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SBC CEO: Pay up if you want to use our pipes

acousticiris writes "If there were any delusions that Ma Bell Wasn't Back, SBC CEO Edward Witacre has cleared that up in an interview with Business Week Online. When asked about Google, Vonage and other Internet Upstarts he responded in typical Ma Bell Style: 'How do you think they're going to get to customers? Through a broadband pipe. Cable companies have them. We have them. Now what they would like to do is use my pipes free, but I ain't going to let them do that because we have spent this capital and we have to have a return on it. So there's going to have to be some mechanism for these people who use these pipes to pay for the portion they're using. Why should they be allowed to use my pipes?'."

79 of 613 comments (clear)

  1. Somehow by Short+Circuit · · Score: 5, Funny

    This doesn't seem as funny as it used to be.

    1. Re:Somehow by orkysoft · · Score: 5, Insightful

      What do you mean, their own demise? Google is one of the things that make the internet more useful and more attractive to people.

      Oh, wait, you mean that a useful and attractive internet means people are going to not sign up for SBC broadband! Of course, how silly of me that I didn't see your impeccable logic for what it is immediately!

      --

      I suffer from attention surplus disorder.
    2. Re:Somehow by BlogPope · · Score: 5, Insightful
      Why should they freely facilitate their own demise?

      Why should they provide their customers the service they signed up for? They promised to provide access to the internet for a certain price, not to some subset of the internet that agreed to pay their extortion. If they can't make a profit, why is this Cogent's fault? Did SBC inform their customers they would be used like this? Will they be compensated for being unable to connect to work because SBC's CEO isn't getting a big enough bonus check?

      --
      My other car is a Popemobile
    3. Re:Somehow by Atryn · · Score: 5, Insightful
      We all know that information wants to be free... apparently telecom lines want to be free too.
      That's right! And as soon as the world realizes that food, shelter, energy and access to clean drinking water also want to be free this will be a much better world...

      After that, I'll push for cars, entertainment and space travel... They want to be free too!

      --
      Come play Moral Decay!
    4. Re:Somehow by Verteiron · · Score: 4, Insightful

      Actually since most consumer broadband "contracts" include a clause stating that they can be changed at any time without notice, SBC probably can change those just 'cause they see a new revenue source.

      --
      End of lesson. You may press the button.
    5. Re:Somehow by gb506 · · Score: 3, Insightful

      Amen, brother. Witacre is pissed because his business isn't sexy anymore. But what he doesn't understand is that, if he builds barriers between the public and google/yahoo/whatever, google/yahoo/whatever will build a bridge. And that bridge, methinks, will be wireless and omnipresent. And that bridge will mark the end of Ma Bell once and for all.

    6. Re:Somehow by jrboatright · · Score: 4, Insightful

      Because they didn't offer that. They would be happy to if you're prepared to pay what that costs. We do. For 19.95 a month, you get filtered network connections, no ability to run a server dynamic IP addresses, and capped bandwidth. For 99.95 a month you get static ip's, no filters, and the ability to run anything you want. "Real" internet connections. SBC delivers exactly what you contracted for. Why is this upsetting to you. You want cheap, you get cheap, you want full pipes, you PAY for full pipes. DUH. That copper costs money, the electricity to run the system, the techs in the trucks, the poles, etc etc etc all cost money.

      When you have high-bandwidth wireless freely serving everyone in Osage County Kansas, then get back to me.

      Rick

    7. Re:Somehow by robertjw · · Score: 5, Informative
      Most of what you discuss are just basic CYA stuff for your ISP.
      • The 'offensive, embarrassing, pornographic' clause is there to save them if you start distributing kiddie porn
      • The restriction on business/commercial use is to keep you from taking advantage of their system by running a server or sucking up all of their bandwidth with multiple employees
      • The wifi thing is to keep you from sharing a connection with all your neighbors that don't want to pay for the service - although if you do it right I don't know how they could detect you running a router.
      As far as the NAT, check out http://www.no-ip.com./ I use their free service to ssh into my home machine on a cable network without a static IP. Been doing it for over a year and haven't had any problems yet.

      Bottom line is the contract, from what you relayed to us, doesn't state that they will filter any sites. It definitely doesn't appear to say that you can only access locations that have a contract with the ISP, which is what SBC is appearantly trying to do.
    8. Re:Somehow by Anonymous Coward · · Score: 3, Funny

      Sheesh, bad luck. A simple Venn diagram will show an embarrassingly small overlap of non-pornographic things you can do on the internet for "personal" and "entertainment" uses.
      Are you even permitted to use the net for for college work under those terms?

    9. Re:Somehow by gte910h · · Score: 4, Informative

      Look at logmein.com...its not ssh, more like vnc, but it will work in your situation.

      --
      Want to see every step I took to start my company? http://www.rowdylabs.com/blogs/pitchtothegods
    10. Re:Somehow by bonehead · · Score: 3, Informative

      As far as the NAT, check out http://www.no-ip.com./ I use their free service to ssh into my home machine on a cable network without a static IP. Been doing it for over a year and haven't had any problems yet.

      I'm not sure how that's going to help him if he's behind a NAT. While not technically a requirement, a machine behind a NAT will usually have an RFC 1918 IP address (10.x.x.x, 172.16.x.x, or 192.168.x.x). Since these are not routable on the public Internet, a dynamic DNS service isn't going to help him a bit.

    11. Re:Somehow by Afrosheen · · Score: 5, Insightful

      Telecom lines *should* be free. This was part of the telecommunications act nearly a decade ago. Big providers like SBC get government and municipality-granted monopolies in exchange for 'playing nice' with others.

        The original reasoning behind the friendly monopoly was to prevent divergent standards in telecom from emerging and to prevent mass destruction of public property. Think about it this way...one company, one city, many streets and alleyways. Any time SBC lays new fiber, runs new lines, erects new poles, etc. the city is well aware of it. The proper forms are filled out and streets are closed/traffic redirected/people are notified.

        Now imagine there are 4 telcos in your city. Each one will be on their own upgrade and repair schedule. Each one will fight for customers. Each one will be loathe to exchange with other companies' traffic. Each one will tear up streets during upgrade cycles. See the problem here? Telecom is considered important enough for city governments not to fuck with it, just like the power company. A phone, a water pipe, and power to every address is not too much to ask for.

        If our government worked better, i.e. wasn't so slow and wasteful, I'd wish that we'd have government controlled telecom. We could have a national telecom policy that'd bring us fine things like fiber to the home like Japan, Korea, *insert better connected country here* does. SBC is an impediment to progress, while they're in the position to push it forward, they have to make sure to squeeze every last penny out of what they've already invested. So of course, the CEO will boldly say 'you must pay to use our lines'. The shareholders would expect nothing less. Common corporate bs here.

        What would happen if they were unable to exact a charge on companies sharing their lines? To the shareholders, they're giving something away for free. To them, they're losing money on legacy hardware (i.e. the paths they provide have already been bought and paid for many times over). They fought like hell in court to prevent the telecom act, and it's easy to see why. The cable companies have the upper hand here, because the playing field is somewhat more level for them. They're not as strictly regulated and don't have to share their infrastructure with others. They still compete with each other and tear up public property occasionally but they're not as 'necessary' as SBC is. Yet. SBC has said time and again that if they had the right protection they would invest the billions required to put fiber to the curb. Verizon, in some areas, has already beaten them to the punch.

        Basically to sum it all up, SBC is becoming a model for corporate greed and sloth. Just like Microsoft or any other company that gets too big, they never want to play nice and share with others for fear of losing a few bucks in the exchange.

