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ISP Capping Is Becoming the New DRM

Crazzaper writes "There's a lot of controversy over ISP capping with Time Warner leading the charge. Tom's Hardware has an interesting article about how capping is the new form of DRM at the ISP level. The author draws some comparison to business practices by large cable operators and their efforts to protect cable TV programming. While this is understandable from the cable operator's perspective, the article points out how capping will affect popular services such as Steam for game content publishing and distribution, cloud-computing and online media services. Apparently this is also an effective way of going after casual piracy."

395 comments

  1. In Europe by __NR_kill · · Score: 5, Insightful

    In particular in Belgium, there are just a few ISP's that do not have any capping. The major ISP's make BIG profit of the users who want to download lets say, more than the 40GB they offer. It's NOT a DRM, it's just another way to squeeze more money from their customers.

    1. Re:In Europe by SalaSSin · · Score: 3, Informative

      With you there.
      I live in Belgium too, and what they're charging here for bandwith and download limits is WAY of the charts compared to most other western countries in the world :-(
      To make it clear: I'm paying 42,91 (that's $56,69) / month for 15 Mbps and 25GB limit...

      --
      Any sufficiently advanced incompetence is indistinguishable from malice - Grey's Law
    2. Re:In Europe by SalaSSin · · Score: 1

      Damn, the euro sign just got lost, i meant 42,91 EUR

      --
      Any sufficiently advanced incompetence is indistinguishable from malice - Grey's Law
    3. Re:In Europe by njen · · Score: 1, Informative

      This news heading has way too much sensationalism.
      While capping may suck for those who have not experienced it, this has been quite normal in Australia for a long time. In fact, unlimited internet to me seems like the exception, rather than the norm. It's all what you are used to I guess.

    4. Re:In Europe by vally_manea · · Score: 1

      Crap, that's a lot of money. I guess it depends where you are in Europe, for example I pay the same money for 110Mbps with no download cap.

    5. Re:In Europe by Sumbius · · Score: 4, Interesting

      I'm paying 44EUR for 1Mbps but no limit. (well, not at least any real limit. They just check the stats and say "Hmm, that poor pirating bastard has used 5GB of our precious bandwith this month." and press the button. No letter nor anything whatsoever.) This is madness. My ISP cut the phone lines where I live (is that even legal?) and the only wireless connection available is by that ISP! They simply forced my neighborhood into using their pricey and low quality connection. (1Mb max, 6 hour waiting line in the service phone and sometimes the connection just vanishes for a couple of days.) No mattter, I'm moving out in a few months. It's rare that someone moves because of their ISP...

    6. Re:In Europe by Anonymous Coward · · Score: 3, Funny

      I've got a really long cat5 cable. Do you have an extra spot on your router? :)

    7. Re:In Europe by Anonymous Coward · · Score: 4, Insightful

      Bullshit.

      It may hold true for Belgium /in particular/, but Europe is too diverse to conform even loosely to the shenanigans you mentioned.

      On the oposite side of the spectrum, less than two hours away by plane, we have Sweden, where a 100Mbps pipe costs less than a Big Mac meal per week.

      Your neighbour, Holland, has pretty decent Internet, as does Germany, Finland and France.

      Damn ignorant first-poster.

    8. Re:In Europe by SpzToid · · Score: 0, Redundant

      It doesn't matter, really. The maximum length specified for cat5, cat5e, or even cat6 cable is only 100 meters. Beyond that, you'd need to add hubs to connect the lengths.

      --
      You can't be ahead of the curve, if you're stuck in a loop.
    9. Re:In Europe by T-Bone-T · · Score: 2, Funny

      As fast as that is, I'd go with the next step down. My NIC can't even go that fast!

    10. Re:In Europe by SalaSSin · · Score: 1

      Actually, it isn't, i already did exactly that, because the ISPs where i used to live were more expensive.

      Regarding what they charge you: DAMN, where in Europe do you live, so i avoid checking out houses there? ;-)

      --
      Any sufficiently advanced incompetence is indistinguishable from malice - Grey's Law
    11. Re:In Europe by Demonantis · · Score: 1

      I agree. What is most likely to happen is the pirates will smarten up and control their downloading to within their tier. ITs the people that don't get what the is going on that will get charged. What I don't understand is why the ISP's are taking on customers at a level that their equipment can handle and they are allowed to get away with giving you sub advertised service.

    12. Re:In Europe by houghi · · Score: 1

      That is why I choose my provider with my wallet. Do the same and let them know. I left one provider who did not have capping, but could not put it in their contract for one that could.

      And it is indeed just upselling things. Comparing accounts is hard, but for a fixed IP you pay some 20-50EUR per month extra. Yes, that is per month. Each broadband customer must have one IP anyway, so it does not matter if they give you a fixed one or not.

      When ADSL started in Belgium and everybody was surprised that it was catching on so fast. The reason was that calling in was even MORE expensive. The one then only wholesale ADSL provider (Belgacom) had caps in their contract, but told their customers (the providers) that they did not care.

      It was the providers themselves (first who asked was Planet Internet. Now under a different name and owner) who wanted this and implemented this, even though the wholeseller did NOT charge them anything extra for extra bandwidth. Nothing, zilch. Zero.

      And yet these providers keep lying to us as to why we would need to pay more and many people believe them, because it sounds so believable.

      --
      Don't fight for your country, if your country does not fight for you.
    13. Re:In Europe by swarsron · · Score: 1

      i don't know about Belgium but here in Germany i don't know anyone who ever got trouble because of capping. It used to be a real problem many years ago when there were few providers who sold ISDN flats but with DSL it is pretty much non existant.

      I work for an ISP which offers 100/10 mbit without cab for 40 euros a month. You only have to be lucky enough to live where we deploy FTH/FTB and will be able to use this service as you please.

    14. Re:In Europe by Anonymous Coward · · Score: 2, Funny

      It doesn't matter, really. The maximum length specified for cat5, cat5e, or even cat6 cable is only 100 meters. Beyond that, you'd need to add hubs to connect the lengths.

      However, simply splicing together about 100 cat5s with wirecutters and electrical tape is doable. Just takes a while.:)

    15. Re:In Europe by aesiamun · · Score: 3, Funny

      I know! We can take your provider and connect a series of switches, each of us getting a drop where we can add a router and add our machines behind that router.

      We can make a network...and interconnected network of computers.

      I'm going to call it...Ted!

    16. Re:In Europe by Hurricane78 · · Score: 2, Insightful

      It's NOT a DRM, it's just another way to squeeze more money from their customers.

      I thought that was the very point of DRM.
      And I still think this.

      --
      Any sufficiently advanced intelligence is indistinguishable from stupidity.
    17. Re:In Europe by Anonymous Coward · · Score: 0

      The point you missed is that the ISP's make money by capping, not implementing just another form of DRM. Read the posts before selling your bullshit.

    18. Re:In Europe by Anonymous Coward · · Score: 0

      You should move up north. I know of no Dutch ISP that still employs bandwidth caps. Some ISPs even advertise unlimited access (site in dutch), which means they do not even apply fair use policy.

    19. Re:In Europe by Lumpy · · Score: 1

      It's not just squeezing more money from the user. It's all about being cheapskates and not upping their backbone.

      Comcast in most places have so oversold their bandwidth that I laugh when I see their claims of 15meg for business class. Yeah maybe at midnight.

      They love the caps as it makes most users the "pay for it but don't use it" class of customer that makes them a butt-load of money. Problem is that it's going to bite them in the butt. They still advertise "watch streaming movies!", yet a pair of movie buffs can exceed the cap using netflix on their Xbox360's in a single apartment. Friend of mine went over from his and his friends constant netflix and Hulu useage coupled with his friends coming over and doing it as well... 6 people all watching the same TV show on their laptops sitting around the room is W I E R D... I asked why they dont use a media PC hooked to the TV, they shrug.

      Bandwidth caps are simply a way to make extra money while avoiding to upgrade your old tech and bandwidth coming in.

      --
      Do not look at laser with remaining good eye.
    20. Re:In Europe by sekra · · Score: 1

      In particular in Belgium, there are just a few ISP's that do not have any capping.

      That might be true for Belgium, but in Germany it's actually the opposite case. Basically every decent ISP offers unlimited connections, often they don't even have a capped line. Maybe it's because cable providers for whom the internet might hurt TV products only have a small market share. The by far biggest share of the market goes to phone companies with DSL who actually try to enter the TV market with IPTV. Introducing caps would just hurt their own IPTV products, maybe that's why by now I haven't seen any big ISP trying to introduce caps by default.

      If you actually want a capped connection, you can find it (and it's really cheap), but not many people use these.

    21. Re:In Europe by 2names · · Score: 1

      Belgium, eh? LOVE your waffles.

      --
      "I'm just here to regulate funkiness."
    22. Re:In Europe by sjames · · Score: 3, Insightful

      As telecommuting takes off, it will become somewhat less rare for a bad ISP to be a good enough reason to move. If it's unreliable enough to make doing your job impossible, moving starts looking good.

      Local governments might want to keep that in mind.

    23. Re:In Europe by Klaus_1250 · · Score: 1

      I live 5km from the Belgium border, in the Netherlands. ~30 euro's for a 10/1.5Mbps connection with a FUP that allows at least 1TB a month.

      --
      It only takes one man to change the Wisdom of the Crowd to Tyranny of the Masses.
    24. Re:In Europe by LoRdTAW · · Score: 1

      Don't forget about their Beer!

    25. Re:In Europe by Anonymous Coward · · Score: 0

      Exactly.

      This is the first time I read about capping in Europe. Those horror stories usually come from the US.

      If it's so in Belgium, than that sucks for you guys, but the vast majority of European ISPs don't have any capping at all.

      (Or, to be exact: it's often there for internet on mobile phones, but definitely not for ADSL/cable/optical...)

    26. Re:In Europe by 2names · · Score: 1

      Ah, yes, good point. I love the Trappist beers by Chimay and Orval.

      --
      "I'm just here to regulate funkiness."
    27. Re:In Europe by Anonymous Coward · · Score: 0

      Music DRM is not DRM, it's just another way to sell those bought CD's again!

    28. Re:In Europe by SanityInAnarchy · · Score: 1

      Each broadband customer must have one IP anyway, so it does not matter if they give you a fixed one or not.

      Yes and no.

      Yes, they are gouging. All ISPs seem to, with this.

      No, it's not zero cost. Assume they pull it from the DHCP pool -- that means reconfiguring the DHCP server, and possibly killing a lease (thus interrupting service for that person). There are likely graceful ways to do it, but they're not exactly that easy.

      But then, you'd think they would want to encourage static IP addresses. It might not be much, but DHCP does require a server, some amount of bandwidth, CPU, and disk space, and is yet another point of failure should something go horribly wrong.

      Seriously, just use dyndns, dnsmadeeasy, zoneedit, or any of the many, many free services out there for dynamic DNS.

      --
      Don't thank God, thank a doctor!
    29. Re:In Europe by CarpetShark · · Score: 1

      "Good for office monkey stuff" is not exactly the connection I envisage when I think of a good ISP. Slow, simple connections that cover email and uploading a word document, yet can't be shut down for a day or two while you switch ISPs would be very bad for the net.

    30. Re:In Europe by sjames · · Score: 1

      No, good enough for email and a few documents isn't really enough to be a good ISP and isn't actually good enough for telecommuting either. Apparently, some can't even live up to that low standard.

      As telecommuting expands, other requirements will come in to play such as reliable low latency for VoIP and teleconferencing (including whiteboard). The latter means they'll have to be able to reliably deliver a megabit or two (BOTH ways) at low latency on demand, not just every once and a while.

      "We'll send someone to look at it next week" also won't suffice.

    31. Re:In Europe by houstonbofh · · Score: 1

      No mattter, I'm moving out in a few months. It's rare that someone moves because of their ISP...

      We do WiFi in hotels. People check out over Internet all the time. And apartment complexes have the same issues for both Internet and cable. Some businesses are waking up to this... Some are not. Darwin will fix it fast.

    32. Re:In Europe by houstonbofh · · Score: 1

      Most remote workers need VPN, and many need VoIP. So "Good enough" for that is generally fairly good.

    33. Re:In Europe by houstonbofh · · Score: 2, Interesting

      I know! We can take your provider and connect a series of switches, each of us getting a drop where we can add a router and add our machines behind that router.

      We can make a network...and interconnected network of computers.

      I'm going to call it...Ted!

      Don't laugh... This is starting to happen. A WiFi mesh darknet is not hard if you have proximity. And it makes piracy cheap, easy, and safe.

    34. Re:In Europe by RoFLKOPTr · · Score: 1

      It doesn't matter, really. The maximum length specified for cat5, cat5e, or even cat6 cable is only 100 meters. Beyond that, you'd need to add hubs to connect the lengths.

      Look who just passed their CCNA and feels the need to implicitly brag about it by completely ignoring the joke of the parent.

    35. Re:In Europe by SpzToid · · Score: 1

      Whoosh! Do you fail to see any humor in what I wrote as well?

      Rough day on the slashdots I guess, and I am not a CCNA you insensitive clod! I used Wikipedia to be precise.

      --
      You can't be ahead of the curve, if you're stuck in a loop.
    36. Re:In Europe by RoFLKOPTr · · Score: 1

      Do you fail to see any humor in what I wrote as well?

      Yes.

    37. Re:In Europe by Paul+server+guy · · Score: 1

      No mattter, I'm moving out in a few months. It's rare that someone moves because of their ISP...

      I actually pick where I live based on broadband availability, and once when the ISP lied about it, was able to get them to pay for moving expenses and breaking the lease...

      (But, there was a gag order, so quest would be pissed if I said who the ISP was... :)

      --
      Your Moon, Your Mission, Get involved! http://www.openluna.org
    38. Re:In Europe by badkarmadayaccount · · Score: 1

      You are supposed to use HTML escape chars, in your case - €. HTH

      --
      I know tobacco is bad for you, so I smoke weed with crack.
    39. Re:In Europe by Anonymous Coward · · Score: 0

      Try dark Leffe

  2. Why Not Just Metered Service? by blcamp · · Score: 5, Insightful

    Rather than have these ridiculous, confiscatory rates for so-called "unlimited" service (which will still be capped under some other excuse)... why don't the ISP's just provide metered service?

    This way, Grandma who just wants a couple of recipies every now and then, and occasionally looks at baby photos posted on thier adult children's Facebook accounts (and is not pulling down 10GB/month)... only pays a little bit.

    And the Torrent operators pay for what they use.

    Pay for what you consume. Fair for everyone.

    Or is that too much common-sense for all involved?

    --
    The problem with socialism is that they always run out of other people's money. - Margaret Thatcher
    1. Re:Why Not Just Metered Service? by Akido37 · · Score: 5, Insightful

      Pay for what you consume. Fair for everyone.

      Or is that too much common-sense for all involved?

      Because that's bullshit.

      The ISPs' costs aren't based on how much you download, but on the bandwidth they provide. A better limit, and more fair for consumers, would be tiered service based on speed.

    2. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 2, Interesting

      The thing is this:

      I've paid $40 a month for the last 9 years, and I've regularly consumed over ~70GB of data per month on TWC. Now, suddenly, there is not enough bandwidth to go around and they need to charge me extra $1 for any gigabytes over 40GB?

      Clearly, when I was their consumer for the last 9 years, they could afford to sell me data at ~57 cents/gigabyte ($40/70gb). Not once... NOT ONCE did I ever have any complaints from TWC about my usage. Even on months that I spiked to 100+ GB (not very often, mind you).

      So how do they all of a sudden consider that the "Pay for what you consume; Fair for everyone" rate is $1 per gigabyte.

      It's completely arbitrary. It's not based on their network capacity. It's not based on usage stats. It's based on some out-of-touch beancounter trying to pull the fast one on its customers.

      It's a good thing that I can take my business elsewhere. If they didn't have a monopoly, I'd be screwed.

      Oh wait...

    3. Re:Why Not Just Metered Service? by sqrt(2) · · Score: 5, Insightful

      Because the cost to the ISP isn't based on how much I use. They have to maintain the infrastructure no matter how much it's being utilized. Their operating costs are the same whether their customers are using 50% of their bandwidth capacity or 99%. I shouldn't have to pay more because I use the resource that is available. If they are unable to deliver the service they are selling then they need to invest in upgrading their capacity. Bandwidth demand is only going to increase, gouging customers is not a solution to the problem.

      --
      If you build it, nerds will come. Soylentnews.org
    4. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 1, Insightful

      Because, unlike a real utility like water or electric, it doesn't cost big ISPs anything more whether you use the service or not. They peer their costs amongst each other.

      So no, it's not common sense. It's pure greed. Maybe if the same companies would let you pay per view for the TV shows they carry they'd have a better moral position to stand from. But that's not going to happen. We pay for shit whether we watch it or not.

    5. Re:Why Not Just Metered Service? by javilon · · Score: 3, Interesting

      "Rather than have these ridiculous, confiscatory rates for so-called "unlimited" service (which will still be capped under some other excuse)... why don't the ISP's just provide metered service?"

      Because the ones most screwed up would be the grand moms of the word. They would be charged a hundred times more per kilobyte than the pirates. The scale wouldn't be linear. It would be something like:

      1GB cap -> 10$
      10 GB cap -> 20$
      50 GB cap -> 40$
      100 GB cap ->60$
      500 GB cap ->100$

      At that point the grand mum would realize that she is paying 10$ per GB while the guy next door is paying 0.2$ per GB. At that point two things would happen. First, she would realize that she is not getting a good deal, and second, she would arrive at a nice arrangement with the guy next door where for 5 bucks she gets to connect to his access point.

      The lesson to learn from this is that a byte is a byte and if you try to make the pricing steps too high, it won't work.

      --


      When his defense asked, "Which computer has Jon Johansen trespassed upon?" the answer was: "His own."
    6. Re:Why Not Just Metered Service? by u38cg · · Score: 2, Insightful

      I do agree with you that straightforward per-GB charging is not ideal. However, the fact is that if people actually paid a fair price for guaranteed service, they would be quite surprised. In the same way that hotels overbook rooms and airlines overbook flights, it cuts costs all round if this practice exists. Not an entirely simple problem, and not one that is easily solved by capping, either.

      --
      [FUCK BETA]
    7. Re:Why Not Just Metered Service? by morgan_greywolf · · Score: 1

      The ISPs' costs aren't based on how much you download, but on the bandwidth they provide. A better limit, and more fair for consumers, would be tiered service based on speed.

      A lot of ISPs are already doing this and maybe that's why there aren't usage caps on mine (yet). They have 768K for $33/mo, 7 Mbps for $48/mo, 15 mbps for $58/mo and 20 Mbps for $63/mo. That's without any cable TV bundling.

    8. Re:Why Not Just Metered Service? by John+Hasler · · Score: 4, Informative

      > Because the cost to the ISP isn't based on how much I use.

      No. Their last mile capacity depends on your peak uasage but as soon as you get far enough upstream to be dealing with the aggregation of a significant number of users it depends on average usage. There is no ISP that would not have problems if all its customers maxed out their connections at once.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    9. Re:Why Not Just Metered Service? by Albanach · · Score: 4, Insightful

      Because, unlike a real utility like water or electric, it doesn't cost big ISPs anything more whether you use the service or not. They peer their costs amongst each other.

      So laying cables and Cisco routers, they all come free if you're an ISP, yes? Where do I sign up?

      Come off it. You can argue about the size of the caps, then I'll listen, but to pretend that increases usage doesn't impose any additional costs on ISPs in nonsense.

      Most ISPs report that a very small number of users use the majority of their bandwidth. When their capacity hits a bottleneck, all their users start to suffer. The ISP has two choices - increase capacity, which could be straightforward by adding a couple of extra routers, or could be very very expensive such as installing new DSLAMs or laying fiber between locations.

      So as an ISP what do you do? Eat the cost? Raise the rates for all your customers, even those that use 2GB/month? Kick off the high users for breaking an 'invisible' cap hinted at in your TOS? Or introduce tiered pricing, so those that use most, pay most?

      If you want a debate about whether the level the caps are set at are fair. go right ahead. But to pretend that ISPs somehow have unlimited free bandwidth and that extra usage has no additional cost implication is an untruth.

      I can see two solutions to the problem. Fairly set caps that accurately reflect the increased costs of increased usage, or a service like water or gas where you pay a connection fee and a per gigabyte fee, possibly with tiers so costs increase faster with very high usage.

      There's a problem with this in the US - very limited competition. If you're not competing against anyone else, why try and lower your profit margin? Until the US sorts out local loop unbundling, so there's real competition over the last mile, US customers will continue to be gouged.

    10. Re:Why Not Just Metered Service? by sqrt(2) · · Score: 4, Interesting

      If all the customers are using their connection in such a way then that is the capacity that is being demanded and that is the capacity that the infrastructure needs to be able to handle. If it can't handle it, then the answer is simple; upgrade the network. Now that's an exaggeration, but the truth that no one at the ISPs wants to deal with is that raising price to encourage people to use less is not a long term solution. Eventually there is just going to be too much data being moved around and they'll have to expand their capacity. This is going to cost money and no one wants to spend it, especially when it's easier (in the short term at least, but they're shooting their own foot) to just charge more and change their business model to an arbitrarily priced metered service with hard caps.

      You're never going to convince the private sector that investing in more capacity is a good business move. Business can't look that far into the future. They see an easy way to make more money and that's what they will go for despite the fact that it's completely irresponsible and shortsighted.

      --
      If you build it, nerds will come. Soylentnews.org
    11. Re:Why Not Just Metered Service? by mikael_j · · Score: 1

      Ah yes, let's go back to the "good ol' days" of the late 80's and early 90's when the telcos gladly robbed you blind if you wanted to transfer data over their lines, because that was such an awesome idea...

      Here's a hint: If they start to charge by the gigabyte or megabyte then they'll only do so because they figure they can rape their customers.

      Of course, I'm swedish and I've never had any transfer limits on my internet connection, in the pre-1998 days when I was on dialup I did pay by the minute though, and that was a huge pain in the ass.

      /Mikael

      --
      Greylisting is to SMTP as NAT is to IPv4
    12. Re:Why Not Just Metered Service? by RemoWilliams84 · · Score: 1

      Why Not Just Metered Service?

      I think you answered your own question.

      Because,

      Grandma who just wants a couple of recipies every now and then, and occasionally looks at baby photos posted on thier adult children's Facebook accounts (and is not pulling down 10GB/month)... only pays a little bit.

      There are a lot more people who use the internet like grandma. They would lose a lot of money that way. What they would like to do is squeeze every penny from everyone, not just a portion of the customers.

      --
      "I don't have to think. I only have to do it. The results are always perfect, but that's old news." - Meat Puppets
    13. Re:Why Not Just Metered Service? by xouumalperxe · · Score: 2, Insightful

      Ok, let's assume the cost to the ISP doesn't directly depend on how much total download volume you use. The bandwidth they can provide is limited though (like you said, by their infrastructure), and the more you download, the more time during which you're taking up a portion of that bandwidth, which can't be assigned to somebody else. A cap on the download volume is, effectively, a cap on how much use you make of the limited good. Now, if you provide a good, and there is contention for that good, you need to upgrade the infrastructure, which is more expensive than upkeep. That means either consumption goes down, or somebody has to pay for the upgrade. Raising the base line for flat pricing is quite unfair on the lower-usage customers, so you charge based on the total traffic.

      This said, I do agree that the actual prices (if not the metered scheme itself) are way off-base.

    14. Re:Why Not Just Metered Service? by TheRaven64 · · Score: 5, Informative

      Unfortunately, you are entirely wrong. ISP have two sets of costs. One is for providing a connection. The other is for the amount of data you transfer off-network. It costs them the same amount to provide me with a 10Mb/s connection that I use to transfer 1GB/month or a 512Kb/s connection that I use to transfer 1GB/month. The fact that they provide me with any connection at all incurs fixed costs in terms of infrastructure. The amount of data I transfer incurs costs from their upstream providers (or, in the case of the really big ISPs, the traffic affects the networks that will peer with them for free).

      This is why ISPs have been slowly moving from tiers based on different speeds to tiers based on usage amounts. The cheapest packages generally don't seem like good value, because the cost of providing the line is a fairly major part of them, and per-GB they are very expensive. The only reason that faster lines cost more is that they make the usage spikes bigger. If you go from 0 to 100% usage on a 512Kb/s line, it produces a much smaller spike than if you do the same on a 10MB/s line, and this makes it harder for the ISP to estimate their maximum total transfer and therefore the capacity they need for their upstream links. This is part of the reason why a lot of them have started providing different on-peak and off-peak caps.

      --
      I am TheRaven on Soylent News
    15. Re:Why Not Just Metered Service? by Mr.+Underbridge · · Score: 2, Insightful

      Because the cost to the ISP isn't based on how much I use. They have to maintain the infrastructure no matter how much it's being utilized.

      That's fantasyland. The only reason they need the infrastructure is because people use it. And the lion's share of that need for more infrastructure is people using it a lot. Otherwise, they could use less infrastructure and provide lower prices. Since you are the reason the rest of us can't get lower prices, it's in the interest of the rest of us to boot you from the shared pool and make you pay your own way.

      In effect, you're the asshole who gets the filet mignon and wants to split the check. Uh, no.

      I shouldn't have to pay more because I use the resource that is available.

      Just so long as you're OK with the other side of that - namely, that by not paying for what you're using, they won't be investing in higher bandwidth.

      Bottom line is, if there's a shared resource and you're using 100x as much as the average person, why the hell SHOULDN'T you pay more? I've no idea why people accept metered usage for cell phones but not network connectivity. There's no substantive difference in the argument.

    16. Re:Why Not Just Metered Service? by jaxtherat · · Score: 2, Insightful

      At that point the grand mum would realize that she is paying 10$ per GB while the guy next door is paying 0.2$ per GB.

      *worlds smallest violin*

      Welcome to economies of scale. http://en.wikipedia.org/wiki/Economies_of_scale

      --
      http://www.zombieapocalypse.tv/
    17. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Rather than have these ridiculous, confiscatory rates for so-called "unlimited" service (which will still be capped under some other excuse)... why don't the ISP's just provide metered service?

      This way, Grandma who just wants a couple of recipies every now and then, and occasionally looks at baby photos posted on thier adult children's Facebook accounts (and is not pulling down 10GB/month)... only pays a little bit.

      And the Torrent operators pay for what they use.

      Pay for what you consume. Fair for everyone.

      Or is that too much common-sense for all involved?

      Simple: they would get LESS money, because they would have to charge the Grandma in question pittance, as she won't be using much bandwith at all, and she's in the majority of the userbase.

