Does the End of Net Neutrality Mean the End to Small Buiness

Currently, the Federal Communications Commissions (FCC) requires all common carriers to treat all data packages traveling the Internet service providers’ networks equally. This means that content loads at the same speed for the end user solely upon the internet speed available to them and the bandwidth tier for which they pay. However, in an appeal made by Verizon, the court system decided that the FCC could not impose those same regulations on Internet service providers. Basically this means that Internet companies will have to pay more money for the faster bandwidths to provide content on their websites.

There are many opinions on how and if this Net Neutrality Bill could affect small business owners. If ISPs lower bandwidth for those who refuse to pay more to ride in the fast lane so to speak, then there will be little to protect small businesses. The main opposition against the new Net Neutrality bill argues that since there are only a few ISPs to choose from, there will be nothing stopping them from charging so much for the needed Internet speeds, that small businesses and start-up will not be able to keep up financially. According to some, the internet is one of the few places where small and start up businesses have the ability to compete with large companies; but it all might be in jeopardy if ISPs are allowed to discriminate against internet content providers.

Some fear having companies pay for higher bandwidth speeds may lead to anti-competitive practices such as limiting the traffic of organizations that directly compete with the ISP’s top paying customers. Simply put, those who do not pay for the extra bandwidth may find their sites load so slowly (regardless of the consumer’s internet speed) that customers end up going elsewhere. This could be disastrous for small business owners who cannot compete financially with the top companies. When 54% of all US sales come from small business with 82% of those small businesses with an online presence, one has to wonder, what will happen to the US economy if the critic’s worst fears come true?

On the other hand, there are some people who do not see a reason why the biggest Internet companies, like Netflix, should not have to pay more for higher bandwidth especially in peak times. The FCC chairman, Tom Wheeler, was quoted saying that Internet service providers (ISPs) may charge more for higher bandwidths but they would not decrease the existing speed for those who decide not to pay extra. If this is the case, then the end user most likely will not notice a change in their day-to-day Internet experience. However, with the more relaxed Net Neutrality laws, there will be no way for the FCC to regulate the bandwidth speeds that ISPs provide so Wheeler’s prediction may end up being nothing more than hot air.