Friday, February 06, 2009

Wireless, Internet, cable companies compete for stimulus: various versions of tax credits, direct stimulus lobbied for: neutrality conditions?

A story in Reuters on Feb. 5 explains how the economic stimulus would affect cable and wireless providers. Smaller companies want capital infusions, but larger companies want tax credits. Smaller companies say that there is not enough economy of scale in the current setup to make serving remote areas profitable, and that policy decisions must be made in that area to make it economically worthwhile.

There is some controversy over network neutrality and the issue of “openness” and whether providers will “discriminate” on the basis of content on their networks. If they did “discriminate”, some of the protections (like Section 230) from downstream liability for what their customers do could be eroded.

The link for the Reuters story by Lim Dixon, “Wireless, Internet companies vying for stimulus,” link here.

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