People Innovation Excellence

Is Net Neutrality Good or Bad for Innovation?

By Amy Nordrum

The Trump administration is just days away from taking the reins in Washington, D.C. and many technologists are wondering what its arrival will mean for net neutrality. The new leadership is flanked by advisors who have opposed net neutrality in the past, suggesting that U.S. policy could be challenged or even reversed in the year ahead.

The Obama administration made the strong defense of net neutrality a hallmark of its Internet policy, based on the belief that preserving it benefits consumers and promotes innovation. Now, Trump’s administration is likely to argue the opposite, and say that tossing out net neutrality is really what’s best for consumers, companies, and the U.S. economy.

Major tech companies have also lined up on opposing sides of the debate. Google, Apple, Amazon, and Netflix support net neutrality, while Internet service providers (ISPs) including Comcast, Verizon, and AT&T have long railed against it. Everyone argues that their position will spur innovation and economic growth. So who’s right?

Unfortunately, there is no clear answer. Economists have done plenty of modeling on net neutrality over the past eight years, but there isn’t a strong consensus about whether keeping it or throwing it out would be best for consumers, innovation, or the economy. “Nobody has much data,” admits Gerald Faulhaber, an economist and professor emeritus at the University of Pennsylvania who has done his own review on the matter.[Read More]


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