    12. Re:Somehow by masoncooper · · Score: 5, Insightful

      I think you missed the point. Google and Vonage are not using SBC's lines. SBC's customers are using SBC's lines (which they have paid for) to access Google and Vonage. This is like the RIAA/Apple skirmish, it's simply that one side sees money being made and wants a cut of it.

    13. Re:Somehow by Anonymous Coward · · Score: 3, Interesting

      Because they didn't offer that.

      Yes they did.

      They would be happy to if you're prepared to pay what that costs.

      No they're not.

      For 19.95 a month, you get filtered network connections, no ability to run a server dynamic IP addresses, and capped bandwidth.

      No, for 26.95 a month, I get a filtered email port (to stop zombies), a dynamic IP address (but nothing DDNS can't fix), and unlimited access (but only 1.5Mbps throughput). There's no limitation on hosting a server, no monthly data transfer cap, and no bullcrap from SBC. And yes, this is SBC DSL. I've had it since before the Yahoo! addition, and I never agreed to their amended ToS, with good reason. Look at what I can do without it!

      For 99.95 a month you get static ip's, no filters, and the ability to run anything you want.

      Actually, I believe that plan costs 64.95 a month.

      SBC delivers exactly what you contracted for.

      Yup. I "renewed" that contract rather than agreeing to new ToS, too. And they allowed it. And they cut my monthly price in half, too.

      You want cheap, you get cheap, you want full pipes, you PAY for full pipes. DUH. That copper costs money, the electricity to run the system, the techs in the trucks, the poles, etc etc etc all cost money.

      I want cheap AND full pipes. And I get it. You just have to push them a bit. Oh, and all but the recurring costs of business were subsidized by my parents' tax dollars (I was only about 3 when Ma Bell got severed), so that argument can get stuffed. And even now they receive some major kickbacks, so that argument can get stuffed into the indefinite future, too. "DUH."

      To get down to the real issue here, SBC is getting paid exactly the amount they're asking for, and their CEO is a greedy asshat and won't cool it with the retarded "we're entitled because we're the victim boo hoo" rhetoric.

      (heh... the captcha word here is "teletype"... how fitting.)

    14. Re:Somehow by JSBiff · · Score: 5, Insightful

      The problem is, Google, et. al. already pay for their pipes, too. Nobody is getting a free ride. The end-user pays for their broadband connection (as you've pointed out), Google pays for its Internet connection (Google must have one helluva broadband bill), and the ISP's have traffic interchange agreements between them (I think it boils down to whoever passes more data has to pay - if they 'trade' an equal amount of data, then they probably don't charge each other - although I'm sure it all boils down to the individual contracts that govern peering).

      The point is, this guy is a greedy jackass who is trying to make out like other companies are getting a free ride using the bandwidth I and they *already* payed for. If google, et. al have to start paying SBC for the bandwidth I already payed for, SBC better start giving me free DSL service (all this is hypothetical, as I currently use TimeWarner cable for internet access).

      The one potentially hopefull thing in all this is, because of the fact that cable companies are competing with the phone companies, (and things like city-wide WiFi networks are being created) SBC doesn't really quite have the clout that its CEO seems to think it does - just imagine what would happen if SBC suddenly disallowed access to all the websites/services that people normally use the internet for, because they didn't pay this fee? All SBC's customers would probably switch ISP's pretty fast, leaving SBC wondering what happened. Simply put, SBC needs Google, Vonage, and the rest of the Internet more than the rest of the Internet needs SBC.

      I still do wonder, though, what *geniuses* at the FTC have allowed the re-aggregation of all the baby bells after government spent massive amounts of money, and 10 years of litigation, trying to break them up.

  2. Uhhhh.... by ShyGuy91284 · · Score: 5, Insightful

    Don't they have ISP fees much like we do, whom probably pay the phone company for using their "pipes"?

    --
    In undeveloped countries, the consumer controls the market. In capitalist America, the market controls you.
    1. Re:Uhhhh.... by BlogPope · · Score: 5, Insightful
      This is the same issue L3 and Cogent had. They have the customers, someone else has the content. Their customers want access to the content, but generally don't have any content themselves, creating an unbalanced situation. In days of yore, all ISP's had a mix of content users and content providers, and they all agreed to share access at no cost. No you have providers like L3, Comcast, SBC, and Verizon who specialize in the user side of the equation, and have various mechanisms in place to dissuade content hosting.

      By this very nature, they will wind up receiving far more traffic than they send. Now, these pipsqueaks (in the ISP world, they are small) are causing a fuss, wanting to get paid for all this extra traffic that is being put on their network, far more than they are putting on others networks. But what about the flip side? These ISP's are Leeches writ large, sucking other users content while providing non of their own. They charge clients $$ for access to the internet, then want to charge the internet for access to their clients.

      Bad stuff is coming. This will be fought amonst the smaller Tier 1's, and it will be a bloodbath.

      --
      My other car is a Popemobile
    2. Re:Uhhhh.... by bigpat · · Score: 5, Interesting

      They charge clients $$ for access to the internet, then want to charge the internet for access to their clients.

      Yes, this is what the middleman always tries to do, in the case of communications services that is why we impose government regulation, which in turn creates a whole new set of middlemen but this time with guns.

      Really what this fucker, Edward Witacre, is saying that his customers need to pay him twice for access to other people's content which his customers themselves go out and request. If he was talking about Spammers only, then that might be an acceptable point, but he wouldn't exaclty be looking out for his customers if he took kickbacks from spammers. So , really we are talking about content that his customers want and are already paying the content providers to receive. And apparently he is charging those customers enough money to make a profit already, so his "need" to charge the other end of the communciation to be able to respond to his customers requests is purely based upon greed not neccesity or any reasonable notion of equity and fairness.

      Also, we should beware QoS (Quality of Service), it is the ISPs way of charging for differentiation of services. If the ISPs have their way they will delay packets that haven't paid a QoS tax. Far from being a way of providing better service to those that need it, it is a way of getting those that need lower latency (and can "afford" it) to pay more. So, those that have money (businesses, rich individuals) will get screwed by having to pay more for Internet Access and those that are paying less will get screwed when their packets are queued up for whatever arbitrary amount of time will squeeze the most money out of people. QoS will kill the Internet as a flexible communications platform. QoS is the DRM of networking.

    3. Re:Uhhhh.... by electroniceric · · Score: 5, Insightful
      in the case of communications services that is why we impose government regulation, which in turn creates a whole new set of middlemen but this time with guns.
      ..and the government at least has a charter to represent the public interest. When regulation is done properly, it means the regulators strike a balance between consumer interests (public as consumer) and business interests (public as worker and investor). The problem is that for 20 years there have been no serious efforts to make any forward reaching regulation, under the various arguments that "regulation always makes things worse", and "the government can't keep up with the market". There's some truth to these criticisms, but AFAICT the main problem has always been that we continue to allow vertical integration between a competitive market (carrier services) and natural-monopoly public infrastructure (phone lines and bandwidth). The minute we separate them, we can deregulate the carrier market all we like, and it will promptly commoditize. Telephone lines can be kept either a a government-provided service (which would probably make their quality work at at about the level of roads), or go back to utility-style control of the maintenance providers.

