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To clarify, given the net is not neutral, Facebook will be able to provide better services because they pay internet providers some fee for extra bandwidth and
by mrdrozdov 10y ago
To clarify, given the net is not neutral, Facebook will be able to provide better services because they pay internet providers some fee for extra bandwidth and reduced latency. While Snapchat would decide to provide worse services at a more reasonable cost to them.
This helps Facebook in the battle against Snapchat, but hurts Facebook in that they have to pay an extra fee. A similar argument could be made with other tech companies and their rivals.
Is this a correct interpretation?
- swyman 10y agoThe correct version of the argument is that Facebook can afford to pay for extra bandwidth and reduced latency, but new market entrants cannot. Snapchat has plenty of funding. It also has knock-on effects in the allocation of financial gains of successful startups. The more money required to launch/scale a company, the more likely it is that investors (capital) get a larger share of the profits than founders or employees (labor). That's not necessarily a direct reason to oppose/favor net neutrality, but is worth considering alongside all the other data points.