The "excessive burden of ISP providers" cited as the reason for elimination of the "net neutrality" regulation criticized monopolistic ISP businesses by the losing red lies and the Electronic Frontier Foundation



America's request for equal treatment of net contents to communication companies such as ISP (Internet service provider)"Network neutrality (net neutrality) regulation was abolished on June 11, 2018It was decided to be done. ISPs that can boost profitability by reducing the management cost of communication infrastructure are largely welcome to abolish the net neutrality regulation, but telecommunications companies are in a state of marginal profit even in the state where net neutrality is maintained in the first place, net neutrality The Electronic Frontier Foundation (IEE) condemns that the elimination of regulations is unfair.

The Big Lie ISPs Are Spreading in State Legislatures Is That They Do not Make Enough Money | Electronic Frontier Foundation
https://www.eff.org/deeplinks/2018/05/big-lie-isps-are-spreading-state-legislatures-they-dont-make-enough-money

The grounds for the "net neutrality regulation" created during the Obama administration was to ensure freedom of expression in view of the fact that the Internet has social infrastructure aspects that are largely related to expression freedom. As for the net neutrality regulation problem, you can see well by looking at the following article.

What is the problem surrounding America's "open Internet" greatly shaken by the elimination of "net neutrality" regulation? - GIGAZINE


From the standpoint of Internet content providers and content users of the guarantee of freedom of expression, ISP businesses that provide Internet lines have high infrastructure maintenance and maintenance costs due to the regulation of net neutrality, The Federal Communications Commission (FCC) took this claim and pointed out that the Internet neutrality regulation We have decided to abolish.

However, according to IEE, ISP does not correctly inform the fact about the "infrastructure maintenance cost increase" that the ISP insisted during lobbying. IEE notes that the biggest burden for ISP companies to provide broadband lines is the initial cost of laying optical cables etc., which amounts to 80% of total expenditure. In other words, the cost of providing Internet lines such as measures for maintenance and quality improvement is only one-fifth of the total cost.

Moreover, the IEE notes that ISP companies enjoy high profitability far exceeding the line maintenance cost. The following graph shows the asset status of EPB Fiber Optics (EPB) of a local company that provides broadband lines in Tennessee. The operation cost (orange) is rising to the right compared with the almost constant capital investment amount (gray). However, in proportion to the rise in operation costs, it turns out that profitability (blue) also rises and profitability is extremely high.


Compared with the initial cost of laying optical cables, this craze is due to the overwhelmingly low maintenance cost. Since companies that provide Internet lines in each region of the United States are in a monopolistic state, they have recovered a large amount of initial investment by raising enormous profits so far, It is in a structure that can be raised. It is benefiting that you can set a high service fee because of monopoly, and the fact that "high infrastructure maintenance and maintenance cost is high" cited as the reason for abolishing the net neutrality regulation is different from the fact.

Although EPB is a small local network in the provinces, Comcast's revenue from Comcast with 25 million customers is $ 8.6 billion (approx. 930 billion yen) for major companies, about 13 billion for AT & T and Verizon It is clear from the settlement of accounts that the profit is raised as dollar (about 1.4 trillion yen), and it is obvious that it is protected by the highly profitable structure due to the exclusive industry in the industry where entry barriers are extremely high.

"Internet users in the US are paying more charges than we need to get high-speed lines guaranteed net neutrality by protecting privacy," according to the elimination of Internet neutrality regulations It is unjustified that it will be unfair for people to suffer the disadvantage of suppressing the speed of department content.

in Note,   Web Service, Posted by darkhorse_log