    18. Re:Why Not Just Metered Service? by NeoSkandranon · · Score: 1

      I pay 48 for half that rate :\

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    19. Re:Why Not Just Metered Service? by NeoSkandranon · · Score: 1

      "So how do they all of a sudden consider that the "Pay for what you consume; Fair for everyone" rate is $1 per gigabyte."

      Because now there are a lot more people with usage patterns like yours.

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    20. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      What about the fact that Grandma calls customer service twice a week to get her e-mail working, while I've called them twice in the 5 years I've had the account?

      The total costs are not all tied up in the bandwidth.

    21. Re:Why Not Just Metered Service? by Xphile101361 · · Score: 1

      Something like this will cause problems just like it does with the train lines. A "power" user will be worth more to an ISP, as they pay a lot more and thus help either maintain the infastructure to a greater degree or make the company more profit.

      The problem with this is of course grandma is less important than our bittorrent power user, and when she wants to check her email, its more important for that power user to get his bandwidth than grandma.

      This relates to trains as passenger trains, at least in west michigan, are given less priority than cargo trains, and thus will be told to wait for cargo trains to pass (which has created hours worth of delays). I really don't want to see this done with ISPs as well.

    22. Re:Why Not Just Metered Service? by Skuld-Chan · · Score: 1

      Because this has more to do with TW wanting to curb streaming video (since its competing with their video on demand services) than it does bandwidth use.

      If they only charged for use they'd be out of business in a month.

    23. Re:Why Not Just Metered Service? by Skuld-Chan · · Score: 2, Insightful

      If you figure they have an ever growing customer base (which they should if they are a good business), and have been investing into their bandwidth, equipment and support like a good company - while costs increase, it should be offset by their increased customer base anyhow.

      Not to mention their price they pay for bandwidth has been going down steadily over the years (don't believe me? read their quarterly SEC report!).

      So actually yeah their prices should stay steady, or even go down eventually.

    24. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 2, Interesting

      This entire Slashdot topic feels surreal to me. Capped plans are the norm here (Australia). Is that really not how it works in America!? The hypothetical "this would never work" pricing scheme in the parent post is pretty much how it works.

      The grandmother rarely ends up sharing the neighbours's access point because:

      * Usually the usage difference between neighbours is not enough to make the saving worthwhile - and where there ARE very light users, they're not savvy or confident enough to initiate this.

      * Neighbours don't usually know/trust each other enough to feel it worthwhile - what happens when her grandchild starts coming over every Sunday and burning through quota, or worse, doing something particularly illegal with the connection? Your agreement says you won't share your connection; if your neighbour uses it nefariously you're probably in trouble. I would not share my connection with a grandmother next door. The whole rationale is she doesn't have to pay much this way - which means it isn't worth the hassle or risk for the neighbour.

      Btw the most common way of dealing with exceeding your cap is to throttle your bandwidth down to ancient (dialup) levels until next month's payment. The nastier ISPs instead charge you per MB for excess downloads - this leads to hefty bills.

    25. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      So ... many ... stupidities.

      If they are unable to deliver the service they are selling then they need to invest in upgrading their capacity.

      They could also cease selling that service, and instead sell one that they can actually deliver. Ie, a capped service.

      Bandwidth demand is only going to increase, gouging customers is not a solution to the problem.

      Wrong. Increasing prices ('gouging') will cause demand to decrease ('contract', to use the correct economic term).

      Because the cost to the ISP isn't based on how much I use. They have to maintain the infrastructure no matter how much it's being utilized.

      Aargh. You make my head hurt. Consider the business model of a stadium owner for a comparison - it meets the condition you've described above, and yet they sell 'admit one' tickets rather than 'admit unlimited', and I rather hope that you wouldn't argue that they should do otherwise.

    26. Re:Why Not Just Metered Service? by IcePop456 · · Score: 1

      BS! Most Grandma's don't have a clue what a GB is and I'd go further to say most don't even have internet. It is true they would pay more per bit, but overall I think they should pay less.

      The fixed cost argument is also BS. Look at water, electricity, gas, etc. Have a similar breakdown and use metered billing. This would give the providers the incentive to have faster speeds so that those who actually use the darn thing could generate more income.

    27. Re:Why Not Just Metered Service? by tchuladdiass · · Score: 1

      I'd rather they set up traffic shaping, so that as your "rolling average" usage increases your effective bandwidth decreases. That way, if you've used only 20GB/month for the last week (so 5 GB in that week), you would get your full rate. But use 10GB in that time frame, and you will get 80% of your allotment, and so on. But the most import thing would be to have a guaranteed minimum allotment, and have it so that you don't get a sudden large drop (like from 10Gb to 128Kb). It should be a smooth curve.

    28. Re:Why Not Just Metered Service? by Wrath0fb0b · · Score: 1

      You're never going to convince the private sector that investing in more capacity is a good business move. Business can't look that far into the future. They see an easy way to make more money and that's what they will go for despite the fact that it's completely irresponsible and shortsighted.

      Yup. For instance, no one convinced Verizon to wire my neighborhood with fiber-optic service at a whopping cost of $800/house [1]. Then they didn't convince them to install it into my house for another whopping $700 [1] in labor and equipment. Nope, private sector would never do that. Considering I pay them $85/month, it will likely take 10-20 years to recoup their investment, I think they understand the long-term need for last-mile investment.

      Of course, there are a lot of things standing in their way -- mostly in the form of localities that each have different rules and procedures from franchises and asinine requirements burying their lines and whatnot. I'm fortunate to live on a hill that's bedrock and pretty much can't be drilled (aside form the sewer, which I hear was quite difficult). Sucks not to have natural gas and it's not pretty to have utility poles with 4 wires (power, copper, coax, fiber) strung along, but we were the first to get FIOS. I talked to the installing techs (not the house install tech, the guys stringing the fiber on the poles) and they said that our town cost them significantly less time and hassle than most of the other ones he'd done.

      [1]: http://bits.blogs.nytimes.com/2009/04/03/the-cost-to-offer-the-worlds-fastest-broadband-20-per-home/

    29. Re:Why Not Just Metered Service? by metamatic · · Score: 5, Insightful

      The amount of data I transfer incurs costs from their upstream providers (or, in the case of the really big ISPs, the traffic affects the networks that will peer with them for free).

      And they are welcome to pass that cost on to me. I'll gladly pay the approx. 3 cents per GB.

      Wait, they want to charge $1 per GB? Suddenly it seems less reasonable, yes?

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    30. Re:Why Not Just Metered Service? by Bill,+Shooter+of+Bul · · Score: 1

      Complete hogwash. Its almost as if you have no business training at all. The obvious answer is to allow those that are happy with the current service levels at the current prices to continue to use the service ( the majority of their customer base), while increasing the capacity and prices for those who want more. That's how you maximize revenue.

      --
      Well.. maybe. Or Maybe not. But Definitely not sort of.
    31. Re:Why Not Just Metered Service? by thePowerOfGrayskull · · Score: 1

      I've paid $40 a month for the last 9 years, and I've regularly consumed over ~70GB of data per month on TWC. Now, suddenly, there is not enough bandwidth to go around and they need to charge me extra $1 for any gigabytes over 40GB?

      9 years ago you were the only person consuming 70GB/month. Now, more than half of your neighborhood is doing it.

    32. Re:Why Not Just Metered Service? by Zerth · · Score: 1

      If bandwidth is such a significant cost compared to the cost of the physical cable, why is it that I pay the same for 6Mbps/768Kbps cable/dry dsl that I would pay for 10Mbps symmetric if I had line of site to my colo?

      Does a local colo get better rates from their upstream connection that the phone or cable company does? Is there some hidden byte cost that consumer grade connection cost that business class doesn't? It sure isn't for decent phone staffing.

      If there wasn't a bunch of concrete between me and the colo, I'd switch even if it cost double for the same speed. At least I'd get 2 or 3 nines of uptime, as opposed to the 96% cable co had last year(they've cut maintenance for the last 5 years running, I once got a truck based 3 hours away).

    33. Re:Why Not Just Metered Service? by Bob9113 · · Score: 1

      Rather than have these ridiculous, confiscatory rates for so-called "unlimited" service (which will still be capped under some other excuse)... why don't the ISP's just provide metered service?

      Two reasons, which are really sort of one reason, but I haven't had my coffee yet, and I'm being lazy about synthesizing them. :)

      1. The ISP has to purchase their guaranteed rate in advance. So they need to estimate how much you are going to use in advance. They can do this pretty effectively with tiered pricing, and get an overage charge from you to pay the overage charge their upstream charges them.

      1. Bandwidth consumption is changing so rapidly that they have a very hard time predicting what you will use next month. It's not like electricity where a given house will use the same amount +/- 10% next month as they did last month or in the same month last year.

      Tiering (in ISPs and cell phones, for example) is the least expensive way (for the consumer as well as the ISP) for the ISP to get close to the right money from their customers relative to their real costs.

      That said, I would prefer metered usage. Particularly with a nice big meter page at your ISP so you could see what you are using. Make people as conscious of bandwidth as they are of KwH, then maybe we'd start looking at bandwidth efficiency of apps too -- sure would be nice to see email clients that pepper unformatted messages with HTML tags die the death they so richly deserve. But I digress.

    34. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      That's not a bad idea, and makes sense to people who think.

      Most consumers are unable to think.

      If a local phone company advertises a 3x1 DSL for $30 a month, and your local cable company advertises an 8x1 for the same, everyone in town will jump to the cable company.
      Even if the cable company is oversold & can only actually sustain 1x1, people will STILL leave the company that advertises lower speeds which it CAN fulfill in favor of the company that advertises the better deal which it CAN'T support.

      This is a fundamental tenant of advertising, if the deal looks better, more people will take it. And since only a small portion of the user base is actually trying to saturate the connection, the local phone company ends up with users that are all saturating their connections all the time.
      This in turn means they can't play the same shell game the cable company uses, so their profits decrease.

      In the end, the cable company has all the customers. This is because people are (for the most part) going to buy the service that seems better, not the one that actually works better.

      Personally, I don't P2P much. But caps piss me right off. I really don't even care that I can usually only pull 5meg on my 15meg connection. Ok, so late nights I can get it up to 10 meg most of the time. But that amount of bandwidth is good enough for me, assuming no cap.

      But think about this from a different direction- if an ISP is going to implement a monthly cap, then what is the purpose of even having speed/bandwidth rates in the first place? Open everyone up wide open if you're going to put a cap into place.

    35. Re:Why Not Just Metered Service? by metamatic · · Score: 1

      Most ISPs report that a very small number of users use the majority of their bandwidth

      Yes, it's called the Pareto principle. Basic fact of economics, and not unusual. It even applies to ER visits.

      Fairly set caps that accurately reflect the increased costs of increased usage, or a service like water or gas where you pay a connection fee and a per gigabyte fee, possibly with tiers so costs increase faster with very high usage.

      Works for me, so long as the amount they charge reflects their actual costs. I'll happily pay 3 cents a gigabyte.

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    36. Re:Why Not Just Metered Service? by Carrot007 · · Score: 1

      So why is there not a flat fee, and then usage fees on top. (instead of forcing people to pre guess there usage with choosing a package)

      Oh yes, because they used an unworkable charging model that did not scale and they believe people would be upset with reality and leave.

      NEWS FLASH. We are already unhappy. Doing this would be fine. AS LONG AS THE PRICING WAS FAIR. Oh sorry, they don't like that idea?

      --
      +----------------- | What is the question!
    37. Re:Why Not Just Metered Service? by TheRaven64 · · Score: 1

      So why is there not a flat fee, and then usage fees on top. (instead of forcing people to pre guess there usage with choosing a package)

      There usually is. The cheapest rate comes with something like 1GB/month (i.e. effectively zero) and covers the cost of their providing the line and some profit. The next tiers scale up quickly to a much lower price per GB of transfer. Then the curve flattens again when you get to quantities where the transfer caps are sufficiently high that their upstream network could only support a small fraction of their users transferring that much.

      --
      I am TheRaven on Soylent News
    38. Re:Why Not Just Metered Service? by Zerth · · Score: 1

      That'd be true if it weren't for the fact that she and he have the exact same connection(and the exact same wiring, except for the last 40 feet).

    39. Re:Why Not Just Metered Service? by YourExperiment · · Score: 1

      why don't the ISP's just provide metered service? This way, Grandma... only pays a little bit.

      I think you answered your own question there. No wonder you got modded insightful.

    40. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Why does this remind me of the auto industry during the 70s, 80s, 90s etc. The just want to use the old infrastructure until it dies or they do.

    41. Re:Why Not Just Metered Service? by Shark · · Score: 1

      We offer two services. Normal service is 25GB/month 5Mbit 40$, 'big' service is 50GB/month 6Mbit 50$. People seem pretty happy with those conditions. We merely warn customers that regularly bust their quota and only send a bill if they fail to keep it in check after being warned.

      Obviously we aren't a gigantic ISP with millions of customers, but even then, bandwidth is cheap enough for us to cut a decent profit under those conditions and maintain enough capacity to deliver.

      If we scaled to a hundread thousand customers or so, we could probably offer twice that monthly bandwidth at the same price without problem. I really don't see what the large ISPs are complaining about.

      --
      Mind the frickin' laser...
    42. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Are you serious? So everybody who buys coffee at Starbucks always gets a large then? This is called SECOND DEGREE PRICE DISCRIMINATION and works all the time.

    43. Re:Why Not Just Metered Service? by sqrt(2) · · Score: 1

      But right now I have no bandwidth cap and a flat rate per month.

      --
      If you build it, nerds will come. Soylentnews.org
    44. Re:Why Not Just Metered Service? by Shark · · Score: 1

      As someone who works for an ISP, I can tell you that you are quite correct. That's what we do and we make a fairly decent living.

      --
      Mind the frickin' laser...
    45. Re:Why Not Just Metered Service? by sqrt(2) · · Score: 1

      I WOULD argue that they should do otherwise if they are charging 100 times the price necessary to cover their costs. Now, they should make some profit, but selling bandwidth at 1000% the cost to provide it *is* gouging. If they want to sell me on a metered plan then it should costs a few cents per GB AT MOST, a cost to reflect the actual expenses of delivering me the bandwidth.

      --
      If you build it, nerds will come. Soylentnews.org
    46. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      In effect, you're the asshole who gets the filet mignon and wants to split the check. Uh, no.

      Ummm no.

      It's more like going to an all-you-can-eat buffet, and then finding out that regardless of how many people are coming in, they only cook a certain quantity of food. And then continue to let people in even once the food is gone.
      ISP's are actually very similar to these types of buffets. They have to ensure they have enough bandwidth to keep most people happy, while not making so much extra food they waste it & go broke.

      Bottom line is, if there's a shared resource and you're using 100x as much as the average person, why the hell SHOULDN'T you pay more?

      No, the question is: If I paid for a certain capability, why should I be charged more for actually trying to use it just because you don't use all of what you paid for?

      Think about it like this. The diner offers a lunch special of a hamburger for $1. But most people only take one bite. So you're advocating not only charging me $1 for the burger, but charging me an additional rate because I had the nerve to eat the whole thing.

      You can try and justify it however you want, the fact remains that the ISP's are overselling their resources. One solution is to provide more of a tiered pricing approach, another is caps, another is to stop overselling bandwidth (or at least to stop overselling it as much). In all cases the problem is not the "heavy" users, but the marketing & business strategy the company chose to use.
      They made assumptions about how their customers would behave. The predictions are showing to be wrong.

    47. Re:Why Not Just Metered Service? by cheftw · · Score: 1

      *worlds smallest violin*

      I see you also have the world's smallest apostrophe there.

      --
      Always back up, never back down. ---- Think you're cool 'cos your uid is prime? Take mine, modulo the one digit integers
    48. Re:Why Not Just Metered Service? by sjames · · Score: 1

      The cost of bandwidth off network is typically billed as a 95th percentile rate. I know at 100Mbps you can get $10-$20 per Mbps. When you're buying many multiple Gbps, you can get much better wholesale pricing OR you can enter peering arrangements for the cost of the hardware.

      That comes to about $0.04/GB transferred.

    49. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Cargo is far less time critical than passengers. I doubt very much that's the reason they get priority.

      I would hazard a guess that the rail system *never* wants a cargo train to stop unnecessarily, because they're half a mile long and take ten minutes to get back up to speed. Passenger trains are about nine cars max, and built for speed. So given the choice between a half mile obstacle for ten minutes and a hundred metre obstacle for five, they're gonna stop the passengers.

    50. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      s/overbook/oversell/

      Fixed it for ya!

      Overselling is nearly fraud as the service you (or the company) took money for and promised isnt aviable when it is going to be utilized by the customer.

      However if you (or the company) want to oversell your service at cheapshit rate then it is fine by me provided that it is stated clearly in the big print that there is an big possiblity that the customer might not get the service.

    51. Re:Why Not Just Metered Service? by MikeBabcock · · Score: 1

      Minor exceptions being those who offer guaranteed dedicated service, like UUNet in Canada. Of course, those costs are substantially higher.

      --
      - Michael T. Babcock (Yes, I blog)
    52. Re:Why Not Just Metered Service? by MikeBabcock · · Score: 1

      I buy a large instead of an extra large because my insulated mug only holds a large :-)

      --
      - Michael T. Babcock (Yes, I blog)
    53. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Most ISPs report that a very small number of users use the majority of their bandwidth.

      That is called an bellcurve. A few use the Internet very little, most use the Internet modaretly and few use it extensivly. And the whole curve is slowly creeping upwards to greedy CEOs of ISPs detriment

      I can see two solutions to the problem. Fairly set caps that accurately reflect the increased costs of increased usage, or a service like water or gas where you pay a connection fee and a per gigabyte fee, possibly with tiers so costs increase faster with very high usage.

      Where can I get such a good deal but I dont get the reason for the teiring.

    54. Re:Why Not Just Metered Service? by Wildclaw · · Score: 1

      That's fantasyland

      Well, what you posted is.

      The only reason they need the infrastructure is because people use

      Yes.

      And the lion's share of that need for more infrastructure is people using it a lot. Otherwise, they could use less infrastructure and provide lower prices

      No. The majority of the cost of infrastructure is digging down fiber. Once that fiber is down you can send pretty much any amount of information on it with only some smaller differences in equipment cost.

      In effect, you're the asshole who gets the filet mignon and wants to split the check. Uh, no.

      No. You are the asshole who wants to pay less for driving on the shared neighbourhood road because you only drive on it once a week, even though you completly needed the road to get from your house to store.

      Bottom line is, if there's a shared resource and you're using 100x as much as the average person, why the hell SHOULDN'T you pay more?

      Yes, he should pay more. Assuming the average person uses 2GB/month and he is using 200GB/month. Then he should pay $8 more at 4 cent/GB (pretty fair rate). Of course, he is probably already paying $20 more because he is paying for the higher speed connection (that doesn't cost more for the internet company) while you are using the cheap low speed connection. That means that in reality he should be paying $12 less. So, he is subsidising you, and not the other way around. Who is the leecher now?

    55. Re:Why Not Just Metered Service? by Reziac · · Score: 1

      That's because stockholders in search of quick profits don't look any further than the current quarter, so any publicly-held business, being legally beholden first and foremost to its lienholders (ie. stockholders) MUST answer to that sector first. If that damages customers and kills the company over the long run, oh well! the stock market doesn't care, so long as THIS quarter shows a profit.

      So... let's put the blame where a large chunk of it belongs -- on the stock market and people who use it solely for short-term gains, forcing companies to abandon long-term strategy.

      The owner of SAS software, when interviewed on 60 Minutes a few years back, said SAS would not go public for exactly that reason.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    56. Re:Why Not Just Metered Service? by Ifni · · Score: 1

      So as an ISP what do you do? Eat the cost? Raise the rates for all your customers, even those that use 2GB/month? Kick off the high users for breaking an 'invisible' cap hinted at in your TOS? Or introduce tiered pricing, so those that use most, pay most?

      Yes. Wait, what do you mean it was an either/or question? How are we supposed to boost our margins with that arbitrary limitation?

      --

      Oh, was that my outside voice?

    57. Re:Why Not Just Metered Service? by houstonbofh · · Score: 1

      Unfortunately, you are entirely wrong. ISP have two sets of costs. One is for providing a connection. The other is for the amount of data you transfer off-network.

      You just gave the reason that they should LOVE bit torrent. You can get most of your data and never go off net. Of course, thinking ahead and common sense were never a strong point with them...

    58. Re:Why Not Just Metered Service? by genner · · Score: 1

      So laying cables and Cisco routers, they all come free if you're an ISP, yes? Where do I sign up?

      Yes it all came free! The government signed a fat check over to them for expressly this purpose.

    59. Re:Why Not Just Metered Service? by Akzo · · Score: 1

      Time Warners proposed plans look incredibly similar to Telecom New Zealand which owns the phone lines in NZ. They charge 2c per MB if you go over your bandwidth cap, which can get pretty costly. https://www.telecom.co.nz/broadband/select/1,10627,205728-204466,00.html

      --
      Sig is for Signature, so you don't have to manually sign every post.
    60. Re:Why Not Just Metered Service? by arkhan_jg · · Score: 1

      If they charged what it actualy *cost*, I'd be happy with that. The problem is, they charge WAY in excess of that. If you look at what you're charged per byte for servers in datacentres, it can easily be a factor of 1000 less than what I'm paying for the same amount of traffic on a metered service in the UK (as they all are for less than £100). OK, there's some additional overhead for the last-mile service to the home, and the backhaul to the ADSL POPs, but the difference is simply extortionate.

      Note, I don't blame the ISPs per se, here - BT's prices for bandwidth to the ISP are the reason it's so damn expensive. ISPs who have their own infrastructure in the exchanges, or BT's much lower price for those exchanges which have been upgraded to ADSL2 show that BT are squarely to blame for broadband being so expensive and slow outside city centres in the UK.

      Hell, I just have to go down to France to see how it can and should be in my country.

      --
      Remember kids, it's all fun and games until someone commits wholesale galactic genocide.
    61. Re:Why Not Just Metered Service? by mikewren420 · · Score: 1

      Or another option, throttle the bandwidth of "abusers", and be very open and transparent about it. Give users a control panel to their month usage, and show how much more data they can download/upload before they begin to get throttled.

      Offer tiered pricing for more data transfer that doesn't get throttled. It's a win for consumers who don't feel nickle and dime'd, it's a win for the ISP's that are claiming poverty (even though TWC's profits are up).

    62. Re:Why Not Just Metered Service? by Mr.+Underbridge · · Score: 1

      No. The majority of the cost of infrastructure is digging down fiber. Once that fiber is down you can send pretty much any amount of information on it with only some smaller differences in equipment cost.

      And why would more fiber need to be laid down? Because the old network reached capacity. Why did the old network reach capacity? Because of the minority of people who are using a ton of bandwidth. So if the cable company is looking at raising prices to subsidize infrastructure improvements that are only necessary because of a couple of bandwidth hogs, let the hogs pay for it.

      The argument of "bandwidth is almost free once the fiber is laid" is dead stupid, because you laid the fiber to carry the bandwidth you need. That argument is circular.

      You are the asshole who wants to pay less for driving on the shared neighbourhood road because you only drive on it once a week, even though you completly needed the road to get from your house to store.

      Substitute "highway" for "shared neighborhood road" and I certainly agree. Which is why such things are paid for in large part by gas taxes, effectively a metered rate.

    63. Re:Why Not Just Metered Service? by AK+Marc · · Score: 1

      The ISPs' costs aren't based on how much you download, but on the bandwidth they provide.

      Downloads = speed * time. So, for a fixed time, you get Downloads = Speed (times some conversion constant). So you can claim costs are per speed, but for a given speed, you can download so much. Rather than giving everyone 128 kbps and dedicating it to them, they give them 128 kbps * the constant = about 42GB per month. So, set the speed at 100 Mbps and the cap at 42 GB and you have high burst speed and the ability to pull 128 kbps constantly. Or, you could do what "normal" users do, and download something fast, then have the connection sit idle while using that download, then download something else later. The people that have trouble with caps are those that do something constantly. Running Internet radio, constant video streams, and all that is what will kill a cap. But most people wouldn't ever hit their download caps if there wasn't streaming or massive P2P going on. And the "fix" for streaming is to get fewer centralized streaming services and get mulitcast working over the open Internet.

    64. Re:Why Not Just Metered Service? by jaxtherat · · Score: 1

      Touche :)

      --
      http://www.zombieapocalypse.tv/
    65. Re:Why Not Just Metered Service? by Wildclaw · · Score: 1

      And why would more fiber need to be laid down?

      Umm, it wouldn't. That is the whole point. You only put down fiber once. And then it is done forever (well, until nature runs its course), because data transport over fiber is so damn good upgradeable.

      And that you actually asked that question and answered it with a false answer shows that you really have no clue what you are talking about.

      Substitute "highway" for "shared neighborhood road" and I certainly agree.

      Sorry, no can do. All users pays the same for the road.

      Now go hide under the bridge you fucking troll.

    66. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      ...And then granny gets her windows box pwned. "Why is my bill $10,000?" she asks. "Well, you used a ton of bandwidth this month."

                Also, the ISP will not want all these grannys that may not use the connection much to pay like $2 a month, when they can get $55 or whatever under the current system.

                Thirdly, some use is out of my control. I'm not talking about pwnage. I'm talking about banner ads, especially the video ones. Enough people block them now, imagine how many will block them if they know they are PAYING CASH to get these ads! I presently ONLY block ad sites that get popups past the firefox popup blocker, and ones that make noise... that's it. If I were paying per KB, I'd block EVERYTHING.

                Fourthly, as another poster said, the pricing would likely be predatory, not near what it costs the ISP.

    67. Re:Why Not Just Metered Service? by Anonymous Coward · · Score: 0

      Raise the rates for all your customers, even those that use 2GB/month? Kick off the high users for breaking an 'invisible' cap hinted at in your TOS? Or introduce tiered pricing, so those that use most, pay most?

      then it must be a wonderful coincidence that Time Warner's highest usage customers happen to live in the few cities where Time Warner doesn't have any serious competition, doesn't it?
      I mean, it's good to know that the hard-core gamers and P2P people live in Rochester, NY, and the city in Texas where they've decided to roll out these caps.
      Wait....why aren't they capping in Syracuse, NY? Oh, yeah, cause Verizon is there, ready to snap up the dissatisfied customers that feel they just got royally boned by their ISP.

    68. Re:Why Not Just Metered Service? by delt0r · · Score: 1

      After shifting from NZ to Austria, you really notice how much Telecom is shafting NZ'ers. I get unlimited 2Mbit for 20Eu per month including phone. I use an average of about 1Mbit and sometimes as much as 1.8MBit. So its really unlimited. Austria does not have great internet prices compared to some EU countries.

      One thing is for sure. If I set up a another internet based company it won't be in NZ even if thats where I live.

