What Is Net Neutrality?

Whenever you access the internet — whether you are browsing a website, streaming a video, making or listening to your favourite podcast — data is sent to your device via an Internet Service Provider (ISP).

Net neutrality (also referred to as “the open internet”) is the principle that all traffic (or data) on the internet should be treated equally.

Whether you are accessing content from a small business, or a multinational corporation, all data should be transferred at the same rate. There should be no “fast”, or “slow lane” on the web.

Additionally, net neutrality ensures that ISPs cannot filter (or slow down) content for corporate gain, or based on their political views.

What Were The Original Net Neutrality Rules?

In February 2015, the Federal Communications Commission (FCC) voted to preserve the open internet.

While the full details of the FCC rules on net neutrality (published in March 2015) run to some 400 pages, they can be summarised as:

1. No blocking

An ISP may not block content, applications, or non harmful devices from their network, provided they are lawful.

2. No throttling

An ISP may not purposely slow down websites, content, or applications (known as throttling).

3. No paid prioritization

An ISP may not accept money from an organization, in exchange for speeding up delivery of their content over the network. No “fast lane” for the internet.

When Was Net Neutrality Repealed?

On December 14th, 2017, the FCC voted to repeal the 2015 net neutrality rules.

The repeal order, dubbed “Restoring Internet Freedom“, was published on January 4th, 2018, and came into effect on the 11th of June 2018.

What Does The Repeal Of Net Neutrality Mean For You?

With the repeal of net neutrality, ISPs are free to charge premiums to websites and services to deliver their content faster over their network (or conversely slow down content from those who do not pay).

They are also free to speed up delivery of content from sites which they own (or slow down content from competitors). They could even choose to completely block access to a competing website or service.

Why is this a big deal?

Because the major ISPs have interests in some of the world’s most popular websites and services.

For example, Comcast have a 30% stake in the streaming service HULU. Indeed in 2014, prior to the passing of the original net neutrality laws, Netflix agreed to pay Comcast to speed up delivery of their content after customers using Comcast to connect to the internet complained that Netflix had become unusable.

This graphic from Statista shows some of the services owned by the major ISPs:

If websites and content providers are forced to pay for access to the “fast lane”, it is not a huge stretch to assume that these costs will be passed on to customers by way of higher fees.

Indeed, many popular news and media sites which currently offer their content for free (or are funded by advertising) may have no choice but to charge for access to their content.

The internet service providers could also choose to charge a premium to customers who access video, or listen to music at peak times.

And they could choose to completely block websites which they disagree with. Which has a huge potential impact on political discourse and freedom of speech.

How Will The End Of Net Neutrality Impact Small Businesses And Startups?

With net neutrality in place, content from a small business or startup would be delivered over an ISPs network at the same rate as content from a large company.

This ensured a level playing field, and has been one of the key reasons why startups have been able to grow quickly and compete with major players.

The end of net neutrality puts up an additional barrier to entry for many startups who won’t be able to pay for access to the “fast lane”. The playing field is no longer level.

For example: would a “slow” Facebook — bootstrapped from a Harvard dorm room — have been able to take over from a “fast” MySpace?

This barrier to entry could also stifle innovation.

Existing businesses may not feel a pressing need to improve their product or service if they are less concerned with new competitors entering the market.

The Counter Argument: Why Net Neutrality SHOULD Be Repealed

There is of course a counter argument.

ISPs contend that being able to charge a premium for access to their network will allow them to invest in improved infrastructure. This could include improved internet access and speeds for those in remote and rural areas.

It is an argument with some weight when we consider that 19 million Americans still do not have access to a fixed broadband service at threshold speeds.

ISPs also argue that they should reserve the right to charge a premium to sites who put more strain on their network. Sites like YouTube and Facebook should expect to pay more.

But again, these additional costs are likely to be passed on to the consumer, or even see the end of free services. And ultimately, the big businesses will pay, while the smaller sites and startups will be left crawling in the slow lane.

Can Net Neutrality Be Saved?

Possibly. But probably not (at least at a national level).

In May 2018, the US senate narrowly voted to reverse the FCCs repeal.

However a potential US wide reintroduction of net neutrality laws would require the majority support of the House of Representatives. And this support would be required by December 10th 2018.

Update 12/13/2018: Due to the ongoing conflict between Democrats in Congress and President Trump over border security funding, Congress will now remain in session until at least the 21st December. Consequently the deadline for Congress to overturn net neutrality repeal has now been extended to the 21st December 2018.

As the House of Representatives is currently controlled by The Republicans (until January 2019) it is unlikely that the reintroduction will secure enough votes.

President Trump, a Republican, was the driving force behind the repeal, and is strongly opposed to net neutrality, stating that the laws were “an unnecessary restriction”.

But while federal reintroduction of net neutrality laws is unlikely, a number of states have enacted (or proposed), their own laws governing net neutrality. Use the map at the top of this guide to find out which bills have been proposed in your state.