Net Neutrality, pt. II

In my last post, I included an admittedly one-sided video explaining the basics of net neutrality. While I believe that Stewart and Hodgman make a strong case in favor this type of regulation, the exploration of such a complex issue demands a more thorough analysis of the costs and benefits associated with its implementation. Misconceptions aside, there are numerous valid arguments on both sides of the issue.

Stewart and Hodgman's points, while humorous and persuasive in their way, are not unassailable. Hodgman's joke that "it's as if the richer companies have no advantage at all" seems to indicate, albeit sarcastically, that his opposition is rooted in corporate greed. It begs the question: why do large corporations oppose net neutrality? 

The primary reason for this is that it is more costly for internet service providers, or ISP's, to route traffic to less well known sites. It would seem only reasonable that they should have a right to charge an additional fee for that traffic, or route it in a less expensive way. Some ISP's, such as AT&T, have actually paid for the physical infrastructure (such as phone lines) through which internet traffic travels. Shouldn't that ownership grant them a say in the way the infrastructure is used? 

These are powerful arguments, both philosophically and economically. If a company invests in a particular product, shouldn't it be their right to determine the particulars of that product? Otherwise it would compromise their ability to sell it, and consequently, deliver an inferior product to those who purchased it. Conversely, people who don't like that product have the option to "pick up and leave", or move to a seller with better terms or a more well-tailored product. In this context, corporations aren't behaving "greedily"; they're behaving the way they would be expected to behave under the circumstances. Even the most fleeting examination of their incentive structure would give strong indications as to why companies would prefer to be left to their own devices.