How Do the New Set of Net Neutrality Rules Impact Telecommunications Companies

Net Neutrality

Recently, Net Neutrality has been a topic of concern among many people since internet is supposed to be provided equally among end users. It should be free from discrimination which is mainly caused by some broadband providers blocking lawful sites for their own gains. The issue is further aggravated by the fact that the broadband providers do not disclose their performances; network management practices (FCC 2). Even though Net Neutrality has shortcomings, its benefits far much outweigh its disadvantages, for instance, it leads to increased investments, innovations, competition, transparency, open internet access as well as providing a level playing field among the internet service providers.

Several rules were formulated as a result of unfair competition among the internet service providers. Transparency is one among the rules that was formulated; the rule states that any person who provides broadband services must disclose publicly precise information concerning his performance, network management practices as well as the regulations regarding the broadband services. Secondly, the rule prohibits blocking of lawful websites and applications, for instance, video or voice telephony services. Thirdly, the rule helps to stop unreasonable discrimination in transmission of lawful network traffic.

Formation of tiered service, broadband service providers were now allowed to charge extra cost based on the amount of bandwidth consumed. Specialized services were also permitted, for instance, Internet protocol television (IPTV) video services such as (voice-over-Internet protocol) VoIP services or AT&T's (FCC 124). All the five mentioned rules above help to safeguard liberated access to the internet.

First of all, as result of a level playing field among the internet service providers there are chances of increased competition. This will lead to opening up of the communication business hence more stiff competition from various sectors. Companies are more likely to adjust their business plans so that they can continue to be competitive. There is also a likelihood that future wireless broadband providers will comprise of companies which have strong network which is able to carry data. Consequently, new entrants are likely to be short of access to vital property for wireless broadband thus they will be locked out (Raja & Singh 11).

Secondly, transparency will be enhanced among the internet service providers. For instance, disclosure of information will help to keep in check that internet service users are able to make better choices concerning buying and use of the different types of broadband services (FCC 32). As mentioned before this will help to make sure that the number of broadband providers reduces significantly. Since internet users will have gained confidence in some of the service providers, it will result in increased venturing in internet infrastructures as a consequence of increased revenue. Thirdly, increased transparency will help in the provision of relevant information especially among upcoming internet services. This will result in proper planning before