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by objectivistbrit 3586 days ago
It's a property rights issue. Specifically, should private organisations be allowed to own major pieces of infrastructure?

The European vision of capitalism is where you can own, say, a cafe or mobile app, and do what you want with it. However, something like a telecoms network or search engine is too important to be kept in the hands of ruthless big business, and the state needs to step in to control who said businesses deal with.

They talk about preventing monopoly, but even with infrastructure, technological shifts mean any purported monopoly constantly faces real competition. (Witness how IBM lost out to Microsoft, which lost out to the internet companies).

Private investment and private innovation is the best way to build infrastructure, and if the state wants to control how the infrastructure is used (and prevents the owners from cutting special deals with their largest potential customers), investment money stays away.

This has happened with pharmaceuticals - one reason there's been so much investment in viagra and plastic surgery is that more useful medical patents tend to be seized by government. It's also happening in the case of European telecoms: the net neutrality rules provide a disincentive to invest in 5G.

http://www.theverge.com/2016/7/10/12139700/telecom-companies...

(That article is negatively slanted, but gives a decent overview). Here's the actual report by the telcos:

http://ec.europa.eu/newsroom/dae/document.cfm?action=display...

    Yes, I would rather have decisions made by people in Brussels that understand what they're doing.
Every generation rediscovers Plato's republic.
2 comments

As a Brit, you should appreciate the level of infrastructure you get to enjoy. You are more than welcome to come live in the US with some of the most 'innovative' privately funded infrastructure.

I'd be happy to swap my overpriced RCN internet with TalkTalk or not have to get a new wheel on my bike every year thanks to the pot-holed roads of New York.

US telecom industry is not exactly the best example of non-regulated market. It's not like you can just come and put a new cable network in New York or San Francisco without asking anybody. In fact, Google - if ever there was a company with money and clout - couldn't pull it off in the capital of Silicon Valley, San Jose.

And if you do try to innovate, you get lots of vested interests attacking you on every corner and tons of regulations you have to comply with and some new ones that would be lobbied into law and introduced specially to suppress you. Look how much pushback companies like Airbnb or Uber are getting.

US is big and sparsely populated. Also, telecoms there are heavily regulated. Contrary to common claims, there isn't a huge difference between the European and American models (both are free markets with heavy state involvement in pretty much all industries).
Even if we go as far as to say that the models are similar, the implementation differs hugely. Especially with regards to telecoms.
From the report:

"In this context we must highlight the danger of restrictive Net Neutrality rules, in the context of 5G technologies, business applications and beyond. 5G introduces the concept of “Network Slicing” to accommodate a wide-variety of industry verticals’ business models on a common platform, at scale and with services guarantees.

Automated driving, smart grid control, virtual reality and public safety services are examples of use- cases with distinguished characteristics which call for a flexible and elastic configuration of resources in networks and platforms, on a continuous basis, depending on demand, context and the nature of the service. According to the telecom industry, BEREC’s draft proposal of implementation rules is excessively prescriptive and could make telcos risk-averse thus hampering the exploitation of 5G, ignoring the fundamental agility and elastic nature of 5G Network Slicing to adapt in real time to changes in end-user / application and traffic demand. The 5G objective of creating new business opportunities and satisfying future end-user needs would be at risk, with a regulation not coherent with the market demand evolution.

It is paramount to ensure 5G monetisation to drive investments. Monetisation can take place across the entire value chain with end-users, service providers and industry verticals in order to ensure fair returns, speed up adoption by end-users and ensure consumers are not alone in picking up the bill for the innovation that will help the business cases of the service providers. Operators should also be free to mix and manage different technology generations, mobile or otherwise, that are enabling 5G mobile technology to serve their customers optimally."

What a bunch of BS.

Not a single operator is going to delay rolling out 5G or decline to invest in 5G due to network neutrality.

Furthermore none of the given use cases are require general Internet access. I don't care what they do with those closed networks and network neutrality does not even apply to closed networks.

That kind of thinly veiled extortion is exactly why harsher regulation is required.
Right, saying "we won't invest under these conditions" is extortion.

On a sane planet, one not following clown world logic, it would be obvious that the telcos are telling the government to stop extorting them.

I feel I missed something. How is the government extorting the telcos?

The telcos are of course under no obligation to invest in 5G. Do you know of any 4G provider that isn't?