      --
      If information wants to be free, why does my internet connection cost so much?
    69. Re:Why Not Just Metered Service? by u38cg · · Score: 1

      If the company fucks up, yes, sure, they'd better bend over backwards to accommodate me. But if paid for service is continually under-utilised by a known margin, then I don't see any problem in overbooking/overselling to use that capacity; it simply means more efficiency for the company and (hopefully) better prices for moi.

      --
      [FUCK BETA]
  3. Trust-busting, can we say it boys and girls? by jollyreaper · · Score: 0, Troll

    Too big to fail = too big to risk leaving whole. Too much concentration of power leads to abuses. When mergers happen and the CEO's gloat about efficiencies of scale, they're talking about putting Americans out of work. And where do all those savings go? Fat CEO paychecks. Keeping those jobs in pay ain't inefficiency, it's redundancy in the engineering sense, like "let's have redundant control cables on the airplane so if one set goes out, we won't fall out of the sky. Let's have lots of banks so if a couple fail, we don't lose the whole industry." When Republicans bleat about class warfare and wealth redistribution, they forget to mention that they threw the first punch.

    This Time-Warner BS is no different from GE buying up a news network so they can create more favorable coverage of their business interests. Propaganda is wrong; propagandists are liars and should be treated as such.

    --
    Kwisatz Haderach
    Sell the spice to CHOAM
    This Mahdi took Shaddam's Throne
    1. Re:Trust-busting, can we say it boys and girls? by Anonymous Coward · · Score: 0

      I have to agree but you stated it badly. The capping is horrid and annoying and appears to just be a scam to generate more revenue. And anyone with half a brain would not pay for it if there were actually choices out there. Personally if my isp applied a cap I would switch isps faster then a snake down a greased pole. But I cant. The region I currently live in the USA only has 1 isp and I have to play by their rules to get on the internet.

      Break up the regional monopolies and some of this should be self correcting. But I wouldn't put it past these CEO's to all decide to implementing this scam at the same time during one of their weekly golfing vacations.

    2. Re:Trust-busting, can we say it boys and girls? by jollyreaper · · Score: 1

      Don't downmod if you disagree, write your own response.

      --
      Kwisatz Haderach
      Sell the spice to CHOAM
      This Mahdi took Shaddam's Throne
  4. the whole isp capping is a big scam by ionix5891 · · Score: 5, Informative

    I run several huge sites (bigger than slashdot)

    and we use 1200 to 1500 mbit outbound at anytime

    our agreements with datacenter and carries mean we pay $US 4.5 a mbit @ 95th percentile during peak hours ONLY (thats 12:00 to 24:00GMT)

    outgoing bandwidth offpeak time is FREE

    incoming bandwdith is FREE

    alot of large isps such as Comcast or UPC can peer for practically free with datacenters (who are heavily outbound) as these isps are heavily inbound

    this whole bandwidth cap is a joke, and site operators already pay alot of the privilege and were talking about pricing per mbit per month here not per GB

    1. Re:the whole isp capping is a big scam by Hieyeck · · Score: 1

      Well datacenters usually only have dozens of fibre bundles purchased in bulk... Don't get me wrong, I disagree with bandwidth caps, but at least Rogers also has a price cap - no more than $25 (Canadian too! That's like 5 cents!) usage fees. And the service is good enough that I don't have to deal with their terrible customer service. Better the devil I know...

    2. Re:the whole isp capping is a big scam by mattbee · · Score: 4, Informative

      You're comparing apples and oranges - internet transit bandwidth is cheap because for a particular piece of switch or fibre infrastructure in a data centre (where your hosting is), there are multiple commercial uses and plenty of opportunity to sell your bandwidth so it's used maximally. This results in a multi-tier system where you pay for a commodity according to volume, and a handful of centralised engineers can maintain it. Your sites are reaping the benefits of that economy.

      The infrastructure for providing data bandwidth to residential areas has usually been put down by one or (if the area is lucky) two companies, involving very expensive digging up of public land. The return on investment for a particular piece of cable can only be provided by the homeowners, who are very price-sensitive compared to businesses. This infrastructure is mostly single-homed, needs roving national teams of engineers to maintain, and for a return that is often heavily regulated.

      That's why (as a relatively small player in broadband, but a larger one in hosting) we pay £300-odd per Mb for connectivity to *any home in the UK*, but only £5-15 for "internet transit", where we're not the ones paying for that expensive last mile of connectivity.

      --
      Matthew @ Bytemark Hosting
    3. Re:the whole isp capping is a big scam by LostCluster · · Score: 1

      Bandwidth is always going to be cheaper at the datacenter... that's where all the bandwidth is, at the NOC located nearby. What the ISPs need to find a way to control is the last mile, where bandwidth isn't as plentiful.

    4. Re:the whole isp capping is a big scam by PhoenixAtlantios · · Score: 1

      I imagine there's a slight difference in the cost to provide a connection in a highly centralised location to the carrier's network when compared to connecting a consumer in the middle of nowhere to that same network. The maintenance and upgrade costs are going to be far different when compared, and when you factor in the volume of customers and support costs... I think it's pretty silly to try and compare a datacentre connection to a residential one.

      As for some of the other discussions going on: Bandwidth caps effectively reduce the amount of bandwidth a user utilises during peak periods by self-regulation, and allows the ISP to offer higher speeds to them when they do wish to use their bandwidth.

      ISPs really have two options at the moment, they can either:

      • Oversell their bandwidth and implement a bandwidth cap. This approach gives users fast access when they use it and prevents 'power users' from utilising all of the oversold bandwidth.
      • Sell a slow speed connection and have no bandwidth cap. This allows the 'power users' to download as much as is possible but speeds remain slow and the ISP rarely uses all of their available capacity.

      People seem to frequently argue that overselling bandwidth is wrong, but it actually works in favour of the majority of users. Joe blow that wants to use youtube occassionally wants his videos to download quickly, but doesn't want to pay for an expensive Internet plan. Buying an high speed plan with a bandwidth cap allows him to get his fast but rare downloads and the ISP doesn't have to worry about having a large number of users utilising 100% of the speed all the time and congesting their network because there's a bandwidth cap and the user self-regulates. This works pretty well because users don't all download large files at once usually so you can offer fast speeds and don't need to have all of the backhaul in place to provide that to all users simulataneously.

      I guess my point is, based on the price most people are willing to pay for their Internet connection it's not currently feasible to provide the guaranteed high-speed bandwidth for everybody without bandwidth caps, particularly as more and more bandwidth intensive websites and applications are created. If you wanted a truly unlimited plan, you'd have to resign yourself to slower speeds in order for the ISP to be able to guarantee that bandwidth as it's not currently economically viable to give everybody guaranteed 100mbps connections. Most people opt for the "fast but limited" option because it's far more convenient when you want to use the connection, the argument that you should be able to utilise 100% of it all the time for the current price (which wouldn't facilitate massive backhaul upgrades across the country to provide that service) is asinine.

      Sorry if that wasn't entirely coherent, but that's my experience with ISPs from Australia though. Even with the fibre-to-the-home upgrade that our government has proposed we will still have bandwidth caps because it'd be idiotic to lay enough fibre to give every internet-connected home in the country guaranteed speeds when only a tiny portion of the population would come anywhere close to using it (and let's face it, there aren't enough legal download services to really max out that connection for the average user).

      Summary:

      • Fast
      • Unlimited
      • Cheap

      Pick two.

    5. Re:the whole isp capping is a big scam by GargamelSpaceman · · Score: 1

      I can understand about not wanting constant downloaders when you've oversold your bandwidth, but this requires a sophisticated pricing scheme to be unobtrusive.

      People A) don't want their connection to stop or be throttled till the end of the month and B) don't want to be slammed with overage charges.

      I think of the two, (severe) throttling after cap is hit is better for most home users, being less apt to cause them to constantly monitor their monthly bandwidth cap, and be paranoid about clicking on a YouTube vid whenever they want.

      I think most people don't download constantly, but many people do download constantly over a given month. What we need here is something like saved surplus bandwidth from the last month. That way you can have a stockpile of 50gb accrued over ten months of downloading only 1/month on your 6gb/month plan. And one month, you might have an accident, and have to sit home that month with nothing to do but watch videos, downloading 25gb. You never think twice. The 6 gb limit never bothers you.

      However Joe Virusman whose windows box is infected with ddos downloader bot 2.0, has his connection throttled once the virus downloads 6gb of data. Joe Virusman is forced to fix the problem before his internet will work at decent speeds again.

      The 6gb limit with 'rollover gigabytes' is oversold to some extent. 90% of users don't come close, but it prevents anyone who wants to run ddos virus 2.0 to download 500 gb of data from using all the bandwidth.

      --
      ...
    6. Re:the whole isp capping is a big scam by dr2chase · · Score: 1

      There's two inconsistent lines of argument here. One is that it is all at the last mile (in which case, it becomes technology dependent. With DSL, as I understand it, the last mile is "my" piece of copper wire), and everything is cheap at the datacenter.

      The other claim is that the problem occurs at the datacenter, when everybody wants to watch the bandwidth at the same time. So, which one is it?

      My suspicion, not incredibly well informed, is that it has more to do with competing lines of business. After all the whole P2P throttling thing that Comcast did (which they say they are not doing now, though oddly enough, P2P remains broken for me) could have instead been invested in simple peak/non-peak bandwidth-based throttling (i.e., in a protocol-agnostic way, at any bottleneck in your network, penalize the guy(s) who are actually spiking the demand). They chose, instead, to do all this deep packet inspection nonsense. Why that, and not a more direct regulation of delivered bandwidth exactly when it was a problem?

    7. Re:the whole isp capping is a big scam by Anonymous Coward · · Score: 0

      Yeah, but the last mile isn't the problem for TimeWarner, since they have free video on demand, unlimited!

    8. Re:the whole isp capping is a big scam by gemada · · Score: 1

      I run several huge sites (bigger than slashdot)

      No such thing....

    9. Re:the whole isp capping is a big scam by ionix5891 · · Score: 1

      http://alexa.com/siteinfo/slashdot.org

      2600 sites larger than slashdot...

    10. Re:the whole isp capping is a big scam by LostCluster · · Score: 1

      Here's where it comes together. You say "in a protocol-agnostic way, at any bottleneck in your network, penalize the guy(s) who are actually spiking the demand"... which exactly what charging by the bit does. Instead of denying the extra service, the guy who uses more is simply penalized in the wallet.

    11. Re:the whole isp capping is a big scam by dr2chase · · Score: 1

      But this is not exactly what charging by the bit does. There are two problems.

      #1, charging by the bit does not relieve the immediate congestion. Instead, it creates a customer-annoying surprise at the end.

      #2, this is very, very time sensitive, and customers don't have a good way of knowing what is going on at which time. If the network load is under its maximum practical capacity, there's no problem to solve, and charging by the bit is merely a handy way of getting extra money. If the network is at capacity, there is no particular guarantee that the people who are clogging it, are your multi-terabyte P2P downloaders -- perhaps they confine their big slurps to the late evening hours, perhaps a bunch of otherwise light users all decided to see the live Victoria's Secret show. Charging the P2P users for their off-peak consumption, or killing all the P2P connections, doesn't do anything to reduce the bottleneck; in fact, the incentive is completely disconnected from the people causing the problem.

      It would be nice, but is not yet practical, to have something like "auction-class" bandwidth. People get (say) $40 worth of micro-tokens to spend on bandwidth, and browsers, P2P, etc, bid for bandwidth. Configure the browser to know roughly what your cost preferences are (based on browsing history) and if you go to visit a movie that exceeds your usual cost, or if you start watching a lot of movies in peak hours, the browser can let you know that you're starting to spend too much "money". Once your monthly "money" is spent, you're stuck at bulk rate. And P2P guys, they would prefer bulk rate in general, so they would make "bulk rate" a pretty unpleasant place to be. This could have its own problems -- ISPs could dodge network neutrality by charging a higher rate to access Google, in hopes of forcing Google to pay some sort of ransom. But, lacking "auction-class", you can keep track of who is the source of whatever traffic is spiking capacity to the limit, and you can (if I understand TCP correctly) slow them down. This might well have the effect of blocking P2P during peak hours, but P2P works just fine off-peak, too.

    12. Re:the whole isp capping is a big scam by trawg · · Score: 1

      Where are you hosting that is offering you that, if you don't mind me asking? I'd love to check out their prices.

  5. So who gets rationed? by tjstork · · Score: 1, Insightful

    If there's not capping or charges for bandwidth, then somebody gets rationed. There's a fixed amount of bandwidth available, and you have to decide who gets it. Whether or not that's someone that pays extra to get more or just some random assignment, you still have to decide.

    --
    This is my sig.
    1. Re:So who gets rationed? by __aatmkh9910 · · Score: 5, Insightful

      ISPs just need to upgrade their backhauls to accommodate more traffic, they are selling people bandwidth that doesn't exist and hoping people don't use it, ISPs need to fess up about exactly how much bandwidth each customer will get. Here in the US, at least where I live, Verizon is one of the only ISPs left that doesn't do any sort of throttling or capping, and I've seen more than a few people switch to them for that exact reason.

    2. Re:So who gets rationed? by ThatDamnMurphyGuy · · Score: 3, Interesting

      Well, my ISP sold me a 6Mb Down connection, the cost of which is charged by month. All day, every day of that month. So why should I not be able to fully utilize that 6Mb speed all day, every day of that month?

      Their capacity issues are not my problem. I'm simply using what I have paid for. IF their network can't handle it, only sell 3Mb or 1Mb connections.

      This sort of cap and overage shenanigans will not work in the future when EVERYTHING is online.Steam is a valid us of high transfers. So it Netflix, and OS upgrades.

    3. Re:So who gets rationed? by stonewallred · · Score: 1

      Wrong. Bandwidth is very much available, if the companies would upgrade their routers and modems, or better yet, run fiber to the homes instead of pocketing absurd profits every year, along with taking money to upgrade their systems from the taxpayers of the USA and then sticking it in their pockets instead of doing as they were supposed to. It costs TWC approximately $.016 per GB they move from their lines onto the backbone providers, yet they want to charge us $1.00 per GB. This is the internet, not trucks or trains. It does not take more fuel or more wear and tear on machinery to move 10GB as opposed to moving 5GB. So the only added cost to TWC is the $.016 it costs per extra GB. Ripoff is what it is. I support the free market, yet in America there is no real free market for internet. Each community, if they are lucky, will have two high speed providers, cable and DSL, and the cable is an actual government sanctioned monopoly. The state of the lines in America is absurd also.I ran over 5 miles of fiber for the NCDOC, working at laying 4" PVC conduit and pulling the fiber by hand with myself and a helper as the only two people working. Working just a couple of hours a day( I had other duties) and burying it six feet deep with 4'x4'x4' concrete junction boxes every 400'. It took us about 4 months to get it all the conduit and boxes in place and two days to pull the fiber. I did not hook the fiber up. Now if two idiots (I had never used a backhoe before I started this project, nor pulled fiber and my helper was not very bright)could do this in 4 months, how much could professionals lay in a 4 month period working 8 hour days? The whole capping thing is a way for TWC to stop people like me from refusing to buy their cable programing and digital phone services.

    4. Re:So who gets rationed? by Anonymous+Brave+Guy · · Score: 4, Interesting

      ISPs need to fess up about exactly how much bandwidth each customer will get

      Yes, they do.

      I wish ISPs would be more transparent in their pricing policies, bandwidth and contention ratios, because then the people around here who want 8GB unlimited traffic for $10 a month would get the abrupt reality check they seem to need.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    5. Re:So who gets rationed? by TheRaven64 · · Score: 5, Insightful

      Did you read the small print? I'd be very surprised if you are paying for 6Mb/s all day every day. Most likely, you are paying for a connection that supports peak throughput rates of 6Mb/s. It is possible to buy 6Mb/s connections, but they run to hundreds of dollars a month. If you think you can pay a few tens of dollars a month for a 6Mb/s connection that you can saturate 24/7 then I have a diamond ring to sell you.

      The only thing I have a problem with is ISPs not advertising their caps clearly. When they started selling broadband connections, there wasn't enough interesting content for most people to use more than a tiny fraction of their capacity. Now there is a lot more, and people are starting to go over the invisible line that they drew with the maximum that an average user would need. If you really need a connection that you can saturate, then you buy a leased line, and pay for it. For the price of my (capped) 10Mb/s connection, I could buy something like a 256Kb/s connection which allowed me to saturate the link all of the time (it would more if I want an SLA that guaranteed a certain uptime it would cost more). This seems to be what you are suggesting ISPs offer instead, but for most users it would be much less valuable. Being able to download an ISO image in a few minutes, or watch streaming video, is a lot more useful than being able to constantly saturate a slower link.

      --
      I am TheRaven on Soylent News
    6. Re:So who gets rationed? by ThatDamnMurphyGuy · · Score: 4, Interesting

      I completely believe there is fine print. Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      I'm actually ok with caps as long as they're sane. 5GB per month is not sane. 1 Steam game can put you over that quite easily. Caps simply will not be viable in a future where everything moves over the connection; esp when it's the same ISP moving IPTV.

      Metered would be ok with me as well. It would be interesting to see what happened if metered billing became the norm. I wonder if AdBlock would become a norm, and if there would be a movement back to more thin looking websites to save the bandwidth for the actual data rather than the look n feel.

    7. Re:So who gets rationed? by ThatDamnMurphyGuy · · Score: 2, Interesting

      And more to the point. If ATT tried putting a 5G cap on my DSL, I'd drop it in a heart beat. I can get my work done at Starbuck, McDonalds and any other place with free wifi for customers. Let THEM deal with the caps.

    8. Re:So who gets rationed? by plague3106 · · Score: 2

      While I agree TWC is ripping people off, your assertion that it only costs $0.16 is stupid. First, they need to also pay electricity, pay for employees to take your service calls, employees to do line repairs, repair existing lines when they are damaged, the gas to get those trucks out to repair the line, the lease on the truck itself, and then still have enough for upgrades and to make a profit (there's nothing wrong with making profit... but the way they are going about it by overselling is not right either).

      Oh, and add to your anecdote, TWC would also be hiring professionals (and those cost money) and also need proper permits and possibly getting right of way for totally new paths. Those also cost money.

    9. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      If there's not capping or charges for bandwidth, then somebody gets rationed.

      Well, if the bandwidth available divided by the number of users is more than the advertised speed, there is no reason to ration anybody.

      If you advertise a 10 meg download, have 100 meg available, and sell that to 1,000 people then yes, everyone gets fucked. But that's not the customers' fault, it's the ISP's fault.

      There's a fixed amount of bandwidth available, and you have to decide who gets it.

      Ummm NO there is NOT a fixed amount of bandwidth. This isn't something like diamonds or gold that only exists in limited quantity. If you need more, you install more..
      Or you can start capping customers & restricting their traffic, which is less like-able but when you're the only game in town the consumers are kind of stuck.

    10. Re:So who gets rationed? by evilkasper · · Score: 4, Insightful

      So when I was trying to find out what my ISP's version of "unlimited" was it took me forever to actually find the page where they list the caps for the different tiers they have. I'd get pissed and switch to a different provider but it's not really an option, which seems to me to be the main reason for the poor customer service. Most of us have 2 options if we are lucky, not a lot of need for them to compete for our business.

    11. Re:So who gets rationed? by thePowerOfGrayskull · · Score: 4, Informative

      I completely believe there is fine print. Regardless, they sold it as "unlimited".

      This requires a bit of context, doesn't it? "Unlimited" began being advertised at a time when dialup was charging for hourly use. The cable companies saw an opportunity here - "always on" connections that were not time limited. Hence "unlimited". I don't think there was a discussion around unlimited bandwidth even then -- just an assumption of unlimited connectivity in comparison to the time-limited usage of dial-up.

      So you think they'd get with the times and stop advertising unlimited, right? Well... guess what, they have. I can't find any of the major carriers advertising "unlimited" service, and haven't for several years now. So maybe you were among those who did sign up when they advertised "Unlimited" [connectivity] - your TOS agreement also lets them change that whenever they want.

      This isn't what we want to hear, but it seems to me that they're the basic facts of the matter.

    12. Re:So who gets rationed? by stim · · Score: 1

      if you are paying hundreds of dollars for a non symmetric circuit with no SLA, than your a complete idiot. SLA probably accounts for more than any other part of the cost of the circuit in all honesty. Having a decent upload and TOS that allow you to run services (thus making money) is the point of those high costs.

      --
      Browse at -1 to keep an eye out for abuses.
    13. Re:So who gets rationed? by Registered+Coward+v2 · · Score: 1

      I completely believe there is fine print. Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      You get unlimited capacity but a peak throughput - which means that they can slow you down as needed without impacting your unlimited capacity. I bet your TOS don't guaranty 6M throughput 24/7 but rather a maximum achievable value. At any rate, you still have unlimited (i.e.e no cap) usage even at non-peak speeds.

      It would be interesting to periodically test your connection speeds - if you rarely exceed a lower peak speed then you could lower your connection costs by dropping to a lower tier.

      I'm actually ok with caps as long as they're sane. 5GB per month is not sane. 1 Steam game can put you over that quite easily. Caps simply will not be viable in a future where everything moves over the connection; esp when it's the same ISP moving IPTV.

      That's why you need tiered cap pricing if you go to that - for some people 5GB is quite enough, others would use it in a day. Tiered pricing allows people to decide for themselves what capacity they need and not pay for more or underwite other high use customers.

      Metered would be ok with me as well. It would be interesting to see what happened if metered billing became the norm. I wonder if AdBlock would become a norm, and if there would be a movement back to more thin looking websites to save the bandwidth for the actual data rather than the look n feel.

      The problem is that metered use would seriously impact a lot of companies business model s people respond to tiered pricing. VOD, for example, would probably get less uptake as people compare that cost to renting or watching a movie on pay per view.

      My guess is that restrictive caps and metered usage would set off a battle between ISPs and the rest of the infrastructure - to the point I'd expect to see major content providers arguing that internet access should be a government regulated / provided utility because of its impact on the economy. Many content owners are waking up to the idea they can cut distribution costs significantly by internet based delivery; thereby making more money by cutting out the middle man and essentially passing the cost of the tangible media to the buyer eliminating all the reproduction, storage and distribution costs; as well as be freed from battles over format (Blu-ray vs HD and whatever comes next.) Given their political clout I'm sure they will start crying if ISPs significantly cut into the viability of such markets.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    14. Re:So who gets rationed? by sjdude · · Score: 1

      There's a fixed amount of bandwidth available, and you have to decide who gets it.

      You have N people sucking bits, so you can fairly divide by N the bandwidth each can get from the total available. In CPU scheduling its called timesharing where you share a limited resource (CPU) evenly among N processes that wish to run.

      If you want unfair distribution of the bandwidth, you're right, you have to decide.

    15. Re:So who gets rationed? by mpcooke3 · · Score: 4, Insightful

      Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      It's a bit like a water-slide park, where they originally charge kids $20 for 10 slides that have to be used the same day. Then they switch to a new pricing scheme where kids can have an unlimited number of slides on that day for $20.

      The scheme is so popular at drawing people in, none of the kids can get more than 5 slides in because the queues are so long.

      Sometimes people running a club do the same thing over here, you pay one fixed price to get in and you get unlimited drinks! Only catch is that the club is always packed and they only have 1 slow barman serving. It's also a very unpleasant experience at the bar!

    16. Re:So who gets rationed? by Anonymous Coward · · Score: 0, Informative

      ISP's live and die by the oversell, and this isn't new mate. You ever wonder how an ISP could afford 50,000 phone lines back in the day? They couldn't, of course, for the $19.95 a month that most people were paying. They oversold the lines at least 20 to 1!

      Today it's the same for bandwidth. You think that someone is going to be able to afford selling individuals the equivalent of 4-10 (or more) DS1's DS1's for less than a US$100 when a DS1 (1.5 aka T1) still costs 3-5 times that? (Depending on area)

      I guess in Europe, it's E1, but you get the idea...

    17. Re:So who gets rationed? by ThatDamnMurphyGuy · · Score: 1

      Let me put this another way: I purchased a 6M connection. I did not purchase a 5GB transfer account.

    18. Re:So who gets rationed? by Jbain · · Score: 1

      I think Verizon is in a bit of a tight spot right now(or they feel free and clear, one or the other). The way I see it they CANNOT implement caps of any kind, whether they want to or not. It would undermine their entire marketing strategy for the past few years with Fios being the savior of consumer internet with awesome speeds.

      I only wish they were available at my house. across the street has it, but not us :(

    19. Re:So who gets rationed? by Sandbags · · Score: 2, Interesting

      That's not a bad idea... Unfortunately, most of the Starbucks I've been in QoS each user's connection to about 512K down, so good luck doing big dowloads or watching IP TV from there... Occasionally I've found better, but rarely. If we abused it too much, and Starbucks started eating charges I'm sure they'd impose daily caps on each MAC address, or impose their own throttling.

      I just signed up for AT&T DSL at a house I'm moving into Wednesday. Even including the dryline costs, it was $10 a month cheaper than TWCs offerd rate ($17 cheaper including TWC's upcharge for not having cable). I'm getting 6dn/512up. TWCs equivolent is 7dn/384up, which actually, is not as fast, and has higher contention rates since most people wrongly think DSL can't do those speeds and thus don't have DSL. TWC indicated they could change that rate, the amount of bandwidth I receive, or impose caps at any time without notice.

      Anyway, as part of signing up, I had the AT&T account rep add a notation to my account that; while a continuing subscriber no bandwidth caps or use costs would ever be assessed to my account, and further that this was for "unlimited" internet for upload and dowload for non-commercial purposes (including that I MAY work from home over that connection). I also ensured that should the available bandwidth increase at the same price, or should i wish to drop to a lower or different plan option, that the act of doing so would not change the condition that I am a "continuing" subscriber. They guaranteed me that they would not impose caps on my account, even if they impose ones on new subscribers. Basically, unless something miraculous happens, they just guaranteed I'll be a subscriber for life. I also made sure this statement would still be in effect should i switch from DSL to uVerse when available (I'm told 6 months tops).

      --
      There is no contest in life for which the unprepared have the advantage.
    20. Re:So who gets rationed? by Jbain · · Score: 1

      ...and if there would be a movement back to more thin looking websites to save the bandwidth for the actual data rather than the look n feel.

      Can I hear an Amen?! do away with the flash and bubbly crap that so many sites do today, just make it clean and simple! but that's a bit OT

    21. Re:So who gets rationed? by NukeDoggie · · Score: 1

      I recently tried using some p2p on my cell phone sprint 3g. It did seem to hit caps and wouldn't take PHONE CALLS after hitting the limit. No Texting, nothing. Needless to say, I reverted to my FIOS which is uncapped thank God. If it became capped, I don't know who I'd turn to, but I'd be willing to pay... We need companies who don't have investment in their content to provide access so the WAY we get content is different than WHAT content we are allowed access to...

    22. Re:So who gets rationed? by Shaman · · Score: 1

      With customers expecting to pay less and less for more and more, how do you expect to buy more bandwidth... for less money?

      It's nowhere near so cut and dried. Pricing has been where it's at because everyone has been trying to kill or prevent competition. Now that the status quo has been established, they have to either cut costs or find more profitability, because up to now nobody has made money on broadband Internet.

      --
      ...Steve
    23. Re:So who gets rationed? by chonglibloodsport · · Score: 2, Interesting

      Yes, and the users who do nothing but surf and email (the majority) will enjoy paying $1/month for the tiny bandwidth they use.

      If the ISPs used a metered system that reflected their actual costs, the 1% of users that use large amounts of bandwidth would quit and the remainder of users would be paying a tiny fraction of what they pay now.

      Face it, the real reason they're cranking up the prices is because their cable tv business is in jeopardy.

    24. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      ISP's live and die by the oversell, and this isn't new mate.

      Not to mention airlines have been doing it longer. They're already doing the equivalent of first class/ economy with the whole tiering system, and getting government handouts without actually doing anything to improve their business to where they won't need more handouts.

      I wonder what other lessons they'll learn from them. Maybe the hub/destination pricing scheme: hopping between major websites like google and myspace will be cheap, but you pay an arm and a leg to get from google to the website you're actually looking for.

    25. Re:So who gets rationed? by Dextrously · · Score: 1

      I don't understand. What is not clear about this pricing plan?

      http://www.timewarnercable.com/SanDiego/learn/hso/roadrunner/speedpricing.html

    26. Re:So who gets rationed? by revjtanton · · Score: 2, Interesting

      I've got Verizon FiOS in Baltimore (were WiMAX is available...with no cap!) and the funny thing is that I've got 10/2mpbs service as part of Verizon's version of a triple play! I pay $130 a month for TV, 10/2mbps connections and phone while its $150 a month for 10/1mpbs for Time Warner! I feel very sorry for people who don't have access to Verizon. With the number of people who are switching to such great offers it is amazing that other companies are adapting the less-profitable throttling/capping models.

      I had Comcast--who was 1st in the throttling department--and there is no comparison on the quality of the service and the quality of the company offering those services. I don't know why companies like Time Warner and Comcast believe they "own" the Internet just because they offer a gateway to it?

    27. Re:So who gets rationed? by whoever57 · · Score: 1

      the equivalent of 4-10 (or more) DS1's DS1's for less than a US$100 when a DS1 (1.5 aka T1) still costs 3-5 times that? (Depending on area)

      It only costs that because the local loop is very expensive. Around here, one can buy a business-class wireless connection with 2Mb up and down for under $150 per month -- and since this is a business connection, not only do you get real support, but also no cap on bandwidth.

      What does this show? That the residential ISPs are engaged in price gouging.

      --
      The real "Libtards" are the Libertarians!
    28. Re:So who gets rationed? by CronoCloud · · Score: 1

      Good luck with having that "notation" enforced and obeyed rather than ignored at their convenience.

    29. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      Look at the pricing scheme. $25 base charge, $1 per gigabyte. The $25 should be taking care of maintenance, customer service, etc. and they should not be charging an entire dollar per gig.

    30. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      So you think they'd get with the times and stop advertising unlimited, right? Well... guess what, they have. I can't find any of the major carriers advertising "unlimited" service, and haven't for several years now.

      I just saw an ad on a US station for 3G internet from some wireless company called 'Cricket'. They were advertising 'Unlimited', though the fineprint at the bottom says something about that actually meaning 5GB / month. Seems extremely misleading, especially considering that most mobile contracts are based on a monthly bandwidth allotment.

    31. Re:So who gets rationed? by vux984 · · Score: 1

      ISPs just need to upgrade their backhauls to accommodate more traffic, they are selling people bandwidth that doesn't exist and hoping people don't use it

      That's what they -were- doing. Now that they are switching to selling people a specific amount of bandwidth that does exist*, and charging people for how much they use, what exactly is your problem?

      (* of course they are still 'overselling' bandwidth by a certain amount. It would just be stupid not to, because some people aren't going to use it, and it would be stupid not to capitalize on that fact. But with caps and tiers they =can= let people pay for what they need/use, and deliver more to high users, while maintaining a reliable and stable service.)

      ISPs need to fess up about exactly how much bandwidth each customer will get.

      That's exactly what the caps and tiers amount to.

    32. Re:So who gets rationed? by Wrath0fb0b · · Score: 1

      I completely believe there is fine print. Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      And now, due to complaints about the marketing, they are selling their capped service as a capped service. You should be very glad that they heard your original complaints!

    33. Re:So who gets rationed? by sjames · · Score: 2, Interesting

      There's a fixed amount of bandwidth available, and you have to decide who gets it.

      Not really, no. Technology marches on and in the world of networking it keeps taking the form of endpoint hardware that allows the very same cables to carry orders of magnitude more bandwidth. It is now possible to put 128 channels of 10Gbps each on one fiber. Yes, over a Terrabit per second in aggregate on one pair out of 24 in a longhaul cable.

      Upstream bandwidth for an ISP the size of the major cable companies costs under 4 cents per GB.

      BTW, the reason they sell broadband in terms of max transfer rate but cap it in terms of bytes transferred is so the marketing weasels have enough gray area to fudge the numbers to their heart's content.

    34. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      ISPs need to fess up about exactly how much bandwidth each customer will get.

      But this is only possible if the customers in turn fess up, beforehand, about exactly how much bandwidth they intend to use. Otherwise, well, the ISP needs to guess, and provision their network according to that guess.

    35. Re:So who gets rationed? by jedidiah · · Score: 2, Insightful

      > This requires a bit of context, doesn't it? "Unlimited" began being advertised at a time when dialup was charging for hourly use.

      Nope. Not even close.

      It was "dialup" that made the break between being charged by the hour and being charged a flat monthly rate.

      By the time "broadband" came around, it was already taken for granted that what you
      paid for per month covered ALL OF YOUR ACCESS. There might have been usage caps even
      then. However, they were rare and typically represented absurdly high levels of usage
      that even an abuser would have to work at violating.

      Broadband was sold as a means to download (pirate really) large media files and to do this faster than dialup.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    36. Re:So who gets rationed? by Estanislao+Mart�nez · · Score: 1

      I completely believe there is fine print. Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      No, there have always been technical restrictions on when and how long you can get peak throughput, because of the network's architecture. One trivial example: the transoceanic cables that link North America with other continents have limited bandwidth, and if everybody in one continent tried to reach the other at the same time, they wouldn't be able to get peak throughput, no matter how big of an uplink their ISP had.

      There are plenty of situations beyond the ISP's control that frequently prevent you from getting the 6M, and what's more, the network's architecture is designed so that everybody can get peak throughput part of the time only as long as nobody uses peak throughput 24/7. That's a fact of the design of the network, all the way through.

      All of you Slashdot Geniuses need to stop whining about "unlimited access" and "overselling," and give us some serious answers to the serious questions: how much upstream bandwidth is enough without being too much, and how do we go about paying for it?

    37. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      I don't understand. What is not clear about this pricing plan? http://www.timewarnercable.com/SanDiego/learn/hso/roadrunner/speedpricing.html

      The caps? The fact that you're paying way too much for it because there is little to no competition in the market?

    38. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      I've had similar experience, including the account representative who's more than happy to "make that notation for you." I wouldn't believe they actually did anything besides possibly note "annoying customer."

    39. Re:So who gets rationed? by bmimatt · · Score: 1

      What's not so clear is the fact that 'Road Runner
      Turbo with Powerboostâ„¢', which I used to have here in SD, is basically being shoved behind some squid-like cache/filter installation.  That is where the 'Turbo' bandwidth comes from;  Bandwidth caps still apply though, I can see them in action when downloading multiple large datasets to my home office network (scp not p2p).
      I understand the business needs they may have, but if they are going to cap my bandwidth I want them to do it in a more intelligent manner, with an up-front warning.

    40. Re:So who gets rationed? by fahrbot-bot · · Score: 1

      They guaranteed me that they would not impose caps on my account, even if they impose ones on new subscribers.

      It's so cute that you believe that. I'm sure there's something in their agreement that says they can alter the terms of the service and/or agreement at any time, for any reason, but that you have the right to cancel if you disagree... This is why the account rep had no problem adding your commentary to the agreement as it will have no standing.

      I hope I'm wrong, but they're AT&T and you're, well, you (one of us). Just the same, good luck with that.

      --
      It must have been something you assimilated. . . .
    41. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      whooosh

    42. Re:So who gets rationed? by __aatmkh9910 · · Score: 1

      This is right, ISPs pay a lot for the loop(whether it's a DSL, T1, T3, or OC-1) but then they cram lots of people on a single loop and promise them more bandwidth then they will ever get, that's why the price is so much lower.

      If you want your own T1 loop, you have to pay much more, but then you are guaranteed all the bandwidth you paid for.

    43. Re:So who gets rationed? by Dextrously · · Score: 1

      I'm thinking people missed the sarcasm in my post.

      I meant to bring attention to the fact that their particular "Speedlimit Plan" is about as clear as mud, COMPLETELY inaccurate and uninformative. To find actual rates, I ended up looking to some random thread on DSLreports.com. The fact that they say you need "Turbo with Powerboost" to "watch videos" is completely insane, mind-boggling, and ludicrous. It seems like some monkey of a manager randomly throwing fecal matter at multiple options on a wall was used in order to decide what was put up there for each category. Seriously, you could move any of the check marks around in that chart and it would still technically be accurate and useless to a potential customer. It completely disregards things like bandwidth, up speed, down speed, email accounts, amount of public ip addresses, or port-blocking policies. You know, the little important details?

    44. Re:So who gets rationed? by bmimatt · · Score: 1

      Yes, they have conveniently divided San Diego between TWC and Cox so that there is no competition when it comes to Cable (or Cable Internet).  The city seems to be split right down the middle, along the Interstate 8.  You live downtown, you get Cox.  You live in UTC, you get TWC.  Since we get quite a lot of sun here, perhaps DirectTV & DSL is the way to go... gotta give it some more thought.

    45. Re:So who gets rationed? by Wildclaw · · Score: 1

      With customers expecting to pay less and less for more and more

      Yeah, those poor computer harddrive manufacturers. Why can't they charge $1/MB (or whatever) like in the good old times.

      It's nowhere near so cut and dried. Pricing has been where it's at because everyone has been trying to kill or prevent competition.

      No. Pricing has been where it is because send data around the world using fiber is damn cheap as long as you have put the fiber into ground once. The evidence is in countries like Sweden, Japan, Finland and South Korea. And it just gets cheaper each year.

      Note specifically, that we are talking about capping, so we can directly throw any talk about digging costs out the window as irrelevant. Digging costs should be included in the base cost, not in some additional data transfer fee. And that basically invalidates the usual population density excuses.

      Ok, I admit, installing new hardware also costs money and more with less population density, but far less so than digging. And such modernizing should be part of the regular maintenance schedule of a growing technology like internet.

      But the truth is, that there are lots of interests that don't like the idea of cheaper bandwidth for different reasons. Maybe they are TV providers that could see their main market disappear. Or maybe they are selling expensive "business" connections that would become obsolete with new technology. But it is always the same. Without competition in some way (regulated or not), everything grinds to a halt because of greed of the current giants.

    46. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      That's why you need tiered cap pricing if you go to that - for some people 5GB is quite enough, others would use it in a day. Tiered pricing allows people to decide for themselves what capacity they need...

      And metered means that if those usage patterns change, they can still pay a reasonable amount, rather than suddenly being bumped up to a higher tier. Given the Steam example, what happens if I never really used much bandwidth, but one day I downloaded Steam? Do I get a pile of overage charges and the offer to add a flat $20/mo to my Internet bill? to cover this sort of usage? Or do I get a few little spikes of $1 or $2 here and there, if that?

      VOD, for example, would probably get less uptake as people compare that cost to renting or watching a movie on pay per view.

      I assume that's "video on demand", right?

      Alright, let's compare. Amazon charges 17 cents per gig for downloading from Amazon Web Services. That gets pricey if you're downloading an absolutely pristine, full Blu-Ray disc -- which you're almost certainly not. A very good quality Blu-Ray rip will fit into 10 gigs, or $1.70 -- still cheaper than the rental, and you don't necessarily have to return it. And most services compress it a hell of a lot more.

      If it's metered and still too expensive, sure. If it's metered at a reasonable rate, I don't think it becomes a problem.

      Many content owners are waking up to the idea they can cut distribution costs significantly by internet based delivery; thereby making more money by cutting out the middle man and essentially passing the cost of the tangible media to the buyer eliminating all the reproduction, storage and distribution costs; as well as be freed from battles over format (Blu-ray vs HD and whatever comes next.)

      The vast majority... well... where do you think Blu-Ray (or HD-DVD) came from in the first place?

      Granted, it was probably content creation corporations, not individual creators, but the fact is, they're often the first to shoot themselves in the foot over a piracy scare. Let's not forget the whole "VCR is the Boston Strangler" analogy. The smart ones picked up on Internet distribution a decade ago -- the dumb ones think "Internet Distribution" means getting their music on iTunes -- or worse, PlaysForSure/Zune.

      --
      Don't thank God, thank a doctor!
    47. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      If you pay a certain amount of money for a certain mbps and "unlimited" connectivity, you are paying for mbits downloaded equal to (seconds in a month)*(xmbps). In other words capping bandwidth is the same thing as limiting time, which means we are back in the days of fucking dialup, and you probably can't afford to use your internet more than 30min a day.

      The wording isn't an issue. The issue is that capped bandwidth is shitty internet service and a huge step backwards. And it's all to force us to watch "appointment TV" saturated with ads. I'll go back to reading books, but if the internet has been crippled and massively overpriced, should I cut the cord completely, and go back to letters too out of principle? Might as well retreat the woods and start mailing devices out to the corporate overlords.

    48. Re:So who gets rationed? by SanityInAnarchy · · Score: 2, Insightful

      Worth mentioning, that's initially a win for the service provider -- the slides are packed, but each kid is still paying $20. Even if you assume the waterpark was fully utilized at $20 for 10 slides, that means they have at least twice as many kids getting 5 slides, but still paying $20 each.

      What I've humbly suggested is, instead of pocketing the extra money, spend it on building more slides. It may take time, but you'll eventually get even more kids paying $20 each, and having a lot more fun.

      Instead, ISPs have done the equivalent of advertising even more, and pulling in even more people, until no one can get more than about 2 slides. Some kids figure out exactly which slides to use, and when to use them, coordinate with each other to plan it out, and somehow manage to get 20 slides each -- thus forcing everyone else down to 1 slide. The pool cracks down by randomly kicking people out who "slide too much" without defining it.

      Eventually, after enough people complain, the park goes back to its original model, this time stating explicitly that you get 5 slides, and more than that costs extra.

      All of this just to make a few bucks in the short term.

      What shocks me is that there's no competing waterpark with five times as many slides to pull all the customers away. Surely, at least some ISPs have to have gotten it right, and invested in infrastructure, right?

      Oh, and it was a good analogy, sorry to abuse it...

      --
      Don't thank God, thank a doctor!
    49. Re:So who gets rationed? by Wildclaw · · Score: 1

      While I agree TWC is ripping people off, your assertion that it only costs $0.16 is stupid. First, they need to also pay electricity, pay for employees to take your service calls, employees to do line repairs, repair existing lines when they are damaged, the gas to get those trucks out to repair the line, the lease on the truck itself, and then still have enough for upgrades and to make a profit (there's nothing wrong with making profit... but the way they are going about it by overselling is not right either).

      Pretty much all of that goes into BASE cost. That is cost that anyone on their network should pay just for subscribing to TW.

      The only thing that should count towards data transfer fees is

      * Cost for transfer on non peering networks (backbones usually)
      * Cost for upgrading to higher capacity routers
      * Possible extra energy costs

      So what are the costs of those:

      * $0.016/GB was what the grandparent estimated. And as some of the traffic can be peered or stay within the network, the actual cost for an ISP is less
      * 4-5% of the average subscribe fee if you believe the $150mil upgrade vs $4100mil revenue figures posted elsewhere in this slashdot discussion.
      * The extra energy costs are probably ignorable

      However I look at it, there is simply no case to be made for the current TW caps (well, except that they want to make more profit and want to prevent internet TV).

    50. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      your assertion that it only costs $0.16 is stupid. First, they need to also pay electricity, pay for employees to take your service calls, employees to do line repairs, repair existing lines when they are damaged, the gas to get those trucks out to repair the line, the lease on the truck itself, and then still have enough for upgrades and to make a profit...

      Amazon has to do all of this, and manages to charge $0.17 per gig down, $0.10 per gig up. Flat, across all their services.

      Or I suppose AWS doesn't run on electricity, nor require any kind of service or customer support?

      Alright, yes, an ISP has a bit more ground to cover, physically, than a datacenter. On the other hand, Amazon is either plugged directly into a backbone, or they have an ISP too.

      But really, are those physical lines from my ISP to my house really costing enough to explain that it costs ten times as much?

      --
      Don't thank God, thank a doctor!
    51. Re:So who gets rationed? by deets101 · · Score: 1

      Verizon is one of the only ISPs left that doesn't do any sort of throttling or capping

      I really doubt that. I have seen a hugh reduction in NNTP (usenet) speeds.

      --

      --
      My parents went to Slashdot and all I got was this lousy sig.
    52. Re:So who gets rationed? by MikeBabcock · · Score: 2, Interesting

      I'm a heavy Internet user and hate caps and have a 10Mbit feed to my house and even I'm not that oblivious.

      The feed you pay for is a "peak speed" of 6Mbit first off, not a guaranteed speed. Secondly, your actual usage is probably discussed in the fine print near where it tells you not to spam and harass other users.

      --
      - Michael T. Babcock (Yes, I blog)
    53. Re:So who gets rationed? by ThatDamnMurphyGuy · · Score: 1

      There's a big difference between fine print for "usage" that says "don't do illegal stuff" vs. "P.S. After 3 days of real use, we're charging you even more to just USE what you've already paid for once".

    54. Re:So who gets rationed? by CastrTroy · · Score: 1

      They are still overselling, even in the business tier. They depend on the fact that not everybody on their service is going to be using their entire 2Mb 24 hours a day.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    55. Re:So who gets rationed? by nabsltd · · Score: 1

      ISP's live and die by the oversell

      Although you probably shouldn't waste mod points on an AC, this needs to be modded down.

      Verizon FiOS does not oversell, gives you full speed 24/7, and no caps. In my neighborhood, technically they could oversell, as they can only support about 27Mbps for every house. So, if every house subscribed to FiOS, and they all ordered the 50Mbps service, it would be oversubscribed. As long as they get less 50% buy-in (or anybody decides that 20Mbps is enough for them), they're fine.

      Verizon is making money in buckets on FiOS, despite the enormous build-out costs. And, they just keep increasing speeds. Anybody who has the 15Mbps service can just call and get a free, permanent upgrade to 20Mbps. It would be nice if they just increased everyone's speed without telling them, but sometimes they have to act a little like the cable companies.

    56. Re:So who gets rationed? by Reziac · · Score: 1

      My ISP guy (the one-man-band fixed-wireless company that's the only broadband I can get) explained peak bursts this way: The initial data is sent across at max speed, which here means 2.5MBit. However, the limit is about two minutes worth for a given site. After that it throttles down to the normal max of 1.5Mbit. This is done so web pages, being mostly conglomerations of small files, will download at max efficiency. But that doesn't mean I can get that 2.5MBit peak for a sustained download. So large files will initially come across at the 2.5Mbit peak, but after a couple minutes will throttle back to the sustained throughput of 1.5Mbit.

      He says everyone does this, but most ISPs only *advertise* the peak or burst speed, not the sustained speed, which one only finds in the fine print.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    57. Re:So who gets rationed? by Reziac · · Score: 1

      "I get 100 mbit fiber for $65/mo in a small town in Iowa. WTF is taking the rest of you so long?"

      Take note that you're in real farm country (I grew up in ND, MN, and MT -- howdy, neighbor!) Contrary to popular urban belief, farmers and ranchers are among the best innovators in the world, and among the most likely to embrace tech advances -- IF it improves their lives or their productivity over the long haul, and not just because it's New or Shiny or will look good on the short-term bottom line.

      It's really the same thing as your post talks about -- how some companies let short-term greed damage long-term profits. Can't do that if you're a farmer, now that slash-and-burn and moving the whole operation every year are not sustainable farming methods!

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    58. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      I wish ISPs would be more transparent in their pricing policies, bandwidth and contention ratios, because then the people around here who want 8GB unlimited traffic for $10 a month would get the abrupt reality check they seem to need.

      Really? ... Really? Yea dude, it's definitely the customer's fault for expecting to get exactly what the TV ads and radio commercials shout all the time. I mean, who in the world would expect that the guy screaming "$10/month unlimited access. 8mbps link!!" would deliver something absurd like an 8mb pipe with unlimited use for $10 a month.

    59. Re:So who gets rationed? by OwnedByTwoCats · · Score: 1

      How did you negotiate the "unlimited forever" terms?

    60. Re:So who gets rationed? by CarpetShark · · Score: 1

      then the people around here who want 8GB unlimited traffic for $10 a month would get the abrupt reality check they seem to need.

      Considering economies of scale, supply and demand, and the fact that many people want this, and that many more soon will, it seems to me that it's ISPs (a little) and Telcos (especially) who need the reality check.

    61. Re:So who gets rationed? by Sandbags · · Score: 1

      Since it qualifies as negotiated competitive terms, an AT&T supervisor can apply that notation to my account, and any future supervisor will simply apply the appropriate discound should I ever be charged. I did this with AT&T about 6 years ago as a competitive response to MCI local offering unlimited calling and had a competitive price cap enforced on my bill. I had to call in every few months, but they were very accomodating, and more often than I had expected not only reversed any charges, but also compensated me aditionally for the mistake, usually by throwing in a couply hundred additional free minutes.

      I have every faith that AT&T will maintain my no limit measures. besides, per my state law, and since this is a contract for service (not month to month service), they become legally binding to uphold it. As long as I'm a consistant subscriber, they can't forcibly remove me from my contract, only from service entirely.

      However, with recent actions in Washington, I'm not really worried caps will be imposed anyway, and if they are, I'll likely never hit them. Also, most of my worry is hitting the cap through the use of IPTV and Netflix services. Once i get Uverse installed in a few months, that won't really be a concern anymore (and that becomes a 2 year contract).

      --
      There is no contest in life for which the unprepared have the advantage.
    62. Re:So who gets rationed? by Sandbags · · Score: 1

      oh, I probably should mention I'm a lead decision maker at a firm that has multiple Gig, 10gig, OC6, DS3, and T3 connections running through AT&T.... If it wasn't illegal or immoral, I'd half expexct them to hook up my house with the best of their services at no charge... We have a Metro E provided by 2 seperate ISPs connecting our facilites in nearly 20 cities in 6 states and point to point private networks to dozens of locations across the country. We're certainly not their biggest account, but we're big enough that pissing off a decision maker is not in their interest, not over a few exta GB per month on a residential account...

      --
      There is no contest in life for which the unprepared have the advantage.
    63. Re:So who gets rationed? by Jackie_Chan_Fan · · Score: 1

      I'm not sure what the point of your analogy is.

      It sounds to me like someone's avoiding building new slides, and hiring more bartenders.

      The reality is this...

      Bandwidth demands do not decrease, they only increase. So why are ISP's limiting bandwidth? To make more money? to cover bandwidth costs?...

      Shouldnt bandwidth be getting cheaper, not more limited and expensive?

      Everyone demands more bandwidth.

      Are we all satisfied with 10Mb, 30Mb? ... Frankly i'm hoping some day these speeds are instant! I wonder how much we'll be charged then!?

      We are simply not at the end of the internet... we are still riding the developement of it. Bandwidth demand increases will continue and if these so called "Internet service providers" cant provide the bandwidth, then let them die! They do not get it.

      They're in a business where bandwidth should be getting cheaper, but they instead are limiting it, charging more for less. All this does is slow down progression.

      The real question is... Are these ISP's losing money with unlimited plans? Or are they just not making as much profit as they could, if they forced us to pay higher prices?

      I dont see ISP's dropping like flys, so i'm going to assume that they're making plenty of money as is.

      Fix your networks, provide Fiber to every house like Verizon... or GET THE FUCK OUT OF THE INDUSTRY.

    64. Re:So who gets rationed? by isBandGeek() · · Score: 1

      Isn't this basically what banks do? Loan out money they don't have and hope that their depositors won't withdraw their money at the same time? (Not that it's right for banks to do that, but just a note.)

    65. Re:So who gets rationed? by Anonymous+Brave+Guy · · Score: 1

      ISPs and Telcos are well aware of the likely future trends in demand, I'm sure.

      In any case, many people want to be millionaires, but we can't all win the lottery. People might just have to get used to the idea that some big companies have to spend big bucks to set up the networks they want to use, and that if they want to watch streaming video or spend all day sharing BitTorrents then it's going to cost them more than Joe and Jane who just read e-mail and surf the web a bit.

      This offends geeks who have become used to having the world on a stick for a dollar a week, but that's just because that small minority of people have had it far better than everyone else for years and now everyone else wants their turn too, please.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    66. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      Regardless, they sold it as "unlimited". Yes, 6M is a peak throughput, but there was no restrictions on WHEN nor HOW LONG I use that 6M peak throughput.

      It's a bit like a water-slide park, where they originally charge kids $20 for 10 slides that have to be used the same day. Then they switch to a new pricing scheme where kids can have an unlimited number of slides on that day for $20.

      The scheme is so popular at drawing people in, none of the kids can get more than 5 slides in because the queues are so long.

      Sometimes people running a club do the same thing over here, you pay one fixed price to get in and you get unlimited drinks! Only catch is that the club is always packed and they only have 1 slow barman serving. It's also a very unpleasant experience at the bar!

      The answer is simple. Hire a new barman, and expand your capacity. The amount of money you are pulling in should allow you to do this. The only reason not to is to create artificial shortage to drive up prices once you undersell all your competition, which in my opinion, is highly unethical. It's exactly what is happening.

    67. Re:So who gets rationed? by mpcooke3 · · Score: 2, Insightful

      What I've humbly suggested is, instead of pocketing the extra money, spend it on building more slides. It may take time, but you'll eventually get even more kids paying $20 each, and having a lot more fun.

