium prices to prioritize certain web  
traffic, a leading think-tank is set to warn. An industry-commissioned  
report from consultants at Copenhagen Economics, due to be published  
next week, is set to warn that imposing net neutrality in Europe will  
"pass on the cost of scarcity to all consumers" and significantly  
increase broadband prices. That, in turn, could depress broadband  
demand. The report's authors suggest, for instance, that the average  
monthly broadband subscription rate could rise from ?33 ($44) to ?44  
in Sweden, and from ?29 to ?39 in Germany. In the latter case, the  
loss in "consumer welfare" from the increased cost and lower broadband  
penetration could be as much as ?1.7bn annually. A separate report,  
due out in the next few days from the Centre for European Policy  
Studies, also concludes that "mandating net neutrality would not be a  
desirable option".

<http://www.ft.com/cms/s/0/8d0c0df8-9ece-11dd-98bd-000077b07658.html>

Courtesy of the Benton Foundation <http://www.benton.org>RSS Feed: <http://www.warpspeed.com/wordpress 
 >




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