      This CEO says he "owns" the pipes. Fine, let's get the government all the way out of this venture. I want a reckoning of much money local, state, federal governments have put into the building and maintenance of those pipes. And if SBC's going to "own" them, they'd better cut those governments some big ass checks to compensate them for their investments, and the government can plow that into making the communications market competitive again. Otherwise, I hope the state AG's start looking hard in SBC's direction...
  3. Empty Threat by Godeke · · Score: 5, Insightful

    The comment is interesting, but an empty threat. The *customer* is paying for the pipes. The companies that the customer contacts are not using the broadband pipe except on behalf of the customer: any downstream transmitted across that pipe is paid for by the customer. As a specific example, I can pay for various downstream speeds with my cable company and DSL is ordered with a speed for upstream and downstream. That price breakdown makes it clear that the broadband payment I'm making is for both upstream and downstream, otherwise why would my upstream remain constant but my downstream increase if I throw more money at the cable company?

    On the other side of the fence the "Internet Upstarts" are paying for *their* pipes as well. Even the pipes "in the middle" are indirectly paid for, although that process can sometimes breakdown (as Level3 and Cogent are proving). It isn't like there is some magic way to get access from point A to point B "for free". The costs are just bundled in your access bills. What ticks off a telecom is that the prices for packets are so darn *cheap*. It makes land line voice look expensive, which is driving the adoption of VOIP.

    If they decide that paying for your pipes (both directions) doesn't give you access to the services you want, the only option is to impose filtering. If they decide to filter, block or otherwise prevent the customer from unhindered access to Internet products they will be in violation of the common carrier provisions. Which is fine if they want to then make a stab at blocking *all* bad stuff the Internet contains. However, I suspect that's not where they want to be, as without common carrier status they become liable for anything they *fail* to block.

    Frankly, all this comment proves is that they are desperate for revenue and yet know they can't raise rates on telephone services (thanks to regulation) so they are flailing around for anything they can think of. Legal probably sent him a "memo" right after that comment got back to them though, as I'm pretty sure *they* understand the ramification of the implied threat.

    --
    Sig under construction since 1998.
    1. Re:Empty Threat by AviLazar · · Score: 4, Interesting

      100% agreed. Google is not transmitting on XYZ's pipes on their own initiative...the customers are and they are paying for this. They are asking google to send them information - something they ask of ANY website out there. That's how the internet works.

      I hope ma bell actually tries to do this "Sorry you cannot access GOogle because they will not pay us a fee"...then the customer leaves the DSL company for the cable company. Also, this guy doesn't realize that internet transmissions piggy back all the time...so someone could make the same argument against this baby bell. "Yea one of your customers wanted to access XYZ website and because of this their ip route passed through our pipes...pay up or your customers won't get access".

      --

      I mod down so you can mod up. Your welcome.
    2. Re:Empty Threat by Random832 · · Score: 5, Insightful

      and they'll be dealt with in a similar maner how monopolist in operating system market where dealt with...

      with a slap on the wrist?

      --
      We've secretly replaced Slashdot with new Folgers Crystals - let's see if it notices.
    3. Re:Empty Threat by rbbs · · Score: 5, Funny

      Or a record company wanting a piece of iPod revenue because they are using 'their music' on it...oh wait...

    4. Re:Empty Threat by Tmack · · Score: 4, Informative
      But if there is only one (is there more?) Internet backbone

      There are several "backbone" networks. The tier 1 orgs mentioned in the submission (Level3 and Cogent) are just 2 of them. Each has a network that spans a large geographic region and peers with many smaller networks and other tier 1 networks. This network of networks is the collective internet backbone. One could go away completely, and a good bit of the internet would still be around, just the customers on only 1 upstream provider would be on a network to nowhere, and would be unavailable to the world until their ISP got a link to a different tier 1. Though Level3 is playing like a monopoly, they are not, and got reminded of that with the result of their Cogent dispute.

      tm

      --
      Support TBI Research: http://www.raisinhope.org
    5. Re:Empty Threat by rk · · Score: 4, Interesting

      'I hope ma bell actually tries to do this "Sorry you cannot access GOogle because they will not pay us a fee"...then the customer leaves the DSL company for the cable company.'

      And what of the rumors (confirmed or not?) that Google has been buying up scads of dark fiber? Does this guy really want Google to decide to become a common carrier and eat his lunch too? What are they putting in the water on the executive floor these days?

      I give any company who tries to deny users access to internet services because the content providers won't pay them about 6-12 months to live. They need to come to grips with reality that information transmission has become a utility, and that people mostly just want to buy packets in and packets out. Denying the transmission of information when that's your only product is pretty damn stupid. If SBC tries this, I will buy puts on SBC so fast I'll make their heads swim.

      Well, not really, 'cause I'm a little fish, but you get my meaning. :-)

    6. Re:Empty Threat by billn · · Score: 4, Interesting

      From http://www.ftc.gov/bcp/guides/baitads-gd.htm:

      "Sec. 238.0 Bait advertising defined.1

      Bait advertising is an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised.

      Sec. 238.1 Bait advertisement.

      No advertisement containing an offer to sell a product should be published when the offer is not a bona fide effort to sell the advertised product. [Guide 1]

      Sec. 238.2 Initial offer.
              (a) No statement or illustration should be used in any advertisement which creates a false impression of the grade, quality, make, value, currency of model, size, color, usability, or origin of the product offered, or which may otherwise misrepresent the product in such a manner that later, on disclosure of the true facts, the purchaser may be switched from the advertised product to another.

              (b) Even though the true facts are subsequently made known to the buyer, the law is violated if the first contact or interview is secured by deception."

      If an ISP (as in P stands for Provider), they can't filter/block access to anything and still sell 'Internet Service.' To do so means they become a Publisher, since they're controlling what you can access (I think AOL fits into this role in certain aspects), and that's a bundle of liability to make many companies tread lightly. If I buy service from a company offering 'Internet' access, I have a reasonable expectation that any IP based technology will work with it, be it software I run on my computer, or an off the shelf consumer device designed to work with the Internet. Companies providing bundled services need to step lightly on this subject. Selling me 'Internet' access, blocking VOIP transit, and offering a comparable VOIP service (for a fee, of course), is asking for trouble.

      --
      - billn
    7. Re:Empty Threat by OwnedByTwoCats · · Score: 3, Insightful

      The only businesses worse than regulated monopolies are unregulated ones. They don't have to be efficient, and are usually enormously profitable.

      Unregulating the telcos will mean prices go up and service goes down.

    8. Re:Empty Threat by ozbird · · Score: 4, Funny

      What are they putting in the water on the executive floor these days?

      Greed, which is a bad mix for their existing psychopathic tendencies. They need a commonsense and ethics infusion, stat.

  4. Who is paying the bills... by Anonymous Coward · · Score: 5, Interesting

    Why should they be allowed to use my pipes?

    Because the customer is paying for them there pipes. Last time I checked, yip billed yesterday, I paid for my phone line, cable TV with broad band and if you want to include the cell phone, that is mildly broadband, then that too. Now Polyester Ed, if you are paying for my bills then you can say what can and can't go over the line; you want to regulate the neighbors line then you'll have to pay for that one too. I bet Google has some kind of leased line also but I doubt you can pickup their bill though; you'll have to ask them as I think they have some kind of business model or some other buzz word that will confuse you.

    Now I believe Poly Ed is talking about the backbone network infrastructure that becomes a little shady. Does it make sense to pay 7 cents a minute to cross these main backbone lines? I wouldn't push a $100 billion gorilla too far; you may find that they'll replace your lines with something they own and then you'll be paying them.

    1. Re:Who is paying the bills... by Anonymous Coward · · Score: 4, Insightful

      There's a lot of misinformation in these posts about Ma Bell and the network.

      The prevalent theory on Slashdot is that Ma Bell gets the infrastructure paid for by government subsidy, and triple charges the users for using it (consumer + ISP + content provider). The theory seems to go on that Ma Bell just sits there raking in billions of dollars a year by doing nothing.

