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"Even if broadband providers had an incentive to degrade their customers' online experience in some circumstances, they have no practical ability to act on such an incentive. Today's Internet ecosystem is dominated by a number of "hyper-giants" with growing power over key aspects of the Internet experience—including Google in search, Netflix and Google (YouTube) in online video, Amazon and eBay in e-commerce, and Facebook in social media. If a broadband provider were to approach one of these hyper-giants and threaten to block or degrade access to its site if it refused to pay a significant fee, such a strategy almost certainly would be self-defeating, in light of the immediately hostile reaction of consumers to such conduct. Indeed, it is more likely that these large edge providers would seek to extract payment from ISPs for delivery of video over last-mile networks." Related: an article at Gizmodo explains that it takes surprisingly little hardware to replicate (at least most of) Netflix's current online catalog in a local data center.
Today's Silicon Valley is still exceedingly liberal on social issues. But it seems more skeptical about taxes and business regulation than at any point in its recent history. Part of this is due to the rise of companies like Uber and Tesla Motors, blazing-hot start-ups that have been opposed at every turn by protectionist regulators and trade unions, in confrontations that are being used by small-government conservatives as case studies in government control run amok.