Professor: Theodore Bolema
Dr. Theodore R. Bolema, Executive Director of the Barton School's Institute for the
Study of Economic Growth, recently published an article about internet throttling.
He explored whether recent reports of increased throttling indicate the need for additional
federal mandates.
"Throttling" is the degrading of Internet traffic based on source, destination, or
content. One criticism of the ban on throttling contained in the 2015 Open Internet Order was that it was based on very little evidence that any anticompetitive throttling
had ever occurred
Ted suggests that not all throttling is anticompetitive or harmful to consumers. He
finds that even the 2015 Open Internet Order recognized that certain broad categories of throttling were necessary and offered
benefits to Internet consumers. Merely measuring variations in speeds for different
applications cannot, in and of itself, definitively establish whether any so-called
"throttling" occurred that would have violated the Open Internet Order's ban. Ted writes that a federal mandate banning all throttling would not solve that
problem and, if anything, would make the problem worse.
This is an economic problem best addressed by market signals guiding future investment.
Investment decisions made solely to comply with regulatory mandates will inevitably
be suboptimal and, therefore, will eventually result in the need for even more throttling
based on source, destination, or content to reasonably manage the network.
This article appeared in a recent edition of Perspectives of Free State Foundation Scholars.