      That's only worth it if people pick water slide parks based on how busy they are. If they mainly just select based on price and the 'Unlimited' feature then there isn't any point in building new slides.

      Hell, if the people are mainly just interested in a cheap price and hearing the term 'Unlimited' maybe it's a better business strategy to spend the extra money on advertising your already overcrowded water slides!

      You've now made a lot of money with little investment. What if someone else starts building an alternative water slide park?

      Well you could then add some extra slides to your park and use your stockpile of cash to give away unlimited slides for free, announcing this on the same day as the other water park opens. You then run your water slide park at a loss for a few months until the competitor goes bankrupt at which point you may choose to pick up that second water park at a big discount. You can then put prices back up to $40 a day to compensate for the free days you had to give out before.

      Eventually you run all the water parks in the world, you charge whatever you want, move your headquarters to a tax haven and use the money you've saved to offer large contributions to political parties in return for dropping any lawsuits against you.

      It's the American Dream.

    68. Re:So who gets rationed? by AK+Marc · · Score: 1

      ISPs just need to upgrade their backhauls to accommodate more traffic, they are selling people bandwidth that doesn't exist and hoping people don't use it, ISPs need to fess up about exactly how much bandwidth each customer will get.

      So, if they said "100 Mbps line speed, 5 Mbps typical peak download speeds" you'd never complain? Or would you whine that sometimes you get 4 Mbps, but never mention when you get 6 Mbps? They'll give "typical" speeds, and if you want dedicated and prioritized traffic that will never be congested, you need to be paying the 10x more cost (or whatever where you are) for a dedicated connection at a POP.

    69. Re:So who gets rationed? by stonewallred · · Score: 1

      dumbass. that cost includes the electricity, maintenance etc. if you are that fucking stupid, go back to your office and tell your boss you defended the company. maybe he'll throw you a bone.

    70. Re:So who gets rationed? by CarpetShark · · Score: 1

      It's a fair argument, but I disagree with your assessment. Neither of us will know for sure until the future gets here though. Personally, I'm betting that a few companies will have the guts to invest in better tech, to charge more reasonable prices, and to count on demand making it work.

    71. Re:So who gets rationed? by bhtooefr · · Score: 1

      You could probably turn to a T1 or greater provider, although be ready to pay multiple hundreds per month.

      Alternately, maybe this is a nice huge argument for 802.11s.

    72. Re:So who gets rationed? by tkw954 · · Score: 1

      The feed you pay for is a "peak speed" of 6Mbit first off, not a guaranteed speed.

      No, it's a guaranteed speed. It's guaranteed never to be better than 6Mbit.

    73. Re:So who gets rationed? by Failed+Physicist · · Score: 1

      You might have a point. But the ISPs are really exagerating.
      Most caps are easily met in one or two days of full download at the speed specified.
      It might be a viable strategy to oversell, but ISPs shouldn't be allowed to expect overselling by as much as 15-30x. They should invest in their infrastructure, not squeeze the customers dry all the while compromising the development of the same service they are trying to sell.
      Obviously, most ISPs have no long term view of the internet, at all.

    74. Re:So who gets rationed? by Anonymous Coward · · Score: 0

      You're.

    75. Re:So who gets rationed? by plague3106 · · Score: 1

      Amazon has to do all of this, and manages to charge $0.17 per gig down, $0.10 per gig up. Flat, across all their services.

      Amazon doesn't mantain a network spanning an entire city either. They are responsible for the wires in their building, and no more.

      But really, are those physical lines from my ISP to my house really costing enough to explain that it costs ten times as much?

      Could be.. considering that your ISP has to wire each individual house. And repair it when someone hits the pole and takes the wires down.

    76. Re:So who gets rationed? by plague3106 · · Score: 1

      Fine, show me a link that backs up the cost to TWC. Also learn to fucking read. I said I didn't agree with the capping.

    77. Re:So who gets rationed? by fgouget · · Score: 1

      It's weird how everyone in the US seems to think ISPs cannot survive without download caps and small bandwidth limits. In France most ADSL contracts say your bandwidth is only limited by the quality of your phone line, which means you usually get 10Mbps or more. They also have no download caps, and include free phone calls to 90+ countries, including the US, and 100+ TV channels. And with all the cash they still managed to make, they are now deploying fiber to the home where you'll get >50Mbps down and >50Mbps up all for the same price of 40 US Dollars.

      So if US ISPs cannot survive selling 1Mbps ADSL connections with none of the extra services normally found in France, it means something is wrong. Maybe it's the regulations that need to change, or the city layout (sprawl?), or that there's no real competition (or all of the above).

    78. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      That's only worth it if people pick water slide parks based on how busy they are. If they mainly just select based on price and the 'Unlimited' feature then there isn't any point in building new slides.

      Well, ultimately, they do pay attention -- AOL did see a bit of a decline.

      But they also tend to pick water slide parks based on where they are. No one's going to move to another city just to visit the water slide.

      --
      Don't thank God, thank a doctor!
    79. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      Amazon doesn't mantain a network spanning an entire city either. They are responsible for the wires in their building, and no more.

      So... what about those wires running to their building? Who's responsible for repairing them?

      --
      Don't thank God, thank a doctor!
    80. Re:So who gets rationed? by plague3106 · · Score: 1

      The owner of the physical network is. Just like they are at my house. They are responsible right up to the point the wires enter my house.. including the wires over my lawn.

    81. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      Meaning either Amazon, or someone Amazon is paying.

      Meaning my $0.17/gig is still going to pay for that.

      --
      Don't thank God, thank a doctor!
    82. Re:So who gets rationed? by plague3106 · · Score: 1

      No. You're not involved... unless you happen to share the same ISP as Amazon.

    83. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      I am indirectly involved, as I pay Amazon, and Amazon pays their ISP.

      In fact, I can only assume that Amazon pays considerably less than that, as even if we disregard what value they provide, they would of course be making a profit.

      --
      Don't thank God, thank a doctor!
    84. Re:So who gets rationed? by plague3106 · · Score: 1

      No, you're not involved because you might or might not ever pay Amazon, and what Amazon does or doesn't pay to their ISP has nothing to do with how much / GB you are charged on your connection.

    85. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      you're not involved because you might or might not ever pay Amazon

      Actually, I absolutely do pay Amazon, just as I would any other hosting provider which I am using bandwidth on. Here, go read.

      has nothing to do with how much / GB you are charged on your connection.

      Again, this is for my connection, to my EC2 nodes, which are hosted on Amazon -- or to my S3 storage, which is also hosted by Amazon -- therefore, it is Amazon's connection, and it is directly relevant. Amazon is somehow managing to spend less than that amount for their connection, because they are reselling it to me at that amount.

      If not, they are playing a very risky game -- for instance, they would be making assumptions about how many times a given file on S3 is accessed, and a particularly popular one could end up costing them a fair amount of money.

      I apologize if I wasn't clear, but I did mention that this price per gig is something I am paying to Amazon, and I mentioned it several posts up.

      --
      Don't thank God, thank a doctor!
    86. Re:So who gets rationed? by plague3106 · · Score: 1

      Actually, I absolutely do pay Amazon, just as I would any other hosting provider which I am using bandwidth on. Here, go read.

      An edge case, and we're talking about Amazon as they sell products, not hosted services. Replace amazon with newegg if you want, because AWS are a seperate matter.

      Again, this is for my connection, to my EC2 nodes, which are hosted on Amazon -- or to my S3 storage, which is also hosted by Amazon -- therefore, it is Amazon's connection, and it is directly relevant. Amazon is somehow managing to spend less than that amount for their connection, because they are reselling it to me at that amount.

      If not, they are playing a very risky game -- for instance, they would be making assumptions about how many times a given file on S3 is accessed, and a particularly popular one could end up costing them a fair amount of money.

      I apologize if I wasn't clear, but I did mention that this price per gig is something I am paying to Amazon, and I mentioned it several posts up.

      It wasn't clear at all. You also don't know if they are underselling AWS by using profits from their product sales to help cover the costs. Don't assume the price you're paying is what they actually pay; it may be a loss leader to get people hooked on AWS.

    87. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      An edge case, and we're talking about Amazon as they sell products, not hosted services.

      No, we're not. I was the one who brought up Amazon, and I meant AWS when I brought it up. Sorry if I didn't articulate that clearly.

      I am in no way arguing that when purchasing an Amazaon product, I have anything to do with their bandwidth.

      I am only claiming that Amazon clearly pays less than AWS fees for bandwidth.

      You also don't know if they are underselling AWS by using profits from their product sales to help cover the costs. Don't assume the price you're paying is what they actually pay; it may be a loss leader to get people hooked on AWS.

      While that's certainly possible, that's a pretty risky loss leader, considering some of the larger services that have been hosted on AWS. It also seems incredibly unlikely that it'd be a loss leader to other Amazon products, as AWS and (say) DVD sales are such completely different markets that it's really unlikely I'd prefer Amazon for a product simply because I host things on AWS.

      It's true, it could be about lockin. But how much datacenter could they afford to give away to establish that lockin, especially as tenuous as it is? Eucalyptis is a FOSS implementation of the AWS API. App Drop is an AWS implementation of Google App Engines. Projects like PoolParty often target AWS first, but add support for other services. And my own apps generally contain less than a hundred lines of AWS-specific code.

      --
      Don't thank God, thank a doctor!
    88. Re:So who gets rationed? by plague3106 · · Score: 1

      No, we're not. I was the one who brought up Amazon, and I meant AWS when I brought it up. Sorry if I didn't articulate that clearly.

      I am in no way arguing that when purchasing an Amazaon product, I have anything to do with their bandwidth.

      I am only claiming that Amazon clearly pays less than AWS fees for bandwidth.

      Well, I've heard of AWS, but it's more of a footnote when I think about Amazon, if it comes up at all. I can see how if you use it it'd be more at the front of your mind... but I don't, so for its books, music and games.

      While that's certainly possible, that's a pretty risky loss leader, considering some of the larger services that have been hosted on AWS. It also seems incredibly unlikely that it'd be a loss leader to other Amazon products, as AWS and (say) DVD sales are such completely different markets that it's really unlikely I'd prefer Amazon for a product simply because I host things on AWS.

      It's true, it could be about lockin. But how much datacenter could they afford to give away to establish that lockin, especially as tenuous as it is? Eucalyptis is a FOSS implementation of the AWS API. App Drop is an AWS implementation of Google App Engines. Projects like PoolParty often target AWS first, but add support for other services. And my own apps generally contain less than a hundred lines of AWS-specific code.

      Yes, it could be risky. Or perhaps they've made their computing systems more efficent, and are selling the now excess. Or maybe the largest projects are paying more.. who knows? But that's my point really... we don't know.

      Back to the original topic.. Amazon still isn't maintaining hundreds or maybe thousands of miles of networking cable across a farely large geographical area. That's an expensive task, which is why cable / phone companies are usually given monopolies on such last mile stuff.

    89. Re:So who gets rationed? by SanityInAnarchy · · Score: 1

      Or maybe the largest projects are paying more.. who knows?

      While they may be for EC2, they certainly aren't for S3. In fact, if you go back and read the page I linked to, the bandwidth costs actually drop per-gig when you transfer more.

      Back to the original topic.. Amazon still isn't maintaining hundreds or maybe thousands of miles of networking cable across a farely large geographical area.

      However, presumably they have an ISP, which would be doing that. If so, they must be paying less to their ISP than they are paid in bandwidth fees, otherwise AWS loses money.

      --
      Don't thank God, thank a doctor!
  6. In the UK... by Anonymous Coward · · Score: 2, Informative

    It's rapidly becoming impossible to find an ISP (especially where there's no cable coverage) who will provide reasonable limits. Many ISPs started out offering 'unlimited' plans. These ISPs ended up with fair usage policies- I pay for 30 gigs a month for the same amount I paid for unlimited, and this 30 gigs per month is actually only 15- at 15 they reduce everything except email/HTTP to a crawl, at 20 they block most things except email/HTTP, and at 30 it's just unusable, despite the fact that they claim I am still able to use everything but at a reduced speed.
    I don't do huge amounts of downloading- I grab the occasional bootCD and download some TV shows, but considering the former only accounts for ~5 gigs a month and the latter is advertised as the main use for my connection (Or at least my ISP keeps telling me I should do it more!). I've called them up several times to ask them why they keep adding bandwidth usage on protocols I don't even use (VOIP I don't use, yet last month I had 4 gigs of usage on it. FTP likewise.), and their support was utterly useless every time I've called.
    I'm currently with PlusNet, a subdivision of BT. My options are essentially A) Another BT Wholesale reseller, or B) An Entanet reseller. The Entanet reseller option was looking peachy but apparently sometime in the last few months they've gone for adaptive rate limiting and 'red flagging' high-bandwidth users. Where there used to be a 30/300GB (On/offpeak) package is now a 30/??? package.
    Is there much scope for other telecoms companies? Does the cost of laying new cable and more fiber not get offset to some extent by the fact that people would use your service?

    1. Re:In the UK... by Bert64 · · Score: 1

      Entanet are largely a bt reseller too...
      The problem is the wholesale prices... If you have an 8mb dsl and use it 24/7 for an entire month the isp will pay 30+k for that backhaul bandwidth from bt, not to mention the isp's own infrastructure costs.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
    2. Re:In the UK... by GargamelSpaceman · · Score: 1

      That's just it, there usually aren't THAT many ISPs around to choose from unless you're pretty urban. They can annoy their customers quite a bit before they annoy them enough to make them leave.

      --
      ...
    3. Re:In the UK... by master811 · · Score: 2, Informative

      There are still a few good ISPs out there, but yeah they are very few and far between.

      http://www.bethere.co.uk/ is probably the best I know of and from experience, it's truly unlimited in pretty much every way, and it's not ridiculously overpriced unlike others which may offer similar services.

    4. Re:In the UK... by Lumpy · · Score: 1

      Then push for laws that FORCE these isp's to provide you with a "meter" so you can see what you use and how much AND to dispute when what you see is different from what you know you used.

      Suddenly bandwidth caps seem far less profitable to the ISP's.

      Time to screw the ISP, force them to deliver meters and customer service infrastructure to support their metering.

      --
      Do not look at laser with remaining good eye.
  7. Killing the Goose... by agorist_apostle · · Score: 5, Insightful

    Let's see...people back in the 90s bitched about having rationed access, so companies got rid of it and went to unlimited use because their competition was. How long is it going to take a competitor to again figure out they can have all the business they can handle if they don't charge for volume?

    1. Re:Killing the Goose... by Anonymous Coward · · Score: 2, Insightful

      Problem is unlike the 90's when dial up providers were rationing, there's no competition for broadband in a lot of areas. With dial-up it didnt matter what phone service you had, you could still get AOL, MSN, Netzero, Juno, ... Now with broadband, some people don't have that choice to make. Where I live, I have 1 option for internet, Comcast.

    2. Re:Killing the Goose... by jcnnghm · · Score: 1

      Verizon already figured that out, that's why they built the FiOS network. The cable companies are too concerned about cannibalizing their TV revenue by going with low cost internet options like Hulu or Netflix to not impose the caps. When they got into the internet game it seems that they never really realized that their main business was probably on the way out, and now they're fighting like hell to stay relevant by attempting to make it impossible to use the other service because of the caps.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    3. Re:Killing the Goose... by Svartalf · · Score: 1

      I wouldn't say that Verizon "gets it", per se, but they're getting it a bit better than the rest. I still don't have TV or VoD- mainly because I've got fixed IP service. I can have VoIP from them, but I can't have the others because the ONT's they're using are incapable of providing the others allegedly with the service I've got from them. Oh, well, no boob-tube for me other than OTA; which is probably better. Means I won't be watching much of the pablum they've been shovelling of late. :-D

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    4. Re:Killing the Goose... by jcnnghm · · Score: 1

      You can get both, but they've got to run a second fiber and install a second ONT. It's a pain in the ass, but they will do it.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    5. Re:Killing the Goose... by smoot123 · · Score: 1

      Hear, hear! That's exactly the real consumer issue.

      If there is no real competition for broadband service, no kidding prices will go up and service will go down. When there is real competition (think dialup in the '90s or long distance phone service since the '80s), prices tend to go down and service quality improves.

      The only government action required it to ensure there is robust competition to provide broadband access to most homes.

    6. Re:Killing the Goose... by cvd6262 · · Score: 2, Interesting

      I'm in the area outside of Rochester, where TW plans to cap. Less than an hour from here is Buffalo where Verizon has laid out FiOS. Guess what? No capping in Buffalo.

      So, you're correct: Competition cannot cure this, which is why a NY state legislator has rightly observed it as an abuse of monopoly.

      --

      I'd rather have someone respond than be modded up.

    7. Re:Killing the Goose... by Dhalka226 · · Score: 2, Interesting

      I saw a great quote here on slashdot about this a few days ago, though I fear I'm not going to do it justice. It was from an Australian ISP, but along the same lines, where they said something like: "We'd be delighted if our highest-usage customers all went to our competition."

      And why wouldn't they? If you run a business and everybody is paying (say) $50, if you could skim the 1% who's downloading 200 gigs a month off and give them to a competitor and be left with customers who use 20, that's not bad for you. I don't know enough about their numbers to know if that 1% is actually using more than they pay for in terms of cost to provide the service--though I doubt it--but it frees up a lot of your pipes, doesn't make you invest as heavily into infrastructure, and ultimately could allow you to undercut that competition you just basically sabotaged.

      Granted, it's somewhat short-sighted. This Intermajig is only going to get bigger, and those infrastructure projects are all going to be necessary at some point -- they're just trying to turn back the tide with a spoon. Unfortunately US business is always most concerned with their short-term bottom lines, so it makes perfect sense to them. From their perspective, they ramp up the prices for those "high-end users" and either make more money from them (woohoo!) or lose them to the competition (woohoo!).

      The bottom line is whether it's smart or dumb, many major ISPs just don't want these customers right now. Not at the prices they currently enjoy.

    8. Re:Killing the Goose... by maxume · · Score: 1

      FiOS sure sounds nice, but the nature of the build out has been that they target relatively high density, relatively wealthy areas (which makes loads of sense, I don't mean to complain about it), and those are exactly the areas that are already well served.

      --
      Nerd rage is the funniest rage.
    9. Re:Killing the Goose... by Anonymous Coward · · Score: 0

      Right, Verizon has FiOS which doesn't cap (for now). Basicly, my point is that before with dial-up you had tons of choices for ISP. You could pick the one that's right for you. Now you pretty much only have 2. You can pick either some Cable ISP, or some DSL/FiOS ISP. And that's it. And some areas dont let you do that either.

    10. Re:Killing the Goose... by zmnatz · · Score: 1

      I'm the annonymous coward that posted this initially, just forgot to login. Gonna reference an article on techdirt.com where they talk about an interesting solution. Government funded companies lay down fiber and lease it to ISP's. This would be similar to how ISP's handled dial-up connections in the 90's using the existing phone lines. http://techdirt.com/articles/20090408/2138164440.shtml

    11. Re:Killing the Goose... by Anonymous Coward · · Score: 0

      The big players here in Belgium have rations. A few small players (who rent from the big guys) provide limitless internet. So why don't people all switch isps?

      Most people just don't seem to care about their limits. 30 GB/month is enough for most people. Besides that, consider that the small players rent their lines from the big ones, it's not really competition. Part of what you pay to those small isps go to the big players. Which can go up whenever they feel like it...

    12. Re:Killing the Goose... by nurb432 · · Score: 1

      We wont ever see unlimited bandwidth happen again since all the data providers are in bed with the media giants.

      I have been predicting this for years, as the ONLY way to stop piracy. Make it more cost effective to buy then download and the piracy issue will go poof.

      It will also neuter the entire internet as a whole and make it a waste.

      --
      ---- Booth was a patriot ----
    13. Re:Killing the Goose... by mikewren420 · · Score: 1

      The local DSL provider in Rochester, Frontier, offers business class service for $69/month with two year contract. Includes one static IP, a no-bullshit AUP, 3mbit down/640kbit up. Price is $89/month with no contract.

      I'm not a schill; Just went through the annoyance this afternoon of calling around to find a new ISP. I have a PC at my parents house in Rochester that I rsync to (geographical redundancy is your friend), and I often push 100GB/month of data. Yes it's legal, I'm a professional photographer. No, it's not porn.

    14. Re:Killing the Goose... by cvd6262 · · Score: 1

      Thanks for the heads up. Despite the slower DLS speeds (I've been *very* happy with TW's performance), having capped cable is like leasing a 200mph sports car with a 50 mile/month limit. It's just pointless.

      So, yeah, I meant to look into Frontier, who provides my phone service. I didn't know about their business plan. That's great since I already host a small server at home (TW hasn't rotated my DHCP address in almost a year) and I would like something more legit.

      As soon as I get my first warning bill (TW is supposed to send out "this month's traffic would have cost you $_____" notices) I'm calling, bolting, and signing up for DSL.

      --

      I'd rather have someone respond than be modded up.

    15. Re:Killing the Goose... by mikewren420 · · Score: 1

      That's exactly my experience and plan, except I'm getting itchy to stick it to Time Warner, and leave early, or call customer service and see if there's any wiggle room, and what the pricing options are for their business tier.

      But certainly, having an ISP AUP that condones running a server at the end of their wire makes me sleep a little better at night.

  8. Welcome to my world by ewe2 · · Score: 3, Informative

    where capping is the norm here in Australia. It's just a wild guess but maybe this is just an ambit claim to make more money, you think?

    Next they'll be filtering the internets...

    --
    insecurity asks the wrong question irritation gives the wrong answer
    1. Re:Welcome to my world by Anonymous Coward · · Score: 0

      Capping is the norm, and my cap is 5gb. I don't pirate because of it, but I also don't use Direct2Drive, XBLA, Steam, stream music or video or put up with shitty flash websites because of it.

      Extreme example? Sure: but it's hurting legitimate use just as much as illegitimate. But hey, if I could be certain that I could actually install and run a game that I bought legitimately, or could see those tv shows that people elsewhere are raving about now, now all that illegitimate use would be nice and above board anyway.

    2. Re:Welcome to my world by Anonymous Coward · · Score: 0

      In my mind, our (Australia's) cap plan encourages piracy. Firstly, you're less likely to get caught, because the ISPs have a vested interest in you downloading - the only difference between cheap plans and expensive ones are the caps, not the speed. The ISP that stands up to MPAA/RIAA/local-equivalent is the one that will get the clients who give them lots of money every month (they'll flee from the others that pass along "don't-do-that" notices). Secondly, as my ex-flatmate once pointed out, I've got to justify paying for my internet connection [1], and what better way to do that than to say "look! I'm getting the equivalent of Cable TV + Broadband [2] whilst only paying for Broadband! Thirdly, if content providers DO put their content on the internet (charged, of course), why should I pay twice (the ISP and then the content provider) for the same megabyte? [1] I could spend that megabyte on a download I only have to pay for once.
       
       

      [1]Yes, it's a joke, in the same line of logic that enables many women to justify buying an expensive shoe because it costs less than it used to. I know that the money isn't actually flowing to the people who's work I'm enjoying.
       
      [2]Overseas critters may or may not be aware of this, but the uptake of Cable TV in Australia is extremely low (~10% iirc) - mainly because we have a very reasonable selection of Free-To-Air channels (5 analogue, the new DVB service means an extra 3-6 + 2 radio, but I digress). For that reason (and because of this country's natural sparsity), Cable TV has lower availability. So, for many people, it's impossible to say "I could have Cable TV but instead I pirate", because there simply isn't that choice - in other words, it's impossible to steal something that doesn't exist!

    3. Re:Welcome to my world by Anonymous Coward · · Score: 0

      Exactly. Here in New Zealand, capping is also the norm. It's just a means to make more money, pure and simple.

      Actually, I don't live there anymore, and I now enjoy fast, cheap, uncapped, cable internet.

  9. I've been saying this since comcast instituted it. by DragonTHC · · Score: 5, Insightful

    A throughput cap will only hurt consumers and legitimate transfer-intensive services like steam, netflix, xbox live, and hulu.

    The large few ISPs like to say that it's 1% of their subscribers who aren't playing fair. That's just not the truth. They see a trend emerging and they're not happy about it.

    You don't institute major policy change because of 1% of your users. You do it because in less than a year, it could be 15%-20% using as much as the 1% currently uses.

    Why? Online content providers are now offering larger quality services and more transfer-intensive services. Comcast certainly didn't like that. They have to pay for traffic outside their own network.

    It really is a scam. They sold me unlimited service and they have reneged on their part of the deal. They altered the contract. That should be illegal, but they did it.

    Caps and metered service are both money-saving scams. They will not prevent the inevitable.

    The only real solution is to increase network capacity.

    --
    They're using their grammar skills there.
  10. a market based entirely on Artificial Scarcity? by NZheretic · · Score: 4, Insightful
    Monday, July 17, 2006

    Network Neutrality : Two question for the great debate. In California there was an outrage when it was disclosed that electricity companies had deliberately idled plants while supplies were tight and then waited for prices to skyrocket on the spot market. If the current Internet network infrastructure provided by the backbone providers and Internet service providers can currently support much higher speeds and data quantities to current customers, then is the act of packet filtering and setting arbitrary low speed and data caps also effectively providing an "idled" service? Is a tiered Internet service, where content providers would be effectively competing on a similar market to the electricity "spot market", a market based entirely on Artificial Scarcity?

    1. Re:a market based entirely on Artificial Scarcity? by Registered+Coward+v2 · · Score: 2, Informative

      Monday, July 17, 2006

      Network Neutrality : Two question for the great debate. In California there was an outrage when it was disclosed that electricity companies had deliberately idled plants while supplies were tight and then waited for prices to skyrocket on the spot market. If the current Internet network infrastructure provided by the backbone providers and Internet service providers can currently support much higher speeds and data quantities to current customers, then is the act of packet filtering and setting arbitrary low speed and data caps also effectively providing an "idled" service? Is a tiered Internet service, where content providers would be effectively competing on a similar market to the electricity "spot market", a market based entirely on Artificial Scarcity?

      Unfortunately for CA the plant owners did exactly what was to be expected given the rules established by the state.

      CA's legislature thought they had setup that met their political goals - keep prices low to voters but in reality screwed up their entire pricing structure. Let's see - price caps (and rate reductions) to end users no matter what the supply cost was; mandated supply even if the cost was more to the utility than what they are getting paid; and a pricing model that encouraged getting the highest cost plants online as much as possible. Despite some warnings that this would happen the legislature touted the bill as a great thing - and when things went south they ran as fast as they could from accepting any of the blame for screwing things up.

      --
      I'm a consultant - I convert gibberish into cash-flow.
  11. What scares me.. by rotide · · Score: 5, Insightful
    Caps are fine, at least in the sense that they ALWAYS existed under some vague asterisk following the word "unlimited".

