What's Up, Doc?: The Schuler Solutions Leadership Blog by A. J. Schuler, Psy. D.

Articles on leadership, mentoring, organizational change, psychology, business, motivation and negotiation skills. . . and anything else that strikes my interest or the interest of my readers.

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Wednesday, June 14, 2006

Big Business versus Small Business?


I'm still studying the whole net neutrality debate.

The big telecommunications companies argue they need to be able to put tollbooths on the Internet to create VIP fast lanes for access and eyeballs to those who can afford to pay. My friends in the industry argue the industry needs this regulatory change from the original founding rules of the Internet for American telecoms to survive. We're talking here about AT&T and Verizon, among others.

On the other hand, creating a multi-tiered online world fundamentally changes the Internet. My business, for example, is a small one, but anyone can find my web site who searches for the content I provide. Some of my content is quite popular and has organically risen to the top of some Google searches in the marketplace of ideas. I never paid for that placement. But if the telecoms get their way, I'll be pushed aside by the big name consulting houses, relegated to greater obscurity, because I won't have the business scale to pay for preferred access.

It won't just be me, of course. Any smaller, innovative business will suffer if the telecoms succeed in gutting net neutrality from the law. The executive branch has already changed the regulations at the telecom lobby's bidding, and now Congress is wrestling over putting net neutrality back into the law. Telecom lobbyists are lining up and spending money to fight this, and a broad alliance that includes Google, Craig's List, Paypal and political groups on the left and the right are fighting a populist campaign against the telecoms.

It's clear that net neutrality is good for consumers. For example, when somone in your family is sick, you can do research for health care information from public organizations not biased to sell you one solution or another. But if net neutrality goes away, you'll likely be steered when you look for answers to information sites that are really just advertising their own agendas. On the other hand, the telcos argue that a failed telco industry is also bad for the country, though I have not examined the financials and industry dynamics to know how seriously threatened they may be. I have to admit, some of the public relations campaign the telcos have been running looks dishonest: they argue against "regulating" the Internet, when it has always been subject to rules or regulations. They just want the regulations tilted in their favor, away from the way the Internet has always functioned otherwise.

No matter what, it seems the net neutrality fight is pitting big business against small business. As one who strongly favors innovation, I tend toward the small business side. Smaller businesses create the most jobs and stengthen the economy (in this case, small businesses include, in my mind, those with a few hundred million in revenue, as opposed to multibillion dollar big guys). If the big telcos can't handle the competition, is that small business' fault? The Internet was built with much public investment. I get that the telcos may need some form of public help or regulatory assistance, since the nation's communication's infrastruture is really like the highway system of the new century. But gutting net neutrality seems like the wrong way to assist the telcos, giving them additional regulatory favoritism, in my opinion. They already write the laws through their lobbyists. Who stands up for small and medium sized businesses? I sure don't see the U. S. Chamber of Commerce doing it.

What do you think?