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What if we apply Neutrality rules to courier businesses?

NNseries_CourierThe third analysis report of the Applying Net Neutrality to other sectors series is coming to light. This third case study keeps a similar focus of the first one, which focused on transportation, transportation of persons through airlines to be more precise; we keep the transportation theme, but exchange what is being transported, goods instead of persons. What will be the effects of applying Net Neutrality rules to courier, express and parcel companies’ business model?

 

The application, as seen in the airlines case study, would limit most of the Couriers’ commercial practices such as price differentiation based on time of delivery, delivery destination and targeted discounts among others, thus having enormous impact on the courier companies: lowering of the quality of service provided, diminished delivery coverage, increase of shipment prices… But in this third case study, it is far more relevant to consider the side effects on other industries and on the global digital economy.

 

How would e-commerce be affected by less efficient and increasing logistic prices? What would happen with the premium flat rate delivery service of our favorite online retailers? Would the nowadays flourishing online marketplaces be flourishing anymore? Would consumers be getting access to goods at not so competitive prices and in a not so convenient way?         

 

We invite you to read the third case study elaborated by Solchaga Recio & Associates while keeping a broad and far reaching sight on how applying Net Neutrality principles to the Courier, Express and Parcel Service businesses could have a far reaching impact on e-commerce and thus on the Internet evolution.

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Chema Alonso

Chief Data Officer, Telefonica.