      The fact is, the Bells put a *HUGE* amount of their own money into the ground. They run copper and fiber to approximately 100% of the houses in their areas, along with the DSL switches, fiber switches, and other pieces of expensive equipment. Just the maintenance on that investment is in the *billions* of dollars per year.

      You all seem to think this investment should just be written off, and the pipes be free for everyone.

      Fact is that they are NOT charging more than once for the infrastructure. The Consumer pays for the infrastructure from the intr-LATA network up to the side of their house. The ISP pays for the facilities (the OC3 or OC12 big pipe) that connects their infrastructure to the internet back-bone. The content provider pays either for the consumer network (for very small providers) or something similar to the ISP model, they are paying for a big pipe to get deliver more content.

      Interestingly, in this model, no one is directly paying for the internet backbone. All of that is paid for via the other plans -- ie, some portion of the consumer, ISP or content provider payment is diverted to pay for that. So instead of triple charging, they are really just charging for the piece of the network the customer is using, and using part of that revenue to pay for the backbone.

      Yes, Ma Bell is in business, which means she wants to make money. Its just not as unfair as this site would make aout. Also with the entrance of cable, cell phone, satellite, and VoIP, they are also not a monopoly.

  5. rephrase the debate by the+arbiter · · Score: 5, Funny

    Better question: Why the hell should I use SBC's pipes if they're going to be such dickheads about it?

    Now I feel better.

    --
    Boycott everything - they're all trying to fuck you one way or another
  6. Why should they be allowed to use my pipes? by dsginter · · Score: 5, Insightful

    Better yet, why should we continue to subsidize a dying business? First, you bitch when municpalities try to install subsidized internet for the masses, then you bitch when people try to use a monopoly connection to eliminate your services.

    Stop whining and change your dying business model.

    --
    More
  7. I knew that.. by SillySnake · · Score: 5, Funny

    I knew that slashdot was going downhill, but why are they posting stories about CEO drug use? Who really cares who uses which pipe to smoke thier stuff in. It's all about puff puff pass people!

  8. I guess I'm confused by amliebsch · · Score: 3, Interesting

    What am I supposed to be outraged about? Broadband providers have never, as far as I can recall, provided bandwidth free of charge to their customers; nor would I expect them to. What am I missing here?

    --
    If you don't know where you are going, you will wind up somewhere else.
    1. Re:I guess I'm confused by meringuoid · · Score: 5, Insightful
      Broadband providers have never, as far as I can recall, provided bandwidth free of charge to their customers; nor would I expect them to. What am I missing here?

      Your man here runs a phone company. His customers pay him for voice service, and also he gets paid by broadband providers for the right to run internet connections over the same line (or possibly he sells broadband himself - I don't know exactly how it's done in this particular case).

      He has now noticed that some people are using the broadband connection instead of the voice service. There go his profitable long-distance and international charges! He charges a nontrivial amount per minute for a call to Tokyo, but these people are rolling it all into their modest monthly broadband fee! Aargh!

      The words 'buggy whip manufacturer' spring immediately to mind.

      --
      Real Daleks don't climb stairs - they level the building.
  9. Re:so? by meringuoid · · Score: 4, Insightful
    makes sense to me.. what's the problem?

    Problem is that they're already paying for the use of the lines. What do you think your monthly ISP fee is doing?

    Seems he now wants to be paid twice.

    --
    Real Daleks don't climb stairs - they level the building.
  10. Because they are in part, public property... by sycodon · · Score: 5, Interesting

    You installed these pipes while you were part of a regulated monopoly, using public right of ways.

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    1. Re:Because they are in part, public property... by Beatbyte · · Score: 5, Insightful

      Exactly.

      Next thing you know, some county somewhere is going to charge Amtrak for driving through without paying.

      How about this... We give anyone who wants to be an upstart the same access to putting fiber in the ground as SBC and see if they like that.

      rant: Eliminating any monopoly in the United States of America has been impossible for some time now (see: campaign contributions). Personally, I think the telecommunications industry is one of the first that needs to be seized and freed back up.

    2. Re:Because they are in part, public property... by antiMStroll · · Score: 3, Informative

      Don't laugh. Media content providers and software manufacturers are leading the way in shifting the consumer mindset from ownership to licensing. There may soon come a day when someone reading your comment doesn't understand why that's a bad thing.

  11. Back... but too late by eSims · · Score: 3, Insightful
    Ma Bell is back, but it's too late...

    This isn't 1905 and as long as I have a few choices Ma Bell won't be one of them. I've got cable... if they blow it I can go satellite, Power, Fiber, and worst case scenario I'll become an activist to set up a community Coop ISP.

    Ma Bell is to late in coming back to the game!

    --
    I .sig therefore I am!
    1. Re:Back... but too late by demachina · · Score: 3, Insightful

      "if they blow it I can go satellite"

      Nice empty threat but I think if you actually had to do it you would be in for a rude awakening. Satellite internet is expensive(like $60/month), downloads are capped(like 200 MB/day), uplink is very slow and ping times are horrible. Ping times of 1 1/2 to 2 second kill online gaming and is somewhat annoying for things like VoIP and video conferencing. You are behind a firewalled server so you wont be serving any web pages over it, the uplink speeds preclude that anyway. VPN is difficult at best, requires additional charges and special accelerator gear to not be unusably slow and it is still annoying slow for OpenSSH. I don't think the satellite providers are investing much in new capacity, because no one will buy their product unless they have no choice so its not a growth business, which leads to deteriorating performance as they cram more users on the same satellites.

      Satellite is only desirable, or maybe tolerable, if you live in rural areas with no other option.

      You're only real options are likely to be:

      - a cable monopoly
      - a phone company monopoly
      - maybe a power company monopoly someday
      - wireless

      It remains to be seen if wireless avoids being monopolized, because for example the above monopolies sue if a city tries to provide it as a free service. If Wimax becomes the dominant wireless medium I believe it also has licensing structure that can create monopolies depending on who snaps up the license in a give area.

      Luckily you do have several monopolies competing with each other which is better than have no competition, but as you see with oil companies if you have several big players who decide to collude they can maintain artificially high prices so they all still profit at the expense of consumers.

      P.S.

      Probably wont win any points saying it but it is true that cable and phone companies have invested vast sums in copper and now fiber infrastructure. You do need to insure they make a profit, and are able to service their debt as long you want that infrastructure in your home. Now if wireless could be made to work and provide similar service it obviously eliminates a lot of that infrastructure cost but I'm not sure you can get anything close to the same performance on wireless anytime soon. The other downside is wireless means we get bathed in some more potentially carcinogenic radiation.

      --
      @de_machina
  12. Now you know... by Noryungi · · Score: 5, Interesting

    ... why google has been buying tons of dark fiber in the past couple of years.

    One of these days, this jerk^W typical CEO will realize -- too late -- that he has painted his company in a corner with that type of statement. By then, it will be too late to save SBC, but not too late to grant himself a huge, last-minute bonus.

    --
    The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
  13. "We've Spent Capital On This" by kah13 · · Score: 3, Insightful
    • The investment on the local loops was largely made under the Bell days, and is depreciated
    • The capital on the DSLAMs was invested long enough ago that it should be depreciated (and some of it wasn't invested by SBC in any real form)
    • The fiber interconnects have been available at rock-bottom prices due to overbuilding

    I appreciate that I've been getting all this broadband for free all this time. Oh, wait, I pay a monthly fee for that. Hmm, perhaps I can pay that fee to someone else who won't be so restrictive? Where is that number for Speakeasy...