    But what's got me worried is the fact that when I started playing around on the internet, the most heavy web surfing was a few gifs and/or jpgs.

    Now, we have full flash animations, games, interactive multimedia presentations. Not to mention embedded audio and video.

    Downloads use to be smaller as well. Now with more bandwidth available, software gets bundled with more features and more multimedia. Game demos have gone from 10-20 meg up to 500meg to 2+ gig, easy.

    Hell, I'm a legit user, I don't download music (anymore, I did when I was younger) and I don't pull pirated movies/software either. I don't run bittorrent except for the occasional WoW update (when I did play). But I've seen a large jump in bandwidth usage with my new Roku box for watching NetFlix on my tv. That's a lot of streaming video. Are they keeping tech like this in mind? Doubt it.

    So, say the caps are aimed at the bandwidth of today, ok, fine. What happens "tomorrow" when demos START at 2gig+? What happens when the only video online starts at widescreen HD? Our bandwidth usage, for simple surfing, has been going up. It would be shortsighted to think it won't keep going up. If the companies with hard established caps don't keep growing your cap, you're going to eventually have to pay for the top tier.

    Bandwidth usage inflates with time. I'm not holding my breath that the ISP's will generously increase caps over time.

    1. Re:What scares me.. by Anonymous Coward · · Score: 0

      Oh of course they are keeping Youtube, Roku, Netflix, DirecTV on Demand, etc. in mind. The whole cap BS is to protect their floundering cable TV product.

    2. Re:What scares me.. by S77IM · · Score: 1

      But I've seen a large jump in bandwidth usage with my new Roku box for watching NetFlix on my tv. That's a lot of streaming video. Are they keeping tech like this in mind?

      Yes. That's their primary motivation.

      1. TW is a cable company. Streaming video is a direct competitor that they are trying to strangle.

      2. As a poster above mentioned, this usage trend is going to become more prevalent among the general public. (Hasn't realtime video conferencing been a dream of the Internet since the early days of science fiction?) TW wants to get these caps in place now, before their everyday Joe User starts taking 500 Gb/mo worth of streaming HD video for granted, and the TW network really does become strained.

        -- 77IM

      --
      Student: Is it true that the foundation of the universe is paradox?
      Master: Well, yes and no.
    3. Re:What scares me.. by alen · · Score: 1

      back in the day game demos came on CD's and then DVD's with magazines. if we go back to the days of too much data and not enough pipe, we'll just go back to the days of getting DVD's mailed to you.

      for video we'll just go back to the DVD/Blu-Ray model

      video over the internet took off due to the get it now factor. now that mobile devices can play movies we'll go back to having your own DVD's, rip and carry your entertainment with you.

    4. Re:What scares me.. by glop · · Score: 1

      About the Roku:
      Yes the cable operators have that in mind. They probably are concerned that you are going to stop buying on demand movies from them. And they are probably scared that you might even cancel TV service if TV companies start teaming with Netflix or Amazon or Google to broadcast on the Net...

    5. Re:What scares me.. by jcnnghm · · Score: 1

      Hell, I'm a legit user, I don't download music (anymore, I did when I was younger) and I don't pull pirated movies/software either. I don't run bittorrent except for the occasional WoW update (when I did play). But I've seen a large jump in bandwidth usage with my new Roku box for watching NetFlix on my tv. That's a lot of streaming video. Are they keeping tech like this in mind? Doubt it.

      Of course they kept that tech in mind. Do you have any idea how much money the cable companies would lose if everyone canceled their TV services in favor of less expensive, on demand, online offerings? Enough that it makes sense to piss off some of their customers on the internet end, to keep all of their customers on the TV end. These bandwidth caps are designed to kill IPTV before it gets a real foothold.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    6. Re:What scares me.. by bearfx · · Score: 1
      Lat's take a little look at my bandwidth usage over the weekend. I have Time Warner Cable in one of the areas they are now implementing metered service - though I should not be affected since I have business class service (and have had for 7 years now).
      • Reinstall Windows XP/MS Office 2007 on my laptop. Download and install updated. Usage: 2GB - 3GB.
      • Downlaod game demo for The Last Remnant. Usage: 1GB
      • Pull a copy of the project documentation/source code for work. Usage: 500MB
      • Connect to my office via Citrix and get some work done. Usage: Unknown
      • Play a few capture the flag matches with friends on Unreal. Usage: Unknown
      • Surf the web aimlessly for three hours when I just meant to look up a recipe. Usage: Unknown
      • Download and install the latest security tools (AV, Spyware, Etc), and install them on my laptop. Usage: 100MB
      • Upload photos from my camera to flickr: Usage: 50MB
      • Receive photos in email from friends/family: Usage: 50MB

      Note the unknowns in the list. Their are many things where the bandwidth usage just is not well defined, so how am I to judge their cost? Even if we ignore that, I would guess that I used 5 to 6 GB in just one day for those items listed. Without streaming video, without downloading the latest Ubuntu, without using any file sharing application or tool I have already used a good portion of my "allocated" bandwidth. Nothing I did would be considered "extreme" usage, and everything I did would have been considered normal usage 10 Years Ago. So why is it my ability is being limited now?

      Why is it only in areas without reasonable competition that this is being deployed?

      Why is it the cost per unit of bandwidth is so unreasonably high?

      Why are their "caps" so artificially low?

      These are the questions, and until I receive good answers, I will have to refer to Time Warner's broadband offerings with scorn.

      In terms of competition, this area does have AT&T as an alternative. I did try to switch to AT&T on three occasions, on each of these occasions the incompetence of their agents and the lack of communication between the companies numerous divisions and their agents made me go back to TW. The only reason I was trying to switch was so I could get more that one static IP at a reasonable cost. Even though I practically live downtown, they were never able to 1) arrive on their scheduled date, 2) arrive at their scheduled time, 3) provide the equipment needed to use their services, 4) Provision the account for use, and 5) Mark the account as active. The one time I finally got the service to work (three months late), it stopped working after two weeks. When I called, I was told that my installation had been canceled because I was too far away from the CO for DSL to work (I had been using it successfully for three weeks at this point). Every time I have dealt with AT&T, it has been a comedy of errors, screw-ups, and misinformation. Thankfully, I had never cut off my cable modem. I have not tried again in a number of years, as my need for the multiple addresses evaporated. I am not inclined to give them another chance.

      Until they started this metered broadband crap, I have actually been happy with the service I receive from Time Warner's Road Runner Service. I have had no serious billing or technical issues, and have always received prompt, courteous service. I don't like the scripts their first line of tech support people go through, but once you get past them, their people are usually knowledgeable. The only reason I ever considered moving away was because I wanted a service they did not offer for a reasonable fee.

    7. Re:What scares me.. by Anonymous Coward · · Score: 0

      I *SERIOUSLY* doubt that conspiracy theory, about the TV thing.

      I think it is more of a money grab than anything. They *KNOW* they are the only real game in most towns. They are doing what is called monopolistic pricing. This means they get to pick the price that gives them the max profit. They are also trying to do price discrimination. Max profit != Max allocated (which is what customers want).

      What they are acting like
      http://en.wikipedia.org/wiki/Monopoly
      http://en.wikipedia.org/wiki/Price_discrimination

      Where we want them to be and not price collude.
      http://en.wikipedia.org/wiki/Oligopoly

      What they really are.
      http://en.wikipedia.org/wiki/Duopoly

      If there is any sort of conspiracy going on I would say they are trying to set themselves up for a large slice of that broadband package bill that Congress is setting up.

      Also notice they picked areas for their 'tests' where the barrier to entry is quite high. They got state legislatures to enact 'state wide licenses' where each city cant not tell them to fix the problem. The whole state has to agree on this now.

      That it also just happens to help a segment of their business is merely icing on the cake. This also probably how it was sold to upper management. But the real reasons are purely dollars and monopolistic pricing.

      But if I was any sort of competitor in the area I would see a HUGE opportunity here...

    8. Re:What scares me.. by socrplayr813 · · Score: 1

      If that were to happen, I think we'd see a push to smaller media, more in line with SD cards. That said, I really doubt any change back will last long. The internet is just too convenient for these tiny limits to last. There are three main possibilities that I see:

      1. Legislation will be passed to protect people from these ridiculous prices.
      2. The outcry in progress will push people to drop the expensive services, prompting the ISPs to be more reasonable.
      3. Competitors will crop up, forcing the same. With advances in wireless technology, the infrastructure is becoming less of a barrier. With the massive prices/tiny caps, these new technologies might become viable.

      I'm being uncharacteristically optimistic here, but I've noticed something:
      People these days are apathetic to nearly everything until it hits them in the wallet.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    9. Re:What scares me.. by c0d3g33k · · Score: 1

      [...] now that mobile devices can play movies we'll go back to having your own DVD's, rip and carry your entertainment with you.

      "Go back"? If you don't have a pathological need for "all new, right now", buying DVDs and CDs legitimately from the sale bins and pre-owned stores is a perfect way to feed your portable entertainment devices. Turns out the movies and music are just as good when they are not the latest buzz. And you can still pop the DVD in the player connected to the TV and enjoy higher quality video than the artifact-laden cable feeds or online streams. Sneakernet is the ultimate way to fly under the radar, avoiding both bandwidth caps and *IAA lawsuits.

    10. Re:What scares me.. by Anonymous Coward · · Score: 0

      You don't make the poor richer by making the rich poorer. - Winston Churchill

      Totally offtopic but I just wanted to remind you that just because someone says something does not mean it's true.

      Under the 'trickle down economics' the poor have gotten poorer while the rich got richer.

      I'm sorry if you right wingers have to accept the fact that Rand was wrong but deal with it.

    11. Re:What scares me.. by Anonymous Coward · · Score: 0

      If they cap now, they can keep the same tiered approach when they inevitably do have to upgrade to fiber. If it is already in place, there will be less fuss even though it will be pointless.

    12. Re:What scares me.. by olddotter · · Score: 1

      But I've seen a large jump in bandwidth usage with my new Roku box for watching NetFlix on my tv. That's a lot of streaming video. Are they keeping tech like this in mind? Doubt it.

      Does your money go somewhere other than your ISP for those videos? Yes! It is a target.

      IANAL, but it seems this is dangerously close to Anti-competitive monopolistic business practices.

    13. Re:What scares me.. by Anonymous Coward · · Score: 0

      Then cable companies need to get into the business of making shows themselves or making better deals. Whether they like it or not, their business model of making us subscribe to channel packages, largely full of channels most don't want, is coming to an end. They claim "big content" is forcing them to do push packaged channels. Well, the public, especially the Z-gen or whatever they're called these days, is far more instant gratification aware. Does anyone really want to sit down at 20:00 to watch show X, or via a DVR?

      Unfortunately, this is where the American model fails. No competition, single suppliers given monopolies on a plate, allows them to drag their heals into the future. You can bet TW doesn't try this crap with Verizon FiOS areas. I'm paying $70/month for 20/20mbps. If TW could get close to this, I'm sure Verizon would bump the speed 10mbps.

    14. Re:What scares me.. by Anonymous Coward · · Score: 0

      Yeah, I wish the video places had a larger selection of stream rates, I wouldn't mind watching a smaller stream because the current sizes kill my line (and will be impossible if/when they only offer HD).

  12. the bigger picture by the_Bionic_lemming · · Score: 1

    I think they are restricting usage by being a monopoly and fixing limits.

    The simplest solution I would think is to analyze what a user like myself would lose because I watch netflix.

    Then simply force them to offer a cable package that was ala carte,on demand, 8.99, and commercial free in exchange for the caps.

    --
    _ _ _ Go for the eyes Boo! GO FOR THE EYES!
  13. Re: fixed amount of bandwidth by transporter_ii · · Score: 4, Informative

    And not only is there a fixed amount of bandwidth, but they oversell this bandwidth by a large margin. To build out a system where each and every person could utilize 100% of their bandwidth at one time would cost a fortune...and it wouldn't be sold for 29.95 a month.

    Go and look at some prices for services with guaranteed bandwidth. Suddenly, the tiered prices don't look so bad.

    As someone who worked at an ISP, I do feel for them. I quit my job because I could see the coming bandwidth crunch where I worked and I knew that no matter how we tried to play it, we would piss people off.

    transporter_ii

    --
    Doctors destroy health, lawyers destroy justice, universities destroy knowledge, religion destroys spirituality
  14. The tired old excuse by shking · · Score: 1

    The article should have read, "Apparently this is BEING EXCUSED BY PRETENDING THAT IT IS an effective way of going after casual piracy."

    --
    -- "At Microsoft, quality is job 1.1" -- PC Magazine, Nov. 1994
  15. should be a law.. by Jestrzcap · · Score: 1

    I wish in order to enact these kinds of changes companies had to cancel my service and then convince me to sign up again.

    --
    "I have great faith in fools: Self confidence my friends call it." ~Edgar Allan Poe
    1. Re:should be a law.. by TheRaven64 · · Score: 1

      Isn't there? Not sure about your jurisdiction, but typically, any modification to the T&Cs will allow you to cancel the service without penalty.

      --
      I am TheRaven on Soylent News
  16. Re:I've been saying this since comcast instituted by Paralizer · · Score: 1

    I don't understand why the ISP companies aren't excited about this.

    If their network utilization is increasing then they must be doing something right as their customers are using their service more. Any other business would be thrilled about this.

    Instead of limiting what their customers are able to do, they should invest more in building their infrastructure to accommodate the increase in demand and grow their business.

    Instead they opt to shoot themselves by limiting their service and hinder growth so that they can make slightly more money now rather than potentially much more later on.

    Also, why aren't we hearing more from the services you mentioned (hulu, google, netflix, etc) about bandwidth capping?

  17. how do you accept it? by thesappho · · Score: 0

    even in turkey without caps
    1 Mbps no limit 28$
    2 Mbps no limit 39$
    4 Mbps no limit 51$
    8 Mbps no limit 62$

    you live in the heart of internet and you're capped?!.
    consider your situation with japanese or korean
    i'm thinking of starting cable company there :)

    1. Re:how do you accept it? by GargamelSpaceman · · Score: 0, Troll

      What are the penalties for viewing porn in Turkey? Is that stuff filtered out? Maybe nobody wants to look at the content that is left...

      Or maybe Turkey is a free society. I honestly don't know.

      --
      ...
  18. End around net neutrality? by MojoRilla · · Score: 5, Interesting

    I wonder if this is an attempt by the ISPs to end around net neutrality. They set these caps low, users won't pay. But certain third parties who make revenue sharing deals with the ISPs (think Hulu, YouTube, etc.) are exempted from the caps. Since users won't pay higher for uncapped data, it will drive users to the "free" services, creating more revenue for the ISP.

    1. Re:End around net neutrality? by Registered+Coward+v2 · · Score: 1

      I wonder if this is an attempt by the ISPs to end around net neutrality. They set these caps low, users won't pay. But certain third parties who make revenue sharing deals with the ISPs (think Hulu, YouTube, etc.) are exempted from the caps. Since users won't pay higher for uncapped data, it will drive users to the "free" services, creating more revenue for the ISP.

      And this is bad because? ISPs exist to make money. This is a way to make more money and they would be stupid not to explore the option.

      Now, I understand the desire for unlimited bandwidth and want it as cheap as possible; but at some point the ISPs have to decide on how to make the most form existing infrastructure and how to pay for upgrades as demand increases. This is also a way to slow demand growth to allow for a more economical build out.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    2. Re:End around net neutrality? by Anonymous Coward · · Score: 0

      And this is bad because? ISPs exist to make money. This is a way to make more money and they would be stupid not to explore the option.

      Private contract killing is an effective way for some people to make more money, yet it is illegal in most modern (and some very un-modern) countries. I'm not trying to equate price gouging to murder-for-hire. I am just trying to clearly illustrate that in the real world not everything that is profitable should be condoned.

    3. Re:End around net neutrality? by stonewallred · · Score: 1

      I like your money making plan and wish to subscribe to your newsletter. -Mack the Chainsaw Slayer

  19. Steam and clouds by Anonymous Coward · · Score: 0

    are inherently evil so I feel no empathy there. Casual "piracy" I have no beef with OTOH.

    Comparing capping, how secretive ever, to DRM is pretty weird. Not even in the same ballpark.

  20. Re:I've been saying this since comcast instituted by Jason+Levine · · Score: 5, Insightful

    They're not excited. They're terrified. With services like Hulu, YouTube, Netflix, and other legitimate online video sources, the draw of their cable TV services is weakened. Why pay the cable company $50 a month if all of your favorites TV shows are online? (Legally, again. Let's not consider pirated shows for the moment as that introduces different arguments.)

    So they institute caps. Now you can download and watch a couple of HD movies from Hulu, but that could eat up your entire month's bandwidth allotment. So you're less likely to use online video and more likely to tune in on your TV. Cable wins. And if you decide to buck the system and view online videos? They charge you overage fees which coincidentally add up to approximately the cost of a cable subscription. Cable wins again.

    And just to introduce a Network Neutrality wrinkle into the equation, I'm pretty sure that they'll exempt any online video services that they introduce. If Time Warner releases "RoadRunner Online" where you can watch your favorite shows on your computer, they'll keep that usage from counting toward your monthly bandwidth cap. The net result will be that ISP sponsored online video sources will be given an advantage (maybe they will thrive, maybe not) while other legal online video sources will be held back with every attempt made to get them to wither and die. All to protect the cable companies' bottom lines.

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  21. Re: fixed amount of bandwidth by andymadigan · · Score: 4, Interesting

    http://stopthecap.com/2009/04/10/why-is-time-warner-saying-costs-increasing-to-consumers-but-decreasing-to-stockholders/

    Time Warner spent $150 million on network upgrades while receiving $4.1 Billion in revenue from their high speed data services. We're a long, long way off from getting our money's worth on services here in the states.

    --
    The right to protest the State is more sacred than the State.
  22. You know how you guys have to handle this right? by Drakin020 · · Score: 2, Interesting

    Don't use their service. If you have to, get DSL or something.

    I felt real good last week because my company had the discussion of going with a fiber line through Time Warner. Me being the Network Administrator told our Time Warner sales rep that we would not be interested due to the fact that the company practicing bandwidth caps. Yeah I know our company would not experience the caps, but it's a loss of business for them, and it gets the message across.

    --
    The greatest revenge in life is massive success.
  23. Workaround for Comcast Cap: Earthlink. by LostCluster · · Score: 4, Informative

    Ask Earthlink's semi-automated chat service about the Comcast Cap applying to their cable-modem-over-Comcast's-wire service, and they'll tell you that it doesn't apply to you because you're Earthlink's customer and they have no such policy. You'll save a couple bucks based on the local Comcast price, but you'll be limited to to the 6mbps/768kbps which is Comcast's lowest speed level. (Though you'll still get the Comcast PowerBurst instant speed double.)

    That, and people will wonder why you have a @earthlink.net e-mail address still...

    1. Re:Workaround for Comcast Cap: Earthlink. by Anonymous Coward · · Score: 0

      That, and people will wonder why you have a @earthlink.net e-mail address still...

      That's when you tell them why and they go, "Oh. You can do that? I should sign up with Earthlink too."

    2. Re:Workaround for Comcast Cap: Earthlink. by Anonymous Coward · · Score: 0

      That, and people will wonder why you have a @earthlink.net e-mail address still...

      ...because it shows your loyalty to Xenu? :D?

    3. Re:Workaround for Comcast Cap: Earthlink. by Anonymous Coward · · Score: 0

      Have you verified that this is correct? The local cable companies handle all billing for earthlink, and bandwidth metering is a type of billing. I, for example, am billed more for my earthlink internet because I don't have TWC TV, which I'm guessing isn't an earthlink policy.

    4. Re:Workaround for Comcast Cap: Earthlink. by PotatoFiend · · Score: 0

      According to this, EarthLink over Time Warner Cable's pipes will also be capped:

      EarthLink high speed cable provides service in Austin. As part of the regulatory compromise which allowed Time Warner to purchase AOL, Time Warner cable are required to allow EarthLink to make use of their cable. However, Time Warner have claimed that they will be capping the Internet service of EarthLink customers, and as yet nobody credible from EarthLink has denied this.

      --
      "Liberty may be endangered by the abuses of liberty as well as the abuses of power." -- James Madison
  24. Re:I've been saying this since comcast instituted by LostCluster · · Score: 1

    And let's not forget, the cable company now offers phone, and the phone company now offers cable.

  25. Biz class by r_naked · · Score: 3, Interesting

    My advice would be to get business class while you can, WITH a contract.

    About a year ago Brighthouse royally pissed me off with their slow roll out of SDV (switched digital video), and their horrendous HDTV offering. My solution was to get DirectTV and keep BH only for Internet. The problem was that unless you purchased their "all in one" package (cable, phone, Internet), you couldn't get their highest speed tier (20/5). I was told if I wanted just Internet, at that speed tier, that I would have to get business class and pay extra. This really miffed me at first, but now I see it was a blessing in disguise...

    Bottom line, I ended up paying ~20/mo MORE for DirectTV + BH biz class, but I got much better TV service.

    Now it looks like I am also going to see the benefit of having a contract. I am locked into a 3 year contract, but I am guaranteed that I am not going to be paying $150+ for unlimited bandwidth since that is included in the biz class contract (which they can't just arbitrarily change). As it stands, I pay $75/mo and that gets me 20/5 unlimited bandwidth, static IP, and NO restrictions on services (IE: no blocked ports).

    Something to think about,

    -- Brian

    --
    -- http://anonet.org -- The internet the way it was meant to be. Check it out, you may be surprised.
    1. Re:Biz class by Anonymous Coward · · Score: 0

      As it stands, I pay $75/mo and that gets me 20/5 unlimited bandwidth, static IP, and NO restrictions on services (IE: no blocked ports).

      Don't forget that the TOS is usually quite a bit different, the whole bit about "running a server" is missing from business contracts (for obvious reasons).

      I work at a mid-size ISP, and deal a lot with business contracts.
      Most ISP's will charge around 20% to 30% more for a business connection at the same bandwidth over a home connection. This assumes no explicit uptime guarantees or special conditions.
      Now there are two places that extra money goes.
      Primarily it pays for more experienced field techs who concentrate solely on businesses, and for better phone agents to handle clients & keep hold times lowered for businesses.
      The second place it goes is for maintenance costs for the last mile portion of services.
      Any additional build costs is paid for up-front as an install fee, this includes adding more bandwidth in case a node is over-subscribed.

      Notice that nowhere in the costs are the businesses actually paying anything towards infrastructure improvements- those all come out of the general company profits.

      Now let's look at pricing.
      A business in a city with competition will pay about $100 for a modem-based 3x3, and about $200 for a fiber based 3x3, which is pretty fair since cable/dsl tech shares up/download while fiber does not.
      In that same city, a home user will pay about $80 a month for a 15x2 modem connection. Most of the time you can generally pull 5x1 no problem because we don't oversell our capacity the way some ISP's do. But IF everyone was trying to max out their connections, you'd end up with about 3x1 per subscriber, not counting business customers at all (they use segregated networks/bandwidth).

      Now if we go into a city with little or no competition, the prices spike. We still offer home service at the same rate, but the bandwidth is oversold a lot more. Figure you can only count on 3x1, and just a trickle during max usage times.
      Businesses will pay around $600 for a 3x3 modem, and about $3,000 for a 3x3 fiber. Not because we need to charge that much for the bandwidth, but because there is nobody else offering it, and we WILL milk the holy crap out of them. Once the competition tries to move in, we dump a bunch of money into infrastructure improvements & drop the prices.

      Oh, and we are in an extremely rural area in the midwest US. The only reason we've even thought about bandwidth caps is for more revenue. If they become common, we'll add them because we can milk more cash from you & you have no other options. If they don't become common, we'll do just fine with our current rates & won't need the caps.

      In summary, our bandwidth is no problem. But we're not going to let even one penny walk out the door while people still think that consumer rates on bandwidth are fair. They'll figure it out sooner or later- our money is on "later".

    2. Re:Biz class by Anonymous Coward · · Score: 0

      zip, your one.zero.9.1 is down for a week. it's uncalled for that you don't drop in to say anything considering that central services run there.

  26. is the new... by RandomUsername99 · · Score: 1

    Inappropriate comparisons are the new Ford.

  27. Re: fixed amount of bandwidth by Skuld-Chan · · Score: 2, Funny

    Maybe you can tell me then - I figured that a certain amount of money used from out monthly subscription would be re-invested into the company to allow it to expand indefinitely (or nearly indefinitely). Is this not the case?

  28. Re: fixed amount of bandwidth by T-Bone-T · · Score: 2, Insightful

    Revenue != Profit unless costs are 0. It costs a lot of money to keep such a large network running and Internet is one of many services they provide. I do feel your point, though.

  29. First! by Anonymous Coward · · Score: 0

    First!

  30. perhaps they're worried about something greater? by Anonymous Coward · · Score: 0

    On the surface level, ISPs are attempting to throttle and cap bandwidth for piracy reasons, pressured by the RIAA. However, isn't it possible that they see the emerging end of their business- when the internet is so large it would be impossible for a single carrier to control all the data? What if data transfer demand increases faster than they can afford servers... and what if it's beginning to happen already?

    From a business perspective, the only answer is- well we need to stop the increase of bandwidth... even if it costs us our business model. They believe that they essentially "own" the internet- it's their "product" that they "sell". they believe that if they want to give it out as they see fit, it's their right as a producer and distributor. from their perspective, they need to create awareness for bandwidth capping. High profile torrenting is sucking up some massive amount of data transfers as is their nature, which is why they're being targeted the most. A typical torrenting download could go through 200 connections, and several gigabytes of data. Rapidshare doesn't come over half as much scrutiny when they traffic plenty of copyrighted material- simply because they're a working business model that's not dying from traffic.

    If this were to be mainstream- all over required bandwidth capping- it would the the death of the unified internet. However, you can't give people pitchforks, axes, and spears and tell them to sit at home while they take away your rights. We have the open source anonymous "criminals" on our side, inevitably, several new Internets would emerge. New, torrent like software protocols would allow today's ridiculously fast processing to distribute internet bandwidth. HTTP would be used by big business slots and advertising until they realize that our generation doesn't go there and they're paying for nothing because nobody visits http sites anymore... and from it's ashes will become a unified, vastly more pirate-y internet- one that's not afraid to jump ship and switch protocol when the feds arrive. This scenario is described by many big heads in tech prediction, which is why this is known as the "golden age of the internet". in 10, 15 years, it will be commonplace for the internet to fight to survive. And Slashdotters will be on the front lines.

  31. Re: fixed amount of bandwidth by andymadigan · · Score: 1

    Of course there are network costs, but I wonder, how profitable are their Digital Phone and Cable TV services? TW claims that light users are subsidizing the heavy users, what are RR users subsidizing that TW should just get rid of?

