It has come to my attention that the big telecom providers are launching some big infrastructural projects recently (at the time of post, Jan. 2018). I presume by that they mean talking laying cables and related activities. Supposedly this is being at least partially attributed to the repeal of net neutrality.

Question: What is it about net neutrality that would impact the profitability of these projects? Would it be fair to compare this to the price of gold and mining? If the costs to mine gold (per unit) outweigh the trading price of gold (per unit), the miners close up shop; and likewise if net-neutrality hurts the big telecom companies' margins enough for them to forego big projects?

Or what is really behind the incentives here?


1 Answer 1


My theory: With the ever-increasing demand for bandwidth, there is a need for capacity.

With the repeal of net neutrality, providers can charge for a premium level of service, as well as refusing traffic that does not bring in revenue.

I think a better analogy would be an apartment building. With net-neutrality: everyone would expect the pay the same rate and get the same level of amenities. Since no one can be turned away the front door of the building would also be unlocked 24/7.

Without net-neutrality: There will be multiple levels of service and price. The people that want a really fast service without having to share resources will have access to that level of service (if they want to pay for it), Those willing to have a little latency will pay less.


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