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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?'"

80 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 bilbravo · · Score: 3, Interesting

      Agreed. Any company who has a presence on the internet pays for it's bandwidth, and the people accessing it are paying. What more is there to this?

    2. Re:Umm... by DaHat · · Score: 2, Interesting

      They would argue that Google only paid for their bandwidth to a certain point and likely that doesn't extend to that ISP's network... of course on the other side a rational person would say that the customer has paid for that portion of the bandwidth too.

      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.

      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.

    3. 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,
    4. 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.

    5. 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

    6. 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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    7. Re:Umm... by CaymanIslandCarpedie · · Score: 4, Interesting

      I had a similar idea but without paying for any trial.

      Surely Google, Yahoo, MSN, etc can identify trafic originating from that ISP via IP addresses. When anyone trys to access your page from one of those ISP, redirect them to a page explaining that the ISP is holding back bandwidth to this site so your expierence may be slower than it should be. Then provide information about competing ISPs in the area which don't do this as well as contact information to the ISP to complain. Then after 5 seconds or something you are redirected to the actual page.

      Yes, this will probably annoy users but I think that annoyance will mostly be focused toward the ISP. Then the market can sort out if its worth it to implement this.

      --
      "reality has a well-known liberal bias" - Steven Colbert
    8. Re:Umm... by markhb · · Score: 3, Interesting
      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.


      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. Users also, with certain exceptions like flat-rate phone service (which still doesn't include overseas calling), pay per actual usage of the service (i.e., per-minute phone rates or postage stamps). And in the case of stamps, you can pay more to get better service (overnight, 1st class v. Parcel Post, etc.)

      --
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    9. Re:Umm... by LordKazan · · Score: 2, Informative

      Well Mr A. Coward I think I know what fair means pretty well - a fair transaction is a mutually beneficial one. Right now cable companies get away with forcing to give up some of their rights - such as the right to watch their service on any device they want (thank you CableLabs for enabling them to do this). That is not a fair transaction.

      Most of the world is using the DVB standard for their digital cable and HD, which is an open standard with standard hardware - facilitates full usage of your signal on your computer so it's very convient for homebrew PVR, has the program guide info encoded right into the signal, etc.

      We use a CableLabs-encumbered system and CableLabs is doing everything it can to ensure that the consumer cannot watch the cable he's paying for on any device he wants, makes sure he cannot build home brew PVRs, etc.

      The Cable Industry, just like the MPAA and RIAA only get away with the crap they get away with because: A) there is a power inquity (CI, MPAA, RIAA are all cartels), B) they pay off politicians to keep that power C) corporate america makes sure Joe Sixpack doesn't know better.

      The rights of americans of all forms - civil rights, human rights, consumer rights - are all being destroyed wholesale. I cannot completely blame the republicans. The DMCA was clinton's doing, so was DOMA - I cannot say for certain whether the DMCA was just a lack of understanding what he was signing or not.

      What happened to the land of the free? It was sold.

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      If you cannot keep politics out of your moderation remove yourself from the Mod Lottery.. NOW!
    10. Re:Umm... by Anonymous Coward · · Score: 3, Interesting

      The funny part is that these completely incompetent CEO's have no clue as to who they are dealing with. If Google wanted to they could put a nice hurt on them all in short order. Google owns a crapload of wonderful dark fiber all over the place. A google Backbone ISP offering services that cut into the real pie of these idiots will wake them up fast. (VoIP over an encrypted port range that Comcast cant screw with to make QOS bad for customers other than THEIR VoIP service.. Yes they do that right now. Video content that makes people ditch their cable tv for ala-carte show access.)

      I really hope that is what Google is planning on. Something to fire up all that dark fiber and flip a giant middle finger to the greedy assholes at SBC and Comcast that think they deserve to double charge customers.

      IF Comcast lost google to the local DSL company. (I.E. www.google.com resolves to "Comcast want to charge you more to access us, so we are unavailable in order to save you money. here is a list of DSL and other broadband providers in your area that will serve you better than Comcast wants to serve you.") they would be hurting really bad nationwide within 30 days. Their margins are pretty thin because they spent way to much on poorly engineered networks and Cisco gear that is way over sized. (They have a Fiber ring that is designed by a moron in the midwest. Very little redundancy.. you lose a connection and large amounts of cities lost all TV signals.)

