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The Facts & Fiction of Bandwidth Caps

wjamesau writes "What's the deal with broadband caps, like Comcast's 250GB/month data transfer limit, which goes into effect tomorrow? Om Malik at GigaOM has a whitepaper laying out the facts and fiction about Comcast's short-sightedness (which other carriers are mimicking), and how it will impact the future Internet: 'Given the growth trend due to consumers' changes in content consumption, today's power users are tomorrow's average users. By 2012, the bill for data access is projected to be around $215 per month.' Ouch." The white paper is embedded at the link using Scribd; for a PDF version you'll have to give up an email address.

34 of 394 comments (clear)

  1. The projected costs are worthless. by Aladrin · · Score: 5, Insightful

    I have serious doubts as to their projected costs. This will have changed so radically in 4 years that these predictions are about as stable as gas predictions that far out.

    On the other hand, they are somewhat correct about bandwidth usage becoming more common. My sister and mother both have Skype now and use it regularly, and many people are looking to set-top boxes for NetFlix's on-demand and other services like that. It won't be long now before heavy bandwidth usage forces the ISPs here to seriously consider bandwidth issues.

    Luckily, I believe in the market and I think someone will lay the groundwork for serious bandwidth soon, instead of continuing to use copper for everything.

    --
    "If you make people think they're thinking, they'll love you; But if you really make them think, they'll hate you." - DM
    1. Re:The projected costs are worthless. by gstoddart · · Score: 3, Insightful

      I have serious doubts as to their projected costs. This will have changed so radically in 4 years that these predictions are about as stable as gas predictions that far out.

      Have you observed the prices of broadband dropping lately? I sure haven't, and you'd think that over time it would.

      If the prices haven't been coming down, and they've been curtailing the amount of bandwidth you get ... it does seem like it won't get any better than it is now.

      Luckily, I believe in the market and I think someone will lay the groundwork for serious bandwidth soon, instead of continuing to use copper for everything.

      If this was anything resembling an open market where competition and other factors might change things, I might think you had a chance in hell of being right. However, the way the telecom industry in the US is structured, the 'market', as it applies here, is a complete myth.

      The big telcos own all of the infrastructure, and have shockingly little incentive to make things better. No new player can come along and compete. I see absolutely nothing to believe that the market will sort things out.

      Heck, increasingly I have very little faith in this so-called 'market' which everyone seems to think will magically correct imbalances over time -- there's just too many distorting factors, and people end up waiting around for the same players to do something different when nothing else has changed. And it's not just in the telco industry that the industry has managed to get some leverage against the notion of this guiding market.

      Cheers

      --
      Lost at C:>. Found at C.
    2. Re:The projected costs are worthless. by Anonymous Coward · · Score: 1, Insightful

      The problem I have is thus: 6mbps is $60, why isn't 3mbps $30 or 1mps $10? It is not like administration and billing take up that much money.

    3. Re:The projected costs are worthless. by samkass · · Score: 5, Insightful

      I think bandwidth has gotten to the point where you can't measure your capacity by assuming you'll be consuming 100% of the bandwidth all the time. Take electricity... no one seems to be bothered by the fact that if everyone consumed even 50% of their capacity at the same time the system would die a flaming death. And very few people even think about consuming 100% of the electricity available to their home.

      I really, really appreciate that I can get 20Mb down and 5Mb up whenever I need it, even if I don't transmit 250GB a month. It's dramatically better than having a 800kbps line that I can max out 100% of the time.

      --
      E pluribus unum
    4. Re:The projected costs are worthless. by Anonymous Coward · · Score: 3, Insightful

      The cable companies has Congress in their pockets and the state legislatures, too. How can market forces work when many cable and broadband providers have legislated local monopolies?

      Exactly! Except, those monopolies were granted to trick cable companies into investing the millions required to install that infrastructure. And those cable companies have in many cases already mostly upgraded the majority of the infrastructure to fiber (except the last mile. And now my local Telco has already run fiber to my house to compete with the local cable company, which has ramped up their service yet another notch to compete, and was well known for offering me tasty deals to abandon my DirecTV dish.

      If only there was competition!

      Fire your Congress. Vote against the incumbent or vote third party. Show those assholes who's in charge!

