Comcast vs. Net Neutrality: Why is Comcast So Scared?

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Regional monopoly, continued increase in earnings, plus Bailout money from not enough for Comcast. I just read an article about how Comcast is continuing to fight the FCC on net neutrality and every time I hear about this it bugs me. Here’s an excerpt from the article:

In hearing a legal dispute between the agency and Comcast Corp., a three-judge federal appeals court panel questioned the commission’s authority to impose so-called “net neutrality” obligations on the nation’s largest cable TV and Internet operator. Those rules are intended to prevent broadband providers from abusing their control over the market for high-speed Internet access.

(full article:Comcast, FCC take net neutrality dispute to court)

In my opinion Comcast as well as other broadband providers have a very weak argument that they are “pouring billions of dollars into their networks, and they should be able to offer premium services to differentiate themselves from competitors and earn a healthy return on their investments.” In the example of Comcast, in many places they have a monopoly on cable TV and they continue to see increases in earnings as well. Plus, they also received bailout money from the government!

The real issue here is they are scared and unable to adapt to new technologies and companies that are taking their business. Their business model is being threatened and maybe it’s a lack of creativity, but they are trying to use their clout and dollars to force the government to let them run wild. If they are allowed to filter traffic as they please they can cut off any business that operates over the internet. A couple of major markets that they could cripple is legal online video streaming and VOIP.

You can see Comcast’s earning reports on their site: Earnings and Investor News

An example of the real threat to cable TV. I recently canceled my cable TV because I can watch everything I want to watch online through such legal portals as

Back in August 2008, I sent a letter to PA Senator Arlen Specter about the importance of Net Neutrality: Net Neutrality — A Letter to US Senator Arlen Specter. Please, reach out to your senators and reps in congress and tell them that you don’t want your broadband provider to tell you what you can and can’t do online! Also check out the site to find out how you can help.

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