Sunday, April 20, 2014 02:25pm
North Adams, MA now: 57 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
Independent Investor: The Internet Will Change
By Bill Schmick On: 04:21PM / Thursday January 16, 2014
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

"Net Neutrality" is the official name for an open Internet. It means that all Internet providers are to be treated the same regardless of whether you are a mom and pop company or a global behemoth. This week's federal appeals court ruling pulled the plug on that concept.

The judges ruled that the Federal Communication Commission's anti-discrimination rules were beyond the scope of its authority when it came to the Internet. Congress gave the FCC authority to regulate common carriers, such as telecommunication companies, years ago. The FCC has always ruled that telephone networks cannot discriminate against consumers.

However, back in the Bush administration, the FCC was pressured by phone and cable lobbyists to categorize Internet service providers differently. They are considered information services, which we now discover exempts them from common carrier rules. In hindsight, that was a big mistake.

For consumers the fallout could be huge. Fee-free services that we now take for granted may not work as well as before. Internet service providers could now charge fees for the privilege of "service in the fast lane" while the rest of us find we have been consigned to the tortoise lane.

If you're a company that really needs a large amount of bandwidth to provide your services to the consumer in a timely fashion, fees will be going up. Think of companies such as Netflix, Amazon Prime, YouTube, Facebook and others that may have to pay more to ISPs in order to ensure that their content remains accessible to their customers. We all know what that means — higher costs will be passed on to us in the form of higher charges for the same service.

Higher fees could also mean less innovation. Much of today's new ideas are Internet-related, simply because anyone with a good idea can try it out with little to no cost on the Internet. There will be fewer garage startups by Internet and Web-enabled entrepreneurs. Small companies will find it harder to launch new services or compete with existing players that have the resources to pay and keep new players out.

But this is not only about the cost of your next viewing of "House of Cards" or "Orange is the New Black." The Internet has become society's great equalizer. Anyone, regardless of background, income, or race can access the Web for any number of reasons from education to entertainment. As ISPs begin to resemble cable companies, those who can pay will receive a far different level of service from those that can’t.

Society in general will suffer as yet another great divide will be created. Those who can pay will have access and those who don't will see further stratification of society based on incomes and demographics. From the great equalizer, the Internet could become the great divider over time.

There is still hope, however. Net neutrality could still survive. There is nothing in the court's ruling that prevents the FCC from reversing their Bush-era decision. They could simply change the definition and treat the Internet providers as part of the telecommunications industry. Of course, that would put them at logger heads with a very powerful lobbying army and a number of politicians who are being paid to represent the interest of the ISPs.

That's where you come in. You could always call your elected official and express your opinion.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.



0Comments
     
News Headlines
Cheshire Students Learn About Space, Robotics
Clarksburg Egg Scramble 2014 Winners
Williamstown Man to Run Marathon With Blind Athlete
Pittsfield Committee Divided on Chiefs in Civil Service
North Adams Closes Beaver Street Over Mudslide Fears
MCLA Opens New Facilities Building in North Adams
State Pothole Funds Helpful But Not Enough
Holiday Hours: Patriots Day
Pittsfield Lakefront Property Being Developed on Churchill Street
Committee Finds Leaking at Hoosac Valley High
Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (133)
Independent Investor (179)
Archives:
April 2014 (6)
April 2013 (2)
March 2014 (6)
February 2014 (6)
January 2014 (7)
December 2013 (8)
November 2013 (7)
October 2013 (6)
September 2013 (6)
August 2013 (8)
July 2013 (3)
June 2013 (5)
May 2013 (7)
Tags:
Banks Debt Recession Pullback Jobs Stock Market Taxes Greece Deficit Qeii Election Commodities Selloff Europe Energy Metals Oil Fiscal Cliff Rally Congress Stocks Japan Economy Debt Ceiling Euro Employment Retirement Interest Rates Stimulus Bailout Markets Banking Federal Reserve Currency Crisis
Popular Entries:
The Independent Investor: Understanding the Foreclosure Scandal
The Independent Investor: Don't Fight the Fed
The Independent Investor: Does Cash Mean Currencies?
@theMarket: QE II Supports the Markets
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: How Will Wall Street II Play on Main Street?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Will the Municipal Bond Massacre Continue?
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
@theMarket: Easter Bunny Bounce
The Independent Investor: Good Friday and the Stock Market
@theMarket: No Spring in the Stock Market
The Independent Investor: Banks Face Tougher Regulations
@theMarket: A Crowded Trade
The Independent Investor: Obamacare Confounds Critics
@theMarket: The Faint of Heart
The Independent Investor: Do Women Have a Choice?
The Independent Investor: What's Wrong With This Flight Plan?
@theMarket: Hanging In There


View All
Clarksburg Egg Scramble 2014
The annual Easter egg hunt, sponsored by the VFW, was held...
Pittsfield Egg Scramble 2014
The annual Egg Scramble at Morningside Community School saw...
Track: Monument @Hoosac...
Monument Mountain bested Hoosac Valley on its home turf...
Girls and Boys Tennis: PHS vs...
4-17-14 Girls and Boys tennis match between PHS vs Mt....
Softball: Lee vs Hoosac
4-14-14 Kassandra Kazimierczak went 2-for-4 with a double...
Baseball: MG vs Hoosac
4-11-14 Dan Flynn's suicide squeeze with the bases loaded...
Softball: MG vs McCann
4-11-14 Mount Greylock and McCann Tech played an atypical...
Sullivan School CPR Class
Seventh-graders at Sullivan School in North Adams learned...
Lacrosse: Mounties vs. Hoosac
Mounties overwhelmed Hoosac Valley on Wednesday 14-1....
North Adams Furnace St. Fire
Firefighters contained a top floor apartment blaze on...
Berkshire Chamber Career Fair...
More than 50 employers connected with job seekers at...
Lacrosse: MG vs St. Joe
Mount Greylock boys lacrosse team won 17-4 St. Joseph at...
Softball: MG vs Drury
4-8-14 Mount Greylock softball claimed a 7-2 victory over...
Wahconah High School Musical...
Wahconah Regional High School is putting on the 1930...
Drury Coach Marceau Benefit
Friends and supporters filled the Eagles Hall on Friday...
Lenox High International Fair
Lenox Memorial Middle and High School students got to...
Clarksburg Egg Scramble 2014
The annual Easter egg hunt, sponsored by the VFW, was held...
Pittsfield Egg Scramble 2014
The annual Egg Scramble at Morningside Community School saw...
Track: Monument @Hoosac...
Monument Mountain bested Hoosac Valley on its home turf...
Girls and Boys Tennis: PHS vs...
4-17-14 Girls and Boys tennis match between PHS vs Mt....
Softball: Lee vs Hoosac
4-14-14 Kassandra Kazimierczak went 2-for-4 with a double...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved