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Small Cable Groups Seek To Break Net Neutrality

saikou writes "CNet's News.com has a story on the first cable companies openly going against Net Neutrality. As usual, request for equal treatment is labeled as 'special favors', and Google is used as an example of company that should pay for a fast connection to the end user." From the article: "'I think what the phone industry's saying and what we're saying is we've made an investment, and I don't think the government should be coming and telling us how we can work that infrastructure, simple as that,' Commisso said during a panel discussion about issues faced by companies like his, adding, 'Why don't they go and tell the oil companies what they should charge for their damn gas?'"

29 of 499 comments (clear)

  1. Umm... by grub · · Score: 5, Insightful


    Google, et al. already pay for their bandwidth! This is just extortion to get their traffic in a higher priority QoS queue.

    --
    Trolling is a art,
    1. Re:Umm... by grub · · Score: 4, Insightful

      Sadly this is just another example of some companies trying to nickel and dime people to death in order to maximize revenue at all costs.

      Really, I don't view the cableco's ideas as being far off from "Hey Google... accidents happen... packets get lost... connections get unexpectedly closed... it'd be a shame for something to happen to your traffic..."

      --
      Trolling is a art,
    2. Re:Umm... by SnowZero · · Score: 5, Insightful

      Well, the back story is that various internet companies have to eventually transfer data that didn't come from their associate ISP. Since these companies have been unable to work our peering agreements where they pay each other for bandwidth, they've decided to go after the (richest) end users.

      Of course, in other technologies such as telephone and physical mail, companies have shown that's its possible to establish international peering agreements where all the parties get paid their share. Amazingly, all the cost shows up in the end-user price, just like what us "Net Neutrality" people are asking for.

      I wonder if mail-order businesses such as NewEgg should pay extra for all that shipping "bandwidth" they are using.

    3. Re:Umm... by Chanc_Gorkon · · Score: 4, Insightful

      If net nutrality starts to slip away, then it's NOT just Google that they will go after. Next will be Microsoft or Yahoo. Next?? Podshow?? It's one of them there slippery slope things....once we start to go down it, we will continue to pay more and more until it's just not feasible to do business on the internet. Net Nutrality is needed....for the good of ALL companies....even AT&T....

      This may or may not be true, but personally, I think this may all stem from AT&T being pissed that Google does not buy bandwidth from them.

      --

      Gorkman

    4. Re:Umm... by LordKazan · · Score: 5, Insightful

      Don't get me wrong, I am a major fan of free markets and capitalism... something we really don't have in this area in large part because of government regulations and municipal/regional monopolies that do much to lock out competition.

      This statement shows a fundamental lack of understanding of capitalism. Capitalism is not "laissez-faire", capitalism collapses into cartels and monopolies in a laissez-faire environment. Capitalism only works when the transactions are fair, that's why you have government regulations, some things are more costly to the public than their worth (polution) and hence should also be restricted. Furthermore in situations of a power inequity between the two parties involved in the transaction (say: on life-criticial services like electricity, water, heating gas) the stronger party [the seller in these cases] can force unfair terms upon the customer - yet another situation in which the government must step in to ensure a fair transaction.

      If you do not ensure fair transactions capitalism does not function. Adam Smith, father of capitalism, recognized this himself.

      Municipal/regional monopolies on infrastructure services (gas, power, data, water) are not necessarily bad- however how they are managed here is terribly bad - they get away with screwing over the customer left and right because they greasy the palms of corrupt politicians of all stripes.

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    5. Re:Umm... by Skreems · · Score: 3, Insightful

      Ok, but the idea that any monopoly will instantly generate competitors only applies in low cost-to-entry markets. In situations like this, where a single company literally owns all the last-mile connections in a city, how is competition ever going to happen? Random Startup can't just go to everyone's house and say "hey, I know you've already got service, but we'd like to string some extra wires into your house on the off chance that you'd like to change sometime down the road". Same thing goes for water, sewers, roads, etc. There's some things where it's economically and physically impractical to have two competing companies, and in those cases the government has to force them to share those non-replicable resources or the market has no chance of avoiding monopolies.

