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BellSouth Will Charge Providers For Performance

smooth wombat writes "In a follow-up to this Slashdot story from last month, BellSouth has confirmed that it is in discussions with content providers to levy charges to reliably and speedily deliver content and services of the providers. Bill Smith, chief technology officer at BellSouth justified content charging companies by saying they are using the telco's network without paying for it. "

33 of 594 comments (clear)

  1. There goes by CaptainZapp · · Score: 5, Insightful

    Common carrier status.

    --
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    mit taschenrechner in der hand

    kraftwerk

    1. Re:There goes by arivanov · · Score: 5, Insightful

      It will be very difficult for the FCC to do anything here because as a result of the death of public peering points around 2000 all usual content suspects are directly connected to the BellSouth (and other tier 1 providers) networks and are in direct commercial agreement with them. As a result these are just normal customer/provider relations. It is not transit or anything originated by another carrier carried across BellSouth and dumped onto another carrier. So common carrier ideas will be very difficult to apply.
      If the FCC did not close their eyes when the Tier1 effectively formed a cartel and killed all peering points around 2000 and if it did not allow babybells to grow back to mabell size it would not have happened. Now there is little that can be done besides restarting the MaBell breakup process

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
    2. Re:There goes by IAmTheDave · · Score: 5, Insightful
      So does this mean a small website could sue for extortion or sabotage if the network performance is poor?

      I have to hope so. Also, those users who see poor performance on a website should sue as well, because users DO pay for the use of the lines. This is without a question extortion. Bell South says "they don't pay for the lines" as if no one at all pays for them. But you and I pay for the lines - so Bell South wants to be paid twice for the same slice of cake.

      I hope this gets challenged in court and Bell South gets the spanking it deserves. This makes me so sick.

      --
      Excuse my speling.
      Making The Bar Project
    3. Re:There goes by GoodNicsTken · · Score: 5, Insightful

      I don't think they are thinking this through. Right now they only see Access charges (what LD companies pay them) in decline, and VoIP is eating their lunch. With the FCC taking years to fix the problem they are trying to find an alternative.

      I find it odd that the main arguement DSL used in early 2000 was the connection is not shared as it is with cable. Now as a subscriber, I can apparently pay for 1M service, but only get 500K unless the service provider is paying Bellsouth (and if this flys, every other telco) for the extra bandwidth?

      When customers realize Bellsouth is not providing the service they are paying for, there's going to be some backlash. This is what happens when the stock market is running a company. Executives do stupid things to try and make their bouns.

    4. Re:There goes by Art+Tatum · · Score: 3, Insightful

      That's the biggest problem with the stock market. Almost everyone sees it as little more than a state-sponsored lottery. You "bet" on some numbers and hope you win. There seems to be little understanding that the goal is to support a business you think has good chances for long-term success.

    5. Re:There goes by Cramer · · Score: 3, Insightful

      You're only paying for 1M between you and the DSLAM. Beyond the DSLAM, I'm certain you're not going to always get your full rate. Case in point, I know of at least one DSL ISP that sells >1M connections to DLSAMs feed via 768K frame T1's... it is impossible to see greater than 768k to any single connection; and then, only if you are the only one moving any traffic. Even the ones feed by DS3 are oversold by a factor of 12. (which is actually a little better than the industry average.)

      The claims of "not shared" are 100% marketing bullshit. ALL BANDWIDTH IS SHARED. Unless you physically run a wire from point A to point B to move your bits, your bits are mixing with everyone else's. Even the p-t-p T1's and DS3's sold today aren't 100% p-t-p... those idle timeslots are wasted bandwidth telco's want to sell to someone else (and DO.)

    6. Re:There goes by man_of_mr_e · · Score: 3, Insightful

      One reason is that there's already a ton of infrastructure in place, and that infrastructure is not designed to handle high speeds, which means replacing it over time. In newly developed countries, high speed infrastructure was put in place initially.

      Another reason is that our government incurs a HUGE amount of administrative overhead in telecommunications, with all kinds of rules and regulations, policies, paperwork, requirements, etc... Not that all those are necessarily bad things, especially in a competitive telecom market, but it does add to cost.

    7. Re:There goes by SydShamino · · Score: 4, Insightful

      Or that's like ATM vendors charging your bank to provide service through an ATM, and your bank passes that fee on to you. Then, the ATM assesses you a surcharge directly, which is added to the other fee.

      Oh wait, this one happens...

