Is Net Neutrality really better?

The US Telecoms Regulator recently announced a Bill they are seeking to get passed by the Government to implement net neutrality by network providers for the end consumer - this is an increasingly common topic for Telecom Regulator's around the world. Everyone is patting themselves on the back believing they have done a wonderful thing in ensuring that all content reaches the end user and that everyone has the same internet experience. However what regulators are overlooking is that by making the internet service experience all equal, the costs to the average consumers will actually increase due to costs of providing all users the same experience and access to all content.
I know many of you are there thinking of course we should be given access to all Internet content in a high quality status at a low cost, the Operator just has to find out how to make it work. Now consider the same issue on highways and how governments are trying to address the challenge of too many cars on the road. In many countries we pay Toll’s, Road tax based on driving week days or weekends, or even in peak hours we pay premiums to use the express lanes on highways. But if were to implement the same policy of neutrality being demanded for Internet on our highways we would all be stuck and equally frustrated with a significant impact to our working and social lives. Of course we could all make the same argument that we should all get access to the same road experience and that it is the responsibility of the government to make sure that we all get the same experience with no Toll’s, express lanes with premium charges or even time of day charges. The answer from the government would undoubtedly be – it would cost too much money to provide everyone the same experience, so why would the government ask Operators and Service Providers to manage the same challenge?
On the other side we have the Internet based Services companies who want easier access to their content which in this case could be compared with a Shopping Mall, or Beach Theme Park – in both cases users pay for parking, and then end up paying premiums to have access to better services whilst at those destinations. Should parking then not be free? I mean after all we are buying their products right? And Consider Internet Services should be available anywhere in the world and not based on where you are connecting from? i.e. Singapore vs. UK why should some Internet Services only be available in UK and not in Singapore - consider BBC iPlayer. Net Neutrality means equality right? Or does it mean only as far as a Country’s borders? (Hmm let's keep that topic for another day!)
I appreciate these may seem like areas outside the scope of Net Neutrality but we need to step back and understand what is the real question not simply assume we have the answer. The Question MUST be how do we improve the user experience of Consumers to access a rapidly expanding scope of content available through the Internet. In order to improve the experience Government’s need to actually look at themselves rather than implement a one size fits all approach.
Regulator’s need to look at the Internet in the same way that Government’s manage highways, without some diversification of traffic types and usage everyone will end up paying more. If there is important content that Regulator’s/Government’s feel that a consumer should have access to then mandate that or subsidize it for consumers in a particular segment. At the other end of the spectrum we know that there are many internet users are willing to pay a premium for high end services such as Gaming, Video Content and business requirements, by allowing operators to differentiate services with subscriber groups (both fixed and mobile by the way!) then the basic internet services can be improved for all. Look at peak traffic tariffs for major highways, the revenue generated from these highways is not used to improve the service for those who pay the premium toll, but for all users of the road. The same can be achieved for Internet Services, Premium users are solely looking for an improved service, if that means they need to help subsidize part of the improvement for basic Internet Services then that will be accepted, they won’t like it but this is common for many aspects of our daily lives today.
If Regulator’s and Government’s are looking to improve Access to the Internet for Subscribers then here are some areas they should consider to drive the right behaviours of individuals, businesses and operators:

1. Identify what is important for Consumers to be able to access equally – Government services, News, Basic Communication – email, SMS, Phone, IM - this should then become the "Baseline" of services to be provided. The Regulator then needs to ensure these services are accessible, but at the same time acknolwdge that consumers should be paying for Video communication, Internet Gaming or Internet TV - if the consumer wants a better experience - as these can disrupt the performance of baseline consumer services.
2. Encourage Bandwidth demanding content to be paid for by consumers who wish to access it, this will drive Content providers who are charging for these services to either subsidize the use of their content OR work with Operators to agree revenue share when consumers use their content.
3. Consider promoting time of day use – peak hours like access to highways are in high demand so why not pay for premium access – consider if you are going to the supermarket do you really need to travel in peak hour? Likewise for Internet connectivity, if you are watching the latest episode of Top Gear on your Laptop/Mobile/Tablet, do you really need to download this during peak Internet usage and if so are you willing to pay a premium to do so?

I am sure there are many other suggestions that people would have and the above are merely the tip of the iceberg, but the point remains, Net Neutrality is not really helping to answer the question, if anything it will seek to create greater issues with Internet connectivity and most likely increase the costs as Operators and Service providers seek to provide equal service to all users. I would suggest it is time to re-think the question and identify what we are really trying to achieve. Internet is becoming an increasingly dominant medium in how we access content, communicate with each other and store information. Therefore it is crucial we get it right and avoid one size fits all type of policies which will only send us backwards and not address the challenge of providing all consumers the opportunity to maximize the benefits the Internet can provide.

 

Evolution of Innovation

I recently had the privilege of helping to organize a unique customer forum for a company where the theme was Innovate to accelerate – an exciting new stage in the positioning of the company, and it got me thinking as to what is happening to innovation today. Okay so you are reading this thinking what is he on about this time? How can there be an Evolution of Innovation, it has always existed! What I want to share with you though is the changing source of Innovation and more importantly the coming change.


We have always been amazed at those garage or workshop innovators who come up with an idea to solve a problem they have identified and in many cases are greatly appreciated by all, we admired these innovators leading the way driving their own ideas to reality and opening our minds to what is possible. In many cases we have seen innovation creating new concepts ad ideas being developed on by others as they seek to follow in the footsteps of those they looked up to in realizing new concepts and ideas.

We then entered a phase where Innovation was driven by large corporations, where the innovator from the Garage or workshop – or even increasingly behind the computer – was upstaged by the resources and clout available to large enterprises that were driving innovation programs, some to the point of dictating to us what we would use as technology moving forward. Think back to some of your frustrations in using what was regarded as cutting edge technology which didn’t work the way you wanted it to – I know I have!

However – the tables have turned yet again, the individual has once again obtained a voice in innovation. It started out quietly in companies seeking to gain insights and feedback on their own technology developments, yet the final decision was always theirs – I suppose in their view they knew better what we wanted than we did ourselves … at least they thought they did.

With the ongoing developments in communication and the Internet we are now empowered as a combined group of individuals to judge innovation from corporate researchers and stop them before they have gained momentum and likewise for the small upstart or single person concept we can provide them with the support to gain funding and ultimately the realization of their idea into a new service, tool or service model which has an immediate and relevant need to a specific group of individuals.

The time has come for the individual to use their voice and join with others in defining the direction of the coming innovations, why do you ask? Because the next series of technology developments are going to be very personal, driven by personalization requirements of all of us and each will be in some way unique. If we fail to leverage the power to direct these innovations then we will miss a unique opportunity in defining the way in which we as individuals interact with the world around us.

But what does this mean for businesses? It’s time to adapt, listen and engage. Recognize that your customer, analyst and even partner is no longer in your backyard but can be anywhere in the world. Businesses need to be considering who they are and what they are trying to provide to their customers. Once this is defined the organization can then assess how they should drive innovation, what part is their own Intellectual Property and where they can leverage innovation partners. Businesses should not look on partners as a failing of their own organization but rather an acceptance that the world has moved on and that they are adapting to it. We may find the need to adjust our business model or even accept that the go to market model could require a shift from direct to indirect or vice versa. The important aspect for businesses to understand is that the source of innovation is changing and the most important action that businesses should take is to ensure they continue to adapt with it. Businesses which continue to adapt will be the most likely to succeed in not only retaining & growing their customers, but also continuing to grow their business. The Evolution of Innovation – I am a believer!