    The gentleman seems to have an odd understanding of how this all works. Google pays him to get to me, and I pay him to get to Google. The second that changes, I'll pay someone else who doesn't feel that it's a privledge to get my business.
  14. Consumers paid for access, not "pipes" by MDMurphy · · Score: 5, Insightful

    What a moron.
    What the hell does he mean by people using his "pipes" for free? I pay every month for my access. And I'm not paying for wires strung to my house, I'm paying for bandwidth, for the ability to get packets in and out of my router. Nothing free here, I paid for it.

    Yes, there's someone on the other end making money on this and the greedy bastard thinks he should get "his share". Does he want that to apply to every transaction?

    I called and ordered a pizza for delivery last night. Do they get a cut?
    I checked my bank balance and paid a couple bills this weekend. Do they get a transaction fee?
    I do work from home some days. Do I need to give them a portion of my pay when I do that?

  15. Hasn't anyone learned from previous failures? by url80 · · Score: 3, Informative
    Hasn't anyone learned from the failures of the CIX effort in the early nineties?

    I mean.. let's get real.

    Best, url the bounty network

  16. This is why Google is dabbling in Wireless by Gumber · · Score: 4, Interesting

    This sort of mindset is exactly why Google is dabbling in setting up WiFi networks and why Microsoft has been investing in community mesh networks. They need a credible alternative to DSL & Cabel internet access, or the providers of last mile connectivity will start looking for a share of revenue of everyone who delivers services over IP for access to "their customers" That's right, they want to charge you for the pipe on one end, and turn around and charge the people you are connecting to, on a per transaction basis, if at all possible.

    Don't think they aren't determined to find a way to do it.

    What's needed is enough competition to make it impossible for them, and that is going to take more than a choice between the cable company and the phone company, even better if some of that competition has ways of turning a profit beyond simply gouging for connectivity.

  17. It's about VOIP by quentin_quayle · · Score: 5, Insightful

    In context, he is talking about VOIP.

    In effect, SBC is providing the means by which VOIP providers are competing with SBC's phone line business. That's what bother him.

    But he has to understand, if SBC is going to offer generic internet service, they have to tolerate customers using it for whatever they want. What Whitacre and his ilk would like is to regulate what customers can do with the service. This would start with shutting out competition and progress to charging for each protocol, port, destination, etc..

    We have to preserve the common carrier principle in internet access.

    1. Re:It's about VOIP by Control+Group · · Score: 4, Interesting

      He may think he'd like that, but he's wrong.

      If he starts regulating the content of data on his wires, he loses common carrier status. Now he becomes liable for every snuff/rape/bestiality site that crosses his wires in the US. He's liable for every pipe bomb HOWTO, every warez download, every mp3 stream, every alt.bin.illegal.stuff post, every pedophile in an IRC channel, et cetera, et cetera.

      At that point, SBC either goes out of business or spends truly profligate amounts of money - even in comparison to current business spending on Capitol Hill - to try and get common carrier redefined.

      --

      Reality has a conservative bias: it conserves mass, energy, momentum...
    2. Re:It's about VOIP by Holi · · Score: 3, Informative

      SBC broadband internet does not have common carrier status , nor does any other internet service provider in the US. Why this common misconception persists is a mystery to me. They are coverd by the term Enhanced Service Provider (ESP), in the telecom world common carrier status carries may burdens and regulations that no ISP wants nor does the fcc want to grant it. so please lets stop making this claim as it is completely false.

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  18. No she's not by geekoid · · Score: 3, Insightful

    She is going to come in, claim to fix all those nasty problems with the internet, and get money to do so.

    People will pay to have a 'cleaner','smarter' internet, and she will have a contract that basically lets her control anything comeing into or out of the computer.

    These people are really good at this game. They will stand in front of congress and lie, they will cheat, they increase there rates and call it a tax so people will think it's cause of the government.

    SHe's a bitch, she is smart, and she has no morals. Don't turn your back on ma bell, she'll put a shiv in it.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  19. The Pipes are already paid for... by fallen1 · · Score: 4, Insightful

    since the American people subsidized them through TAXES and SURCHARGES WE FUCKING PAID. How about we, The People, take back the part of those pipes WE paid for and then you, "the corporations"*, can pay The People for using OUR pipes that you're making money off of. That way we, The People, can choose who WE want to be in control of the pipes. Just so long as Google stamps out an iron-clad privacy policy where they don't frigging data mine everything on the pipes I'd give all my pipes to them in exchange for fast access (something along the lines of 10mb/10mb would be nice) and the ability to host my own servers.

    *Please note that corporations are lower-case and should be treated as such. They should not hold the same status legally as The People (we're mentioned in the Constitution, not them). Period. I'm all for the "American Dream" but not at the total expense of We, The People.

    --

    Dream as if you'll live forever.
    Live as if you'll die tomorrow.
    ~Anonymous~

  20. Coming soon.... by JWW · · Score: 4, Insightful

    Wow after comments like these I can almost feel the next article coming on about how far the US is lagging behind the rest of the world on broadband.

  21. What was his previous job ? by Alain+Williams · · Score: 4, Insightful
    By any chance: did Edward Whitacre work in the music industry ?

    Pretty much sounds like it: trying to defend a business with an out of date business model by attempting to 'regulate' rather than trying to compete and give their customers what they want.

    It may take a few years but unless he changes business tactics his company will slowly die, just as the dinosaurs did when conditions changed and they did not adapt fast enough.

  22. You don't remember Ma Bell, do you? by Overzeetop · · Score: 3, Interesting

    $0.25/min long distance, and if you didn't like it, you could write a letter - cause Ma Bell owned the system. Telephones? Oh, no, you couldn't buy them, they could only be leased from Ma Bell on a monthly basis.

    There was a reason that Bell was broken up. It seems that everyone at the FCC was born after that decision, and only feels pity for the poor, destitute baby bells taht just can't compete as little guys. And they're so darned cute, wouldn't it be great if they were just one big company. Think of the efficency! Phone rates could be cut in half and in half again, if they just weren't made to compete with one another. *shakes head*

    The whole separation of infrastructure from service is a good thing, in general, for prices (California's f*cked up electrical system notwithstanding). If you let one company control the lines and the service, all you'll get is lousy service and high prices.

    This is where we're headed, and taking your business "elsewhere" won't mean much when most of the system ends op owned by one company, whether through buy-outs or mergers.

    --
    Is it just my observation, or are there way too many stupid people in the world?
    1. Re:You don't remember Ma Bell, do you? by Grishnakh · · Score: 3, Interesting

      People have very short memories. I'm barely old enough to remember the days of $0.25/min long distance from Ma Bell (I'm 31), and I certainly agree with you. But my mom, who's in her 60s, wishes we could go back to those days because it was so much simpler than having all these different companies to deal with, plus the customer service these days is so horrible.

      I try to remind her about how expensive it was to use the phone and how much we were held back technologically, but that doesn't seem to matter much to her.

  23. The next question is just as worrisome. by Irvu · · Score: 5, Insightful
    What's your approach to regulation? Explain, for example, the difference between you and Verizon in how you are approaching regulatory approval for Telco TV [digital-TV service offered by telecoms].

    The cable companies have an agreement with the cities: They pay a percentage of their revenue for a franchise right to broadcast TV. We have a franchise in every city we operate in based on providing telephone service.

    Now, all of a sudden, without any additional payment, the cable companies are putting telephone communication down their pipes and we're putting TV signals. If you want us to get a franchise agreement for TV, then let's make the cable companies get a franchise for telephony.

    If cable can put telephone down their existing franchise I should be able to put TV down my franchise. It's kind of a "what's fair is fair" deal. I think it's just common sense.