    --
    The right to protest the State is more sacred than the State.
  32. Re: fixed amount of bandwidth by poetmatt · · Score: 3, Insightful

    As someone who worked for an ISP, you should know pretty well that the connections were being oversold for profit margin, and this "coming bandwidth crunch" has been coming for what, 15 years? I have no sympathy for ISP's that couldn't see a slowly rolling tide that they have been putting off. Honestly they are the companies that provide the capacity and they know what's coming down the line as far as upgrades. Even now they bitch about small investments to increase capacity for longterm or longer-term.

  33. Re:I've been saying this since comcast instituted by TheRaven64 · · Score: 1

    Deploying more capacity takes time. It typically takes around 2 years for a major upgrade, and most of the consumer ISPs somehow completely failed to spot the fact that a lot of bandwidth-intensive services are being deployed. They now have high demand and lack the ability to fulfil it, so they are doing what every other company does in the same situation: charge the early adopters a lot. This lets them get the biggest return from their existing infrastructure, while they deploy more just fast enough to finish before their competitors. Of course, in some areas, their competitors would have to start from nothing, so this can be done very slowly...

    --
    I am TheRaven on Soylent News
  34. Better Than DPI by Bob9113 · · Score: 4, Insightful

    Total transfer has a cost. Your connection to the Internet, if kept running wide open full time, would be a money loser for the ISP. There are essentially three solutions to this:

    1. High transfer users are subsidized by low transfer users. This will fail as everyone becomes a high transfer user. My Mom now sends me YouTube videos occasionally.

    2. Deep packet inspection (DPI), with the high transfer user of services the ISP likes being subsidized by the high transfer user of services the ISP does not like. IE: They charge company A or inhibit customer B, while allowing company C to send high volume content to customer D. Some ISPs think this it the right answer because some services are inherently high volume. Others like the idea of being a toll-road and getting to charge monopoly rents. Ultimately this is insidious because it hides the cost and distorts the free market.

    3. Tiered pricing based on the numbers of 1's and 0's you consume, but without regard to which 1's and 0's you consume. IE: net neutrality with tiered pricing.

    Of those three options, is there really any question that option 3 is the best?

    One may argue, "The ISPs are charging too much, their profit is too high, it's an inefficient market and prices are too high because of lack of competition." Fine, maybe that's true. The answer to that problem is increased competition. Asserting that the ISPs should not be allowed to use option 3 to solve a problem which may be real, however, can only lead to either option 1 or option 2 being used instead. Option 1 would imply increasing the price to everyone. Is that really fair? Should I really continue to have my Internet access subsidized by the guy next door who doesn't use high volume media? I mean, I like it and all, but it's not fair, it's not free market, and it makes the ISPs want to find ways to shut me off so they can focus their business on the guy next door.

    Option 3, on the other hand, makes me the most important customer to the ISP. It makes them want high volume users. It makes them more money when we use more Internet. Suddenly the ISP's profit incentive is directly in line with making the Internet faster and encouraging high volume services. Seems like a pretty good thing, no?

    So choose your poison:

    1. Subsidization with the ISP hating high volume users.

    2. Deep packet inspection with the ISP choosing which 1's and 0's are "good" and which are "bad".

    3. Net neutrality with tiering, and the ISP becomes profit motivated to encourage high bandwidth and high volume services.

    Gee, tough question.

    Tom, I love ya. I was making banner ads for your site back in 1997, and loved every little review you put out. But you're off your nut on this one.

    1. Re:Better Than DPI by x78 · · Score: 2, Interesting

      4. Upgrade the infrastructure to support the increasing bandwidth usage of your average user and charge everyone slightly more for this new faster service?

      I seem to remember initially getting 8mbit was a lot more than sticking with the old 56k, but now it's costing less for 16mbit "unlimited".
      Is there any real reason they can't just upgrade the tubes again and charge more for it, surely if they allowed everyone a max of 100mbit and charged a lot for it, it would eventually cover the upgrade cost?

      --
      Don't panic
    2. Re:Better Than DPI by Anonymous Coward · · Score: 0

      Sorry, but these three limited options constitute an exhaustive hypotheses fallacy. Take a look at what Japan, South Korea, and Sweden have done.

    3. Re:Better Than DPI by Bob9113 · · Score: 1

      Population Density:

      United States: 29.77 persons/square mile

      Japan: 336.72 persons/square mile

      South Korea: 446.49 persons/square mile

      Sweden: 21.69 persons/square mile

      How does Sweden do it? Government funded infrastructure.

      BTW, I could see government funded Internet infrastructure, though I think it would require long, hard, consideration. In the United States, however, we tend toward free market solutions. Free market solutions demand market segmentation. People need choices to make the free market run efficiently. That means both competitive companies (which we are short on) and competing levels of service.

      Again, not that I'm opposed to government funds going to laying fiber. Just that I think it is not in our cultural DNA, and I think a free market solution can also work -- if we get off our "unlimited" (which is not really unlimited) hangup.

    4. Re:Better Than DPI by Bob9113 · · Score: 1

      4. Upgrade the infrastructure to support the increasing bandwidth usage of your average user and charge everyone slightly more for this new faster service?

      I like this solution, but unfortunately it wouldn't be a slight increase. The United States has a low population density, cultural preference not to use government funds for Internet infrastructure, and low competition in backbones. Those things combine to mean that laying major bandwidth upgrades will be expensive per customer. We could fund it by doubling the price to everyone, but that would limit penetration, which I think is also suboptimal.

      Competing levels of service would help drive more backbone development. It would put the ISPs interests more in line with the high volume users. Currently their profit incentive is to inhibit consumption and keep the price at $40/month. Tiered service would allow the market to push for the service levels it wants.

    5. Re:Better Than DPI by dangitman · · Score: 1

      1. High transfer users are subsidized by low transfer users. This will fail as everyone becomes a high transfer user. My Mom now sends me YouTube videos occasionally.

      I know exactly what you mean. Last Thursday, my Mom sent me an internet, and I didn't even receive it until today!

      --
      ... and then they built the supercollider.
  35. I honestly think my old ISP was fair with this by mdarksbane · · Score: 2, Interesting

    They had a cap, but once you hit the cap you just had your speed reduced.

    So up to X gb (I think it was 5, which is low, but it was a wireless service) you had the full 1.5 mbps speed. After that, they dropped you to 300k, or you could pay extra to increase your cap that month.

    I think that you need a much larger cap on cable for it for fair (maybe 5-10g for the cheap, grandmother style connection, 50g for the $40 standard one) and just drop your speed to 1-2 mbps when you hit that so it's harder for you to keep going over. I think people would complain a lot less about bandwidth caps if they were softer caps like that - at least, living with it for a few months, it was worse than being uncapped, but it was entirely usable and bearable.

  36. Australia is a ripoff by Anonymous Coward · · Score: 0

    Australia has the slowest and most expensive internet in the world. And if you go over your cap you end up having to take out a mortgage to pay the bastard ISP's, most non computer savvy people get burnt.

    My sister pays $20/month for 1GB, doesn't know how to check her usage and got hit with $100 extra that month. Like most non savvy people they just surf away and wait for the bill. They should have it where your speed slows and you pay nothing extra.

    I pay $40/month for 5gig... All the big Telco's in Australia are taking us to the cleaners

  37. Re:I've been saying this since comcast instituted by Svartalf · · Score: 1

    I would rather pay them $30-50/mo for the pipe to the data and then an additional $10-20 for the video over that data pipe if they offer a compelling package. It's better, price-wise, than me spending what I'd spend on the two separately- and most people are the same. If they could economically do it for me for what I need out of FiOS (Peak data, fixed IP's...) I would be taking Verizon up on at least the TV service from them because it's better than Dish, which was already better than the Cable providers were shovelling (Heh... There's a hint there for you cable providers...)- for about the same as the HD service would cost me from Dish, with MORE channels present.

    They're being silly about this, as is to be expected. They see the business being cannibalized, but what everyone else sees is a new business where they could, if they were visionary, get what they were getting out of people and then get more out of those that can afford it and hand them all more of what they're now really looking for.

    But then, when have any of the media providers of our era been overly clueful? :-D

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
  38. Re: fixed amount of bandwidth by LostCluster · · Score: 2

    Apples to oranges comparison. One network upgrade vs the entire revenue for the entire service. You forgot the ongoing costs of maintaining the network.

  39. Re: fixed amount of bandwidth by T-Bone-T · · Score: 1

    Digital phone is probably wildly profitable, percentage-wise at least. I hate how everybody wants to bundle it with the other services. I already have a digital phone that goes wherever I go, as does my wife.

  40. Solution:Neighbour Wireless Networks & Layered by NZheretic · · Score: 3, Interesting
    Since the ISPs are complaining about their lack of competence to deal with the coming flood of content...

    Once solution is to have all the broadband customers install/use wireless routers that can interconnect as many as possible to a geo-local area ( your local neighbourhood ) virtual private network that shares the bandwidth load for bulk content distribution across multiple customer to ISP connections. If N users wish to fetch the same content, each person only need to download 1/N of the content, using neighbourhood network to swap the different parts. Think of it as a neighbourhood bittorrent.

    This could be set up/managed as a web service, with the client P2N2P ( Peer to Neighbourhood to Peer ) software running on each users computer ( or running as a proxy service on the wireless routers ), via managed a multi platform subscription aggregation client such as Miro 2.0 Open internet TV.

    The service could operate like this:
    1) Via a website or web2.0 interface, people create content "channels" which are a list of URIs ( HTTP/FTP/TORRENT) of content with descriptions, just like podcasts.
    2) The service would then fetch the content, on demand and store the content temporarily on its host/distribution site. The host service would do sharing via torrent, so uploading is not done by the Neighbourhood Peers.
    3) The service would hold the content and distribute it to P2N2P clients so that the content can be recombined via a local Neighbourhood VPNs.
    4) Each piece of content itself be encrypted at the URI source, so the service need not hold the keys, to deal with any concerns over end use privacy issues.
    5) The subscription aggregation client could incorporate and distribute advertising as a means of paying for hosting the service.

  41. Why not regulate it? by copponex · · Score: 1

    I know the market freaks will have a hissy fit, but if you want standard rates, good service, and the ability to punish price gouging and other nefarious practices, look no further than your local electric company. Asking "how much does this service cost to provide" and "how much are people willing to pay for it" will give you two entirely different numbers for the same service.

    And, once it's regulated and subsidized, you can pass regulation that will actually get implemented. Or continue dealing with corporations in natural monopoly situations and acting surprised each time they fuck you.

    And for anyone about to say, "What about censorship! What about Big Brother!" - you probably need to read the news.

    1. Re:Why not regulate it? by daVinci1980 · · Score: 1

      Cable companies are not usually natural monopolies. They're generally de jure monopolies.

      With the advent of cable internet service, cable providers began vertical integration of internet services, a practice of questionable legality. (Leveraging a monopoly in one area to gain a monopoly in another area is generally frowned on). In this case it's of questionable legality because the government generally granted them their monopoly in the first place.

      And while you might argue that cable companies such as TWC do not have a monopoly, the fact is that for their price point and level of service offered--they do.

      --
      I currently have no clever signature witicism to add here.
  42. Re:I've been saying this since comcast instituted by spinkham · · Score: 3, Insightful

    If ISPs really wanted to reduce bandwith costs, they wouldn't have all dropped their internal Usenet feeds, and would be caching the heck out of everything.
    The reason no one has complained much before:
    Comcast:$43 for 250 GB - Seems mostly reasonable. 250 GB is a lot of traffic at the moment, if you're pulling more then 10 GB every day, you're doing some serious stuff and should probably get a business connection.
    Time Warner: $40 for 10GB? $60 for 40GB? - Not reasonable at all.

    --
    Blessed are the pessimists, for they have made backups.
  43. Re: fixed amount of bandwidth by andymadigan · · Score: 3, Informative

    Sorry for the misprint, that was the amount they spent on maintaining the network exact quote:

    "In 2008, TW made $4,159 Million, on high speed data alone, and then had to turn around and spend $146 Million to support the cost of the network. 2008 total profit on high speed data: $4.013 Billion"

    --
    The right to protest the State is more sacred than the State.
  44. FRAK EM by Gr333d · · Score: 1

    FRAK EM ALL

  45. im not certain this is as big an issue as by nimbius · · Score: 1

    the simple fact that most telco's, and cable providers are unscrupulous monopolies. the government has essentially granted them a stranglehold over
    communications systems with little or no regulation. Will the us government, which has long since outsourced their portion of the internet network to the telcos,
    also be a part of these bandwidth caps?
    these are the same industries that charge access for the GPS receiver already built into your phone or disable its features outright, cant tell the difference between a tenth of a dollar and a tenth of a
    cent, and receive historical immunity from warrantless wiretaps.

    --
    Good people go to bed earlier.
  46. I can't wait for the work-from-home effect by octaene · · Score: 4, Interesting

    Here at IBM, our company has just decided to stop reimbursing work-from-home employees for Internet access. Combined with this new data transfer capping trend, I fully anticipate having to explain to a customer why I can't take care of that server problem until next month because my daughter used up our bandwidth allocation on the Playhouse Disney web site. That's going to go over really well...

    1. Re:I can't wait for the work-from-home effect by barzok · · Score: 1

      This is one of the arguments Rep. Eric Massa is using to support his position against these caps. In short - you'll hurt the economy because people who depend upon having unmetered access to do their jobs will either be out more money for bandwidth (less disposable income), will have to physically commute more (less disposable income), or have to change jobs/give up their job entirely.

      Not to mention people who will lower their online shopping volume and any economic impact that has.

    2. Re:I can't wait for the work-from-home effect by Renraku · · Score: 1

      Not the company's problem.

      You'll just be fired for 'not showing up for work' because the computer and ISP is your responsibility.

      Honestly, why should the company care? They've got 10,000 people fighting tooth and nail over your job, and they'll be happy to take a few dollars less per hour.

      --
      Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
    3. Re:I can't wait for the work-from-home effect by Wesley+Felter · · Score: 1

      I fully anticipate having to explain to a customer why I can't take care of that server problem until next month because my daughter used up our bandwidth allocation on the Playhouse Disney web site.

      No, you'll just pay the overage out of your pocket or be fired.

    4. Re:I can't wait for the work-from-home effect by mibus · · Score: 1

      This really won't be the sort of problem you describe.

      Most people with DSL I know here (in Australia) use between 200MB and 2GB per month of data, *excluding bittorrent and usenet*. Most DSL plans have 1-5GBs as the lowest available quota. The only people I know that do more than that, have 24/7 torrents running.

      If your daughter can use GBs on the Playhouse website, then you're letting her spend WAY too much time on the website.

      There are also heaps of apps to let you keep an eye on your quota usage; pick the one you like the most and check it every now and then. Oh, and emailed reminders at (IIRC) 70%, 90%, and 100%. And affordable quota top-ups (starting at AU$5 for 2GB).

      Although it complicates things a lot - paying for the pipe size then paying for the data usage - I think it's great. Some people don't care about the speed, they just want the mega-GBs. Some people care more about the speed and less about the GBs.

      (Oblig Disc; I work at a local ISP, but this is my personal opinion)

  47. Re:I've been saying this since comcast instituted by slack_justyb · · Score: 1

    (better if read with slightly double plus non-good Russian accent.)

    10GB cap. Meh.
    Why in my day we didn't have the fancy, pants Internet you kids have today. We used our favorite browser lynx from the terminal and read our webpages, not the other way round with your fancy flash and AJAX and what-have-you.

    Really, the Internet suffers from bloat, just like the fancy programs you kids run on your netbooks with processors that servers from the 90's would have killed for.
    More, more, more is all that you can say. What happened to the people who used to get on Slashdot and say less, less, less?

    I say keep your fancy, pants Internet and I'll keep using the Internet for what it was built for; Gopher and WAIS. And stay off my lawn you net urchins!

  48. IF they are going this route by oloron · · Score: 1

    will ISP's do the 'right thing' and maybe set some 'free-leech' whitelist where people who use services such as steam/youtube/wow/itunes that can accrue a lot of bandwidth over the course of the month, while trying to bill UPSTREAM to entice legitimate content-providers to buy themselves a slot on this 'whitelist' so their business model is not affected by this sudden loss of 'capacity' on the ISP networks? I'm hoping not, but at least it would keep those who are legitimately paying for products and services to continue to receive the value that they are paying for. ie, 100gb cap, but anything going thru itunes/wow/steam/youtube etc would not be counted against your quota, everything else does, hopefully this isnt where things are going, but who knows :( its time for a 'public internet' where you pay for your access and thats it, u are free to do as u please on the connection u pay for, if you do something that is illegal and get caught then thats between you and the authorities, the ISP should not be involved.

  49. Supply and demand? by memorycardfull · · Score: 1

    Content providers have finally found their businesses on the wrong side of the law of supply and demand. For a long time it appeared that the public's voraciously insatiable appetite for entertainment and news would fuel ever growing profits indefinitely. Now thanks to the series of tubes the world is flooded with instantly accessible free media content. I think that the massive amount of available free media is curbing public demand for media with a price. I think that this effect is independent of the phenomenon of media piracy which just rubs salt in this wound. ACTA will be the industry tool for attacking piracy. In addition to being a simple money grab, I think that metered traffic and caps on use are intended to reduce the competing effect of free media by making you pay more heavily for access to any media or information. If you watch streaming video all day instead of cable TV you could end up paying for it as if it was a cable bill; indeed a cable bill that behaves more like a cell phone bill, i.e. rising with consumption. Content providers are sick of trying to compete with free...this is a means to impose a higher price on the free media products that they are competing with.

  50. Re: fixed amount of bandwidth by drinkypoo · · Score: 1

    Go and look at some prices for services with guaranteed bandwidth. Suddenly, the tiered prices don't look so bad.

    This is disingenuous in the extreme. If you are guaranteed bandwidth you're guaranteed uptime as well, you have a SLA, and you are a totally different entity than some DSL consumer. I call shenanigans.

    As someone who worked at an ISP, I do feel for them. I quit my job because I could see the coming bandwidth crunch where I worked and I knew that no matter how we tried to play it, we would piss people off.

    The bandwidth crunch is entirely artificial. Compared to the money Ma Bell (for example) is milking out of customers with their deceptive trade practices and monopoly status (Across most of the USA ATT gets some money when you get a phone line no matter who you get it from) the amount of money it would take them to increase backbone capacity is negligible.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  51. Not Network Neutrality by Wannabe+Code+Monkey · · Score: 1

    Am I the only one that's sick of the "download caps" == "network neutrality" thing? Am I the only one who thinks the author of this article is an idiot?

    Without net neutrality, ISPs not only charges for speed packages but also for how much you download.

    That's not what the net neutrality debate is about at all (at least as far as I'm concerned). It's about Verizon charging Google to give their service priority over other services. Say maybe prioritize YouTube traffic over Hulu traffic. With that you have end users fully paying for their bandwidth, content providers fully paying for their bandwidth, and then content providers also paying extortion money to ISPs so that their content won't be degraded.

    If I sign up for a contract that says "Your download speed is X Mbps, and you're capped at Y GB/month." It's not violating network neutrality as long as all providers are being treated the same. If your ISP had a deal with Netflix where streaming their movies didn't count against your cap, that would violate the principles of network neutrality. This is at least as far as I understand the debate, it's also the only behavior I'm willing to get up-in-arms over, anything else is just leechers whining that they have to pay for what they use.

    Furthermore, the author of the article goes on to say:

    If you only watch 7.25 hours a video per week, via Netflix, your Xbox 360, or any other service, you will be slapped with a bill of $200 at the end of the month.

    So let me get this straight... If I only watch 3 to 4 movies a week for every week in the month I'll go over. By the way, this is 12 to 16 movies a month via the internet only. If I'm doing this through my Netflix account, it means I'm also get DVDs in the mail which I'm watching as well. I don't think it's fair to say that watching 20+ movies a month is normal. The author is an idiot.

    --
    We always knew Comcast was corrupt, here's the proof: http://tech.slashdot.org/comments.pl?sid=1909890&cid=34545432
    1. Re:Not Network Neutrality by JackSpratts · · Score: 1

      orly?

      the author wrote "videos," not films, a piddling amount really when the avg american presently consumes 6.5 hours of video per day. but it all adds up, and fast. when my household streams 3-4 stations daily my internet radio usage alone consumes 30 gigs a month (one 128k stream uses apx 1 gigabyte every 24 hours). should tv use continue to migrate to the net it won't be long before bandwidth caps make it impossible to afford. fine by me, i stopped watching tv years ago, but don't think for a minute 7.5 hours of video per week is somehow so far outside the bell curve as to be a straw man for some crank's point of view. if anything it's a conservative estimate.

      - js.

    2. Re:Not Network Neutrality by VelocityZero · · Score: 1

      This kind of set me off a bit. My girlfriend and I have netflix and we stream about 3 videos a week, and get 2-4 videos via mail. ON TOP OF THAT, I usually browse at least an hour of Youtube a day (and I always click the "HD" button if available) AND I watch various video game trailers. That's just what I do, My girlfriend loves the VH1/MTV shows and streams them from their websites. JS knows what's up!

    3. Re:Not Network Neutrality by vecctor · · Score: 1

      I think this post from elsewhere in the discussion explains the net neutrality angle well:

      http://tech.slashdot.org/comments.pl?sid=1196671&cid=27555493

      Basically, by putting caps on bandwidth as a CABLE TV OPERATOR, you are driving people to YOUR service because it will not use the cap.

      As I said to a friend just now on IRC:

      because, hey, if that itunes version of your TV show counts against your cap, maybe you will use the cable guys "video on demand" instead.

      --
      Why, yes I have been touched by His noodly appendage. And I plan to sue.
  52. Re:I've been saying this since comcast instituted by digitalhermit · · Score: 1

    So they institute caps. Now you can download and watch a couple of HD movies from Hulu, but that could eat up your entire month's bandwidth allotment. So you're less likely to use online video and more likely to tune in on your TV. Cable wins.

    Probably true for a percentage of the population. In my case (and I'm mind-numbingly average in most of my daily routine), if I can't watch a show online I won't watch it on cable/tv. The simple reason is that the timings of the broadcast never line up with my schedule.

  53. Re:I've been saying this since comcast instituted by skastrik · · Score: 1

    I agree absolutely that you should not call it unlimited bandwidth if you don't plan to honor it. And as you point out the current trend is larger quality services. But if this requires more expensive networks, someone somewhere must pay for this. Capping and some kind of pay-by-volume could both be a part of the equation.

  54. Re:I've been saying this since comcast instituted by Registered+Coward+v2 · · Score: 1

    They sold me unlimited service and they have reneged on their part of the deal. They altered the contract. That should be illegal, but they did it.

    Chances are your contract allows them to change the terms provided they notify you; at which point you can accept the change or cancel the contract. Nothing illegal or unreasonable since both sides have the option of continuing or ending the contract.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  55. Re: fixed amount of bandwidth by YourExperiment · · Score: 1

    You quit your job so as not to piss people off? Man, you'll never make management.

  56. Cable Internet = Bad Idea by Prototerm · · Score: 1

    When I first heard about Cable TV companies supplying internet connections through their shared pipes, I knew this whole bandwidth crunch was coming. The only way the whole thing makes sense is if very few people actually *use* it. It's like the old retail joke: you can sell a product (i.e. unlimited bandwidth) at any price you want if it's not in stock.

    The architecture is fundamentally flawed, given the current technology. To put it another way: we're trying to live a Star Trek lifestyle using stone knives and bearskins (with apologies to Harlan Ellison).

    --
    "My country, right or wrong; if right, to be kept right; and if wrong, to be set right." --Senator Carl Schurz (1872)
  57. Bullshit by Cajun+Hell · · Score: 1

    Download capping is the new DRM.

    It ensures several things:

    - You will be more hesitant to download movies and music legitimately--even though you've paid to watch/listen.
    - You will watch more cable TV (so you can see all those great ads).
    - You will accidentally pay more for less.
    - Pirates get a whacking.

    Those are reasons that it sucks. Notice that not a single one is even in the ballpark of DRM.

    Quit diluting the meaning of DRM to simply mean everything stupidly any-business that the companies are doing to reduce their own revenue. DRM is about just one of those techniques (and the probably the most destructive one) they use to lose money: making the content you've bought not be playable.

    ISP capping simply interferes with the business of selling (or pirating -- it hits both of them equally) content, but has no bearing at all on whether or not the content (however you get it, which may include means other than your ISP) actually works once you have it.

    Yes, it's bad. But it's not as bad as DRM. We got by for decades with effective caps (due to the simple fact that you can only download so much content at modem speeds per month) and it didn't hinder playback at all; CSS and the legal threats from DVDCCA and MPAA over DeCSS were what kept us from buying DVDs, not our slow modems.

    --
    "Believe me!" -- Donald Trump
  58. This is retarded. by Big+Boss · · Score: 2, Insightful

    If the local ISPs start this crap here, I'll buy business class service with an SLA (or even a T1) and start running CAT5 to the neighbors, which happen to be my family, and split the costs. Maybe even set up a WISP.

    Or get a group together to lobby the city council to join Utopia.

  59. As I've said before... by znerk · · Score: 3, Interesting

    We should just run cat5 to all of our neighbors' houses, and sidestep the ISPs, doing the same for the internet that F/OSS has done for operating systems. Yes, someone has to have a good (ie, pricey) internet connection, but I'm willing to bet that a feed large enough for your block could be had for less than each individual connection is currently costing.

    Doing it with wireless N routers instead would eliminate the cabling requirements, as well... admittedly, it increases the lag, but if the ISP suddenly starts losing customers a few blocks at a time, maybe the rates will drop on the lower-latency existing infrastructure.

    Of course there are issues with this idea, but nothing is perfect. If you find this to be an untenable plan, come up with a better one (and share it with us).

    Take the power away from the monopoly, and we start to see more/better competition in the marketplace.

    --
    This work is licensed under a Creative Commons Attribution 3.0 Unported License.
  60. Doesn't this give broadband companies a vested... by Talonius · · Score: 1

    Doesn't this give broadband companies a vested interest in ensuring that botnets stay active?

    How do they plan on resolving situations where the traffic isn't requested by the customer? I understand that mobile phones charge the owner of the phone for an incoming call, but even mobile companies have started moving away from that model.

    Do they plan on giving us a breakdown of our usage? If so, I'd like to see what kind of breakdown they'll provide. Phone companies have to provide a listing of the numbers and the charges for each.

    The comments about Steam are true though. I recently reformatted and reinstalled my Steam collection. I downloaded over 80Gb in three days without realizing it.

