Net Neutrality and Competition

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Net Neutrality and Competition Scott
Wallsten Senior Fellow Director, Communications
Policy Studies Progress Freedom
Foundation swallsten_at_pff.org scott_at_wallsten.net
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The Internet
Multi-sided market
merchants
consumers
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The Internet
Multi-sided market network effects
Consumers
Content
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Mandatory net neutrality price regulation
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Market failure?
Innovation in content and infrastructure.
Optimal pricing unknown.
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Anticompetitive discrimination?

• Not in providers interests.

• Not with adequate competition.

• Antitrust, not regulatory, issue.

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Effects on consumers?

• In a two-sided market, if prices increase for one
  side they decrease for the other.

• If infrastructure charges content providers

consumer prices DECREASE!
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COMPETITION
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Conclusions
Content AND infrastructure important
Optimal pricing unknown
Net neutrality price regulation
Focus on competition