    Clearly this is a man who is comfortable with the idea of monopolies being granted to him (and not his competitors) and uncomfortable (even angry) about anyone figuring out how to compete with him. My read on this is that, given a choice between innovation and staying in a monopoly world where he is king he'll choose the latter.

    Welcome Back Ma Bell, we haven't missed you!
  24. He doesn't even know what he's saying. by Control+Group · · Score: 3, Insightful

    He doesn't want what he says he wants, at all.

    If SBC starts regulating content on their wires, then they open up a huge legal can of worms regarding liability. VOIP is just content. It's conceptually no different than a video stream or an .iso download. The only difference is that the specific content is perceived as a threat to SBC's business model.

    But that doesn't change the fact that it's content.

    I sincerely doubt SBC wants to be responsible for all the content that crosses their wires. The last thing any company needs, even one as big as Ma Bell, is an endless stream of lawsuits about kiddie porn, bomb making tutorials, warez downloads, DVD rips, mp3 streams, so on and so forth.

    Common carrier means common carrier, and changing the definition of common carrier would cost an asinine amount of money, even by the standards of corporate fund-slinging on Capitol Hill.

    --

    Reality has a conservative bias: it conserves mass, energy, momentum...
  25. Re:Welll.... by Distinguished+Hero · · Score: 4, Funny

    Plus evil.google.com would probably be in beta for a very long time.

    --
    Uttering logically derived and empirically supported truths to the disciples of the orthodox establishment.
  26. What an... what is the word... %(*#$ by peterjhill2002 · · Score: 3, Insightful

    And how do they propose to get .com's to pay them to "use their pipes?" What can they really do? Block access to google or Vonage? I don't think so... If they tried that with me... I would immediately switch ISPs... They would not be able to pay me to stay with them...

    It is such an old school business attitude... The phone companies need to realize that the days of monopoly are over... The gig is up, the cat is out of the bag... etc... VoIP works great... Vonage is so simple to use... someone's grandparents could use it...

    Even if there were some widespread blocking of Vonage... it would not be hard for them to get around it... It isn't like they have to stick to standard SIP ports... Their service could easily run over port 80... If they tried to block their IP address, could they not start using IP blocks from their ISPs? And hey.. aren't the ISPs already making money on transit costs for these companies...?

    This guy is a real loser... Sell your stock in SBC

  27. Let him try it by Krystlih · · Score: 4, Interesting

    He can try to charge for VOIP, but as soon as he starts, thats when more innovation will go into beating his detection methods. Such as encrypting the call, tunneling through other protocols, etc. I understand that VOIP is very latency sensitive, and every layer we put on top of it could possibly lower the quality of the call, but I still believe we can achieve better quality than cell-phone while encrypting the information. The real question will be, will the US Government support him in his desire to charge. I guess it will be interesting to see, hopefully other companies like Vonage will step in and work against him.

  28. he can cripple without sniffing packets by steve_l · · Score: 3, Insightful

    If their routers deliver a consistently bad QoS to all packets sent over the wire: a bit of jitter, nothing to affect bulk throughput, just the whole VoIP experience, then you can get a bad skype/google talk experience without ever having your packets sniffed.

    then you sign up with the cable telco's "high quality VoIP solution", which pretends to mean better pipes upstream but really means TCP without the jitter, they get their tax.

    -steve

  29. very old-school phone thinking by jjeffries · · Score: 5, Informative
    I work for a small CLEC/ISP...

    In the circuit-switched telephony world, carriers exchange CABS (Carrier Access Billing System) records, which are redeemed for cash at the end of each month. For example, you call your Uncle Zed long-distance for one minute and are charged six cents or whatnot by your phone company for the privilage. Well, Zed's phone company will charge CABS to your phone company, and at the end of the month, Zed's phone company will get a check containing a cent or two in payment for completing your call. It's not a lot of money but the volume is very, very high, and a phone co. can make some decent cash if they terminate a lot of calls (think dialups.)

    Pretty obvious now where this guy is coming from, eh? Too bad the internet doesn't work like that! The best they will be able to do at this point is to work on screwing up peering agreements in their favor.

    IMHO, the big telcos will be the first with their backs up against the wall when the revolution comes.

  30. Backing Up that Threat by woodsrunner · · Score: 5, Insightful

    There is software that can detect VoIP traffic and even identify the carrier. Telcos use this to *protect their networks*, but it can also be extended to protect their profits.

    While it is illegal for Witacre to drop all VoIP traffic, it doesn't mean he won't be identifying this traffic and providing it with highly degraded service with added noise, especially if the call's destination is one of his clients. This way he can do his best to maintain his customer base since the average customer will believe that using VoIP is like talking through a tincan.

    Sure in the end the buggywhip tech of the old Ma bell will loose out, but it will be a prolonged fight. Witacre rebuilt ATT, he's pretty shrewd. -- the guy just single-handedly overturned one of the largest anti-trust cases ever. I don't think he's going to be easy to presuade with some little "laws".

    1. Re:Backing Up that Threat by Cramer · · Score: 3, Interesting

      ... with added noise...

      Altering the contents of the packets -- "adding noise" -- is illegal. That constitutes a wire-tap.

      And singling out VoIP traffic for specific losy traffic shaping is grounds to lose common carrier status. It's intentional action against very specific traffic for a competetive advantage. (I'm sure there are lawyers already drooling in anticipation of class action suits.)

      (Btw, I recall one ISP being wacked over the head for doing this sort of shit. Mebtel in Mebane, NC.)

  31. Relax - Ma Bell doesn't have her own teeth by avronius · · Score: 4, Interesting

    1. The majority of lawmakers utilize the internet at home. Many of whom pay attention to the bills they pay at home, even if they are willing to spend 40k on a toilet seat at the office. Most adults do not allow their child to *call* overseas, but would think nothing about allowing them to visit an overseas website. If there were suddenly surcharges for every node hit along the way, the internets usefulness for the majority would suddenly decrease dramatically.

    2. The US is not the only country that provides access to (or content on) the internet. Lobbying the US govt. for the right to bill website owners will not fly. If the EEU says "No, we don't agree", what would the US government do in retaliation? Fortunately, congress does not have the power to legislate communication billing methods for the globe.

    3. Connection fees are already paid by parties at each end of any transmission. So, technically, there is already a double billing going on. What they are looking for is a third (and fourth and fifth...) helping.

    4. Monopolies are illegal in the US (and Canada, and probably most of the other big trade countries. Haven't checked tho). "Ma Bell" will never again be a monopoly. The law isn't the only reason, either. People are more informed today about the impact that monopolies have on prices and availability of service. We expect choice, and will not tolerate a single vendor option.

  32. eTrade, here I come! by ediron2 · · Score: 3, Insightful

    Note to self: Sell all SBC and T stock. I'd wondered if T would climb to SBC valuations or vice versa. This toxic rube just answered my question fairly clearly: he has NO idea what is going on in the industry. He's like some halfwit lovechild of Michael Eisner and Darth McBride.

    A hint to Mr. WitLacker: Due to overbuilding that was done by SBC and others during the dot-com years, dark fiber is still stupid cheap. Now, if you want to strip money from google, you'll have to ruin your own market among other customers, since I can imagine a dozen tricks ranging from buying up existing contracts to teaming with owners of existing contracts to upgrade endpoints to increase per-fiber bandwidth. Your own client base is in a position to compete with you if you get greedy.

    Or Google can short-circuit past you by renting/leasing dark fiber and buying their own endpoints. And anywhere you've got a rock-solid monopoly, they can explore stopgaps like microwave. In a phrase, you can't put this genie back into a monopoly bottle, no matter how hard you try.

