Quoted: Is net neutrality actually good for cable companies?

“The broadband industry hates net neutrality, but its existence has always had a huge and unnoticed upside. Selling broadband is a great business…”

— Tim Wu, media law expert, writing in the New Yorker about how Thursday’s landmark net neutrality decision by the FCC has spurned conventional wisdom at every step, and how the fallout may continue to do so. Wu posits a theory that the regulations will not trigger years of bitter litigation, as many have predicted.  Why? Because cable companies will realize they’re still making plenty of money and a long fight wouldn’t be worth the effort. “Stated simply, a strong net-neutrality rule locks in the status quo for the most profitable part of the cable industry’s business,” Wu writes. Between rising stock prices for cable companies, a desire not to antagonize the FCC for fear it may derail mergers and a well-written law that is likely to hold up in court, Wu predicts the rules will remain in place. We shall see…

 

At top: FCC Chairman Tom Wheeler speaks during Thursday’s net neutrality hearing (MANDEL NGAN/AFP/Getty Images)

 

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