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    6. Re:Umm... by SnowZero · · Score: 5, Insightful

      You forget that in both of those cases, the "end user" winds up paying more for the use of certain infrastructure, like transoceanic cables, satellite time, or airmail.

      No I did not forget. In fact, the price paid was exactly my point. If an ISP wanted to start charging more for longer distance bandwidth, then it would be a similar situation, and one I'd be willing to accept. However that's not what the telcos are asking for at all. They want to tax profitable companies that use their service, and NOT do it through negotiation with the hosting ISP of said company.

      If I call Bulgaria, it may cost more, but I still get a bill from AT&T, not from a Bulgarian company. I certainly don't get a bill from "FranceTelecom", or some other intermediary who happened to carry the call. The reason for this is that those companies have worked out profitable peering agreements between themselves. I also do not get charged extra if my call happened to earn me money because it was for business purposes.

      How about another analogy: I buy a truck from a car salesman (as an individual). Then I use said truck as part of my contracting business, which turns out to be profitable. Then the car salesman comes back and tells me I owe him more for the truck, as additional fees apply when I make a profit with the truck he sold me. Nothing stating this is in the original sales agreement.

      This is exactly what the telcos are now doing. They want to charge extra for bandwidth that is already being paid for, simply for the fact that companies are making a profit off the bandwidth they paid for. If level3 wants more money, they should take it up with their peering ISPs, not the customers. The Entire Cost Should be in the Original Price Paid.

      P.S. Large sites already do pay a price based on bandwidth used. It is usually some combination of peak usage and total GB transferred. Individuals are paying mainly for overhead and the last mile infrastructure, which is where most of the investment is anyway (hence the flat fees for most home ISPs).

    7. Re:Umm... by Anonymous Coward · · Score: 5, Insightful

      You missed his point. A fair transaction isn't just "mutually beneficial", it is also between entities of similar bargaining power, or in the absence of this level playing field, the transaction is fair if it would have been made the same way between equal players. Conclusively, fair transactions cannot occur in monopoly situations where the other side doesn't have the option not to buy and the monopolistic player seeks maximum gain.

      Let's say you own an oasis in the middle of the desert. If you charge a million bucks for a glas of water, that isn't a fair transaction, even though buying a glass at that price would still be beneficial to someone who's about to die of thirst. A fair price would be whatever you could charge if the thirsty stranger had other options of quenching his thirst (and you had more thirsty strangers to sell to). But that is hard to determine, so usually cost plus some reasonable surcharge for your effort would be seen as a fair price.

    8. Re:Umm... by cubicledrone · · Score: 3, Insightful

      startups that cannot command the same capital

      Startups have little or no access to capital at all.

      In addition, capitalism works regardless of the perceived fairness of the transaction.

      If by "works" you mean products are bought and sold, then yes, you are correct. If by "works" you mean there are actually free markets and capital available to the average business, then you are incorrect. Capital and free markets are the scarcest commodities in this economy.

      Also monopoloy is not evil at all provided it comes about naturally.

      Monopoly is the opposite of a free market. Capitalism fails in the presence of a monopoly precisely because with a monopoly there IS no market. Monopolies repel capital as surely as gravity attracts mass.

      --
      Business isn't willing to pay for products, innovation and careers, so we get brands, mortgage commercials and layoffs.
    9. Re:Umm... by Agronomist+Cowherd · · Score: 3, Insightful
      The problem lies in the fact that electricity, cable, phone services, water, garbage collection are luxuries.

      Water?

      Water is a "luxury"?

      Surely you're going a bit too far there. Just try living without water. Especially healthy, unpolluted water.

      Cable is certainly a luxury, but the others are arguable. Some people do manage to live without electricity, phone service, and garbage collection, but it's quite a bit harder. Think of what would happen if there were no garbage collection, for instance: everyone would be driving to the dump with their garbage; the dump would need to be open day and night to handle the volume; there would need to be many local dumps (instead of large regional ones); etc.

