Government, please impose “net neutrality” for UPS, FedEx, and the Postal Service!

In 2010, Business Insider CEO and Editor-in-Chief Henry Blodget wrote:

ISPs spend billions of dollars building fiber networks. Why on earth shouldn’t they be able to charge what the market will bear to deliver bits over those networks?  If people want their bits delivered quickly and securely, they can pay more.  If they don’t, they can pay less.  It’s as simple (and fair) as that.

To see how silly the whole concept of “net neutrality” is, all you have to do is glance at the physical world.

Imagine if the Post Office (or FedEx, or UPS, or DHL, or any trucking or transport company) were legally prohibited from charging more for delivering some stuff sooner than other stuff.

Ridiculous, right?

Yes, ridiculous.  Those shipping and transport companies spent billions of dollars building their transportation networks.  They have every right to charge whatever the market will bear to deliver stuff via them.

No one has any problem with the concept that the Post Office treats overnight packages differently than slow-boat ones.  Importantly, they also charge different rates depending on what is in the package–see “book rate” and all pricing by weight. So why all this hullaballoo about “NET NEUTRALITY”?

The answer is simple: Self-interest.

Net-neutrality zealots don’t own pipe companies. They haven’t spent billions of dollars building the networks that carry all those bits around.  They HAVE spent (collectively) billions of dollars building the bits that get carried around–so of course they’d like to keep that bit-carrying as cheap as possible.

Read the whole article: Stop Moaning About “NET NEUTRALITY” — Of Course ISPs Should Be Able To Charge Higher Rates For Premium Traffic.

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Filed under economics, public policy

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