The debate surrounding the repeal of net neutrality has touched on everything from free speech to online innovation and consumer rights. But how will it affect consumers’ wallets?
The short answer: It depends. “There are costs on both sides,” says Nicol Turner-Lee, a fellow in Governance Studies at the Brookings Institution, a think tank in the District of Columbia.
Net neutrality rules require internet service providers, commonly called ISPs, to treat all online content equally, no matter its source, type or destination. This prevents them from making it faster and easier to access their own content — or content from companies that pay them a fee. Right now, politicians and consumers are debating the Federal Communications Commission’s proposal to roll back these rules, potentially benefiting ISPs, such as Verizon, Comcast and AT&T, which could favor some content creators over others.
While the net neutrality debate isn’t primarily one about consumer costs (instead, it revolves around how we use the internet and what we see online), its repeal could have real financial implications for consumers. Here’s what the experts predict.
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Your internet bill. If net neutrality is repealed, and ISPs take advantage of the relaxed regulations, some experts predict that you’ll see changes to how your monthly internet bill looks and what it includes.
“Imagine going to your favorite social media site and getting a pop-up from the service provider: ‘To access this site you need to upgrade your package to access social media for $10.99 per month,'” says Evan Greer, campaign director at Fight for the Future, a technology nonprofit based in Boston.
Other experts see something similar. “If you are a consumer, everyone is going to get to pay for the bronze, silver and gold package,” says Jonathan Hill, dean of the Seidenberg School of Computer Science and Information Systems at Pace University in New York. “And if you don’t have the gold package, good luck catching up on ‘Game of Thrones.’ It’s going to be a slower and more frustrating process.”
On the other hand, if net neutrality rules stay put, some experts predict a situation where service providers need to recoup the costs of maintaining and building ever faster online networks and platforms. “If the rules stay in place, the potential impact to consumers will be that ISPs will have to find other ways to fund these robust networks,” Turner-Lee says. “Without the repeal [of net neutrality], consumers may incur more costs when it comes to [buying] the service.”
One place to look for clues about a world without net neutrality rules is in Europe, says Barbara van Schewick, professor at Stanford Law School and a leading expert on net neutrality. Before European net neutrality laws were implemented, “a lot of mobile providers limited what you could do on the less expensive mobile plans,” she says. For example, she says, people on the lowest mobile tier may pay less for service, but they wouldn’t be able to use internet calling applications such as Skype.
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Content providers. Without net neutrality rules in place, some experts foresee content providers, such as Netflix, Hulu and other websites, needing to pay more to have their content travel via a “fast lane” in order to prevent slow loading times and other challenges. Those applications and websites may opt to pass those increased costs to customers.
“The concern for people’s pocketbooks here is [whichever content provider] can pay for a ‘fast lane’ will increase their prices for us,” van Schewick says. “Or if they don’t charge us directly, they’ll increase their ads.”
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Online research. For those websites and online applications that don’t — or can’t — pay for access to the “fast lane,” it may be harder to access, load and use their sites. The inconvenience of using these “slow lane” sites may leave consumers less informed when it comes to shopping or searching for consumer information online, experts say.
One example: “If you’re on Comcast, and every time you search for: ‘What’s the best internet company,’ they only let you see great stuff about Comcast’s services,” Greer says. That might be the case, too, if you’re researching the best credit cards, checking accounts or financial advisor to meet your needs. You’ll be dissuaded from engaging with companies and websites that reach you more slowly.
These increased costs for content providers may also make it harder for startup media companies, which can’t afford to pay for priority speeds, to become competitors. That next market disrupter? That next Facebook? Netflix? Kayak.com? It might never be launched, making the internet a less robust marketplace for consumer services, such as price-comparison sites or low-cost entertainment options.
Some experts compare an online world without net neutrality laws to what’s happening in the airline industry, where amenities that were previously included in a regular ticket will start to “unbundle” for consumers to buy separately. Consumers will gain more choice about what they pay for — and what they choose to live without. But the baseline service might feel a bit like being squeezed in the middle seat of a budget airline, making it tempting to pay for an upgrade
What you can do about it. No matter what side of the net neutrality debate you fall on, you can impact whether the rules are rolled back by contacting your senators and representatives on Capitol Hill. Consumers have until Aug. 30 to register a comment with the FCC.
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How the End of Net Neutrality Could Affect Your Wallet originally appeared on usnews.com
