Triangle start-ups concerned as net neutrality nears end

The Federal Communications Commission voted this week to end net neutrality, meaning the rules of the internet have changed. And the Triangle’s start-up incubators and small tech companies are not happy with the move.

Telecommunications and internet service providers, such as Spectrum and AT&T, are no longer required to treat all content, like websites, apps and streaming services, equally when it is being delivered to online users.

Critics say the change benefits big companies and will hamper small, start-up tech companies.

Those regulations are gone, which bothers entrepreneurs at American Underground, one of the premier startup hubs in the South.

American Underground in Durham is a complex where around 270 startup companies come to get off the ground.

Chief Software Architect Shawn Dougherty says net neutrality allowed up-and-coming companies, like his, to thrive.

"We build custom applications for startups to Fortune 500 Companies," Daughtery said.

"When we put out a new product, we know we're on an equal playing field with other products that are in existence. We know that we will succeed or fail based on our own merits, not based on what we paid internet service providers."

Daughtery said established companies could pay internet service providers for faster speeds and preferential treatment, while start-ups would be steered to could end up in the slow lane.

Many of those start-ups, he predicts, won’t be able to afford the faster service.

Allison Wood, co-founder and chief executive officer of Divinci Education Solutions, says her business model for education software systems depends on speedy downloads.

"When we are engaging with a new customer, they want to know how fast the site it," she said. "You've got students and faculty on it all day long. How quickly can they take their exams, how quickly can they download their content?"

The service providers say the internet will keep working the way it always has.

"We don't slow down, block, or discriminate against lawful content," Spectrum said in a written statement. "Simply put, we don't interfere with the lawful online practices of our customers and have no plans to change our practices."

Tenants of American Underground are doubtful.

"It's in their best interest to charge more money for these things," Daugherty said.

"(The internet) should be treated like a public utility," Wood said. "It's a public good and to deny it or restrict it is a public danger."