    --
    My reality check bounced.
  61. The fucked up parts by Anonymous Coward · · Score: 1, Interesting

    Here are the parts that really get me:

    a) Telcos are so secretive with their data that nobody has a reliable broadband penetration map of the USA. They figure if competitors know more about their network, they would have to actually compete with eachother.

    b) Telcos claim that Grandma, who only uses 5MB/month, is subsidizing netflix users and bittorrent users. They claim to fix this problem by capping standard connections and offering higher caps for higher prices. But for every $150/mo uncapped connection they sell, they ought to be able to sell three Grandma 100MB capped connections for $5/mo. Everyone knows they won't do this.

    c) Even if they adjust prices down for capped connections, their claim that it is for consumers' benefit is obviously bogus. If so, where's tiered cable TV service? If I want just discovery, comedy central, and CNN - where do I go?

    d) The bleeding obvious conflict of interest: video content is way better to consume over IP than it is with a TV. So the only way to kill online video content delivery and keep their lucrative (non-tiered!) cable TV customers is to break IP video.

    I hope these things are as fucking obvious to the FCC as they are to me...

  62. Re: fixed amount of bandwidth by jmauro · · Score: 2, Insightful

    That is true only the most simplistic analysis and incorrect. The costs don't include any of the costs of discharging the debt incured on building the network. It also doesn't include the costs that would be applied to general cable usage that share the same communication system or any labor and tax costs that are incurred running the either system. It's just a subtraction of two lines (total data revenue and direct data costs) in the 10-K form and the "implication" that the result is 4 billion in pure profit.

    While they're making money, 4 billion they are not. At that profit rate the market would be flooding with other competators who would undercut them (see cell phones).

  63. Nope... by EthanV2 · · Score: 1

    I'm pretty sure that DRM is still the same old DRM.

  64. Re: fixed amount of bandwidth by andymadigan · · Score: 2, Insightful

    However, it does seem unlikely that even a doubling of network costs would bankrupt them, and yet they want to cap usage.

    --
    The right to protest the State is more sacred than the State.
  65. Steam and other online DRMs. by antdude · · Score: 1

    Steam requires us to download most games and mods. I know Steam is DRM, but if ISP caps to be like DRM, then it is a double negative.

    --
    Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
  66. leaving net cause of it by Anonymous Coward · · Score: 0

    too expensive to go from 200gb or 1500gb
    at 35/45$

    to 60gb at 55-65$
    with overage fees

    welcome to facist canada

  67. Re:Biz class service premium by colinnwn · · Score: 1

    Are you telling me it is only $10-20 more a month to get biz class service over residential class? I don't think most large cable companies have this small of a premium, but I guess I'll have to check.

  68. Re:I've been saying this since comcast instituted by Abcd1234 · · Score: 1

    In my case (and I'm mind-numbingly average in most of my daily routine), if I can't watch a show online I won't watch it on cable/tv. The simple reason is that the timings of the broadcast never line up with my schedule.

    And the mind-numbingly average would either purchase a PVR, use a DVD-RW recorder, a good 'ol VCR, or they just won't watch the show.

    You, however, are not average. The very fact that you regularly watch streaming TV on your computer as a replacement for regular broadcast television demonstrates that fact.

  69. Maybe it would curb piracy, by Khashishi · · Score: 1

    but remember, you still have to pay for the bandwidth if you download from iTunes.

  70. Re:I've been saying this since comcast instituted by AdmiralXyz · · Score: 2, Insightful

    The large few ISPs like to say that it's 1% of their subscribers who aren't playing fair. That's just not the truth. They see a trend emerging and they're not happy about it.

    Excuse me, do you run an ISP? Do you have access to their network traffic logs? I'm not saying you're right or wrong, but getting on your high horse and making these bold assertions about their deceit with zero evidence on your side is not commendable by any means.

    You don't institute major policy change because of 1% of your users. You do it because in less than a year, it could be 15%-20% using as much as the 1% currently uses.

    Sure you do, if that 1% is in fact using 50% of the network capacity.

    The only real solution is to increase network capacity.

    Which costs money. This is a cost that will have to be passed onto the consumers, and if I am not part of the small group of people using up huge chunks of capacity, I fail to see why I should pay that cost.

    --
    Dislike the Electoral College? Lobby your state to join the National Popular Vote Interstate Compact.
  71. Mod parent up... by argent · · Score: 1

    Quit diluting the meaning of DRM to simply mean everything stupidly any-business that the companies are doing to reduce their own revenue.

    What he said.

  72. COX by sexconker · · Score: 1

    Haven't seen 1 mention of COX here.
    COX has limits you can find by digging through their agreements online - something like 30 GB 60 GB and unlimited based on your tier.

    However, they never enforce them.

  73. Re:Doesn't this give broadband companies a vested. by sexconker · · Score: 1

    I can't wait for that paper bill with a printout of each packet to come!

  74. It gives a reason to p2p by Anonymous Coward · · Score: 0

    After all, you can't risk running out of legitimate use (since you have to pay or there's a time value to it), so you can't use ALL your cap.

    What you CAN do is at the end of the month, use the last few days to download anything.

    BitTorrent, for example, doesn't CARE if it takes 30 sessions over two years to download content.

    A required update to Steam does.

    So set off a BT client in the last few days and use up all your cap. It can't be used otherwise.

  75. Way to have a 1997 view of the internet by Anonymous Coward · · Score: 0

    "There's a fixed amount of bandwidth available, and you have to decide who gets it."

    No, there is not a "fixed amount of bandwidth available". Do you have any idea of how Verizon/Comcast/TW peer with each other? They don't actually buy fiber to run between their data centers (which is the 1997 view). Their core infrastructure is essentially co-located with so much bandwidth that you could watch all the blue ray movies in the world at the time for thousands of people.

    The issue for some major players is old last-mile infrastucture (not a problem with FIOS or DOCIS 3.0). For tiny ISP's they may actually peer in an 1997 way, but by definition, these guys aren't the problem. The primary issue is two fold:

    1) The big growth days of adding customer is over, so they have to figure out a way to continue revenue growth (not profit, that's different) from a fixed user base.

    2) People's viewing habits are changing and they are putting the cable-tv side of the business (which is still most of the revenue) in jeopardy. Joost, Hulu, Netflix et al) are huge competitive threat and the TW doesn't like hastening their own demise by giving their own customers a "free" (in their view) way around paying for cable TV.

    Stop this "bandwidth is limited, we must ration". It's factually wrong and it's parroting the PR BS that the cable companies are pushing.

  76. ISPs are cable providers by AnonymityCowardily · · Score: 1

    [quote]But I've seen a large jump in bandwidth usage with my new Roku box for watching NetFlix on my tv. That's a lot of streaming video. Are they keeping tech like this in mind? Doubt it.[/quote] They are precisely keeping tech like this in mind. Many ISPs also provide cable service. What happens to cable if internet streaming becomes too convenient?

  77. Re: fixed amount of bandwidth by Thraxen · · Score: 3, Insightful

    That's Time Warner's own information to their investors. They claim they made $4B in profit off their data services. You talk about their other services, like cable TV, but don't forget that those other services also have their own revenue streams. You act like they are being run purely off the profit from the data services. The bottom line is they have plenty of money to upgrade their network, but instead they would rather implement caps and squeeze the consumer for even more profit.

  78. Re:I've been saying this since comcast instituted by Jason+Levine · · Score: 1

    You might prefer that, but they would prefer that you paid them $50 a month for cable TV, $50 a month for Internet usage, $45 a month for Internet bandwidth overage fees, and $45 a month for phone service. Don't worry though, bundle it all together and sign up for a year's worth of service and they'll chop $5 off your monthly bill. It's a bargain!

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  79. Re:I've been saying this since comcast instituted by Anonymous Coward · · Score: 0

    Maybe its time for the Cable ISPs to port their on-demand cable TV channels to a web based platform. If someone could get the licensing to do this they could develop a Hulu competitor with their own cable content. This would give users an easy, legal way to watch TV with a bigger library while letting the cable companies compete with web-based services.

  80. Re: fixed amount of bandwidth by Thraxen · · Score: 1

    One more thing, you talk about undercutting other competitors, but whom are you really talking about? In many places cable ISPs are a monopoly. Or maybe a duopoly with a telco that offers DSL. Most people don't have many choices for broadband. Where I live I can choose between 1 cable company and DSL. That's it.

  81. Re:I've been saying this since comcast instituted by Jason+Levine · · Score: 1

    As Abcd1234 said, you're not average. You're slightly ahead of the curve. The cable companies (and phone companies too since they sell cable TV now too) don't worry about one or two online video users. However, when they see a trend forming towards online video (like the one that has slowly taken shape over the last couple of years), they start breaking out in a nervous sweat and looking for ways to protect their profits. In this case, "protect profits" = "institute caps so that no one can view too much online video without paying obscene overage fees."

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  82. WTF guys? by trickyD1ck · · Score: 0

    If the internet is too expensive for you, get out of your basement and go find a job which pays better. Why all this permanent moaning and complaining?

  83. Wrong way to go by EvilToiletPaper · · Score: 1

    All these ISP's seem to be running a race for the worst consumer experience possible.

    I use time warner in NC and they oversubscribe their links to death, I get a cool 16/1 at most time except the peak or holidays where it slows down to an 800kbps crawl. Every call I make to customer service gets answered by a blank 'The networks is overloaded'. This is what they are using as a excuse for introducing draconian bandwidth caps.

    Nice approach Time Warner, This solution reeks of typical MBA incompetence. Invest some money in 'real' solutions, hire a couple of decent engineers and upgrade your infrastructure. Upgrade your gateway hardware, networking compaines now sell switches capable of handling 100Gbps+ of simultaneous traffic.

    Lease more dark fiber, hell there's 28,000 miles of that stuff just sitting around with 8-16 extra conduits for expandability, and it's not that much of an overhead.

  84. Re: fixed amount of bandwidth by sjames · · Score: 1

    The cost of the guaranteed bandwidth connections is driven by the SLA (service level agreement) rather than the committed bandwidth these days. That is, it's not expensive because 10Mbps means 10Mbps 24/7, it's expensive because they have agreed that if you call them at 3:00A.M. to report a problem, they'll dispatch a tech RIGHT NOW. If it's unavailable for more than 45 minutes in a year, they owe you huge service credits (it's typically guaranteed 5 nines uptime). If you have such a connection, it's not uncommon for them to call YOU to report a problem and resolution. That's why it's so godawful expensive.

    In contrast, a cable ISP promises that your business is VERY IMPORTANT to them and if you leave a message someone will be out to fix it in a few days or so. In other words, 2 nines at best and a response time over 72 hours.

    A big clue that they're trying to pull a fast one: Whatever the cap is, using double that amount costs well more than double the amount. That's inevitably a sign that they're playing fast and loose with the numbers somewhere.

    When you were at an ISP trying to make 10 gallons fit into a 5 gallon jug, you wouldn't have been high enough in the organization to see that they could easily enough provide 20 gallon jugs for what they were charging.

  85. Before long... by Bones3D_mac · · Score: 1

    ... your actual data transfer speeds from your ISP will outweigh the amount of data you can actually transfer. Better choose carefully before clicking that link...

    --


    8==8 Bones 8==8
  86. UK ISPs by Anonymous Coward · · Score: 0

    UK ISPs are actually pretty good now because there is a lot of competition.

    I have an 18Mbit DSL line with no limits - the company only raises eyebrows if you approach 1TB a month, even then they just ask you to lower your consumption. It's also very reliable, it's only ever hiccuped on me twice in 2 years and a quick ticket raised with tech support got the issue solved within a matter of hours.

    Oh and I pay $26 a month for this.

  87. They already are doing this... by Bones3D_mac · · Score: 1

    but not for DRM protection... it's protecting from litigation.

    Offer a data plan that exceeds that of the closest competitor, and you might soon find yourself on the bench defending yourself against charges that you are facilitating piracy by offering unusually high transfer rates compared to the rest of the industry.

    In the meanwhile, many foreign countries have data rates commonly available to users that are 5x the fastest speeds you can find here in the US.

    --


    8==8 Bones 8==8
  88. Fuck them. by hoskeri · · Score: 2, Insightful

    I am using SneakerNet. Never underestimate the bandwidth of a portable harddisk in my pocket.

    --
    Even if you win the rat race, you are still a rat
  89. How to circumvent deep packet inspection by Anonymous Coward · · Score: 0

    Easiest way to circumvent deep packet inspection is to simulate bonded packets (MLPPP / MPD) , which are usually not inspected.

  90. More Competition by Anonymous Coward · · Score: 0

    The Cable ISPs are just opening an easy way for the telcos to take away their business. Once capping is in place, jump off the bandwagon and add great value to the consumer (unlimited inet) for a similar price. I would imagine those angry with their original ISP would jump ship and be hard to woo back.

  91. WISP Throttling by Innovative1 · · Score: 2, Interesting

    I work for a large WISP and it is impossible to offer everyone unlimited bandwidth all the time. The advertised packages are peak that the system can handle and are rarely the continued throughput. We keep a close eye on our bandwidth and upgrade backhauls whenever necessary but throttling is a necessary evil. The way it works here is you can download a certain amount per day and then you are throttled to 2Mb (depending on the plan), download a certain amount more and it goes to 512K, then 256K. Then it resets at midnight. There is also a monthly cap that will throttle you to 256K for the remainder of the month if you hit that amount. We recently did a company wide bandwidth analysis and found that usage has been increasing for every aspect of user over the years so we have raised our limits. Now we figure that 99% of our customers will never experience throttling. That other 1% are usually pirates and torrent hounds and if they want an unlimited pipe then they can go elsewhere and get it because it is not our intent to provide unlimited service to those types. I happen to be one of those types and I can say that the service is not for me. However, it is all that is available in my area so I have to live with it. We have an unlimited 4Mb business plan which runs about $450 a month if people want it but most people would prefer the standard 2Mb or 7Mb packages (for $30 & $35 per month). The terms are clear for anyone who wants to read them and nobody who knows the cost of operating a network like this can realistically expect an unlimited 7Mb connection for $35.00 a month. Before throttling was implemented the 1% of the users who use most of the bandwidth would slow down the network so that the other 99% could almost not use it. VOIP services especially suffered. So really it might suck for that 1% of people who run torrents 24 hours a day but that is not our target demographic.

  92. What capping? by Anonymous Coward · · Score: 0

    I have a 110M cable for about 70 euros per month and we don't have any caps. I live in Finland.

  93. So let's compromise by ThatsNotPudding · · Score: 1

    If my ISP restricts me to X GB per billing period, then it can be expressed as $ per GB. Thus if I don't hit my cap, my bill should be reduced by that same rate. That the FCC would allow any ISP to cap their customers without providing the customer a real-time tool of their data usage borders on immorality.

  94. Wireless is a different beast by Anonymous Coward · · Score: 0

    Being a WISP is far different than a Comcast or TW.

    A large WISP is like a small ISP.

  95. Re: fixed amount of bandwidth by Reziac · · Score: 1

    You forget that Verizon has a gov't-mandated monopoly on its phone-line service areas, inherited from when it was poor little GTE that needed to be protected from the Big Bad Bells. There IS no competition for phone lines, thus for DSL, in Verizon areas. "Competitors", if any, are essentially Verizon resellers.

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  96. Re: fixed amount of bandwidth by Reziac · · Score: 1

    My ISP guy (the company is a one-man band) told me that downloading costs him effectively nothing, so he didn't care how much we download. However, he throttles uploads, because THAT costs him money by the gig. (My ISP connects directly to an AT&T backbone.)

    I expect this is fundamentally true across the industry -- so what's with download caps and limits anyway? Price it on how much uploading you expect a given tier to use, and don't worry so much about download bandwidth.

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  97. Reason by Anonymous Coward · · Score: 0

    Pay for what you use. Is that so hard? Why should your granny who only surfs an hour a week have to pay for your 24/7 GB torrent seeds?

  98. Re: fixed amount of bandwidth by nabsltd · · Score: 1

    The cost of the guaranteed bandwidth connections is driven by the SLA (service level agreement) rather than the committed bandwidth these days. That is, it's not expensive because 10Mbps means 10Mbps 24/7, it's expensive because they have agreed that if you call them at 3:00A.M. to report a problem, they'll dispatch a tech RIGHT NOW. If it's unavailable for more than 45 minutes in a year, they owe you huge service credits (it's typically guaranteed 5 nines uptime). If you have such a connection, it's not uncommon for them to call YOU to report a problem and resolution. That's why it's so godawful expensive.

    Yeah, $100/month for 20Mbps/20Mbps is way too much for anyone to afford.

    That's the cost of a Verizon FiOS business account with an SLA. I've had less than 2 hours downtime in two years of service. That's not five-nines (which would require less than 5 minutes outage per year), but it is four-nines. Response has been great the few times I've called. Once, it wasn't even their problem...my router (not their equipment) had flaked out, even though all the logs and stats showed it as working.

  99. And In Civilized Europe by AliasMarlowe · · Score: 1

    I have 100/10 Mbps fiber. No caps. In rural Finland, 55eur/month.
    In principle, we could download many TB per month. In practice, we rarely exceed 400GB per month. The System Monitor says 3GB so far today to this PC, probably a similar amount to my daughter's PC.

    --
    Those who can make you believe absurdities can make you commit atrocities. - Voltaire
    1. Re:And In Civilized Europe by Sumbius · · Score: 1

      Finland. Hmm.. thats where I live... Luckily it's just this small village where I live, that is monopolized by my ISP. I bet that you can guess which one.

    2. Re:And In Civilized Europe by AliasMarlowe · · Score: 1

      Finland. Hmm.. thats where I live... Luckily it's just this small village where I live, that is monopolized by my ISP. I bet that you can guess which one.

      Actually, I can't guess - where is it (or who is the idiot ISP)?
      I live outside Hiltulanlahti, BTW, and have the Mediakoti package (IP internet+TV+telephone over fiber, either 20/2 or 100/10 Mbps) which was provided by KPY a few years ago. They provisioned the infrastructure quite well, at the insistence of the Kuopio municipality. Alas, KPY was assimilated into DNA, and the Mediakoti package will probably not spread much beyond the Kuopio area. However, there are equivalent services now around Helsinki, at similar or lower prices, or so I'm told.

      --
      Those who can make you believe absurdities can make you commit atrocities. - Voltaire
  100. Re:Biz class service premium by r_naked · · Score: 1

    I should have specified that I was paying ~$20.00/mo more for my total TV / Internet bill compared to the TV / Internet / Phone bill I was getting from Brighthouse (notice I no longer have phone service).

    My bill for all 3 services from Brighthouse was ~$150/mo with $30.00 of that being for fraking phone service that I didn't even want, but had to get in order to get 20/5 speeds.

    So now my bill with them is $75/mo for 20/5 biz class and I am giving DTV ~$100/mo. So I was paying ~$150 and now I am paying ~$175 so ~$25 extra.

    Here is the thing though. I had to tell them to take a hike when they sent me the first quote for $95/mo for the biz class. They got the residential retention department on the phone with the business department, and a few days later I had a quote for $75/mo (which I grudgingly took -- little did I know what a deal I was getting).

    -- Brian

    --
    -- http://anonet.org -- The internet the way it was meant to be. Check it out, you may be surprised.
  101. Re: fixed amount of bandwidth by sjames · · Score: 1

    Actually, your report supports mine. You dropped 1 nine and probably added a few hours to the response time and suddenly 20/20 is quite affordable.

    So why can't TW and co be affordable at that level when they drop 2 nines and add DAYS to the response time?

  102. Time Warner out to save the U.S. post office? by dlfretz · · Score: 2, Funny

    So what this means is that I should stop buying my games online and have them sent via the USPS instead of Steam/EA Download Manager/Microsoft Live? (Maybe it will save the USPS.) Maybe I shouldn't install MS Windows/Linux/other OS due to the amount of bandwidth the latest patches will incurred? Maybe I should forget about MMOs? This is a signal from Time Warner that we should all go back to 80's and use the Atari console again. To the time when content came in a cartridge. (Which Warner Bros. did own Atari at the time.) All things must be shipped in a box and come with manuals big enough to be used as a door stop. To the time before Al Gore invented the Internet. BTW I should stop reading /. to save on bandwidth.

    On the other hand I can joke here. Time Warner isn't my ISP and isn't going to get my business anytime soon anyways. Luckily a consumer still has good choices today.

  103. Re: fixed amount of bandwidth by OwnedByTwoCats · · Score: 1

    Most cable companies have exclusive agreements with local municipalities. So there can be no other competitors to undercut them. That's what keeps the prices so high, and enables the quality of service to decline.

  104. Re: fixed amount of bandwidth by jmauro · · Score: 1

    Things like help desk (cause people need to call when things break), contracting services (cause someone needs to fix the broken data lines), ERP (cause workers need to get paid), accounting services (so investors know whats going on), etc are always listed as costs to the operation and not listed as costs to individual projects. An investor who the 10k is written for would understand this. You cannot really tell anything about a company from a 10k.

    Someone reading it off the web would not. It's written in a combination of legalese and accountingese so it's a little dense.

  105. Re:I've been saying this since comcast instituted by Anonymous Coward · · Score: 0

    You don't institute major policy change because of 1% of your users. You do it because in less than a year, it could be 15%-20% using as much as the 1% currently uses.

    TimeWarner has already stated that the cap hit 14% of their customers in Beaumont. I have a hard time believing it won't be higher in Austin which is a hi tech city unlike Beaumont, which I'd rather not describe.

  106. Re: fixed amount of bandwidth by Anonymous Coward · · Score: 0

    $4,159 Million $4,159 Million $4,159 Million

  107. 80/20 rule should be present by Anonymous Coward · · Score: 0

    If 1% of your users can grind your network to a halt then your network sucks.

  108. Bandwidth hogs and competition by grantdh · · Score: 1

    Here in Australia we've pretty much always had caps. One or two ADSL providers introduced "All you can eat" accounts and got to watch their peak time supply slow to a crawl across ALL their customers 'cos of the kiddies hopping on after school and downloading shitloads. Suffice to say, they lost a lot of business customers who were paying for 1.5Mb and getting 56k modem speeds. Ooops.

    Another ISP I know of checked their utilisation levels for their customers and found that only 5% of their customers were using over 50% of their bandwidth (often more). So, they introduced caps and tiered charging. Those who used stuff all bandwidth had a REDUCTION in their connection fees while those who slurped the most saw an increase. A lot of the slurpers got pissed, wrote nastygrams and left. The majority of people paid the same and started complimenting the ISP on their improved service.

    Same level of upstream investment could suddenly handle more customers and those few who left actually made it better for everyone who remained.

    Fast forward to now where I'm downloading patches & updates, torrenting TV shows that aren't out yet (or are long gone), downloading some (legal!) videos and my teenage son is playing games & watching YouTube. We've got a 40Gb per month cap and are staying within it every month.

    Have you lot actually checked how much you're using before you say "Caps are bad, mmmokay?"

    It seems the biggest problem the US has is that there's not a lot of competition for Internet connectivity all over the country. Here I've got stacks of options to choose from to get connected with ADSL (cable is a bit more limited) so there's reasonably good competition. Over there, as has been noted by others, the cable companies are running scared 'cos the 'net is getting ready to eat their lunch (Hulu, NetFlix, etc) so they're doing all they can to ensure they still have money flowing in when their cable revenues drop.

    Amazing that the USA (home of the free market and competition theory) can be in the position where people can have no choice when it comes to getting online. Who ever would have thought that could happen...

    --

    I left my body to science, but I'm afraid they've turned it down...
  109. Not piracy but Netflix and other competitors by joeler · · Score: 1

    Cable companies are losing revenue to Netflix as more and more people learn they can get more for less than $10.00 a month then they can get from the cable company premium channels that cost twice as much. They hide behind "piracy" but they are just using it for an excuse to impose usage taxes to offset the revenue they are losing from customers dropping their expensive premium channels, and if those taxes and caps keep some customers from taking advantage of unlimited streaming from Netflix, it is all the more profits for them. People need to wake up and realize this is NOT about piracy it is about monopoly power and protecting their bottom line.

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    >>>please remove "nospam" from email address
  110. caps may encourage casual downloads by jdrissel · · Score: 1

    I think that bandwidth caps may actually encourage piracy and/or casual downloading. If I am near the end of my billing period and I still have several hundred MB before I hit my cap, I am going to download something, anything to make sure that I get every penny's worth. I will let no bit that I pay for go un-used, assuming that I have to live with bandwidth caps. TW should have known better. No one pays for 15MB/S service and expects to only download 40MB/month! My wife fires up Netflix the way most people turn on the TV and it is not un-usual for her to use more that 40MB in a single day. I have U-Verse scheduled to be installed later this week and I will be cutting TW's cable very shortly afterwards.

  111. Re: fixed amount of bandwidth by charlesnw · · Score: 1

    This is disingenuous in the extreme. If you are guaranteed bandwidth you're guaranteed uptime as well, you have a SLA, and you are a totally different entity than some DSL consumer. I call shenanigans. That's exactly the point the OP was making.

    --
    Charles Wyble System Engineer
  112. Australia might not have crap internet after all.. by Anonymous Coward · · Score: 0

    To the people in America, if you let capping ISP's win, you will end up with shit like this

    http://www.bigpond.com/internet/plans/adsl/plans-and-offers/

    Even then, my speed is 3 Mbits/s down because we live 150 m from the exchange.

    Oh and we have had this for years. Not in the past 6 months, but since 2000.

  113. Pig in lipstick. by Anachragnome · · Score: 1

    I don't care what they want to call it. DRM, whatever, it is going to have the same effect.

    In order to deter the "casual pirate" from torrenting the day away, they will be deterring a paying customer from watching Netflix all day. It doesn't matter WHAT your doing, the end result is the same. The direction media marketing is going, it will not be long before everyone is using the same amount of bandwidth as the P2P crowd does.

    This, bandwidth capping, is quite simply a revenue stream adjustment. Don't let anyone convince you otherwise. They have determined people are willing to pay more for internet service(at least the ones in Texas) and the ISPs are willing to CHARGE more for it.

  114. So? by Sparx139 · · Score: 1

    I'm an Australian running on a 20GB Cap, at 256Kbps. It costs 60 bloody dollars.
    I'm sorry, Americans, but the net situation is far worse in other countries than what's coming up for you right now. I can't help but find this all slightly amusing.

    Anyway, It'll blow over. If one or two companies try to screw you, then their customers will swap over to another, uncapped service.
    Even if all the big companies swap to capped services, there will be one or two smalled companies that will stay uncapped. And as a result of such generosity, they will get more customers. And then the big guys in the business will say "...Whoops. That was stupid of us."
    If you don't stand for it, then they'll be forced to swap back to keep their customers.

    --
    Our culture doesn't get smarter, it just finds new ways of being retarded.