      --
      It doesn't hurt to be nice.
    8. Re:There goes by SillyNickName4me · · Score: 3, Insightful

      Why is bandwidth so much cheaper in Europe, Eastern Europe and Asia?

      Because many countries in those regions have some active policy to promote internet availability, and at least in case of Europe, have regulations to level the playing field for competitors of their former state monopoly telcos.

      Breaking up AT&T years ago bought the system time, but didn't solve the actual problem, having created a 'monster' that does not need to care about its customers.

      It did not solve the actual problem because it failed to seperate service and infrastructure, your typical local telco still provides both, and few people have a choice between multiple local providers. Sure, you can drop the telephny network alltogether, go cable and use VOIP, and let someone else interface you with the telephony network, but there we just move to another kind of infrastructure dominated by companies with an even bigger problem, not only do they do infrastructure and service, they strongly believe they are also doing content (filtering and management that is)

      This problem might be solvable by forcing slightly different rules on those active in the telco market, you either sell infrastructure and everything related to that, or you sell end-user services. You can't do both, or when you do, you have to make your infrastructure available to the competition for a fair price (ah.. seem to remember that for a while such a condition existed in the USA..)

      Bottomline, the solution is in forcing both telcos and cable companies to stop abusing the effective local monopolies that they currently hold.

  2. Your ISP customers paid you, numbnuts... by mikelieman · · Score: 4, Insightful

    Oh, I guess you want to have your cake, AND eat it too?

    --
    Technology -- No Place For Wimps! Grateful Dead and Jerry Garcia Chatroom -- http://www.wemissjerry.org
    1. Re:Your ISP customers paid you, numbnuts... by Spamalope · · Score: 5, Insightful

      I want my cake. BellSouth is benefiting from the services it's subscribers are accessing over the network. BellSouth uses this access to sell monthly network access subscriptions to my (and everyone else's) content. BellSouth is selling my content. Pay up bitch.

  3. They aren't USING anything! by XMilkProject · · Score: 5, Insightful

    The companies aren't pushing any data across your networks, they aren't the ones using it. Quite on the contrary, your subscribers are the ones pulling data across your network from the various sources, and I'd wager a bet that you are already charging them a fat monthly fee.

    --
    Big ones, small ones, some as big as yer 'ead!
    Give 'em a twist, a flick o' the wrist...
    1. Re:They aren't USING anything! by Alex+P+Keaton+in+da · · Score: 4, Insightful

      FTA: "It's the shipping business of the digital age," Smith said, arguing that consumers should welcome the pay-for-delivery concept.
      I am not sure that this is an apt analogy. I am not sure what a good analogy would be. To use the shipping analogy from the article however, wouldn't it be like a shippee paying UPS or FEDEx a monthly fee for unlimited deliveries, and then having UPS or FEDEx ask the shipper to pay part of the cost?
      In the artcile they say that they may ask apple for a nicklle or dime per song downloaded. I pay my cable internet provider $60 a month for access- now they want content providers to pay too? This is ridiculous. What do they think they are, the government? (the gov't charges you tax on gas for roads, and other road taxes, yet you still must pay tolls at times...)

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
  4. Count the nickels and dimes. by BrynM · · Score: 4, Insightful
    I wonder who they'll charge for the spam and worm traffic... MS? Spammers? Consumers with zombie machines? Will porn be super slow in the future or will they pay up?

    Seriously though, these "charges" will of course be passed along to us end users somehow, much like the telcos do now with the fees they are charged (look at your phone bill). More plentiful/intrusive ads, registrations a la NYT (note from mom and teste req'd) or just a flat out service fee. The folks playing MMORPGs will probably see the spike most directly in their monthly fees. Of course this leaves us schleps with personal servers and such with yet one more bill to pay if they get aggressive enough about deciding who a content provider is. The bandwidth wars are begining, methinks.

    --
    US Democracy:The best person for the job (among These pre-selected choices...)
  5. Greed by Mnemia · · Score: 5, Insightful

    This is nothing but greed at its worst, and it will ultimately ruin the Internet if it succeeds. I'm guessing they are aiming this primarily at VoIP companies since they are worried about losing their local phone monopoly, but it could affect a lot of other things in a negative way too (by undermining the whole economics of the Internet, and vastly increasing expenses for running a website). I think the best move would be for all the bigger companies (like Google, etc) to just refuse to pay their money. Then it's the ISP that looks like the bad guy if they intentionally downgrade the service for refusal to pay "protection money".