      Useful advice, because government officials really care what people who don't vote think.

      Or you know, you could write your legislators (those exclusive contracts are signed at a city level, BTW) and express your concerns in a coherent, well reasoned manner.

      Just saying

    5. Re:The projected costs are worthless. by philspear · · Score: 3, Insightful

      I should start this off saying I don't know much about computers in general, just an average user. I personally don't care much about capping because it doesn't seem to affect me. I don't know if my service is capped or not, but if it is, I've never had a problem with it, so I'm going to go with whoever is cheaper. If that is someone who caps, that's fine with me: it's not affecting me and I don't have the money to be making a statement about whether or not the internet should be metered, there are more important issues out there that I can't support financially.

      I do realize however that my demands for bandwidth or data transfer have mushroomed up, as have everyone else's. I don't really see that stopping. When netflix does something involving downloads instead of shipping actual discs, I'm sure I'm not going to want to watch low-quality. I'm saying that I am going to keep wanting more data, as will the other average users. I don't know when I'm going to start needing 250 gb a month, but it doesn't seem impossible. I'm also confident that if your average user like me is constantly using up their alloted data transfer, we won't be quiet about it, and the capping isn't going to stay at that. But I won't be voting for politicians based on this issue until it becomes an issue for me. That's absurd with, you know, some of the stuff going on right now.

    6. Re:The projected costs are worthless. by Free+the+Cowards · · Score: 3, Insightful

      Why? Why do you idiots always bring up VoIP when discussing bandwidth caps? How stupid can you possibly be?

      Skype is so bandwidth-unintensive that you can run it over a modem. That's right, a regular old 56kbps down (but really 53, if your connection is perfect) 33.6kbps up dialup-through-the-phone-line funny screeches and tones modem. Its bandwidth use is absolutely trivial. It is not going to suddenly cause your sister and mother to hit a 250GB/month bandwidth cap. Get a clue!

      --
      If you mod me Overrated, you are admitting that you have no penis.
    7. Re:The projected costs are worthless. by Captain+Spam · · Score: 5, Insightful

      Take electricity... no one seems to be bothered by the fact that if everyone consumed even 50% of their capacity at the same time the system would die a flaming death. And very few people even think about consuming 100% of the electricity available to their home.

      However, there's also the fact that, in almost all cases, electricity is a metered resource, but in the US, broadband generally isn't. As in, if you're using that 50%, you're paying more than if you were using 25%. If it were unmetered and people could (theoretically) run at 100% capacity 24/7 without any increase in cost, I can assure you we'd have the same people complaining about similar changes here, regardless of the damage it would do to the infrastructure. "Oh, I can't run my array of arc welders constantly anymore with these oppressive 4GW/month electricity caps!" "NOW how is my Tesla coil going to work all day and all night? I need that protection!"

      Granted, there is far less "damage" to be done with broadband (and I have a hard time believing that if the telcos/cablecos were actually upgrading their lines with all the money they rake in they can't support it), but if the electricity power-users got used to a (to them) unlimited resource and it suddenly changed to a metered one, the same problems would arise.

      --
      Demanding constant attention will only lead to attention.
    8. Re:The projected costs are worthless. by The+End+Of+Days · · Score: 2, Insightful

      Guess what - that is the market. No one is promising that you're going to get everything you want at the price you want to pay. No one ever did promise that. I know this is a shock to you, but the main reason people bother making the investments to make all these services work for you is the hope for profit. Trying to take away that incentive in favor of some imaginary right to free technology isn't actually going to make anything happen.

    9. Re:The projected costs are worthless. by shermo · · Score: 3, Insightful

      The electricity is supplied at a massively discounted rate, but it's still metered. The discount is because of the predictable nature of demand, both short term (a few days) and long term (10+ years). Also there's often associated generation built concurrently with the refinery/smelter etc.

      Actually, if you have any links to an example of unmetered heavy industrial use I'd be very interested.

      Cheers

      --
      Insanity: voting in the same two parties over and over again and expecting different results
    10. Re:The projected costs are worthless. by LrdDimwit · · Score: 2, Insightful

      Unicorn? Did the man say he believed in unicorns? Santa Claus, sure, but unicorns? You know how many letters Santa Claus gets from little kids who want unicorns? Any of them ever get one? Obviously ol' Saint Nick would come through ... if unicorns were real.