      They need to play hardball with these idiots. Everyone already has a bit of hate for the companies already,(even comcast employees hate the place) if a large loved company were to take a side, the change would be pretty damaging to the company that they target.

    11. Re:Umm... by GNT · · Score: 2, Interesting

      No. It's you who do not understand free-markets and capitalism.

      The so-called collapse you are talking about occurs if and only if someone passes a law that protects turf or establishes barriers to entry that are not surmountable by startups that cannot command the same capital or priveledges from .gov.

      With the excuse that it would be wasteful to have multiple pipes run to my house I only have Time-Warner and legacy PacBell. Nobody can come into my home to compete and to make matters worse I can't even lay fiber to the fiber optic port 1000 ft away because of moronic city constraints.

      In addition, capitalism works regardless of the perceived fairness of the transaction. In a free-market the price-point is different, as defined by the market-clearing price. In a constrained transaction, where the .gov interference sets the price differently than the market-clearing, there will be problems. The franchise situation with cable essentially means that cable can charge a greater price than otherwise, which means for guaranteed priceing they have fewer customers than otherwise or in other terms their price/performance sucks. And guess what -- no bureaucrat can fix that. If they [.gov] choose the market price what did I need the .gov idiot for in the first place? If they set it higher... well that's the favoritism we all know so well. If they set it too low, the area will become a wasteland of no service because noone will step in to provide or demand will greatly outstrip supply - either way it sucks... Fancy that -- markets work...

      Also monopoloy is not evil at all provided it comes about naturally. ALCOA was a wonderful example. Prior to the bogus antitrust action, they deployed aluminum worldwide at ever decreasing prices while making an obscene profit taking advantage of their declining average cost curves.

    12. Re:Umm... by Fareq · · Score: 2, Insightful

      If you do not benefit from the transaction, why do you engage in it?

    13. Re:Umm... by loners · · Score: 4, Interesting

      Just display a page with a message saying "XYZ isp is making you wait N seconds before accessing Google".
      Using the end user's ISP named and N being the average from that ISPs throttling. Include a link to a page explaining what the ISP is actually doing - slowing down the users connection to try to make someone else pay them money. In other words the users service was reduced intentionally (without notifying them). Just use simple words because most users don't have a clue about computers.

    14. 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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    15. Re:Umm... by gomoX · · Score: 2, Interesting

      Mmm no, capitalism in it's pure form is exactly "laissez faire". Your idea of government regulated trades would make real capitalists cry in bed.
      In pure capitalism the government doesn't mess with the economy, it lets the market run freely. The idea is that whenever someone gets crushed, the -theoretically- healthy system can reabsorb him somewhere else. It works at some places and at some times, it's the case of many asian enterprises that outsource their work: when something is wrong down the chain, they get rid of it and factories are closed. The employees are then put somewhere else (because they are growing economies) and no one gets hurt.

      About your problems with the term "socialism". Many so-called socialist governments today do exist. They do not own the factories, but they share some fundamental conceptions with historical socialists. Terms such as this evolve as the world changes.

      a fair transaction is a mutually beneficial one Yeah right. There's no such thing. Unless you are printing bills your are not creating any wealth (even then you aren't). It only goes from one hand to another, and in that process someone gets screwed. That's how it works. How much you screw or get screwed depends on your position and negotiating abilities. And yes, the PBI of your country most likely grows every year, but the $ goes down every year too. Capitalism plays on greed and selfishness that are pretty much builtin on every person. Every one does the best he can in his situation, no matter how many he has to crush to do se. There's a reason it's cheaper to outsource your jobs to India, someone somewhere *is* getting screwed.

      --
      My english is sow-sow. Sowhat?
    16. 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).

    17. Re:Umm... by EnderWiggnz · · Score: 2

      The USSR never implemented Marx'ist communism, Lenin had changed the philosophy in a material way. The USSR implemented a command economy, and not a communist economy.

      Say, how did the Unfettered capitalism thing work out in the 1920's in the US?

