Net Neutrality: Too Costly To Implement?

By Channel Insider Staff  |  Print this article Print

A report from The Advanced Communications Law & Policy Institute at New York Law School and technology research firm Entropy Economics warned new regulations for providers of broadband Internet service could result in the loss of hundreds of thousands of jobs and could also reduce U.S. Gross Domestic Product (GDP) by tens of billions of dollars per year.

In the report, the authors describe net neutrality's restrictions on the development of new business models, its impediments to the reliable delivery of life-enhancing content and services, and the injection of uncertainty into the marketplace. The paper estimates the likely investment, job, and GDP losses resulting from the imposition of such rules. The authors argue because net neutrality could foreclose even larger investments than presumed in the paper's baseline scenario, the number of jobs lost or foregone could be even greater than the 10-30 percent drop forecast in the report, stretching to 700,000 jobs lost.