Will Net Neutrality Ruling Make Web More Like Cable?

[Commentary] In an Internet free of network neutrality rules, the direct effect on consumers may not be very obvious -- at least in the short run. That gets to the real, long-run losers in the cableization of the Internet: start-ups.

What happens to the next Netflix or Skype or Instagram, the next firm to come along with a great idea for a service that requires a lot of bandwidth, but without deep enough pockets to pay AT&T to get into the sponsored bundle? Sure, you'd still be able to use that company's apps, but if you were constantly worried about your monthly data cap -- a worry you wouldn't have when you used a big firm's services -- would you try it out on a lark? You'd definitely think twice about it. You may notice something interesting here: The fight over network neutrality is commonly painted as a battle between the cable and phone companies on the one side and the Internet content giants, like Google and Netflix, on the other. But the battle may not be so neat. For today's tech giants, an Internet that is less hospitable to competitive start-ups may not be such a terrible thing. Facebook can afford to pay AT&T a fee to sponsor your AT&T wireless plan. The Harvard freshman dreaming up the next competitor to Facebook won't be able to do that, so accessing her app may cost you. In that respect, the new rules would be a pretty sweet way for today's tech giants to lock in the status quo. Which, again, would make the Internet much more like cable, where a handful of telecom and content companies determine the bulk of your lineup, and your only choice is the bundle, Choose wisely.