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Comments in support of net neutrality rule

January 12, 2010

Policy Integrity submitted comments to the Federal Communications Commission (FCC) in support of a proposed rule that would prevent Internet-service providers from price discrimination. The comments argue that the presence of positive externalities, including the public good nature of information and network externalities, justify the regulation.

Both content providers and broadband providers face incentives that lead to underinvestment, but it is relatively easy to directly support broadband compared to content providers. A pricing rule like net neutrality, coupled with direct subsidies, can help overcome the positive externality problem.

Filed under Public Comments, Safety and Consumer Protection