01/03/18

How the Net Neutrality Repeal Will Impact Your Business

Rampant confusion over net neutrality has left a lot of people worried in light of the recent repeal of net neutrality rules by FCC commissioner Ajit Pai. While there’s reason for some to worry in a deregulated internet space, small businesses should actually be glad.

Here’s why:

Competitive Bandwidth

If your business has a website, then you need bandwidth. Currently, 35% of all internet traffic is on Netflix. That means, in a ten lane highway, Netflix is sending an endless stream of bumper to bumper semi trucks that are 3.5 lanes wide.

Add in Facebook, YouTube, and iTunes and the space left on the road for everyone else is pretty insignificant. When traffic to these websites hits a peak, every other site experiences lag and performance issues.

Neutrality Favors Netflix

Net neutrality says: if Netflix takes up 3.5 lanes of traffic, they have a right to do so, even if that slows down everybody else. For Netflix, this is a great idea because it means they can hog bandwidth without consequence.

With the repeal of neutrality rules, however, Netflix’s spot on the road isn’t so secure anymore. While they can still take up 3.5 lanes of traffic, ISPs can choose to charge them a premium for slowing everybody else down.

In other words, if the internet is a grocery store and Netflix wants ample shelf space and a premium front of store display, they’ll have to pay for it.

This is good for small businesses because it balances bandwidth competition. Now, sites like yours that hog up little to no bandwidth have a market advantage.

Advantages for Small Business

When ISPs charge bandwidth hogs like Netflix a premium, they incentivize data transfer innovation. If Netflix takes up less bandwidth, then there’s more bandwidth for your company website and faster internet connections for everyone.

Faster internet connections send more internet traffic to more places. Free-flowing traffic is important for your business because it means people will have an easier time accessing your website or internet services.

In this era of high-speed internet, ease of access is crucial to success. Customers expect lightning fast connections. The minute they experience any lag, they run back to monolith bandwidth hogs like Netflix and Google.

The net neutrality repeal gives ISPs a way to prevent bandwidth hogging and incentivize speed innovations, which in turn keeps traffic coming to your website.

Internet Innovation Is the Standard

Since the dial-up days, small businesses have been finding ways to innovate the internet. Nowadays, we have Starbucks internet, LTE phone connections, and broadband channels. These are all ways in which internet data transferring has progressed. It’s very likely these innovations will continue.

As internet speed increases, there will be more ways for people to access your content. And more access means more traffic that you can convert into sales. That should make your bottom line pretty happy.

Get more small business tips from Lendio.

About the author

Andrew Mosteller
Andrew Mosteller
Andrew Mosteller is a freelance writer and regular contributor to Lendio News. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew's father, an equity fund manager, taught him the ins and outs of investment financing. Now, Andrew spends his time writing copy for business owners, helping them expand and advertise their unique brands. He's also studying Strategic Communications at the University of Utah. When Andrew's fingers aren't glued to the keyboard, he spends his time reading, podcasting, composing music, and bombing down the ski slopes.

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