      --
      ... hi bingo ...
    18. Re:Umm... by dgatwood · · Score: 3, Interesting
      Free markets don't work for most services. Services generally have too high a cost of entry inherent in their operation. The only way free markets work for services that require a wire infrastructure is if you have very high population density, and even then, it is hard for more than about one or two companies to survive in any single space.

      The incumbents are only universally available because the government mandated that Ma Bell serve every single house out in the middle of nowhere. Without government regulation, the most remote 10-20% of the public probably wouldn't be served at all, and probably half of the remainder would end up in a natural monopoly because the market can't sustain more than one player.

      Outside of major metro areas, the cost of running the lines never pays for itself. For example, in my hometown of 8500 people, when the cable company's limited monopoly came up for review, a second cable company came in and challenged the previous company. Both were regional entities. The town agreed to let them both duke it out in the free market.

      The new cable company came in, put in brand new lines for the entire city, competed on price, and got almost a third of the town to switch. After two or three years, they realized they were still millions of dollars in the hole and weren't likely to break even in any reasonable time frame. They sold their lines to the original incumbent cable company. Thus, effectively, all competition did for us was to upgrade the cable company's lines for pennies on the dollar... but to make up for their losses, as soon as the second company went away, the original company's prices skyrocketed to half again more than they were before the second company came in.

      Free markets don't work except for physical products (or location-indifferent services) that can be distributed broadly enough to make competition practical. For example, satellite cable service works because it is not tied to a geographical location, so a single infrastructure cost covers the entire country. Occasionally, they work for location-tied services, but for the most part, those collapse into a monopoly... and while not all monopolies are abusive, most eventually become abusive unless they are a not-for-profit entity (and occasionally even then).

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    19. 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.

    20. Re:Umm... by Russ+Nelson · · Score: 2, Insightful

      Capitalism is not "laissez-faire", capitalism collapses into cartels and monopolies in a laissez-faire environment.

      Do you have any evidence for this? You realize that the theory is that cartels collapse and free markets don't sustain monopoly prices (monopolies per se are not bad; it is monopoly pricing that is not bad). If you're going to come up with something that goes against the theory, you need strong evidence.

      --
      Don't piss off The Angry Economist
    21. Re:Umm... by Russ+Nelson · · Score: 2, Insightful

      The whole point behind ownership is that you have control. The state doesn't need to own the means of production if it can control it via regulation. Command and control socialism has shifted from ownership to regulation. Doesn't mean it's not socialism.

      --
      Don't piss off The Angry Economist
    22. Re:Umm... by PasteEater · · Score: 2, Interesting

      Wouldn't it be a good idea to do this *before* any of the proposed legislation takes effect? Once the laws are in place, it's going to be difficult to change/repeal them.

      I think that Google, Yahoo, MSN, etc. should go on the offensive on this issue and start playing hardball *now*, so that people besides those interested in tech (geeks) get an understanding of what's about to go down. Redirect people to a page explaining the proposed legislation and an email link to all 100 senators.

      Annoying? Yep. But worth it in the long run.

      The telcos are going to have some serious explaining to do once Joe and Jane Average understand that they are not getting what they paid for. The problem is, they may not know until it is too late.

      --
      There are two kinds of people in the world: those with loaded guns, and those who dig.
    23. 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.
    24. Re:Umm... by bishop32x · · Score: 2, Funny

      Don't bother charging your neighbors, they're small fry. Get a backhoe and a webcam, and then charge the cable company say 4$/Min (more if it's an important cable). Granted it's not the most responsive tool for altering bandwidth, but it is effective.

    25. Re:Umm... by XorNand · · Score: 3, Interesting

      They aren't interested in Google, Yahoo, or Microsoft. This massive lobbying is the result of only one thing: VoIP. VoIP has freed people and businesses from being tied to the circuit-switched network that is the core source of revenue for many telcoms. AT&T, Verizon, and the other players desperately want to tilt the playing field back into their favor. VoIP startups have been popping out of the woodwork over the past two years. At the very least, Ma Bell wants to slow down the growth of these nimble companies by charging tarrifs, which get passed onto customers and lessen the biggest incentive to switch to VoIP: cost savings.

      Cable companies now are simply jumping on the bandwagon. Which, if you notice, seems to coincide with the rollout of their own VoIP services.

