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Obama calls for equal access to the Internet

NEW YORK — United States President Barack Obama’s proposal for an open Internet would be a victory for Netflix and its binge-watching users, and may be a bigger boon for a generation of start-ups working on tools to connect cars, thermostats and even offshore oil rigs to the Web.

NEW YORK — United States President Barack Obama’s proposal for an open Internet would be a victory for Netflix and its binge-watching users, and may be a bigger boon for a generation of start-ups working on tools to connect cars, thermostats and even offshore oil rigs to the Web.

In urging the US Federal Communications Commission (FCC) to regulate broadband under the “strongest possible rules”, the President aligned himself with Netflix, Reddit, Yahoo! and others that contend equal transmission speeds are better for their customers. He proposed an explicit ban on Internet Service Providers being able to demand extra payments for speedy delivery of content and data.

Start-ups as varied as smart-device maker Spark Labs, inventor Quirky and electric system Avi-on are working on chips and software that can do everything from entertain your dog with an Internet-connected toy to hooking up all the lighting in your home to the Web. The open Internet should be of interest to everyone in the US, as more and more devices are digitally connected for remote monitoring.

Having to pay for a priority lane for data over the Internet could stifle innovation in the budding industry for Web-connected devices, which research firm IDC expects to reach US$3 trillion (S$3.8 trillion) by 2020, up from US$1.3 trillion this year. The tolls and extra fees favoured by cable and wireless companies — though burdensome for established companies such as Google or Yahoo — would pose an even bigger financial challenge to newer companies dependent on venture capitalist cash to make payroll while developing new software and gadgets.

Proposals around fast lanes for the Internet would have “crushed product innovation in America”, said Professor Barbara van Schewick, a law professor at Stanford University.

Consolidation in the cable industry has reduced the number of Internet providers in the US and that has heightened calls from public policy groups for a government-backed guarantee that all websites will be treated equally.

Mr Obama’s suggested route would have the FCC oversee broadband companies in the same way it regulates phone companies. BLOOMBERG

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