Internet headed back to Dark Ages

Does anyone else remember in the (very) early days of online computing, when Prodigy, AOL and Compuserve were all services that couldn't talk to each other, or access major parts of what was the Internet back then? That's the model economist Trevor Roycroft uses to show what an Internet without Net Neutrality could be like once again, if telcos and cable companies are to have their way. Via Sascha Meinrath:

At one time firms like America Online, GEnie, Delphi, Prodigy, and Compuserve offered consumers proprietary data processing and data communication services over incompatible and noninterconnected networks. This approach to selling data services ultimately faded as the public Internet became available. Most of the firms that pursued the network differentiation business model no longer exist, and those that do survive have combined Internet access with their proprietary offerings.

Consumers have already voted with their feet away from the proprietary data network model, once given the opportunity to consume electronic data and communication services in an open-access environment. The reason for this exhibited consumer sentiment is the same in the broadband world as it was in the dial-up world—consumers place a high value on services based on policies which encourage protocol standardization, interoperability, and network effects.

The report also notes that current policies with cellphone business model restrictions are already stifling innovation. Verizon Wireless' broadband service specifically states that you can't upload or download movies, music or games as per the Terms of Service (!), among other things... and thus there's not a lot of developers out there rushing to develop applications and innovative uses of Verizon's broadband services:

The fact that Verizon’s 3G wireless broadband service has usage restrictions associated with uploading, streaming, VoIP, or peer-to-peer will hinder innovation in these areas. If these types of restrictions were placed more broadly on network users, due to the rise of "differentiated" last-mile networks, the impact on innovation would be pronounced. If, for example, end-users have limited upload capabilities or cannot use a service for streaming, then the incentive and ability to innovate in these areas is greatly reduced. Similar restrictions have been introduced on an intermittent basis whenever the principle of network neutrality has been relaxed. The threat that network operators may introduce such restrictions on an intermittent basis also pollutes the open environment for innovation on the Internet.

Greed stifles innovation and progress, folks. Now, go Save The Internet.