      Last December I founded a small-business VoIP company myself. So I've been following this issue very closely; it's the only time I've ever contacted a federal representative in my life. However, this is bigger than simply a slower Google or putting me out of business. It's about real jobs and real innovation being extinguished.

      Please read a recent blog entry of mine to put a face with this imporant issue. Or, even better learn what you can do to help.

      --
      Entrepreneur : (noun), French for "unemployed"
    26. 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
    27. Re:Umm... by EnderWiggnz · · Score: 2, Insightful

      except that the governmeent is supposed to reflect "the will of the people", by giving them elected officials thru democratic institutions.

      are you that intentionally dense, russ? do you think that we should have multiple governments, all competing?

      --
      ... hi bingo ...
    28. Re:Umm... by BalanceOfJudgement · · Score: 2, Informative

      There are no competing lines now because railways are (mostly) unprofitable now - with the explosion of "personal travel" (cars, bikes) and air travel, which is almost always cheaper than taking a train, the railroads are simply less profitable entites than they were when there was an explosion of competitors.

      And let's talk about the competitors for a moment. Part of the reason that the ICC was formed in the first place is that every competitor found it necessary to use their own rails with their own shapes and sizes - meaning that another company's cars couldn't travel those tracks. Finding the results of this insanity unacceptable, railway measurements were standardized, and the physical changes were mostly accomplished by richer rail companies buying out the smaller ones and replacing their rails (since the land was already allocated to rails, it was like getting free land).

      Railway history

      --

      We are the fire that lights our world.. and we are the fire that consumes it.
    29. Re:Umm... by IthnkImParanoid · · Score: 2
      to make matters worse I can't even lay fiber to the fiber optic port 1000 ft away because of moronic city constraints.
      Ah yes, those moronic city constraints keeping you from tearing up the fucking streets and tampering with private and community property. What nazis.
      --
      It's nothing but crumpled porno and Ayn Rand.
    30. Re:Umm... by EnderWiggnz · · Score: 2, Informative

      just a point of order:

      there is little light passenger rail in the US.

      freight rail is very very healthy. you cant ship everything by 18 wheeler, efficiently.

      --
      ... hi bingo ...
    31. Re:Umm... by einhverfr · · Score: 2, Insightful

      Regarding the argument about telling gas companies how they can charge for their gas...

      The analogy would be to charge taxi drivers more for gas than the rest of the public because their livelihoods depend on it, or to threaten to do so if the taxi driver didnt sign an agreement to bu at least 80% of his gas from a specific gas station.

      Or for bus companies who are already profiting by charging passengers then to go to those companies who are serviced by existing stops and threaten to go away unless more money is paid.

      Net neutrality is important, but if people screw around with it too much, they will find themselves out of business at least in areas where there is still some reasonable competition regarding ISP's.

      --

      LedgerSMB: Open source Accounting/ERP
    32. Re:Umm... by enjerth · · Score: 2, Interesting

      I was thinking the exact same thing. Maybe even, to show them who's boss, Google could block all access from ISPs that support the QoS BS. Just for one day. Call it a warning shot.

      That just might make them shit their pants.

    33. Re:Umm... by drsmithy · · Score: 2, Insightful
      I'm afraid that you, good sir, are the one who does not understand how free markets work. The reason our "capitalism" has collapsed into cartels and monopolies is that we have seen a vast influx of socialism into our modern system.

      Eh ? It's hard to see how unregulated capitalism would ever end up anywhere else *except* "cartels and monopolies". The only variable is how long it takes, which should be inversely proportional to the cost of market entry (the more expensive it is to enter the market, the sonner "cartels and monopolies" will be controlling it).

      The "free market" works well for some things and badly for others. One of the things it works badly for is infrastructure/essential service type utilities, mainly because the costs - for both sellers to enter the market and buyers to move between competitors - is so high.

      Infrastructure and essential services should be Government owned and controlled (ie: by everyone). Everything else can be free market.

    34. 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

    35. Re:Umm... by minion · · Score: 2, Insightful

      And in the case of stamps, you can pay more to get better service (overnight, 1st class v. Parcel Post, etc.)
       
      Ah, but you're missing something here. If I pay for overnight service, my parcel goes on a jet, and flies overnight to its destination. If I pay for ground, my parcel gets stuck in a depot until there is enough stuff going towards my parcel's destination to make it worth sending it all.
       
