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June 15, 2007

Net taxation could kill collaborative innovation

Soon the US government will decide whether the ban on taxation of internet access should continue or not. If the ban is lifted, Americans could be taxed per access or amount of bandwidth used instead of the current blanket per month fee for broadband. Not only is this a backward step for consumers (remember dial-up?), this clearly has societal implications, allowing only the moneyed classes to readily access high-bandwidth content such as video, or to stay online for long periods in Second Life or MMORPGs. But there's so much more at stake than missing out on YouTube or online games. The entire economy of the internet would change. Would you do your banking, grocery shopping or check-in for flights online if you had to pay extra to do so?

The rise of cheap broadband also opened the door to exponential growth in online social networks and collaborative tools such as Basecamp and Central Desktop, not to mention online meeting tools and VOIP. There are millions of people online every day, collaborating on projects and ideas, sharing knowledge in ways that weren't possible before, and just plain getting things done. People from oppostie sides of the world can collaborate in real time without ever leaving their chairs. Taxation such as that being debated could kill these kinds of online collaboration. Without cheap & easy access would projects such as the IBM InnovationJam thrive - or even exist?

If the US were to lift the ban, other countries could be inspired to follow suit - I only hope that those of us who live our lives online can make sure this doesn't happen. It also highlights the fact that many of the factors in creating a climate where innovation can thrive reach way beyond 'innovation policy' or personal  entrepreneurship.

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