      Originally phone service was not a monopoly. Bad effects were: vendor lock in; each business customer needed multiple phone lines to accept calls from the different phone systems of their customers. The volume of wires grew to more than the infrastructure could support, due to the duplication of effort. These issues are ameliorated today (a phone on one company's system can call phones on another's system), which is why we're seeing the monopoly slowly dissolve; there is some competition at the local service level. But for that competition to exist, there need to be rules mandating the interconnection, otherwise no one will sign up for a service that can't reach the rest of the world.

      --
      -DwS
    10. Re:Umm... by drsmithy · · Score: 3, Insightful
      It never would because in unregulated capitalism, as soon as someone gained enough market share to set whatever price they want, someone will be there that's willing to provide the services for cheaper and still make a good profit. This is a basic fact of supply and demand.

      This hinges on the assumption that the barriers to entry are low enough for new competitors to enter the market *and survive long enough to become profitable*.

      That assumption (and it is a best-case assumption) is, at best, shaky.

      The worst-case assumption is even worse - that a new competitor can enter the market and survive, even when the established companies are both wearing temporary losses undercutting it on price *and* (where applicable) using their existing relationships with suppliers to restrict the supply of raw materials. To say a new provider in the market could survive in such a scenario in any less than extraordinary circumstances is delusional.

      I just don't believe this to be the case. As Murray Rothbard said, "The very term "public utility" is an absurd one. Every good is useful "to the public," and almost every good may be considered "necessary."

      I can't agree. Some "utilities" are *clearly* more "essential" than others. Water, electricity, (basic) communications (eg: to emergency services), sanitation, police protection, fire protection, basic medical care, etc. I have never heard any argument against these as "essential services" that isn't venturing well and truly into absurd libertarian/anarchistic/rich white men fantasies.

      This is not to say that every single aspect of such services need be government owned and controlled. For example, power distribution and power generation are two clearly separate aspects of "electricity", but the latter is trivially compatible with a "free market", whereas the former is not. Thus, IMHO, power *distribution* should be government owned and controller, while power *generation* should be privatised. This gives the maximum benefit to everyone - generation companies can market themselves to consumers as being cheap/green/clean/whatever, allowing the consumer to decide where their money should go (and trivially switch between them), but no company is endowed with the natural monopoly that results from owning such a massive piece of infrastructure as electricity grids.

      Similarly, new competitors into the market are not faced with the effectively insurmountable barrier to entry of having to a) establish a widespread backbone grid, b) convince people to switch to their grid and c) connect to their houses. On the consumer side, they are not faced with having to run multiple physical power links onto their property and suffer power outages when any transfers are made.

      While it is true to say "every good is useful to the public" (I would argue it should be "every good is useful to *someone*"), it does *not* follow that "every good is essential to the public (ie: *everyone*)" or "no goods are essential to the public".

      Any designation of a few industries as "public utilities" is completely arbitrary and unjustified."

      Of course it is arbitrary, but to say it is unjustified is ludicrous. You cannot, for example, sustain functional high-density urban living without proper sanitation and clean water. Both of these services require massive levels of infrastructure which is extremely invasive (and expensive) for any potential competitors to duplicate, and consumers to choose between. Fire protection is another example of a service that is essential to high-density population.

      I contend that having the Government own (and maintain) this infrastructure, charging fees to all who use it, is more efficient than having the Government apply (potentially discriminatory) regulation to make access to privately-owned equivalents "fair" or having that infrastructure duplicated multiple times.

      (However, one thing I am completely opposed to is collaboration between the public and private sector, especially on large

  2. Because it's ours by Anonymous Coward · · Score: 5, Insightful

    > Why don't they go and tell the oil companies what they should charge for their damn gas?'

    Because the citizens paid for the telecom infrastructure.

    1. Re:Because it's ours by Khammurabi · · Score: 5, Insightful
      Because the citizens paid for the telecom infrastructure.
      And there-in lies the rub. We built it initially, but I'm pretty sure the telcos maintain it (at least I tend to see their vans near construction sites and not federal marked vans). Unfortunately this gives them a valid point in which to make a ruckus. Since the internet is not regulated like a utility, market forces are free to come up with whatever assinine system they can to make money off of it. We shouldn't be surprised to see this happening.