      Thus, my postage paid for different means of transit, with each means being a different cost for the carrier (jet fuel - with a smaller number of packages, or diesel for a whole truckload of crap). This is not the case with telco - the same backbone lines carry my fast DS3 at the office, and my measly dial-up at home. It costs the carrier nothing more to send either bit of data. They are doing nothing but being greedy bastards, as their expense is the same either way.

      --

      -- If we don't stand up for our rights, now, there will be no right to stand up for them later.
  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 All+Your+Name+Are+Be · · Score: 2, Informative

      well, the gov't does tell oil companies where they can and can't drill, which influences the price of oil, so....

    2. Re:Because it's ours by Midnight+Thunder · · Score: 2, Funny

      well, the gov't does tell oil companies where they can and can't drill, which influences the price of oil, so....

      Also, exploration for oil is also very costly. I am not so sure that you drill a bore hole and see 1s and 0s gushing out and screem 'we have internet' :) Might be an interesting sight though!

      --
      Jumpstart the tartan drive.
    3. 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.
    4. Re:Because it's ours by ??? · · Score: 2, Interesting

      "Since the internet is not regulated like a utility"

      Yes, but what these companies are leveraging is their control of last-mile connectivity, which is regulated like a utility. These organizations enjoy monopolies granted to them by municipal governments, just like other utilities.

      Since we're into outlandish analogies:

      Imagine that your city granted PowerCo the right to exclusively provide power service to all of the houses in the city on a promise that power usage fee rates would be set by a particular formula or 3rd party organization. Imagine that WidgetCo produced a widget that consumes an enormous amount of electricity, and everybody in your city buys their widget. Now, PowerCo needs to generate more power to feed the widgets, but does not want to incur the capital expenditure to build a new plant. Now, the city's residents _are_ paying for the power used by their widgets. PowerCo could go to the city, and ask for rates to increase or for a grant or a loan to fund their new plant. In that instance, though, the city could just say "Well, ElectriCo's just over in the next city, and they seem to think that they could pick up the slack if we let them into this market." Or, PowerCo could go to WidgetCo and say "If you don't fund our new plant, we'll make it impossible for your widgets to use our power." Then, in a stroke of pure genius, PowerCo decides to do exactly that - they make it impossible to power WidgetCo's widgets using electricity provided by PowerCo, and produce their own widgets (which are of lesser quality, and cost more - but can be used with the electricity provided by PowerCo). A victory for the consumer?

  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?

    1. Re:Packaging services by plague3106 · · Score: 2, Insightful

      Because both you and ebay already paid the shipping and handling. You both pay for access to the highway. In this case though, the highway is what actually moves the item in question; in the real world its a truck that moves the item over the roads.

    2. Re:Packaging services by mrchaotica · · Score: 2, Informative
      So why TF should ebay (or actually the original owner) have to pay for shipping and handling, TOO?
      That's not quite the right analogy. What's actually happening is that ebay is paying for the half of the trip closest to it, and you're paying for the other half. What these cable assholes want is for both you and ebay to pay for the whole trip each.
      --

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

  5. Charge your customers. by The_DoubleU · · Score: 2, Interesting

    So after years of "Get your unlimited broadband internet" they now realize that maybe there is a limit and want to charge Google.
    That is fine if Google is your customer, if not you can't charge them.
    Another option is to charge your customers (the people at home) for the usage of google.com. You could even provide them with a detailed bill.

    200mb google video 30$
    50mb youtube.com 5$
    500mb pornlegends.com 50$

    Or wait a second didn't we have the pay per bit 10 years ago and everybody switched to "All ways on internet" packages, promoted by the same bastards that now think that they are losing revenue?

    --
    What power has law where only money rules.
  6. YABA by archer,+the · · Score: 2, Informative

    Yet Another Bad Analogy -

    Oil Companies produce their product, deliver it to the customer and sell it.
    ISPs take products from other companies and deliver it to the customer.

    If I'm requesting more info from Google, Yahoo, etc, I should pay for a higher bandwidth line.
    If Google, Yahoo, etc are transmitting more info, they should be paying for a higher bandwidth line (which they do already).

