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Net neutrality - Global Thematic Research

Net neutrality - Global Thematic Research

Summary

US appeals court overturned the net neutrality regime imposed on US telecom operators by the FCC, America’s telecom regulator. Net neutrality refers to the regulatory principle that telecom networks should be neutral to all internet traffic. This means that operators like Verizon are not allowed to favour some internet services over other internet services . Net neutrality has long been the pillar of telecom regulatory policy in the US – and has effectively resulted in an earnings cap for operators.

Supporters of net neutrality – including companies such as Apple, Google and Netflix – argue that an “open internet” is essential in order to encourage innovation and free speech. Opponents of net neutrality – such as Verizon and Vodafone – argue that if telecom operators are not allowed to charge commercial rates to internet companies for use of their networks, they will have little incentive to invest in the high-speed broadband networks that the West badly needs.

In this report, we look at the investment implications that will follow if net neutrality were officially scrapped in the US.

Scope

This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.
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