    1. Re:Greed by Mnemia · · Score: 3, Insightful

      The stupid thing is that content providers DO pay for the Internet, as does Bell South. Everyone who connects to the Internet pays for it in the form of fees to their upstream ISP. Bell South is just trying to do an endrun around the economic process in which money percolates upwards from the connection points to the people who run the backbones. They aren't content with just providing a local road and getting paid by local residents for it. Instead, they want to also charge everyone who drives into their "neighborhood" of the Internet, and get twice the money. Loose analogy, I know, but this decentralized way is how the Internet is designed to work and be funded.

      As I said, I think this is more intended as a way for them to extract tolls from VoIP. They can't stand that they won't be able to charge exorbitant fees for basic phone service anymore, so they are trying to claim that their customers can't access services that don't pay them. It may also be that a couple of Bell South execs saw Google's share price going through the roof and decided that they would try to get a piece of that pie.

      Also, I wouldn't count Bell South out on winning this one just yet. The Baby Bells may have the FCC on their side, and the FCC is one of the most corrupt, crony-filled agencies in the entire government. They might be able to buy favorable legislation and regulatory rulings if they can't win in the market.

  6. If nothing else will... by richdun · · Score: 4, Insightful

    ...this will definitely get the FCC involved more heavily in regulating Internet providers. The "information service" loophole they've been using to get away with less regulation won't hold up much longer if things like this kick up. The Internet is quickly becoming one of those pieces of infrastructure vital to the public good, just like electricity , phone service, etc, especially when cable, phone and Internet access are now (or soon will be) virtually one service. States may have been deregulating the traditional utilities recently, but I could see something like this swinging the pendulum to the other side.

  7. Who Do Users Trust More? by Kamel+Jockey · · Score: 5, Insightful

    Their ISP, or a particular content provider, say Google. I see 2 potential outcomes here:

    1. BS users will not notice any significant degradation in connections to websites like Google, Yahoo, or in using VoIP services or the like. In which case, these content providers will not pay extortion fees to BS. BS retaliates by blocking access to these sites and users leave BS as a result.
    2. Content providers actively solicit BS customers away from BS. For example, a BS customer loads up Google and sees a message on the page like "Don't like the way this page loads? It's because your ISP, BS, stinks! Switch to ISP XYZ today!" Google is seen by many people as an entity which can "do no evil" and as a result it might be able to get away with such a move. A VoIP provider might put a pre-recorded message prior to each call which could say "Your ISP, BS is purposefully degrading the quality of this call. If you don't like this, switch to ISP XYZ today!"

    What needs to happen here is that word needs to get out that BS is not offering better service to those who pay, but is rather offering crippled service to those who don't pay. Both statements are true because granting one group of traffic priority over the other reduces the quality of the connection available to the other groups of traffic.

    --
    In case of fire, do not use elevator. Use water!
  8. Slow by Have+Blue · · Score: 4, Insightful

    Who does BellSouth think their customers will blame when "the Internet is slow"? Especially when they ask their tech friends who point out that switching to a different ISP will make it faster?

  9. Bell greed won't go away by scoove · · Score: 4, Insightful

    The companies aren't pushing any data across your networks, they aren't the ones using it.

    Exactly. It's amazing this "eyeballs vs. content" battle still hasn't gone away, especially after several notable disasters where the eyeball owners (service providers to consumers) tried to exact a toll for the content their subscribers were consuming.

    I was at the Commercial Internet Exchange annual meeting in 1996 when this issue popped up there. Many theorized then that the Bells, who had lost out on their NSFNET NAP scheme (which Al Gore was a strong proponent of), would find another way to get a measured use model into the net. It's apparent they still dream of ratcheting measured use costs, since they happen to be rather good at billing complicated use schemes. Still, it's amazing to wonder how they think they can carry this out. What would they do - require a fee per domain name to be consumed by a household (and enforce it how? That's one heck of an ACL - as if RBOC DSL service isn't sluggish enough already - Qwest can't get you down the street from home to serving wire center under 40-45 ms typically).

    Or would you block it on an AS basis and pick up the whole bilaterial battle that saw Exodus and BBN (if my history is correct) fight? Unfortunately for the RBOCs, there are alternatives to their mediocre DSL. If you think a consumer will pay $55 for partial Internet when they can get complete service from the cable or wireless provider for the same fee, they're gone.