      Telecom companies are having a tougher time making their shareholders happy. The Telcos haven't found a way to increase profits at the same pace that internet companies have done, yet these same companies are profiting off of the delivery path maintained by said telcos. (AKA: Chokepoint) Every telco executive is going to latch on to this as a way to make thier company more profitable, and won't stop until some legal force smacks them down.

      Begin Outlandish Analogy
      Let's say all road maintenance in my state is performed by Company A. This company charges each driver a fee based on the top speed of their automobile. However, unlike traditional road repair, Company A's maintenance costs are only higher if there are more roads (not if there is increased traffic on the same roads).

      Now then, let's suppose an executive at Company A finally notices that all roads leading to Smallville are packed with end to end traffic. There are two ways he can choose to profit off of this observation. The first method is to charge the customer more (via toll roads) to reach Smallville. The second method is to charge the city of Smallville a fee based on what speed limit the roads leading into the city are at. The first method upsets the drivers, who are already paying for the use of the roads. The second method upsets the city (and equates to extortion), who promptly begs the state to pass a law preventing the questionable behavior.
      End Outlandish Analogy

      Make no mistake, the only way to prevent a tiered internet from forming in this market driven economy is through state / federal intervention. The telcos are collectively "losing" money, and not a single one of them is going to be against a tiered internet strategy. Their stockholders demand it. So unless Google teams up with other powerful websites, Uncle Sam is the only one who's going to stop this from happening.
  3. Singing two tunes by ConversantShogun · · Score: 5, Insightful

    Butt out, government, and stop regulating our industry (except when we want you to prevent people from building their own infrastructures, like community- and municipality-based WiFi networks.)

    --

    --When you buy proprietary software, you don't get better software. What you get is the right to complain about it.
    1. Re:Singing two tunes by Qzukk · · Score: 5, Insightful

      The best option would be for me to cut the line running under my lawn and keep cutting it until they pay me or move the line somewhere else.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
  4. Packaging services by Spy+der+Mann · · Score: 3, Insightful

    OK, here's a question.

    Let's suppose I order a cool Rubik Cube from eBay and they send it to me thru UPS.

    Me = Client
    ebay = Server
    Rubik cube = data packet
    Highway = Internet lines.

    Of course, I'm asked for the money to pay the shipping and handling, right?

    Right.

    So why TF should ebay (or actually the original owner) have to pay for shipping and handling, TOO?

  5. Of course by hey! · · Score: 5, Insightful

    we've made an investment, and I don't think the government should be coming and telling us how we can work that infrastructure, simple as that

    Of course. And making the investment means you own the results. If the public wanted a say in the Internet, then they should have come up with the investment money to make it possible, instead of leaving it to the private sector.

    Oh, wait.

    --
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  6. Of lines and government easements.... by jjh37997 · · Score: 5, Insightful

    Sure.... the phone and cable companies put a lot of money into installing their lines and normally I'd say they should be free to do whatever they like with them. However, lets look where most of these lines are. Do the phone and cable companies own all of the land where their lines run? Hell no! They got an easements from the government and that gives the government some say in how these lines are used. If the cable and phone companies don't like that they can damn well buy all of the bloody land that their lines run through!

  7. Bad analogy by ktappe · · Score: 4, Insightful
    Why don't they go and tell the oil companies what they should charge for their damn gas?'
    Because there are a myriad of oil companies and filling stations in my neighborhood. However, there's only one monopoly ISP. Second, that's a bad analogy because the government isn't trying to tell the ISPs what to charge, just what type of service to provide (that is, equal service for all packets). The government most certainly does tell oil companies what quality of gas they must provide.

    -Kurt

    --
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  8. Why the public has the right to net neutrality by sourcery · · Score: 4, Insightful

    The government (DARPA) invented the internet--using public funds.