    11. Re:The projected costs are worthless. by Anonymous Coward · · Score: 1, Insightful

      The internet cannot be metered this way though, the vast majority of internet users don't use that much bandwidth so the businesses wouldn't get a return on their investment (line, router, customer service, etc).

      So what they are doing now is saying you can have this much internet, beyond this we'll punish you significantly, this is so that we can get as many people possible who barely use the internet and charge them ridiculous amounts because they're being charged for up to X gigabytes and at the same time they're fucking over anyone that actually uses the internet.

      This is terrible for all consumers of the internet.

  2. Article summary by neokushan · · Score: 1, Insightful

    For those of you who can't be arsed reading the article, it can be summarised as such:

    Bandwidth caps are a bad idea. The only thing they'll accomplish is increasing costs for nearly ALL users.

    So, nothing we didn't already know, then.

    --
    +1 IDisagreeSoHeMustBeATrollOrAnAstroturferOrAShill
    1. Re:Article summary by FireStormZ · · Score: 2, Insightful

      "Were we in a backward place like Korea, Japan, or Singapore we would enjoy HUGE bandwidth and no limit for a reasonable monthly fee."

      You mean geographically small and dense areas with less infrastructure needs to get glass to the curb than the US who have all built the majority of their physical infrastructure (roads, electricity, telephone, ...) in the past 30 years... oh yea that's apples for apples /sarc

      --
      "Ahh! Arrogance and stupidity in the same package, how efficient of you!" --Londo Molari
  3. Anonymous Coward by Anonymous Coward · · Score: 1, Insightful

    Well .. well.. another example of the wonderful harvard/wharton MBAs destroying the technological capacity of the USA to line their pockets..

    With administrations and finances run by such self-serving f**tards, do we really require external enemies to destroy us?

  4. Thank government restriction by InvisblePinkUnicorn · · Score: 3, Insightful

    You have only government restriction on the existence of competition to thank for the monopolies these jokers are able to maintain, despite customer demand for better services. In a more free system, customers would have threatened to leave for another provider by now. That would have forced providers to upgrade their systems to support the growing userbase. Not so here. There's no other choice.

    "Accept our high prices and shitty service! What else are you gonna use? Dial up? DSL? HA!"

    1. Re:Thank government restriction by MozeeToby · · Score: 4, Insightful

      You seem to think that the average, profit generating customer is the one who is affected by bandwidth caps and monopolistic behavior, but that simply isn't true. The only people that these limitations affect are the people who generate the least amount of profit for the ISPs. Imagine you own a business and you have a certain part of your customer base that actually costs you money to service, are you really going to worry about them leaving you for the competition?

    2. Re:Thank government restriction by Red+Flayer · · Score: 2, Insightful

      You have only government restriction on the existence of competition to thank for the monopolies these jokers are able to maintain, despite customer demand for better services. In a more free system, customers would have threatened to leave for another provider by now. That would have forced providers to upgrade their systems to support the growing userbase. Not so here. There's no other choice.

      And, pray tell, who would have paid to lay out the cable, if there were no assurances that the owner of said cable could have a monopoly? There is a significant initial cost to providing cable service. Guess what would tend to happen naturally if there were no regulation?

      A monopoly provider. With no regulatory oversight to ensure *some* decent level of service.

      Look, I understand that the free market has a lot of benefits, but in a capital-intensive industry where profitability is hard to get without a monopoly, the best thing for end-customers is a well-regulated monopoly. Of course I've yet to see a well-regulated monopoly... but on the other hand I've yet to see a natural monopoly act well either.

      Anyway, getting back to my point -- how can you have free competition in cable? One company lays out the capital to lay out the physical infrastructure, then everyone gets to use that infrastructure? Why would the company lay out the cash to build out, if they only see a fraction of the benefit? Say they charge others to use the infrastructure... without regulation, why wouldn't they charge exorbitant prices, so that they'd be able to outcompete their competitors? Wouldn't it take regulation to prevent that?

      Or perhaps you'd prefer that the government build out the infrastructure, for all to share... but that doesn't seem to jibe with the rest of your views.