    1. Re:Bell greed won't go away by fatboy · · Score: 3, Insightful

      I would like to see content providers such as Google and Yahoo! NULL route Bellsouth's Netblocks for 72 hours, in protest.

      Let's see who really needs whom more.

      --
      --fatboy
  10. Will Bellsouth block access to those sites? by cmoney · · Score: 5, Insightful

    So does this mean if a content provider doesn't pay up, BellSouth will throttle down data coming from that provider? Will they arbitrarily lose packets to slow down transmission? Or do they block all access altogether?

    Also as to what Mark Cuban said: Don't we already have different levels of service quality? If I pay for dialup access at say $9/month I get a certain amount of bandwidth. If I pony up $25/month for DSL I get even more. If I decide cable is the way to go and pay $50/month, even more than DSL (in my case at least). And finally, if I really want guaranteed access, I pay for business-level service. So what the hell are these poeple talking about? If I'm already paying for my bandwidth, why am I being asked to pay again. Because we all know that it's the consumers who will end up paying these extra fees.

    All these old-school legacy companies need to get a swift ass kicking.

    1. Re:Will Bellsouth block access to those sites? by Bob9113 · · Score: 3, Insightful

      Don't we already have different levels of service quality? If I pay for dialup access at say $9/month I get a certain amount of bandwidth. If I pony up $25/month for DSL I get even more. If I decide cable is the way to go and pay $50/month, even more than DSL (in my case at least). And finally, if I really want guaranteed access, I pay for business-level service. So what the hell are these poeple talking about?

      It gets better - not only are you only paying for the bandwidth on the client side, the businesses are also already paying for the bandwidth on the server side. Apple has to pay more per month for their connectivity than I do, because they have a lot more bandwidth. Apple's upstream has peering agreements that are supposed to guarantee transport.

      So why will Apple wind up going along with this? Why is Mark Cuban in support? Because it allows the big boys to play and kills the little guys. Competition, while a cornerstone of capitalism, is anathema to corporatism. And don't expect our corporatist government to lift a damned finger - they know that your parents and grandparents don't even know this issue exists (assuming the politicians do), let alone understand it. Noone is going to vote them out if they don't take action. They may threaten to take action, but only so they can get a pile of cash from whoever took Abrahamoff's job. It will almost certainly never be an issue, and even if it does become an issue, they will happily muddle it with vague preaching about fair markets and gloss over the monopoly issue.

  11. "It would be a shame if.... by feorlen · · Score: 5, Insightful

    ... your data were routed through West Elbonia, now wouldn't it?"

    How is this different from paying off the guys with the baseball bats? Or having to hire a "fixer" to get your building permit?

    And just how would they be able to "enforce" anything? I see a RICO lawsuit headed their way...

    1. Re:"It would be a shame if.... by Esion+Modnar · · Score: 4, Insightful
      I see a RICO lawsuit headed their way...

      It seems that some of the actions of big businesses differ (in spirit) less and less from those of organized crime. The objects of their businesses may be different (telecommunications vs., say, cocaine and sports bookies), but their methods are becoming startlingly similar. Protection schemes. Price fixing. Extortion and intimidation.

      And does anybody really believe that Enron witness *really* committed suicide? At a stop light? C'mon...

      --

      They say the first thing to go is your penis. Well, it's either that or your brain. I forget which...
  12. Doesn't the internet user pay for the network usa? by amigabill · · Score: 4, Insightful

    >Bill Smith, chief technology officer at BellSouth justified
    >content charging companies by saying they are using the telco's
    >network without paying for it.

    I thought the internet service customer was the one paying for use of the vendor's network?? As in, I as a Comcast cablemodem customer am paying for use of Comcast's network. Comcast's product that I am buying from them is the ability to access Google, hotmail, webmd, or whoever's web sites I care to look at.

    It sounds like they're wanting to double-charge for a single service. Kindof like if Walmart decided to charge me for the DVD, and also charge the movie producers for the right to have their DVD sold in Walmart's store.

    I've heard rumors that Verizon may be considering this policy as well while I've been asking around about DSL and FIOS. If they pull a prank like this, I may stick with Comcast, even though I'm relatively unhappy with their service's reliability in my case.

  13. Here is a challenge to BellSouth customers... by Noryungi · · Score: 5, Insightful

    Find an ISP -- preferably a small, mom-and-pop operation, or at least a customer friendly, yes-we-do-have-a-clue company -- and switch.