    Next, I'm not sure how you plan to detect which endpoints are google's, or how you intend to increase charges to those endpoints without getting excessive on all other datapoints, given the rather ambiguous nature of data packets. But, if you are able to differentiate the data, all Google has to do is refuse to pay. Every time you block a paying customer from reaching Google, you'll be drowned in loud screams. After questioning your parentage, customers will insist someone's in of breach of contract (either you or google) and since they don't pay google for access, They'll blame you. If you try to shift the blame to google, we all *know* who'll win those legal/PR battles.

    This isn't your grandma's ol' monopoly: for every tactic you can think of, the data infrastructure (which is what geeks like me consider the REAL internet) is creating alternatives. And every time you squeeze, you'll lose PR and goodwill and customers. You'll piss off shareholders. You'll piss off techies (ask your canine mom, Darth McBride about the wisdom of doing that). Oh, and the state public-utility regulatory commissions: act like a monopoly and various state legislatures and their consituents will shove your sorry ass deep into regulatory hell: imagine a world where the regulators deem that dark fiber will be repriced downward until it is fully utilized.

  33. Re:Asymmetric Threat [OT] by squiggleslash · · Score: 5, Informative
    FYI, symmetric is not the same as synchronous.

    Synchronous means that the two bit streams (sender and receiver) are synchronized, so there's no necessity for breaking everything into bytes with start and stop bits.

    Symmetric, which is what you were actually refering to (as was the GP) is where one side is capable of transmitting at a faster bit rate than the other side.

    Nowadays, most serial modems simulate asynchronous operation at the RS232 port, but transmit data as LAPM packets over a synchronous connection, under V42 and its successors.

    Asymmetry in modems predates V34 BTW. There were a myriad of 9600+bps modems made in the mid-eighties where one side was clearly faster than the other, as modem manufacturers adopted various proprietary ways to squeeze more and more bandwidth out of the phone lines.

    In terms of ITU standards, the V23 standard (1200bps from content provider to you, 75bps back) was very popular in some parts of Europe, notably Britain where it was the basis for BT's Prestel system. Very suspectable to line noise, but it generally worked, and, being frequency modulated like V21, was cheap to implement with the techologies of the time.

    --
    You are not alone. This is not normal. None of this is normal.
  34. Maybe not as unfair as it first sounds? by tobybuk · · Score: 5, Insightful

    The guy who supplies a cable to your house has fixed costs and variable costs associated with supplying it.

    The fixed costs are the physical line, maintenance, exchange equipment etc.

    The variable costs are basically the calls, or are they? It costs them a fixed amount for the infrastructure to enable you to make calls. Once the mainly fixed costs of providing the infrastructure is met then profit starts. I know this is a simplistic description but it mostly hold water. So in effect the business is built around mainly fixed costs.

    However if you take away the revenue associated with the making of calls then something has to give to meet these costs which remain largely the same.

    This can either be reduced profit, reduced costs or an increase in the fixed charge.

    Reducing profit is something companies are unlikely to want to do. In SBC's case their profit $1.2 billion from $10.3 billion represents 11% profit. Not bad and they can afford to lose some from that. But get much below say 6-7% and alarm bells will start ringing. Not least they won't be keen on investing speculative money on a high risk, low margin business like say next gen. ADSL.

    Reducing costs. I dare say there could be some of this going on in a business of this size but after not too long they would have to reduce their infrastructure costs. And reducing infrastructure costs would eventually mean reducing service.

    The third option is to move the fixed costs onto the fixed costs the customer pays. IE The line rental and the Broadband supply.

    Doubtless there are other ways of looking at it but any way must address the issue of fixed costs being paid for.

  35. Shades of Things to Come (Re:Somehow) by chronicon · · Score: 4, Insightful
    Just another reason for me to never switch to SBC DSL. What a brilliant tactical move, I can't think of a better way to alienate your customers then by cutting off the very services that they are dispensing their funds to you to get to...

    This is sure to set off a firestorm of US bashing, but the first thing that came to mind when I read this quote today was the interest in the UN and/or EU in wresting "control" of the internet from the hands of the US. Is this the type of thing we would see if these other parties gained control of the root servers? Pay up or no DNS for you??

    Only in that case you (as a consumer) wouldn't have the option of punishing them for this outrageous behavior with your pocketbook by switching to another provider. You would just have to a) hope that the service provider (Google, Yahoo, whomever) would pay the piper; or b) you might simply be stuck if the service/information you wanted to access was deemed unacceptable and therefore all access to it via DNS was eliminated. (Hopefully you could root out [forgive the pun, I had to do it] the IP address on your own or you would REALLY be out of luck)...

    1. Re:Shades of Things to Come (Re:Somehow) by malkavian · · Score: 4, Insightful

      Actually, the article seems to point to this kind of behaviour existing in the US. Not the EU. Still, that's neither here nor there, as I'm sure it exists in other countries also.
      Change the US and EU around in your statements and you can see exactly why the rest of the world is nervous about leaving the DNS in the hands of an organisation which is on a short leash to a governmental trade department.
      However, that's a whole other story, done to death in other threads..
      Do quite agree with ye though that the SBC quote seems a little heavy handed....

    2. Re:Shades of Things to Come (Re:Somehow) by chronicon · · Score: 3, Insightful
      Actually, the article seems to point to this kind of behaviour existing in the US. Not the EU. Still, that's neither here nor there, as I'm sure it exists in other countries also. Change the US and EU around in your statements and you can see exactly why the rest of the world is nervous about leaving the DNS in the hands of an organisation which is on a short leash to a governmental trade department. However, that's a whole other story, done to death in other threads.. Do quite agree with ye though that the SBC quote seems a little heavy handed...

      Actually, it's a company in the US that is trying to play this game, not the US Govt. Regardless, it did bring to mind how far this idea of the threat of blocking access as a revenue stream could extend were other parties to gain control of the root servers. To this date, I have never heard a complaint that the US govt. has tampered with the root servers to manipulate consumer access to any site. Would other entities (whomever they are) be as scrupulous in this matter were they to take over these servers. Or, would we see the scenarios I mentioned in my previous post: "Pay up or no DNS for you" or "we don't like your site, no DNS for you"?

      Totally take UN and/or EU out of the scenario if you wish--substitute any organization you wish because that is not the main issue. The main issue is, "what will [insert organization name here] do if they gain control of the root servers?" Or, "why does [insert organization name here] want 'control' of these servers in the first place?"

      We all know the old adage, "If it ain't broke don't fix it." If we find that [insert organization name here] is thinking along the lines of this SBC CEO then I think we could all agree that we should leave things as they are?

    3. Re:Shades of Things to Come (Re:Somehow) by chronicon · · Score: 4, Interesting
      Oh, come off your high horse and actually RTFA before you start on your rant. All he says is that Google/et. all shouldn't get free access to his lines. He also points out that Google's customers (us) can't very well access Google without his lines or the lines of his competitors. Unless Google is going to get into the Tier 1 business then I don't see this changing any time soon.

      And, pray tell, what are the consumers paying for? What in the world is wrong with bailing from them as your ISP if they start blocking the services you want/need? What do you need them for if you can't Google?

      And another thing, who says Google is getting their pipes for free? I'm sure they pay a kings ransom for their leased lines.

      So... neither the consumer nor Google is getting anything from SBC for free. So I'm staying right here on my high horse thank you. This CEO is just trying to generate revenue streams out of thin air. If he implements that particular scheme, then if I were a customer (which I am not), I would walk away. Let's see how long his consumer internet services revenues last then...