    Federal law protects common carriers. In exchange for that legal protection, the public has every right to require "net neutrality." If the communications companies want to run their networks their own way, then they must give up all the legal protections they currently enjoy. They must become directly and fully responsible for the content of every message sent accross their networks. The RIAA is drooling.

    --
    Cthulhu for President! Why settle for the lesser evil?
  9. Oil companies by BobaFett · · Score: 3, Insightful

    Actually, they do tell oil companies how much to charge for gas: "whatever you change the other guy". Filling in lawn mower and Ford Ranger costs the same, per galon. You end up paying more for the Ranger, because it uses more. So I see nothing wrong with the government telling cable and phone companies the same thing, they can charge whatever they want per mmegabyte whether it's Google or C-list blog.

  10. Huh? by MrZaius · · Score: 4, Insightful

    I work for a small cable company, and I'd get skinned alive by my customers if I aggressively lowered the QoS of google et al. That said, I don't understand what this whole debate is about. It's only the peer-to-peer and big-file-http traffic that causes any sort of spike in our traffic. If we were to charge Google for their traffic, it wouldn't amount to anything next to, say, iFilm/YouTube/planet(quake/halflife/etc) or local companies' ftpds and httpds that their employees connect to from home. Presumably the former couldn't pay for a reliable connection, and assuredly the latter would jump ship.

    Anyone who actually implements anything other than net neutrality is shooting themselves in the foot.

  11. Don't we already have tiered service? by maillemaker · · Score: 4, Insightful

    Content providers are already paying for some level of bandwidth on their end.

    Consumers are already paying for some level of bandwidth on their end.

    Bandwidth purchasers should be able to use what they are paying for - period.

    If the pipeline owners are not making enough money because people are using what they are paying for, then they need to raise their prices.

    I don't have a problem with different tiers of service offerings. I have this already at home - there are two or three levels of speed I could pay my ISP for. I imagine Google has similar options.

    The inconsistency here is that the pipeline owners charge for tiers of service, but they don't guarantee any level of service - it's "best effort". If they want to start charging for specific levels of service and holding people's feet to the fire, then it better go both ways. If I'm paying for the "gold" level of service I better get it.

    Steve

    --
    A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.
  12. MOD PARENT UP! by mrchaotica · · Score: 4, Insightful

    If the ISPs get to decide what to do with "their" infrastructure even if it was originally paid for by taxes, then we should get to decide what to do with our property, even if it's on the "right of way"!

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  13. The Cash Cow says "Moooooch." by Kadin2048 · · Score: 5, Insightful

    What more is there to this?

    Billions of dollars a year in extortion--I mean, revenue--for the telecommunications companies?

    That's really all there is to it. They've figured out that they can't maintain the sort of growth that they've had over the past decade or so (because there's nowhere to expand to), so now they're trying to figure out ways to squeeze more money out of their existing customers. Because even if you don't realize it, everyone using the Internet is an indirect customer of the backbone providers. You pay your ISP, your ISP maybe pays another ISP, that ISP pays for a connection to the backbone. They get their tithe, it just goes via your local provider first.

    And there's really no way to rake in the dough like making people pay for something twice. Here's what the backbone providers want: the source of the packets pays for access (a portion of which makes its way up the chain to them), the destination of the packets pays for access (also trickles up to them), and the source and the destination both pay directly for increased QoS if they don't want said packets to spend a few seconds in the purgatorial "low-rent buffer" on their way across the network.

    It's just a protection racket, but without any of that messy kneecap-smashing business.

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
    1. Re:The Cash Cow says "Moooooch." by BRSQUIRRL · · Score: 5, Insightful

      And there's really no way to rake in the dough like making people pay for something twice. Here's what the backbone providers want: the source of the packets pays for access (a portion of which makes its way up the chain to them), the destination of the packets pays for access (also trickles up to them), and the source and the destination both pay directly for increased QoS if they don't want said packets to spend a few seconds in the purgatorial "low-rent buffer" on their way across the network.