      Please, explain to me, how would you propose deregulating the cable industry in a manner that allows competitive access, does not involve government ownership of the infrastructure, and results in greater options for the end-consumer?

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    3. Re:Thank government restriction by Anonymous Coward · · Score: 1, Insightful

      Except bandwidth doesn't cost these companies anything. They offset each others costs by peering.

      How can they offset each others costs by peering, if there are no costs?

  5. Rates that high will force rerouting by jmorris42 · · Score: 5, Insightful

    If they try to charge those kind of rates we will just route around them. We use the large ISPs because we find them the best bargsin. Jack up prices to that sort of level and there will be other options.

    Get rates up enough and lots of alternatives get practical. Wide area wireless, new competitors like the power company using their universal right of way to lay fiber, etc. Kinda like everybody bitched and moaned at $50/barrel oil and didn't change much but as it kept going up we are talking serious about hybrids, biofuels, drilling in places that would have been political suicide to talk about, building nukes (Nukes! Who could have predicted the greens ever allowing that!), etc.

    Get bandwidth expensive enough and we could just do local neighborhood p2p filesharing. Imagine a 10.0.0.0/8 wifi network covering a neighborhood and sharing the big popular downloads among themselves. Also would make the **AA goons job a lot harder.

    --
    Democrat delenda est
    1. Re:Rates that high will force rerouting by gstoddart · · Score: 1, Insightful

      If they try to charge those kind of rates we will just route around them. We use the large ISPs because we find them the best bargsin. Jack up prices to that sort of level and there will be other options.

      Route to where? If the major infrastructure and backbone is in the hands of the major telcos, short of laying an entirely new set of cables, where are you going to route to??

      Get bandwidth expensive enough and we could just do local neighborhood p2p filesharing. Imagine a 10.0.0.0/8 wifi network covering a neighborhood and sharing the big popular downloads among themselves.

      Ultimately, all of this needs to get routed over someone's wires.

      Maybe I'm just suffering from a complete lack of imagination, but I just don't see how you can get around sending stuff over the wire of a large company who is metering it. I'm just not seeing how you're actually solving the problem, just hoping that making it distributed will somehow create new bandwidth capacity and places for the data to travel over.

      Cheers

      --
      Lost at C:>. Found at C.
    2. Re:Rates that high will force rerouting by nine-times · · Score: 2, Insightful

      Imagine a 10.0.0.0/8 wifi network covering a neighborhood and sharing the big popular downloads among themselves.

      Great idea. Quick question: how will that wifi network connect to the Internet?

  6. FTA: On Innovators by mfh · · Score: 2, Insightful

    FTA:

    A number of new and emerging technologies, many aimed at enhancing the way the Internet is used, promise to change how companies innovate, managers make decisions, and businesses lower costs or realize new business opportunities. Carriers will need to proactively prepare for these trends rather than react to them.

    Comcast made promises and failed to deliver, and that's the key issue. Comcast's reactionary (and secretive) policies are based on a scary dollar figure, and their fear of exponential increases in overhead due to customers overusing/abusing their networks with massive transfers that were not originally expected by Comcast management. Comcast is as a result of poor planning, failing to deliver on promises made to customers.

    Personally I don't think the technology is there yet. We need to come up with a technology that can handle massive downloads without the huge overhead to companies. Reduce the cost, and increase the data that can be transfered without having the huge expense of wires... maybe there is a wireless technology of some kind around the corner that can make use of teleportation to help this situation get better? Once the wires and solid-infrastructure is under control, it's much easier to reduce costs and therefore provide service to a wider customer base, without having to clamp the valves on customers who simply want to download more information than could be anticipated.

    --
    The dangers of knowledge trigger emotional distress in human beings.
  7. Remember cell phone minutes? by natoochtoniket · · Score: 5, Insightful

    Once upon a time, we had to pay dearly for a 60 minute-per-month cell phone contract, and some people paid even more dearly for 180 or even 300 minutes per month. Then competition stepped in, and one of the vendors started offering 500 minutes per-month for same prices as the competitors charged for 180 minutes. Now, it's hard to find a carrier that even offers less than about 500 minutes in the lowest price tier, and lots of people have 1500, and "unlimited" contracts are becoming common.