  7. Bad Analogy by MECC · · Score: 4, Funny

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

    While the government doesn't really say what exactly to charge for gas, they do insist that prices are at least fair , just as net access should be. Besides, didn't the federal government give huge amounts to cable companies when they pledged to "build fiber optic to the home" back in the nineties? Or was that the telcos? I didn't get a reference to that, but I remember reading about it.

    Is it just me, or does the title 'CEO' these days somehow imply criminal in addition to stupid?

    --
    "We are all geniuses when we dream"
    - E.M. Cioran
  8. Gas is one price per grade by Dairyland.Net · · Score: 2, Insightful

    The oil companies aren't charging different prices for what type of car/truck you drive or where it's being driven to or from. The oil companies charge by grade of gasoline, just as the cable and phone companies already charge for broadband tiers (speeds).

  9. What about the user? by WolfStar76 · · Score: 2, Insightful

    I pay for Cable Company X to give me internet access, now they start slowing my access to Google, unless Google pays their higher fees. Am I not, as the user, getting screwed for my choice of Cable Company X? Now I get slowed access to the best search engine, and or other big sites (like Amazon, for example). Even if the cable companies paid for the infrastructue, am I, the user, not paying for the use of that structure? I sure won't be happy about paying for a deliberately slowed connection to my favorite sites.

  10. Re:If you really want it that way... by transami · · Score: 2, Insightful

    Wireless mesh would really be the the communication dream come true. If we could just get an inexpensive highspeed 10km non-line-of-sight nodes....

    --
    :T:R:A:N:S:
  11. 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.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  12. 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!

    1. Re:Of lines and government easements.... by Riturno · · Score: 2, Informative
      As I understand, this is almost correct. In most places with poles, they are owned by the local electric utility. They, in turn, lease the use of these poles to the cable, phone and other companies.

      Of course this doesn't change the fact that they were also given easements and rights-of-way by the government.

  13. I'm waiting by NineNine · · Score: 2, Insightful

    I'm waiting for my ISP (currently, BellSouth) to do this. I will take all of my business Net service (a decent amount... a lot more than a residential service) elsewhere. All it's going to take to kill this is for people to be aware, and for people to be willing to vote with their wallets. I know that I am. I'm even willing to pay more.

  14. Capitalism vs Responsibility by oddRaisin · · Score: 2, Insightful


    Welcome to capitalism. The government doesn't have the right to tell companies how to practice their business. The argument dismissing common carrier status went out the window when the government decided they had the right to phone tap anyone without any authorisation.

    Common Carriers were supposed to be content agnostic -- meaning that all content (phone calls, faxes, anything passing over the phone line) would be treated equally and the contents would not be examined by the carrier. To deviate from this standard would mean that the carriers were responsible for the content carried by their network, including incriminating evidence that would make the carrier legally liable. The common carrier status protects the carrier as much as the individual subscribers.

    But now with the willy-nilly wire taps, and complete lack of accountability in the government, carriers now believe they can do what they like with traffic on their networks and still not be accountable. And who would blame them for believing this?

    So now you have carriers who feel like they control not only the networks but also the content on those networks in a responsibility free environment, and they will do what all corporations do: grab for da money. Why not charge extra for "premium" (read: basic utilities of the net) services? Sure, it's immoral. But it's also a capitalist society. We all know that the people who can afford broadband can also afford an extra 10$/mo to access stuff they used to access for free. And they're only there to feed the corporate beast anyway.

    I can't fault these people for wanting to make more money. But if they think they can have their cake and eat it too, then they will be facing lots of lawsuits from individuals who's children have been exposed to goatse.cx because those same carriers (now content providers) didn't filter their content. The circle of life continues.

  15. Re:Simple solution by Nurseman · · Score: 4, Interesting
    switch off googles for cox and see what happens

    Not to be a troll, just Devils Advocate. What do you think would happen if Cox "blocked" Google. Do you think the vast majority of Cox users would care enough to switch ? Do you think they have the ability to switch ?

    To me this is scarier than any MS monolopy. With MS I have alternatives. I have no other choice for highspeed other than RoadRunner. I cannot get DSL, and have only one provider. What happens tomorrow if they decide to throttle back Gmail, and throttle up Hotmail ??

