Net Neutrality and the Railroad Business

Here’s a perfect explanation of why Net Neutrality matters, why it should be enforced by the FCC, and how it’s been done in the past. I wish I could link directly to the comment, but Wired offered no way to do that. A comment on Why Google Became A Carrier-Humping, Net Neutrality Surrender Monkey:

posted by: kibbles | 08/10/10 | 5:35 pm |
@bill_the_kat ? let me paste you a little story on the net neutrality ?scheme?.
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Think about Netflix. It has unlimited streaming movies now. Comcast has streaming movies too, at $4 per movie. What if Comcast tells Netflix ?unless you pay us the equivalent of $20/user per month we are going to put you in the slow lane and your users won?t be able to stream.? NetFlix?s streaming business will be crushed. Comcast, Verizon and AT&T want Congress to allow them to do exactly that, and this is why net neutrality legislation is so important.
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This isn?t a result of a fertile imagination. This actually happened 100 years ago. Imagine the year is 1900. I run a steel company and you run a railroad. I sell steel for $50 per ton and you ship it for $3 per ton. I have two major competitors. I come to you and offer you $10 per ton for shipping if you agree not to carry steel for the other two. That number will give you far more profit for far less effort so you say yes. You?re happy. My two competitors cannot move steel from Pittsburgh to Kansas any other way (what, by horse and wagon?) so they go out of business, or a least their business is limited to local purchasers.
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Then I raise my steel price from $50 per ton to $75. The steel buyers have to pay because they have no other choice. The competition is gone. I make huge profits. I?m happy. You make huge profits. You?re happy. The consumers and my competitors aren?t happy, but who gives a flying f*** about them?
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This is the history of the railroad business in the late 1800s. This scenario played out again in the 1920s in trucking. Both times Congress mandated that any shipping company must charge identical amounts for all customers, based only on size, weight, and transit time.
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We have 100 years of success with ?net neutrality.? It?s working pretty well.
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?make sense? now explain why thats a bad thing.

Active vs Passive Interruptions

In all work environments people have to communicate. Sometimes they are across the hall and sometimes they are across the world, but in every case someone initiates the contact and the other must decide what to do. The Initiator must first choose the method, whether it’s a phone call, text message, email, etc.

Does your question really require an immediate response?

What makes these methods different is level of interruption of the person being contacted. If you take my call, I am not just asking a question. I’m also requesting that you remove yourself from the context of your current task and prepare an answer for me immediately. If an answer is not available, I at least want a response with an estimated time of when it can be answered. A question spoken out loud and in person is an even greater disruptor, since the receiver has almost no choice to ignore the question. These interruptions can be powerful detriments to productivity if it takes a certain amount of time for the receiver to reorient himself into his previous context. A recent study said these transactional costs can be up to “28 percent of a worker’s day.

A potential interrupter should ask themselves, “Does a quick answer to this problem justify a disruption in someone else’s time?” If not, use a more passive method of communication like email or text messaging to get the information you’re looking for. That way the receiver can answer them with the least disruption possible to their productive time. The interrupter should use the least disruptive communication method that results in getting an answer in the appropriate time.

In order of most interruptive to least:

  • Active: Asking a question out loud
  • Active: Phone calls
  • Active: Paging
  • Passive: Physical note left on desk
  • Passive: Text messages
  • Passive: Emails
  • Passive: Memo left in mailbox
  • Passive: Other passive electronic methods other than Email

It’s partly for this reason I have stopped taking voice mail on my land line at work. It used to be a dump for solicitors and rarely contained messages I needed. It took time to sort through and delete them and I also didn’t have access to it remotely like email. My greeting now says I don’t take voicemail and to please send me an email.