      I don't hate SBC, I just think this line of thought for generating revenue is a really bad idea--as his level and on up...

    4. Re:Shades of Things to Come (Re:Somehow) by $nyper · · Score: 3, Insightful

      Sorry, but that is not how the Internet is designed. We use the trickle down method on the Internet. Content providers already pay their ISP's, who in turn pay their Telcos, who back bone providers and so on. You can't just decide to change the rules in the middle of the game.

      It's like the just woke up to the Internet and said, "Hey those content guys are getting mega wealthy due to stuff coming accross our backbone and we're only getting filty rich from the existing bandwidth usage agreements with the ISP's and telcos." Even though they did not have the inovation and fore thought to come up with these ideas such as Google they still think they deserve an extra piece of the pie. That's crap and I do not care what context you try to spin it in and yes I actually read the article.

      --
      "Help me Obi-/.-Kenobi,your my only hope!" -$
  36. What is the TRUE value of Internet Content? by Atryn · · Score: 5, Insightful

    Ok so I was about to post a gut response and then I went back to RTFA and thought it through again...

    Let's try the legacy Ma Bell perspective:
    You make a phone call to Joe. You initiated the transaction but both you and Joe pay for access to the network. Even further, in the wireless phone world both you and Joe likely pay per minute for the call.

    Now let's try a cable perspective:
    You want subscribers who will pay a monthly access fee. To get them, you need the best available content. You MUST get networks such as ESPN, CNN, ABC, NBC, MTV, etc. into your content package. You don't charge ESPN for access to your "network"...

    Similarly, newspapers:
    You need subscribers. You pay content creators (reporters, comic authors, etc.) for the content necessary to attract and retain subscribers.

    It seems the battle is which model does the data backbone (the Internet, if you will) fall into? Is it simply a network by which people and organizations can communicate with no guarantee or claims as to the quality of that content (a la the phone network) or are you selling end-subscriber access to a content service (a la cable TV or newspaper)?

    I think for SBC the answer is "yes". It's both. They have end customers who want access to the Internet FOR the content that's there. They also have customers who just want a communications network for data. Here is another way to look at the power of the organizations involved:

    Could a major Internet content/service provider (Google, CNN, Apple iTunes, Yahoo, etc.) approach a network provider (SBC, Comcast, AOL, etc.) and threaten to cut off those network's subscribers unless the network provider PAYS them for their content?

    This would be the true coup de etat in the industry. When a single content or service source becomes so demanded by end consumers that it MUST be available on your network to keep those subscribers. I don't know that any website is yet that important... Maybe Windows Update could be, if anyone used it. :)

    --
    Come play Moral Decay!
  37. Re:Could someone please tell me.... by Ulven · · Score: 3, Informative

    Balkanize: To divide (a region or territory) into small, often hostile units. [From the political division of the Balkans in the early 20th century.]

  38. Not to state the obvious, but... by jalefkowit · · Score: 4, Insightful
    "[T]here's going to have to be some mechanism for these people who use these pipes to pay for the portion they're using. Why should they be allowed to use my pipes?"

    Maybe because the more compelling bandwidth-intensive apps there are, the more demand there will be for bandwidth (i.e. "your pipes")?

    Vonage isn't stealing from you, they are selling your product! You can't use Vonage without a broadband connection. And if customers get used to running several apps like Vonage, they'll find that they have saturated their cheap $19.99/month DSL plan, which means they'll start wanting to bump up to the pricier plans.

    Nothing sells a platform like apps, and if you're the phone company or the cable company, you're the platform. You want to encourage the growth of these apps, not shut them down.

  39. LOL by nehumanuscrede · · Score: 3, Informative
    Don't put too much thought into his statement folks :)



    What I believe he is referring to is the big folks using existing SBC facilities ( ergo fiber and transmission equipment ) to connect ' their ' customers to the internet backbone via SBC owned systems. Nothing is really changing here except SBC no longer has to provide a ' discount ' to competition to utilize SBC lines.



    Initially, that was the agreement in order to allow competition to get their foot in the door without requiring them to build a network of their own before they did. Hehe, it's somewhat expensive to build a network without a LOT of upfront capitol. However, most didn't bother to build any network at all of any kind and simply resold SBC pipes to end customers via a middleman setup. If something broke, you called them, they called SBC. SBC folks worked on and fixed problem, reseller contacts customer telling them problem is fixed, customer is happy. Don't think it stopped there. SBC runs data through other carriers ( Sprint comes to mind ) as well and occasionally Customer A's data goes to reseller B's service that travels SBC pipes which are muxed into really BIG pipes going through Sprint owned systems. It's a never-ending middleman game.



    Project Lightspeed is designed to compete with the cable companies. It will, theoretically, provide phone, TV and broadband via fiber straight to the home. Assuming you live in a newer home, neighborhood ( read that expensive home ) that will attract customers that don't mind paying the prices SBC will charge for it. For that reason alone, I don't think it will keep pace with cable since cable pretty much goes everywhere and not just the rich neighborhoods. Of course the big money is providing business with this kind of service and not really the end users like you or I. We stand up and start yelling about something broken and we get ignored. Let a company like Shell Oil or Fingers Furniture or *insert your typical mega-sized business here* and things start happening. Executive level management starts getting involved and general chaos ensues until the problem is resolved. You think the aforementioned businesses have to deal with a thirty level call tree to report a problem ? HA, you keep thinking that :)



    There are not many companies out there that can provide the ' upstarts ' with the dark fiber they would like to have. Most of it is / was owned by they big gorillas in the market, so technically they'll still have to pay for it. Only difference is they will have to provide their own transport equipment to get it from point A to point B.



    You are correct about the ' floundering for cash '. Seems like SBC is trying to cut costs in any way / shape / form they can. Once the acquisition of ATT is done, rumors have the IT department taking a ten percent hit across the board. Of course to those who don't make eighty million a year ( like the hanchos ) it makes more sense to trim the excess from the top than it does the bottom, but then, this is an American company and they just don't think like that :)



    Lastly, the rumor mill puts Ed retiring soon. Very soon. Once that happens it is also the rumor that the former CEO of ATT will be the new zookeeper in the gorilla cage. That and the fact that SBC will be adopting the ATT logo / name begs the question: Who really bought whom ?


  40. Nowhere for customers to go..... by Danathar · · Score: 3, Informative

    I find it interesting reading all the comments about "Well...if they do that then change providers" as if EVERYBODY as multiple broadband providers.

    FACT:

    The Majority of DSL/Broadband users have one and ONLY one provider available to them. Cable and DSL co-exist ONLY within short distance of CO office facilities. Beyond the DSL length restriction Cable modems are practically (don't start on high latency satelight) the only game in town. If Adelphia decided to block google there is not a damn thing I could do about it besides paying to provision a data line to my house. DSL really is'nt deployed on back roads beyond major metro areas.

  41. In contract law it used to be... by arfonrg · · Score: 3, Insightful
    ...that even with those "we can change any terms at at any time" clause, the 'changer' had to provide compensation to the 'changee'.

    It seems that this has been forgotten in the recent years and almost ALL of the business-consumer contracts are all unfairly one-sided!

    Typical contract-
    The business's rights:
    • 1) We will provide X service for Y amount of monthly fees and Z amount of one-time fees.

      2) We do not garantee the service. We do not garantee the service against interruptions.

      3) We can change the terms of the contract at any time to any condition as we want.


    The Consumer's rights:
    • 1) The consumer has the right to pay X per month for the service.

      2) The consumer has no other rights


    This isn't the way it's supposed to work. There is SUPPOSED to be compensation for term changes.

    --
    Your thin skin doesn't make me a troll