Net Neutrality May Affect Costs on Wall Street
“We all know that corporate America is divided over the issue of network neutrality. In one corner are the Broadband Warriors (AT&T, Verizon, etc.), who don’t want any restrictions placed on their ability to ‘innovate.’ In the other corner stand the Titans of Tech (Google, Microsoft, Yahoo, etc.) who don’t want to find themselves paying a whole new set of fees just to ensure the level of service they already receive. But lost in all this talk of two camps is the fact that many non-technology businesses in the US rely on mission-critical network links — and many of these industries have not yet decided where they stand on the issue of ‘Net neutrality.
“One such industry, notable for its size and political clout, is the financial services sector, which last year spent $117 billion on IT. The financial world is increasingly computerized, running everything from consumer-oriented online banking websites to sophisticated ATM networks, and they’ve recently awoken to the fact that network neutrality legislation will have a direct effect on their business.
“Philip Corwin, a DC lawyer, has been circulating a memo on the topic to Wall Street executives over the last few weeks. In it, he calls the industry to action on behalf of network neutrality. ‘If the industry does not engage quickly, it may find that the matter has been decided without its input and that the fallout will affect the industry’s cost structure and customer relations for years to come,’ he wrote.”
Ars Technica. Wall Street Wakes to Net Neutrality; Verizon Tries to Hit ‘Snooze.’ May 9, 2006.
Anne Broache. Smaller Cable Firms Take Aim at Net Neutrality Fans. News.com. May 8, 2006.
Kristin Roberts. U.S. Finance Sector Puts Web Pricing in Crosshairs. Yahoo! News. May 2, 2006.
CNet Politics Blog. Net Neutrality Proposal Revived in House. May 2, 2006.
CopyCense™: K. Matthew Dames on the law, business, and technology of digital content. A business venture of Seso Digital LLC.