    This is something that needs more press.

    --
    Save a Life. Donate Blood. Please.
  16. 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

    --
    "We can categorically state we have not released man-eating badgers into the area." - UK military spokesman, July 2007
  17. Time to get tough by Billosaur · · Score: 2, Interesting

    The remarks indicated it's not only the nation's largest broadband players, both in the cable and the telecommunications sectors, that have voiced public opposition to what they refer to as unprecedented governmental regulation of the Internet. They've said repeatedly that without evidence of a problem, there's no need for new laws.

    Net neutrality, also called network neutrality, is the philosophy that network operators should not be allowed to prioritize content and services--particularly video--that come across their pipes. Proponents have launched a campaign to enact detailed regulations barring such practices, and so far they've won over some congressional Democrats.

    Network operators counter that they deserve the right to charge premium fees to bandwidth hogs in order to offset their vast investments in infrastructure and to ensure the quality and security of their products. Mediacom has made $1.7 billion in capital investments over the past decade, according to Commisso.

    And so I return to my premise that it's time to nationalize the communications infrastructure in this country. Declare it an important national resource, vital to the safety and security of US citizens, and then take it away from these greedy pinheads. Create a department to oversee telecommunications infrastructure and force these companies to bid on maintenance contracts for the various regions of the country.

    True, that means goverment oversight, and the government is an iffy proposition at best, but it's a damned sight better than allowing the telecoms to run amok and ramp up the prices for content we as customers want. In the end, they'd do well to listen to customers, before they don't have any.

    --
    GetOuttaMySpace - The Anti-Social Network
  18. 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?
  19. 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.

  20. Let's See How Far They Get by colonslashslash · · Score: 2, Interesting
    When Google and others tell them to go fuck themselves, and they try playing hard ball by blocking their users from accessing the sites.

    Aside from the end users getting the raw deal (as usual), I think it would be hilarious for these money-grabbing bastards to get a harsh lesson in just how dependant they are on these sites. Case in point: I personally do not know anyone, not one single person, that doesn't use one or more of Google's services in some way on a regular basis.

    Not trying to say everyone does of course, but the amount of people that do is large enough that any ISP that attempts to mess with them like this faces a giant backlash and loss of business as I can't see Google giving in to this extortion.

    --
    She's built like a steak house, but she handles like a bistro....
  21. 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.

  22. No Net Neutrality = No Cable Franchise For You by tlabetti · · Score: 4, Informative

    If you support Net Neutrality then you should be making your case locally. If your existing cable company's cable franchise is up for renewal or if AT&T or Verizon are applying to operate a cable TV franchise in your town then you should be asking them about Net Neutrality.

    If they won't address the issue then you should press your local officials to reject their application.

    If the local cable application goes away then we need to make Net Neutrality part of the discussion when state or national franchise applications take place.

    If your town disagrees with a company's business practice then you shouldn't do business with them.

    I'm pushing these issues locally. You can see how at: http://www.redbanktv.org/

  23. Customers as a product. by panda · · Score: 2, Insightful

    Someone needs to just come right out and say it. The telcos and cable providers want it both ways. They want their customers to keep right on paying for service, and they want Internet sites/businesses to reach those customers.

    In other words, they want to sell the bandwidth that their customers already pay for twice, once to the customer and one to the sites that the customer visits.

    They want to sell you as a "product" to vendors, and they want you to pay for the privilige of being sold.

    --
    Just be sure to wear the gold uniform when you beam down -- you know what happens when you wear the red one.
  24. 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.
  25. Peering Agreements by mrchaotica · · Score: 2, Insightful
    They would argue that Google only paid for their bandwidth to a certain point and likely that doesn't extend to that ISP's network...
    And this is why ISPs have peering agreements with each other: so that they don't have to pay each other for all the traffic going between them. If these cable companies think peering is wrong, all the other ISPs they connect to should stop peering with them (and/or stop giving them the benefits of peering (lower prices) in the case of upstream ISPs), and then see how they like it!
    --

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

  26. Actually by JavaElementOfStyle · · Score: 2, Interesting

    > Why don't they go and tell the oil companies what they should charge for their damn gas?' Some states do set a minimum as to what a gas station can charge. In an attempt to keep the little guys in business the state of Wisconsin has a 5% minimum that gas stations are required to charge over the wholesale price at which they purchase it at. In the city of Milwaukee this is a big issue because a lot of the little guys are more than willing to use gas as a loss leader to get you into their convenience store.

