Most of our critical infrastructure in the United States is privately owned, such as the food distribution infrastructure. And private ownership of infrastructure obviously works well, and in most cases works better than government owned infrastructure, such as the road and highway system. So, increasingly, even government owned infrastructure like highways are being leased or contracted out to private companies to operate as tollroads, because private ownership leads to better outcomes.
In lease agreements between governments and tollroad operators there are regulations requiring the maintenance of the infrastructure, etc., but certainly not “highway neutrality” regulations. The operators are free to charge trucks a higher rate than passenger cars, since trucks impose a greater burden on the infrastructure. Tollroad operators are free to give discounts, to charge higher prices during congestion periods and lower prices during off-peak hours. Free to innovate and try new business models, in other words.
No one fears that one day the private tollroad operator will start banning Chryslers from the highway, because why would a tollway operator object to a Chrysler using its thoroughfare so long as the operator of the Chrysler paid its fare share for use of the toll? By pleasing as many customers as possible and by finding ways to accommodate every potential user of the tollroad, the operator maximizes profit. Everyone wins.
Fortunately, our broadband infrastructure is already privately-owned. Cable, telecom, and wireless companies have built out a broadband infrastructure using private capital rather than taxpayer dollars. And as is typical of privately-owned infrastructure, the broadband market is a hotbed of innovation and experimentation with new business models.
Nonetheless, some are calling for “network neutrality” regulations that will restrict the freedom of these private broadband companies from building intelligence into the networks and experimenting with new business models.
But what if we were to apply to private tollroads “highway neutrality” regulations along the lines of the “network neutrality” regulations that are being proposed for our privately-owned broadband infrastructure?
What if tollroad operators could not charge higher prices to tractor trailers because of their heavier use of the infrastructure? What if they could not offer an “express lane” to people willing to pay a little more, or who agreed to certain terms such as carpooling? What if they couldn’t adjust tolls based on demand?
It would make no sense, and all of the benefits of having a privately-managed infrastructure would be out the window. Consumers wouldn’t benefit, and the operators of the road wouldn’t benefit, so we’d be back with a stagnant infrastructure.
Fact is – operating infrastructure costs money. The best case scenario is private ownership and control of infrastructure, with markets setting prices, and with the owners free to innovate and to try new business models. We already have the best case scenario in our broadband infrastructure. And if it ain’t broke, don’t fix it.