First, a disclaimer: I do not know nearly enough about (1) economics, particularly as applied to telecommunications markets, or (2) how the Internet works, or, put more festively, “the architecture of the Internet.” Please take my comment with a healthy grain of salt.

On the one hand, this seems very problematic. The Internet functions essentially by sending discrete packets of information anonymously over a decentralized “web” of local networks. If I’m not mistaken, Time Warner’s suggestion would seem to disrupt this model. I’ll steal an analogy I heard when NPR covered this story the other day– this seems no different than a cable company trying to refigure your bill to reflect how much TV you watch. And this seems somewhat absurd to most people.

On the other hand, isn’t this just a free market in action? And aren’t we, in fact, gaining greater efficiency by allowing people to more accurately absorb the costs of their actions, rather than displacing them across a larger population? One way of looking at this might be through a “Tragedy of the Commons” lens. Isn’t privatization the best route for us?

OK, so there’s both poles, at least as I see them. I’d love to have someone help me tidy this up a bit. Any techies and/or economists who can set me straight?

Daniel Corbett