  27. 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

  28. Don't wait... by schon · · Score: 2, Insightful

    I'm waiting for my ISP (currently, BellSouth) to do this.

    Don't wait for it, let them know beforehand.

    Tell them *WHY* you think that double-dipping is wrong.

  29. My take.. by DoctorDyna · · Score: 2, Interesting
    I'm starting to have the opinion that ISP's in general are loosing money on subscribers, especially since now people arent just checking their e-mail and browsing the web. We have, in the last couple of years seen an exponential increase in:

    1.) People that stay connected continually.
    2.) People sharing files (big ones)
    3.) People downloading bigger and bigger files, since hard drive space is el-cheapo.
    4.) Myriads of video sites popping up everywhere.

    So, rather than your little ISP eat it's own shit over your extravegant downloading habits, or jacking up your bill, they are trying to shunt this bandwidth hurt over to the major players who supply it. I know, it's bullshit. But, the only alternative I see, scary thought, ISP's being forced to go back to some sort of "pay for what you use" service, which works for major ISP's and backbones, but joe consumer whore won't swallow it because he would find out that his $40/month cable service really costs the cable company $80/month once you figure in his 30 gig/month porn downloading habit. I know a guy that works for a major cable internet provider, and I've got it on good authority that their CMTS is over subscribed, and their connection to the world in the are we live in is VERY overburdened, but they just can't seem to afford an upgrade.

    Dunno, just my 2 cents.

    --
    Windows has more viruses because linux has more virus coders.
  30. 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."

  31. Oil gouging? Hardly a good argument. by pkbarbiedoll · · Score: 2, Insightful
    'Why don't they go and tell the oil companies what they should charge for their damn gas?'

    I rest my case.

  32. 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.

  33. 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


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  34. Where this analogy falls apart ...... by nblender · · Score: 2, Interesting
    Cox to Google: "From now on you must pay us $10,000,000/month for bandwidth into our network." Google to Cox: "That's no problem. But first you must agree to pay us $10,000,000/month so your customers may access our services."

    Cox wouldn't have customers very long if none of them could get to Google. This doesn't address the real goal of defeating net neutrality.

  35. 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.

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  36. Big Fat Pity Party, Indeed. by Kadin2048 · · Score: 2, Insightful

    So, what we have here is a big fat pity party where everyone and their grab ass brother is trying to get into the "screw the end user" game so they can make more money? Wow, they're all turning into the RIAA and the petroleum companies!

    Yes. That's pretty much it. I think your oil company analogies are fundamentally flawed, as are all analogies drawn between electronic content distribution and distribution of a physical good: although oil is controlled in large part by a cartel, at the end of the day it is a nonrenewable resource. "Content" is not; I can copy Disney's Fantasia and give it to as many people as I want, and when I'm done, we all still have it. It's tough doing that with gasoline (though don't we all wish). Basically, DRM tries to make physical-goods distribution models work with strings of numbers, with mixed results. Or alternately, even if Disney decides to take their ball and go home, it's not as if "content" is in short supply, or is in any way a limited resource -- in fact, I would argue that the supply of content always exactly equals demand, no more and no less. People make content basically out of thin air when there is sufficent demand, and don't make it when there's not. The distribution companies have tried to create and perpetuate an artifical scarcity in order to maintain demand, and it's not working very well.

    But this is all sort of unrelated to the issue at hand (tiered internet). The point here is simply one where the backbone providers and telcos/ISPs have turned loose a few MBAs to try and figure out how to increase revenue. Their solution is, in the absence of real competition, to try and extort people into paying for the same thing (transfer of bits from point A to B in a timely manner) two or three times. On the receiving end (direct payment to the end-user's ISP), the transmitting end (via however Google/Yahoo/etc. pays the bills, i.e. advertising), and in transit (by twisting Google's or the end-user's arm for increased QoS).

    From a dirty business standpoint, it's like they took a look at the business model of the RIAA's member companies and decided they'd try to take it to a whole new level.

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