'Net Neutrality,' Non-Discrimination and Digital Distribution of ContentThrough the Internet

The vast majority of U.S. residential consumers face a monopoly orduopoly in broadband Internet access. Until now, the Internet has beencharacterized by a regime of 'net neutrality,' which means there hasbeen no discrimination between the price of transmitting packets basedon the identity of either the transmitter or the identity of thereceiver, based on the application, or the type of content the packetcontains. Providers of DSL or cable modem Internet access in the UnitedStates are taking advantage of a recent regulatory change thateffectively abolishes 'net neutrality' and nondiscriminationprotections. Due to their market power, these service providers areconsidering a variety of discriminatory pricing schemes. This articlediscusses and evaluates the effect a number of these schemes would haveon the prices and profitability of network access, as well as the effecton complementary application and content providers. This article alsodiscusses an assortment of anti-competitive effects created by pricediscrimination and evaluates the possibility of 'net neutrality' beingimposed by law.