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Will Internet TV Crash the Internet?

Stony Stevenson writes "Analyst groups and Cisco have come out saying that the internet is heading for a crash unless it increases its bandwidth capabilities which are being strangled by the increased use of Web TV. Stan Schatt, research director at ABI said: "Uploading bandwidth is going to have to increase, and the cable providers are going to get killed on bandwidth as HD programming becomes more commonplace." He added that the solution to the problem is to change to digital switching and move to IPTV. "They will be brought kicking and screaming into the 21st century," he said. Cisco weighed into the argument, adding that it had found American video websites currently transmit more data per month than the entire amount of traffic sent over the internet in 2000."

19 of 267 comments (clear)

  1. It's not rocket science by CarpetShark · · Score: 5, Interesting

    whether they are going to give us what want, and find a way to stay profitable ... or not.


    If you ask me, the whole "problem" is a bunch of balony. ISPs oversubscribe their services, because most people just browse websites, and that's low-bandwidth. Now, they're realising they can't do that, because people are using youtube and bittorrent, and that's about to reach critical mass when people like the BBC legitimize it in a consumer-oriented shrink-wrap. Suddenly, ISPs can't claim that people who actually USE their services are doing something immoral or illegal.

    So, what's the problem again? You sold a service extra-cheap, because you didn't think you'd have to provide the full service? Tough. Get real, and sell what we're buying. The prices might go up, sure, but either we'll pay, or we won't care about the new service. Your upstream providers might charge too much for bandwidth, but that'll soon change as ISPs start demanding more.
    1. Re:It's not rocket science by Antique+Geekmeister · · Score: 2, Interesting

      Notice also that they didn't sell *us* the service. They sold their excited investors the business plan to sell exponential growth, based on badly researched growth of their businesses and excited sales plans.

      We saw this all about 7 years before the first dotbomb, with web businesses. We're seeing it now with new online video businesses. The people who learned their lessons last time are selling their acumen this time around, selling the datacenter space and storage acumen to people willing to pay on credit for massive expansion that is never going to happen. These people are snickering as they carefully insist on cash up front.

    2. Re:It's not rocket science by Tango42 · · Score: 3, Interesting

      There's no big difference between failing to predict growth and under-predicting it when that growth is (near) exponential. Your prediction is out by a factor of 20% in the first year, and by the fifth year, you are out by (according to the back of my envelope) 150%.

    3. Re:It's not rocket science by Shishak · · Score: 2, Interesting

      I'm talking backbone bandwidth, i.e. what your ISP buys their bandwidth for. Not consumer bandwidth which has heavily overcommitted.

      Cogent is $10/mbps @ 1gbps commitments ($10,000/month) for bottom of the barrel pricing
      Sprint/Qwest/ATT/UUNET all hover between $24-$32/meg for 1gbps commitments ($24,000 - $32,000/month).

      Verizon DSL 3.0mbps is $19.95 so $6.65/mb but they overcommit
      Comcast is 6.0mbps for $49.95 $8.32/mb also overcommited

      My point was, if you actually paid for the bandwidth you use (i.e decicated/not-overcommited) it would run $700/month, not $20/month

      ISPs have to overcommit, customers are idle 90% of the time. it is what makes the business models work.

      New applications (YouTube, BitTorrent, etc) change the business model, someone needs to adapt. the ISP can easily increase the bandwidth available, but can the consumers afford to pay for it?

      OC-768 line cards (40gbps) cost $250,000 each. And the router they plug into costs millions. This stuff aint cheap

      --
      Now I hope and pray that I will But today I am still, just a bill
    4. Re:It's not rocket science by blurryrunner · · Score: 3, Interesting

      What they need to do is instead of caching it locally, they should have set top boxes with large hard drives running bit torrent. Then bit torrent style, distribute the content to the customers. So instead of caching it near your customers, you cache it with your customers.

      This works great, because all the customers are near each other. You would also seed the content centrally, but you wouldn't need gobs of bandwidth from the central office to the customer, just between the customers.

      Too bad ISPs are starting to throttle Bit Torrent--it really is a solution, not a problem. /br

    5. Re:It's not rocket science by Anonymous Coward · · Score: 1, Interesting

      I expect google predicted it. Hence their mass buyup of 'unused' fiber networks.

    6. Re:It's not rocket science by Anonymous Coward · · Score: 1, Interesting

      My isp didnt predict shit all, and now that its becoming choked they're calling me up to tell me to use less bandwidth, even though my bandwidth usage (on their highest download/mo option) hasnt really changed and isnt exceeding my capacity. When I tell them I'm acting inside our contract they cap my connection and now I suffer high choke. I call them up, they go "oops how did that happen" and undo it and then switch it back later that day. I feel like a conspiracy theorist or something but this is what's happening. Tragically they are one of two options in town, and the other is potentially worse (an old dsl company). I pray for the day when a real company comes to Vancouver, BC, Canada and shows them how its done - they charge way more than american competitors for worse service/speed.

      Of course, I'm moving to university for next term, and this particular one doesnt fuck around on bandwidth I hear, so I'm happy :D (or I will be, until I have to leave campus)

    7. Re:It's not rocket science by utopianfiat · · Score: 2, Interesting

      Fuck that, you know some countries have near-ubiquitous internet in the megabit range, and for a fraction of the cost that the states pays? Cisco is full of shit. The internet ain't heading for a crash (first of all because it's _not possible_). ISPs need to buck up and figure out how to GASP spend money on upgrading their goddamn infrastructure.
      There's money to be made here, but only on people who can fuck their shareholders gently (and give them some smooches too).

