Talk of an Internet Fast Lane Is Already Hurting Some Startups

Studies of internet and computer use suggest that full potential is far from realized. The US Federal Communications Commission is proposing rules that “would allow ISPs to charge content providers like Netflix to ensure speedy service, so long as those charges are ‘commercially reasonable,’” reports David Talbot for MIT Technology Review. “History shows that some Web-based products and services are most likely to take root when access to Internet users is free.” Comments are being accepted by the FCC, but venture capitalists report mere proposal of a tiered system and fees, ensuring the big internet players superior access, has already redirected investments away from video, audio and plans requiring big bandwidth. The FCC chairman suggests the new rules would not create haves and have-nots, but rather allow people to pay for what they use. A venture capitalist counters that the internet’s current framework on fees has allowed small startups “to reach a global audience at no cost.” – YaleGlobal