Editorial

AMERICAN SENATORS VOTE TO PREVENT U.S. ISPs FROM DISCRIMINATING AGAINST INTERNET TRAFFIC. SO HOW DOES THIS AFFECT AUSTRALIA?

IF AN INTERNET PROVIDER WAS TO HAVE ITS OWN TV AND MOVIE STREAMING PLATFORM, WHY WOULD IT GIVE A COMPETITOR — LIKE NETFLIX — THE SAME BANDWIDTH UNLESS IT WANTS TO PAY FOR A ‘FAST LANE’?

HAVE YOU HEARD about net neutrality? It’s the principle that all traffic on the internet is treated by your ISP equally, no matter where it comes from, or the device that’s accessing the internet. That Netflix show you’re watching on your TV gets the same priority as your Google search on your smartphone, as does your Fortnite gaming session on your Xbox, and Spotify stream through your smart speaker, if you’re trying to do all of these things at the same time.

It’s a term that was devised in 2003 and formally legislated as the Open Internet Order in the United States in 2015 by the Federal Communications Commission (FCC). Previously, the internet had once been classified as an information service, but was reclassified as a public utility, like water, gas and electricity. However, in late 2017, FCC Chairman Ajit Pai voted to repeal the Open Internet Order. His reasoning was that investment in high-speed internet infrastructure and services had severely declined, and that revoking the rules would open up internet access to more Americans.

Opponents who want to keep net neutrality point out that scrapping it can lead to companies favouring one service over another, and anyone with a vested interest in a service can instead cripple their opponents by slowing their traffic. For instance, if an internet provider was to have its own TV and movie streaming platform, why would it give a competitor — like Netflix — the same bandwidth unless it wants to pay for a ‘fast lane’? Why would it let you view a competitor’s website quickly and easily? Deals and partnerships could quickly destroy any competition from springing up and disrupting their business model.

Unsurprisingly, the companies in favour of scrapping the rules include Comcast, AT&T and Verizon — either internet providers or companies who sell phones (or both). Comcast owns NBC Universal, a media conglomerate with its own TV show and a part ownership in Hulu, a video website.

So how does this affect Australia? Well, the argument goes that unless a new Australian company with a red-hot idea to provide some genuine competition has deep pockets (or wants to sell its idea to a larger company), they’re going to be out of luck expanding. Ideas and innovations will stifle. Australia does not have net neutrality laws, but we do enjoy consumer laws that prevent ISPs from charging more to access certain parts of the internet (this is different from your ISP offering different bandwidth speeds, as regardless of your plan all of your traffic will come through equally to the next).

Just before we went to print, the US Senate voted to prevent the dismantling of net neutrality by 52 votes to 47. It’s a narrow win, but it’s not the final say on the matter. Chairman Pai has a direct line to President Donald Trump, who holds the ultimate power on this. Watch this space.