The communications industry will open a new chapter in 2018. The three purposes of the abolition of the network neutrality in the United States

It has been reported that the Federal Communications Commission (FCC) officially repealed the network neutrality rule, marking the end of an era where the internet was largely free and open. This decision could signal the permanent end of the "free internet" era, and while the communications industry might experience a resurgence in 2018, it is likely that telecom operators will be the least benefited in this transformation. At the “2017 China Communications Industry Conference,” Professor Lu Tingjie from Beijing University of Posts and Telecommunications highlighted how OTT services have disrupted the traditional telecommunications pipeline. He pointed out that the separation of network operations has led to the fragmentation of intermediate products and final consumption. According to Lu, the internet has remained free because users effectively transferred the costs to the operators. He emphasized that on December 14, the FCC's decision to abolish the network neutrality rule ended a so-called fair rule that, in reality, favored everyone except the telecom companies. “The age of free internet may now be over, but the communications industry might be on the verge of a new beginning starting from 2018.” [Image: The communications industry will open a new chapter in 2018. The three purposes of the abolition of the network neutrality in the United States] The concept of "network neutrality" was first introduced by Professor Wu Xiuming from Columbia University in 2003. It stipulates that internet service providers must treat all data equally, without discrimination or prioritization. In simple terms, if we imagine telecom operators as “roadrunners” and internet companies as “drivers,” then network neutrality means that all drivers have equal access to the roads. However, if certain vehicles are given preferential treatment—like express lanes—this violates the principle of network neutrality. From Lu Tingjie’s perspective, the regulation of the internet has a strong element of central planning, which he argues is fundamentally anti-market. In such a system that appears fair to all, telecom operators are often the ones who lose the most. He believes that the U.S. decision to repeal network neutrality had three main objectives: first, to address the funding challenges faced by U.S. telecom operators and help them rebuild their infrastructure; second, to ensure the telecommunications sector—being a fundamental part of the economy—does not miss out on strategic opportunities due to political correctness; and third, to tackle the urgent need for bridging the digital divide and promoting innovation in the telecom industry.

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