    As soon as you are tempted to change internet carriers to avoid being charged for extra gigs, they will bump the gigs-per-month. IF there is competition in a metro area, the gigs-per-month in that area will increase rapidly.

    But, if you live in a small town or rural area, you get screwed. That seems to be a constant.

  8. Shortsighted? by Profane+MuthaFucka · · Score: 2, Insightful

    That's ignorant. They made long range plans. They took a look at the long term trend of ever-increasing bandwidth usage and realized they could rake it in by capping the bandwidth.

    --
    Fascism trolls keeping me up every night. When I starts a preachin', he HITS ME WITH HIS REICH!
  9. They should implement peak hours by antifoidulus · · Score: 3, Insightful

    much like the power companies do. If I want anywhere near decent speed I basically have to be up by 6 before the file sharers get up. I'm sick of having to buffer youtube videos because someone upstream is downloading gigs of data. However, I don't really care what you do while I'm sleeping, so I think that they shouldn't implement caps, but instead do as much traffic shaping as necessary from say 8 am to 10 pm so that people who don't use a ton of bandwidth can still enjoy what they like and from 10 pm to 8 am its open season.

    1. Re:They should implement peak hours by Hatta · · Score: 5, Insightful

      File sharers saturate their links 24/7. They are not the cause of prime-time congestion.

      --
      Give me Classic Slashdot or give me death!
  10. Could someone explain by DreadPiratePizz · · Score: 1, Insightful

    Could someone explain where the cost comes from? Why does using more of my bandwidth cost comcast extra money? If I buy a firewire cable, it costs the same whether I transfer 80 MB or 80GB using it, and it doesn't wear out with use. What are the expenses going toward? Costs for the routing/switching?

    1. Re:Could someone explain by rrohbeck · · Score: 3, Insightful

      They're talking price, not cost. The two have nothing to do with each other.

  11. Re:metered bandwidth by zehaeva · · Score: 4, Insightful

    Metering bandwidth raises a few questions about what should be transferred over the internet. If your paying per byte then all of those flash heavy advertisements are suddenly costing you money. you are then paying to be advertised to. who wants that? What happens when your computer gets a virus and starts to send out gigabytes of email spam? Who's liable for that? How about when windows decides to update its self with that sexy new 500MB patch? Or when WoW releases a new patch and you have to pay for the 800MB-1.5GB patch for that game?

    Metering bandwidth now when the internet depends on having an unlimited connection would truly stifle growth of not just the internet, of all computer software.

    When people have to think, gee do I pay for the bandwidth for this massive patch to my OS/Email Client/Office Suite/Game/Misc App, then everyone looses. Too many people would make their systems not update, and leave themselves vulnerable to attacks if given that sort of choice.

    Carried to its logical extreme bandwidth metering can be pretty scary.

  12. Re:Finland, anyone? by tknd · · Score: 4, Insightful

    IN the US the top 4 metros NY (18 Million), LA (12 Million), Chicago (8 Million), and Dallas (5 Million) together contain just 15% in those ares who's mean distance apart is far greater than Finland..

    Finland's population as a country is 5.3 million. So New York city has more than 3 times the population of Finland yet Finland has better broadband service? I know, Finland is a country not a city. But if you examine the cities you'll find the numbers still don't favor the US.

    Going by your cited area in your post, Helsinki has a population density of 3,060/km^2 while New York City has a density of 10,482/km^2. A large US city with similar population density to Helsinki is Los Angeles with 3,168/km^2. So Los Angeles has similar population density, yet 6 times more population (larger market) yet Finland still has better broadband? Furthermore New York City has more than 3 times the population density?

    Why are more and more countries consistently beating the US in information technology infrastructure even in similarly populated areas? Clearly it isn't a population or density issue. I'd say a better answer is large corporations using monopolistic power and litigation to prevent smaller guys and even municipalities from improving or building their own infrastructure to compete in lucrative service areas.

    Now I do get your general point. It is too hard for a single company (even a large one) to roll out nationwide high speed information infrastructure for a country the size of the US. I agree with that. But I don't see why the rules cannot be changed to allow smaller companies or municipalities from building their own infrastructure to provide for the needs of their local population whether it be a rural area out in the middle or nowhere or a high density area like New York.