      --
      +5, Truth
  2. My alternative... by Panaflex · · Score: 5, Interesting

    I've spoken with a few engineers in the IPTV business... they're al about multicasting and QOS delivery. I'm going to go out on the limb and say... uhhh.... no. Why?

    Because that's NOT what internet TV is all about. Sure, for some content think it's great. Like ABC, Fox, whatever - they can do the multicast. But for the rest of the content providers, it's going to be on-demand. And that solution is really quite simple. And it makes money.

    Basically you take an Akamai like model and extend it. Deploy caching servers right to the ISP's - on the customer doorstep. Offer subscriptions to the customers and the ISP gets a chunk of the monthly. Customers get instant access to the content from the caching server. Content people get a chunk from the number of views statistically. ISP's only have to move content over their uplink once for all their customers nearby.

    Best part is you could do it securely for the media providers, and give people a reason to use the service (more shows, better quality, faster delivery). Eventually you offer sell-up items like movies, sporting events, etc. In other words it would be better than cable, cheaper than cable, and far cheaper to operate.

    There's all kinds of great stuff you could do here - and you could do it on the cheap and make beaucoup bucks. So, ya know... send me a bag of gold hehehe.

    --
    I said no... but I missed and it came out yes.
    1. Re:My alternative... by vhold · · Score: 2, Interesting

      I think the reason why we won't see that is because the ISPs want to take advantage of their unique position, and basically hold a monopoly on ultra fast and cheap content delivery that doesn't go out over the internet.

      Comcast already has the most comprehensive on-demand services, and it's quite expensive for the end-user. $6 to watch a HD movie. Why would they open up that door to equal competition? As competitors pop up, they'll always be able to undercut them because they don't have to pay a 3rd party for bandwidth.

  3. I smell baloney by nysus · · Score: 2, Interesting

    I wonder with telco/cable company this "research" firm was paid by. This bit of disinformation helps support their case for why we need to turn the net into an information superhighway dotted with toll booths. However, there are better ways to do things.

    Isn't funny, that a country of South Korea does just fine with super fast broadband connections many times faster than ours in both directions? No problems there. Unfortunately, this country's moronic embrace of unfettered capitalism and foolish trust in corporations to deliver essential public services is stopping us from seeing the best approach to delivering an infrastructure that will serve people well.

    --

    ---Technology will liberate us if it doesn't enslave us first.

  4. Re:Web TV? by nysus · · Score: 2, Interesting

    Actually, my Mom still has it. Bought the thing in 1997. Still works!

    --

    ---Technology will liberate us if it doesn't enslave us first.

  5. easy to delay by zmollusc · · Score: 2, Interesting

    Seeing as tv over the intarwebs will be plagued with DRM and propriatery code, why not have the shitty pointless advertising and tedious channel logo 'establishing shots' cached locally? Hey presto, a 80% reduction in traffic.

    --
    They whose government reduces their essential liberties for temporary security, receive neither liberty nor security.
  6. Re:Simple partial solution by ScrewMaster · · Score: 4, Interesting

    I have the feeling it's not so simple as that. I'm on the Comcast 8 meg tier and have also noticed no difference in behavior. But then again, where I live I have lots of broadband options (I didn't plan it that way but there it is.) I doubt Comcast is going to screw with me too much because I could switch to a more congenial provider with a phone call. On the other hand, if you're someplace where Comcast (or any other ISP) is the only game in town, I think it might be a different story. Besides, Comcast is huge and is under no obligation to apply any policies equally across their entire network. You and I could be among the lucky ones (for now.)

    --
    The higher the technology, the sharper that two-edged sword.
  7. Bandwidth is not a limited resource by symbolset · · Score: 4, Interesting

    Available bandwidth is currently deliberately limited by the major incumbents. This manufactured scarcity drives the price up. There is more than enough dark fiber to meet our needs for decades to come.

    The incumbents are about to discover that people will only put up with this for so long before they mandate municipal information infrastructure. Fiber is the bridge to the global economy and building bridges is one of the justifications for government exist. If your state and local governments won't do it, mine will - and your kids will find it that much harder to compete with mine.

    Fiber is not made of some rare mineral. It is processed sand.

    --
    Help stamp out iliturcy.
  8. Re:Imminent Demise of the Internet Predicted by Anonymous Coward · · Score: 1, Interesting

    Considering it was something like 2006-2007 before YouTube took off, you could say video over the Internet has, in fact, been a long time coming. And HD video over the Internet? May be a long time still. It's a big jump from YouTube to streaming even 720p regularly.

  9. They can't afford to light it by Wesley+Felter · · Score: 2, Interesting

    The cost of the Internet is in the routers, not the fiber.

  10. Re:What happened to all that "Dark Fiber"? by Randseed · · Score: 3, Interesting
    Dark fiber is still out there, and your question is a very valid one. Here's a FAQ I turned up on it:

    Dark Fiber FAQ

  11. Multi-Pay-Per-View by DumbSwede · · Score: 2, Interesting

    "Using multicast you can send the same channel to multiple customers (IPTV) but that is broadcast, not pay-per-view."

    Why can't multi-cast be pay-per-view? You download a key you pay for ahead of time and then decrypt what is streamed to everyone. Moreover you could download a broadcast and then pay later for a key to decrypt it. You could even have the cost for live events go down by how long the delay between the download and buying the key.

    Granted there will be piracy, but for live sporting events this would probably work very well as the pirates wouldn't be able to get the pirated material decrypted quick enough to post, nor post the crack and software for intercepting the broadcast in real-time quickly enough (though some computer savvy users may manage some of the latter).