    I mean it, vote with your dollars and with your feet, so to speak, and leave Bell $outh behind for good. Send a clear message to the extortionists that they are: we won't tolerate this, we won't accept this and you will pay the price for your stupidity.

    I just hope Bell South will understand the message when they see their customers desert in droves.

    --
    The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
    1. Re:Here is a challenge to BellSouth customers... by aetherspoon · · Score: 3, Insightful

      And that's the whole problem with the deal.

      Take my example, back when I lived in South Florida. Bellsouth is the local bell, Adelphia the local cable provider.

      Adelphia refused to offer two way cable service in my area - meaning that I'd have a cable modem for downstream and DIALUP for upstream. Not acceptable.
      Bellsouth offered very high priced DSL - at the time, 40 USD/month got you 256kbits down, 128kbits up (or 10 more got you 1500/256 - I know it is less now, but I know more about the situation then).
      You could also get DSL service from any number of companies.... that all charged more than Bellsouth. Why? Because Bellsouth would lease their lines for.... you guessed it, 40 USD/month. Meaning no matter what, EVERY ISP you'd choose would have a higher price than BS, pay BS, and get even worse support. For an anecdotal piece of evidence, a friend of mine didn't have his DSL hooked up for 4 months - all because BS decided to not hook it up in a timely manner since a compeditor was using their lines.

      Unless you live in one of the areas that has WiFi service, or in an area with a competant Cable company (from what I hear, they are finally thinking about offering two-way in my area - at like 60 USD/month), you CAN'T switch. Bellsouth is a local monopoly, plain and simple. You have bellsouth or dialup. A lovely choice if I do say so myself.

      --
      --- Ãther SPOON!
  14. In other news... by revery · · Score: 5, Insightful

    Starting next Monday the Yellow Cab Company of Chicago will begin charging all business to which a fare is delivered. "It is unreasonable," said Abraham Stoley, President of Yellow Cab, "for businesses to receive the benefit of customers and employees arriving at their sites in a safe and timely manner and for them to pay nothing. We spend time, we spend gas, and quite frankly, we expect them to pay their fair share of the fare." Although they are not implementing it at this time, Mr. Stoley went on to say that they may also begin billing all businesses passed on the way to a destination, as these business receive "free marketing". Businesses everywhere were unavailable for comment.

  15. Re:Sounds like the Mafia's movin' into Telco... by wren337 · · Score: 4, Insightful

    Your comment got rated funny, but this is no joke. Do you think bell south is going to offer service FASTER THEN THEY ALREADY OFFER if you pay up? Of course not - the shipping metaphor he keeps using breaks down. They aren't offering ground VS air service here. What he is doing is threatening to degrade service if you don't pay.

    That's not pay for performance, it's blackmail.

  16. The answer: A negative PR (perhaps by google) by CharonX · · Score: 4, Insightful

    So Ma Bell wants to charge companies and people that deliver content to Bell's very own customers.
    So let them. But don't pay. And inform the customers WHY they recieve such bad troughput when using their websites.
    Imagine e.g. Google, doing a simple revers IP lookup to determine the provider and if it's Ma Bell, adding the following message to their search sites.

    Dear Visitor,
    We apologize for the possible slowness of our service.
    However your provider BellSouth, has decided to demand "bandwith charges" from all major website transmitting data over their network (in addition to any subscription charges from you).
    Google has declined to pay those additional charges, as this traffic - like searching via Google - should be (and with all other ISP is) covered with your subscription charge.
    If you have any questions, please contact your local BellSouth service center.
    Happy Googling!


    Tens of thousands of unhappy customers calling BellSouth should make them do another reality check and stop demanding those ridiculous charges.

    --
    +++ MELON MELON MELON +++ Out of Cheese Error +++ redo from start +++
  17. Pay up BellSouth! by hoggoth · · Score: 4, Insightful

    BellSouth should be paying the big content providers for giving them a reason to sell bandwidth. Without iTunes and Google and all the other content providers why the hell would anyone buy broadband? I'd love to see some big content providers hit BellSouth back by requiring them to pay fees or get cut off from their content. That would kill their ISP business in a hurry.

    --
    - For the complete works of Shakespeare: cat /dev/random (may take some time)
  18. Re:Solution by EmagGeek · · Score: 4, Insightful

    "Everyone call BellSouth's tech support EVERY time a download is slow (below the speed they paid for). They will be so mired in support calls that they will have to re-consider the policy."

    I dunno, there are three people in India for each man, woman, and child in the US. I think they can handle as many calls as we throw at them...