Thursday, February 26, 2015

Net Neutrality Passes: Verizon and Comcast Can't Rip Us Off: At Least for Now

Well this is quite a blow to two of the worst companies in America by reputation.
New rules from the Federal Communications Commission adopted on a 3-2 vote will prohibit Internet service providers like Comcast (CMCSA) and Verizon Communications (VZ) from discriminating against any web site or online service. That means sites like Netflix (NFLX) or Google’s (GOOGL) YouTube won’t have to pay extra fees or face sluggish connections with their users. And new sites and services will be able to reach everyone on the Internet on the same terms as the big players.
So I don't have to pay a "Gamer Rate" because the majority of my packets are coming from the Xbox One or other nonsense. This defense is just hilarious as well:
Cable and telecom companies say congestion is due to the Internet companies sending more data. Higher fees are needed to cover the cost of building more capacity, they say.
Comcast made nearly $7 billion in profit last year and bought back $2 billion in shares in Q4 and are increasing their share buyback to $10 billion. I think they have more than enough money to "clear the congestion" and "build more capacity." Maybe cut that share buyback down to $5 billion and take the other $5 billion and improve service? In any case I think it will be a stopgap until Comcast can get their financial wizards online to figure some other way to nickle and dime us.

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