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For Immediate Release 
April 26, 2012
Contact Name 
Phil Singer
Contact Phone 
866-646-8668

WASHINGTON, D.C. – Broadband for America (BfA) – a coalition of more than 300 members – today released a new study by Anna-Maria Kovacs, a Visiting Senior Policy Scholar at the Center for Business and Public Policy at the McDonough School of Business at Georgetown University. 

The study shows that the Internet thrives under an unregulated, commercial regime, which has accommodated explosive growth, a competitive and evolving market structure, rapid changes in types of traffic, and many generations of applications and devices.

“The Internet has had very little formal governance and no regulation to slow its responses or divert its course,” Kovacs said.   “The absence of rate regulation has been particularly helpful, providing the flexibility that allows the Internet to accommodate seamlessly the demands of the edge.”

The paper’s key takeaways include:

  • Being unregulated has helped the Internet grow and expand in the face of “demand that is not just explosive in volume but unpredictable in type. Supply has unfailingly met demand, at ever-lower prices.”
  • Regulated telecommunications services have been hurt by delay and rigidity.  “The Internet’s responsiveness and adaptability stands in stark contrast to the rigidity created by the regulatory compensation regimes that have stifled conventional telephony. […] What makes the Internet so effective is not just its own simplicity and adaptability, but the absence of externally imposed rigidity.”
  • Regulation will get in the way of innovation.  “Any attempt to impose economic regulation on the Internet is likely to slow not only its own evolution but the innovation at the edge that depends on the Internet’s core.”
  • “Were the Internet subjected to economic regulation, investors would expect slower growth and less responsiveness not only in the market for infrastructure, but in the edge markets for services, applications and devices that rely on it. Funding the Internet’s infrastructure would become more difficult.”

To access the full white paper, click here.

 

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Broadband for America (BfA) is a growing coalition of more than 300 members ranging from independent consumer advocacy groups, to content and application providers, to the companies which build and maintain the Internet. The complete BfA membership list is available at: http://www.broadbandforamerica.com/about/members