Net Neutrality

Definition of 'Net Neutrality'


The idea that all data on the internet should be treated equally by corporations, such as internet service providers, and governments, regardless of content, user, platform, application or device. Net neutrality advocates see it as a cornerstone of open internet, and propose that it be mandated by law in the U.S. to prevent broadband providers from practicing data discrimination as a competitive tactic.

Investopedia explains 'Net Neutrality'


Proponents of net neutrality include human rights organizations, consumer rights advocates and software companies, who believe that open internet is critical for the democratic exchange of ideas and free speech, fair business competition and technological innovation. They argue that cable companies should be classified as "common carriers," like public utility companies or public transportation providers, who are forbidden by law from discriminating among their users. They advocate the principle of a "dumb pipe," maintaining that intelligence should be located only the ends of a network, and the network ("pipe") itself should remain neutral ("dumb"). Advocates of net neutrality see municipal broadband as a possible solution.

Opponents of open internet include conservative think-tanks, hardware companies and major telecommunication providers. The providers argue that they must be allowed to charge tiered prices for access in order to remain competitive and generate funds needed for further innovation and expansion of broadband networks, as well as to recoup the costs already invested in broadband.

As of May 2014, the U.S. Federal Communications Commission decided it would consider: 1. permitting slow and fast broadband lanes, which would defy the notion of net neutrality; 2. reclassifying broadband as a telecom service, which would maintain net neutrality.



comments powered by Disqus
Hot Definitions
  1. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  2. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  3. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  4. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  5. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
  6. Class Action

    An action where an individual represents a group in a court claim. The judgment from the suit is for all the members of the group (class).
Trading Center