Industry Trend Analysis - Net Neutrality Ban To Neuter Disruptive Technologies' Impact - FEB 2018


BMI View : All industries should take note of the FCC ' s plans to end so-called 'network neutrality ' rules in the US because the availability of disruptive technologies that will affect them will be greatly curtailed. The main downside risk is that traditional telecoms operators will either move to squeeze out more advanced offerings from independents in favour of their own, less comprehensive ' me too ' variants or force price increases that will render industry-enhancing disruptive technologies less cost-effective.

Influenced by a more inward-looking Republican government, the Federal Communications Commission (FCC) is expected to vote to overturn the so-called 'net neutrality' rules that were introduced just a couple of years ago. Effectively, net neutrality requires that all access to the Internet is equal, so broadband providers cannot deliberately de-prioritise traffic generated by third party providers, or to offer better quality services to customers willing to pay more. We believe that removing these rules risks curtailing investments in the very technologies best suited to restore US companies' abilities to compete on an equal basis with their international counterparts.

Net neutrality has allowed network-agnostic, service-first players like Netflix, Amazon, Hulu and Spotify to emerge and flourish over the last seven to eight years and we believe its abolition marks an enormous backwards step for an industry that is now overwhelmingly service and content-led. It effectively allows network-centric operators to take back control of their ability to determine which services are prioritised over their networks and - in extremis - to decide whether or not to allow access to services at all.

IoT M2M Connectivity Outlook At Risk
US Network Device Forecasts
Source: Cisco Visual Networking Index 2017

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