October 17, 2006 3:53PM

Net Regulation Proponent Concedes: Markets Work

Other than the religious devotees of regulation, most observers of the drive for “network neutrality” regulation have recognized that the essential question is whether there is sufficient competition among broadband providers. If there is enough competition, broadband providers can’t use their market power to do bad things to consumers and public utility regulation of broadband is not needed.

Columbia law professor and champion of net neutrality regulation Tim Wu is quoted in the October 14 Economist admitting consumers’ power to influence broadband providers:

“The public reaction has already been as powerful and effective as any law,” says Timothy Wu, a professor at Columbia Law School who is credited with coining the term “net neutrality”. The debate has put the telecoms companies on notice that they are being watched closely, he says, and has forced them to make public pledges not to block or degrade access. “Shame can have more power than litigation,” says Mr Wu. “The market and consumers can control bad practices, but consumers actually have to be aware of what is going on for that to happen.”

It’s an interesting strategic and ethical question whether brandishing the regulation cudgel is appropriate, but as long as it’s agreed that consumers have influence in the broadband marketplace, that question can wait for another day.