Verizon is plotting a hugely unpopular plan to convert the internet to a “pay per view” model for its customers
Verizon is in the process of pursuing a drastic change in their business strategy. Currently, like almost every other internet service provider, they charge their subscribers a monthly fee for unlimited internet data. To increase profits, they want to begin charging popular producers of internet content (e.g. News websites) for the privilege of letting Verizon customers view their website. In other words, if a Verizon user wants to view a website that hasn’t paid the privilege fee, the site will be inaccessible. Colossal implications for their stakeholders and competition will be felt if this is successful. Their customers will undoubtedly be very unhappy with this decision, so much so that it would be unsurprising for them to switch internet service providers. However, it would be unwise for Verizon to not have predicted this in my opinion. I believe its quite possible that when they successfully carry this out, it’s only a matter of time before other big name ISPs follow their lead. Stakeholders from every ISP giant has the potential to be affected here. Profits will surge for these Verizon styled businesses at the expense of internet content producers/internet users. Alternatively, and this is what I believe will happen if leading ISPs implement Verizon’s strategy, new ISP businesses will emerge to satisfy the desire (of millions of people) to have net neutrality, dealing a large blow to the profits of Verizon and its counterparts.
