FRED WILSON: The Net Neutrality Decision Will Be A 'Nightmare' For New Startups

Quote:

[I]n Wilson's post, titled "VC Pitches In A Year Or Two," he writes of three different scenarios where he might hear an idea for a new startup and what the possible response might be. Here's one of them: Entrepreneur: I plan to launch a better streaming music service. It leverages the data on what you and your friends currently listen to, combines that with the schedule of new music launches and acts that are touring in your city in the coming months and creates playlists of music that you should be listening to in order to find new acts to listen to and go see live. VC: Well since Spotify, Beats, and Apple have paid all the telcos so that their services are free on the mobile networks, we are concerned that new music services like yours will have a hard time getting new users to use them because the data plan is so expensive. We like you and the idea very much, but we are going to have to pass. ...http://www.businessinsider.com/fred-...trality-2014-1

Mobile came days before in an FCC ruling -- now this from the Appeals Court. This ruling may very well backfire on the incumbent consumer ISPs. The legislative backblow may be more than they ever imagined. Then, maybe not -- they get to raise the bills some more.

Of course, if the USA ISPs lose a lot of their peering ... How much will the interconnecting carriers be willing to risk, and why would they bother?

I anticipate the price of movie streaming like Netflix to triple in the next 10 years. Future competition in video streaming will be stifled. There is disruptive innovation at play here that is affecting the incumbent consumer ISPs profits. Instead of innovating and competing they hope they can bully the market and continue in their past -- how did that work out for buggy whip manufacturers? Good quality Wireless Internet will evolve and the maintenance costs of copper wire, coaxial cable and even fibre cable-- their days are numbered -- you can't stop progress.

They are targeting home entertainment like Netflix -- tubes' bandwidth and webcam streaming traffic is of little consequence in comparison.