Brattle Group Research: Network Neutrality May Cause 1.5 m Job LossAdded: Monday, May 3rd, 2010
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The fashion for unusual studies has covered the whole planet. Today The Brattle Group has shown how network neutrality measures can influence on economic losses in the nearest ten years.
Coleman Bazelon, the head researcher of the study, announced that the United States can lose about 1.5 million jobs by 2010 if the network neutrality considered by FCC will come in force.
According to study results, in 2011 the broadband sector is expected to reduce for 14 217 job positions, and this tendency will grow by 2020, when the number of lost jobs in this economy area will rise to 342 065. All in all it is about 1.5 million people who will become jobless.
The study also shows that in spite of job losses the broadband sector revenue will grow. This year growth is about 23% compared with 2009 rate. The growth rate will decrease by 10% every year till 2016, and then it will become stable through 2020.
The target of this extraordinary study was to show the real economic losses that can be caused by implementing the network neutrality. The profit will definitely grow but the broadband sector will offer much less jobs than now, and this is a serious consequence. Researches admit that the job losses in broadband segment will be accompanied by the growth of jobs number in content sector. But this growth will not compensate general losses from net neutrality.
The report claims that “net neutrality policy can decrease the broadband segment of the market by 18% by 2010”. The researchers insist (in almost unfounded form) that network neutrality can cause consequences opposite to those expected by FCC. Initially Federal Communications Commission of the USA was targeting at increasing broadband connectivity that is rather beneficial venture.
The scientists warn that mobile operators will also struggle from net neutrality: their wireless networks are already overloaded with traffic. But who said that there will be no technological development to provide with increased facilities to cover the demand of traffic? The suspicion regarding unprofitability is not supported by many mobile providers. AT&T, one of the leading mobile providers, sees no evidence of such warnings.
Moreover, the employment decreasing is usual practice telecoms operators as a part of cost optimization.
The research paper didn’t contain firm evidence of offered conclusions regarding network neutrality impact.
May 3rd, 2010Posted by:
Monday, May 3rd, 2010
|posted by (2010-05-04 02:12:26)|
|Yet the charges still flow even though are dead zones due to the overload of users & it's only going to get worse.|
|MAN IF IT WASN'T FOR DOWNLOADING FROM HERE AND OTHER PLACES I WOULD CANCEL MY SERVICE AND I KNOW A LOT OF PEOPLE ONLY GOT THE INTERNET TO DO THIS AND WOULD CANCEL THERE SERVICE IF THEY COULDN'T GET A MOVIE OR CD AND I KNOW THE ISP WOULD GO BROKE THEN ESPECIALLY ROUND HERE|
|whats the point of having access, when its nothing more than reading a paper... WE WANT NET NEUTRALITY TO HAVE A COMMUNICATION NETWORK, NOT A CORPORATE MESSAGE BOARD!!!!||
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