  13. So how come DL speeds in US cities still suck? by zooblethorpe · · Score: 4, Insightful

    Great. (Though I must admit your final sentence kinda lost me.) It sounds like you're saying that since Finland is more urbanized, they get better service. This still doesn't answer the question of why urban areas in the US still have crap service compared to other countries. The cost of wiring rural areas is a bit of a red herring, as rural areas often don't have very good service anyway (i.e. not a lot has been spent to wire them), and it would be much more cost effective and profitable to wire up the dense urban areas -- but these still lag the rest of the developed world by a sizable margin, in terms of median download speeds.

    If you (or any other readers) are interested in download speed comparisons, have a look at the FA in the thread I linked to above -- or just click here for the linky. :)

    Yes, the US is big. But that is not the (only / main) reason costs remain notably high and download speeds depressingly low in the US. Another major factor in this equation is the fact that the US is relying on private enterprise to install the infrastructure -- the same private enterprise that actively obstructs any public-sector attempt to fill gaps left by incomplete corporate efforts, and that increasingly owns the content on the other end of the line. Decouple line ownership from line transmission, and decouple line transmission from content ownership, and *then* the US 'net might just catch up to the rest of the world, in terms of costs, transmission speeds, and traffic fairness. Until this comes to pass (and I sure won't hold my breath), the inherent conflicts of interest in such monopolistic cross-ownership will keep the US 'net market from being anywhere close to a "free" market, and any attempt at analyzing it as one is a waste of time.

    Cheers,

    --
    "What in the name of Fats Waller is that?"
    "A four-foot prune."
  14. Caps make sense by Brain+Damaged+Bogan · · Score: 1, Insightful

    the only people caps hurt are those 3% or less that are causing bandwidth slowdown for the other 97% of the populace. I'm in Aus, and while this may sound like a broken record, I find that I can easily get by with about 60gb/month. And I download several tv shows and have torrents pretty much constantly running. What the american ISPs also need to do however is set up better intranets in the major american cities, prioritise local traffic and make that traffic not contribute towards the cap. They could even do it on a per-state basis rather than cities, much like telecoms do when charging for national / local calls. you don't expect to have unlimited phone calls / unlimited electricity / unlimited water / unlimited fuel for a set fee, so why expect unlimited internet access?

    --
    -- Sex is the antonym of pringles. Once you pop it's time to stop.
  15. Limited bandwidth capability is the real issue, by Anonymous Coward · · Score: 1, Insightful

    The issue is, as many others have stated, that bandwidth has been effectively assumed to be unlimited. The problem is that increasingly more people are using increasingly more bandwidth as time progresses... and most importantly, the ISPs don't seem to be upgrading their bandwidth capabilities.

    The ISPs have been marketing the bandwidth capability as unlimited up until now. And now that you have an ever increasing amount of people streaming youtube videos, etc. the companies are trying to impose caps on bandwidth use instead of upgrading the pipes. They prefer to both demonize and victimize the so-called "power-users" for their "excessive" bandwidth use, and impose anti-filesharing network shaping and bandwidth caps to try and fix the problem instead of upgrading the damn tubes to match consumer use.

    This is false advertising on their part, up until now saying that you pay xx dollars per month for an internet connection with yy throughput. They never said anything about limiting use, and if they did not expressly say that usage was unlimited, it was implied. Now that more people are using big chunks of bandwidth they want to get away with putting caps on usage to altogether avoid upgrading their max bandwidth capability. If Comcast gets away with this without consumers finding alternative providers instead, this will likely set a trend across the board for ISPs to limit bandwidth.

    The capability never was unlimited, and I can only assume that ISPs never mentioned it because they didn't think it would become an issue. That, and their lack up upgrades to their systems over time is what makes up their lack of foresight.

    It's just another crap trend where companies want to pay less, market an inferior product and make profit instead of continuously channeling profit into development of a competitive product consumers want, market a superior product and gain profit by winning more consumers.

    And unless some ISPs decide to upgrade their pipelines with all the money they're making off of us, or they're otherwise forced to upgrade, Comcast-esque bandwidth restrictions are where we're headed.