      I would go one step further. To understand what they REALLY want, I think you have to get a bit psychological:

      Your average corporate executive types, with their business degrees and business experience, have gotten to where they are by using their understanding of capitalistic concepts like control of supply, scarcity, and material goods. This is especially true of those in the content business (the "traditional" cable and media industries).

      The internet, at its most fundamental level, simply doesn't work that way. Sure, you can use the internet to sell advertising, or you can sell access to the infrastructure itself, but the internet is ultimately a free medium: anyone can put anything onto it, and anyone can retrieve anything from it. As someone here once wrote, "trying to make bits uncopyable is like trying to make water not wet." It is the great equalizer; no one "controls" it...and the corporations who utilize it to do business are ultimately just users like the rest of us. And I think because of this (and despite the fact that these corporations themselves benefit from the internet) they subconsciously DESPISE the way it works, because they can't control it.

      What do they really want the internet to be? Cable television. They control what is broadcast and distributed and they also control what you can access: "I'm sorry, but 'www.google.com' is not available as part of your current access package. You must upgrade to our Premium Package to access that site."

  14. What they seem to forget... by robertjw · · Score: 4, Insightful

    These cable companies are being a bit shortsighted. This greed is going to come back to bite them in the ass. If they give up their Net Neutrality, all of the sudden they are going to have a responsibility for the traffic that goes across their network. This means the MPAA and RIAA will be lining up to sue them, they will have to put a stop to 'pirate' traffic and customers will leave them in droves. Many of the people I know only pay for high speed Internet because of 'illegal' activities.

    Parents will start suing because little Johnny was looking at porn, terrorist victims will be suing because al-qaeda used the network, joe six-pack will sue because he got screwed on the time machine he bought on ebay, Grandma Johnson will sue because she sent all her money to Nigeria.

    People do a lot of stupid stuff on the Internet. Giving up Common Carrier status could very well result in ISP's losing immunity for third party content and open Pandora's Box.

  15. Re:Heh by hey! · · Score: 3, Insightful
    Heh. Has anyone asked Al Gore -- who was one of the folks instrumental in getting funding for internet R&D -- what he thinks of this issue? I'm guessing that he'd back net neutrality.

    We live in a political era where you have to show you are electable. "Electable" means being willin to say anything to win, and to say it in a way that shows no twinge of self-consciousness, much less shame. Politicians that show any kind of discomfort when lying and posturing are considered "stiff".

    In other words if you don't show sufficient hypocrisy, you aren't considered credible.

    We don't want visionaries, we want politicians who talk about how they have a vision. Actual vision is a sure route to ridicule. Mike Royko labelled Jerry Brown "Governor Moonbeam" because given California's size and propensity for natural disasers, Brown thought the state should have its own emergency communication satellite. In 1978 the idea was visionary, which in political terms equals "kook". Twenty years later it was reality.

    Al Gore saw the potential of allowing the Internet to become a piece of national infrastructure for commerce, not just some obscure academic/military network. That took vision. Therefore, it's sure proof that politically speaking he's a kook.

    No we don't want actual visionaries in office, any more than we want actual conservatives or actual religious people or actual war heroes. Content distracts the label on the box. No, what we want politicians who are resolute in their rhetoric but biddable to the will of their masters.


    "We are now the party of ideas and innovation, the party of idealism and inclusion, the party of a simple and powerful hope. My fellow citizens, we can begin again. After all of the shouting and all of the scandal, after all the bitterness and broken faith, we can begin again."

    - George W. Bush


    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  16. About that oil company analogy by Mateo_LeFou · · Score: 3, Insightful

    We should be talking about Pipes, not oil. IIRC, common carrier rules apply to the owners of pipes; they have to be neutral about who is allowed to buy for oil-width. If internet access had been defined as what it is -- a *communications medium, rather than an "information service" -- the same carrier rules would already apply to it. I think net neutrality people should focus their efforts on that. If it is an "information service" you would expect service's provider to be the source of the information I obtain through it. It is not that; when my sister sends me email she is the provider of whatever information is in it.

    --
    My turnips listen for the soft cry of your love