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Home»Business
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The Impact of Kimbal Musk & Zip2 on the Dangers of ‘Net Neutrality’

May 21, 2024No Comments2 Mins Read
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In a recent opinion piece, the concept of “network neutrality” was discussed in relation to the past and present state of the internet. The article begins by referencing the outdated practice of phone books, specifically the “Yellow Pages”, which were commonplace before the internet became widespread. The Musk brothers, Elon and Kimbal, attempted to replace these phone books with their first entrepreneurial venture, Zip2. This concept involved a searchable database of companies combined with mapping capabilities, which was revolutionary at the time.

During the 1990s, the internet was still seen as a novelty and not taken seriously by many. Even as Elon Musk was working on his second start-up, PayPal, most payments for goods and services were still being delivered by traditional methods such as the U.S. Postal Service. The success of PayPal and other internet-based businesses at the time was rooted in the widespread belief that the internet was a niche concept that would never replace established ways of buying and selling.

The idea of “network neutrality” is discussed in relation to its potential impact on the development of the internet. The concept of treating all internet communications and usage equally is likened to a price control, and the article questions what would have happened if this concept had been introduced in the 1990s when the internet was still in its infancy. It suggests that such a rule would have stifled innovation and the widespread adoption of the internet.

The counterfactual scenario is considered, where “network neutrality” was introduced in 1995, and the FCC passed regulations to equalize internet communications. It is argued that this would have hindered the growth and universality of the internet, as regulators and academics at the time lacked the foresight to predict its future potential. The article suggests that imposing price controls on internet usage based on outdated models and regulations is counterproductive to innovation and progress.

The article concludes by urging proponents of “network neutrality” to consider the lessons of the past and the ever-changing nature of technology. It warns against being stuck in outdated modes of thinking and regulation, using Kimbal Musk as an example of someone who envisioned a future where traditional practices could be replaced by innovative technologies. Ultimately, the message is to embrace change and progress rather than clinging to outdated models in an evolving digital landscape.

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