brewster wrote:DBTrek wrote:
You have it backwards.
Before, high data medical startups needed faster bandwidth *and* a decree from the FCC simply to operate. Now, they can just pay for the bandwidth they need, no stamp of bureaucratic approval necessary. The process is simplified, and biased, outside interests aren’t unbreachable gatekeepers.
So you believe it's impossible the incumbent dominant medical company would leverage their relationship with the provider to pressure them to not give a viable data deal to a startup? Or Netflix will because of its size can get a much better streaming deal with your ISP than the startup? It just makes sense that they can get a better deal with their own connection, but now they can get a better deal with yours, locking in their advantage.
It's not impossible, and it certainly sounds scary at first but you gotta see your argument through to the end and actually game it out. Here's the rub, and it's why free markets tend to be very effective at eradicating racism and other kinds of nonsensical discrimination.
People making this argument keep forgetting the premise they started with - ISP's are still private, profit seeking entities. If you want favorable access, or pay them to throttle your competition, you're going to have to pay the ISP enough money to make up their losses from doing your bidding.
Those losses are generally quite substantial, including
- Loss of business from your competition switching to alternative ISP's
- Compensation for loss of reputation
- Compensation for increased risk of regulatory action
- Loss of ISP subscribers switching to alternative ISP's
This isn't a one off event either. You're constantly buying new contracts with however many multiple ISP's to throttle all new competition that you become aware of. And over the internet of all places, where barriers to entry are smallest and innovation highest. Said competition can also simply change their identity, which the ISP's will turn a blind eye to, and instead go back to deep pockets incorporated to sell them another throttling contract. Soon enough, deep pockets incorporated either files chapter 7 or grows some brains and stops messing with ISP connection speeds.
Benefits/costs don't line up. You might as well just buy your competition out offline it ends up being cheaper. Swimming against market is very very costly. Especially if your product/service is interchangeable, which it will be if you have competition.
The other alternative is not to throttle your competition but for deep pockets incorporated to say to the ISP "we want to work with you to provide a subsidised express line for your customers to access our content". Win Win. Customers get cheaper access to this particular business, and everyone else on the main line gets slightly more available bandwidth.