Estimating the Cost of Three Strikes

Michael Geist does a good job of scoping out some of the costs beyond those to disconnected subscribers that three-strikes policies would impose.

Much of the three-strikes debate has focused on its impact on Internet users, yet the price of establishing such systems have scarcely been discussed. That may be changing due to the UK government’s own estimates on the likely costs borne by Internet providers and taxpayers in establishing and maintaining a three-strikes system.

The British estimates are probably the most well known but not the only data point, as he explains. There may be a more drastic effect on competition amongst access providers. That is worth taking some time to consider.

One of the biggest criticisms public interest groups here in the US have leveled against the FCC’s broadband plan is the lack of positive attention for insufficient competition in that market. Now imagine coupling that with higher transaction costs that would reinforce the status quo, effectively punishing consumers repeatedly without increasing the accountability of the ISPs themselves.

Leave a Reply

Your email address will not be published. Required fields are marked *