Post Editorial on Net Neutrality

An Washington Post editorial from yesterday makes an argument against net neutrality. It argues for the need for internet infrastructure innovation and the preemptive nature of a net neutrality law.

If you want innovation on the Internet, you need better pipes: ones that are faster, less susceptible to hackers and spammers, or smarter in ways that nobody has yet thought of. The lack of incentives for pipe innovation is more pressing than the lack of incentives to create new Web services.

You can see this imbalance in Wall Street's low valuation of Internet infrastructure firms such as Verizon (price-to-earnings ratio: 12) and its infatuation with Internet service firms such as Google (price-to-earnings ratio: 69). You can see it, too, in the fact that U.S. broadband infrastructure lags behind that of East Asia and Europe. Allowing builders of Internet infrastructure to recoup their investment by charging the Googles and Amazons for use of their network would balance the incentives for innovation more closely.

The weakest aspect of the neutrality case is that the dangers it alleges are speculative. It seems unlikely that broadband providers will degrade Web services that people want and far more likely that they will use non-neutrality to charge for upgrading services that depend on fast and reliable delivery, such as streaming high-definition video or relaying data from heart monitors. If this proves wrong, the government should step in. But it should not burden the Internet with preemptive regulation.

Convinced? I'm not sure I am.