BT Wants Cash For iPlayer, Video Bandwidth
eldavojohn writes "British Telecom is asking for more money for the bandwidth that iPlayer and video streaming sites eat up. The BBC's Tech Editor is claiming that 'Now Britain's biggest internet service provider is making it clear that, in a cut-throat broadband market, something is going to have to give — and net neutrality may have to be chucked overboard.' The BBC and BT are currently already in talks over how to get past this together. This might sound like a familiar battle from over a year ago."
BT have a TV over the internet offer called "BT Vision" its suffering (and just lost its CEO) in competition with Rupert "any view that pays" Murdoch's Sky. Now if BT could get a richer experience out of iPlayer and access to a longer back catalogue than simply the last 7 days then this would help them in competition with Sky.
So I'd expect this to end up with BT agreeing to support iPlayer in the same way but an "interesting" tie-up between BT and the BBC around the delivery of iPlayer+ features to its BT Vision customers.
An Eye for an Eye will make the whole world blind - Gandhi
This shouldn't be an issue at all; the BBC's ISP should be charging them a fortune for their high bandwidth use and then the squabble is between ISPs for peering costs. Also BT should be charging by the gigabyte instead of offering unrealistic "unlimited" packages that cause problems when people actually use their bandwidth.
So video over IP is wasting BT's bandwidth eh? How about increasing the bandwidth instead of reducing the share of it subscribers are allowed to get? This is typical greedy telco mentality: let's milk the existing infrastructure for all it's worth, instead of investing in said infrastructure. Heck, if Japan or Korea ISPs can provide very high bandwidth residential internet to their customers, why couldn't the UK? This is called investing in the future, and it's what we need in times of economic crisis.
"A door is what a dog is perpetually on the wrong side of" - Ogden Nash
Let me get this straight... the BBC pays for their internet connection, and they will have to pay a tariff appropriate to the bandwidth that they use in providing these services, which covers iPlayer video being delivered from their servers. As a consumer, I pay for my internet connection, and pay a tariff appropriate to the bandwidth that I use in consuming services, included iPlayer video that I download and stream. So if both ends are paid for, what is the problem?
It sounds to me like BT has suddenly realised that they have oversold their services on the basis that not everyone uses their internet connection at the same time. This is a classic telecommunications model. Except that, unlike the telephone, our internet access is largely un-metered (flat-rate charge), and we can use it even when we are not physically present.
Any fool can talk, but it takes a wise man to listen.
BBC shouldn't give a penny to BT. They should cut them off.
From the perspective of BTs dumb mass audience, who chose BT because it bundled the prettiest ADSL modem, the word will quickly spread that BT is pants because your can't get "teh TVs".
Problem solved.
When people sign up for broadband, one of the main things they want it for in this country is iPlayer. If iPlayer doesn't work well on BT Internet, they will go to another ISP where it does work. That will be a selling point for their competitors. For that reason, BBC can tell them to get lost.
When all the bits look the same, there is no way to discriminate between them.
Don't forget that BT is the incumbent telecoms operator in the UK - they were originally a state owned monopoly and got most of their infrastructure in place using taxpayers' money.
These are the same guys that were holding back broadband in the UK a couple of years (all the while broadband adoption in the rest of Europe was taking of like crazy) ago until laws were passed forcing them to allow other ISPs to use their lines. Even now, they will still make it extra hard to use ISPs other than themselves.
They currently censor their customers connection using the list from the Internet Watch Foundation (a state controlled quango) - the same guys that were blocking Wikipedia some months ago - and will voluntarily give contact data for an IP address to any "content owner" who asks for it.
These guys are not the good guys and they haven't been so for many years now.
"We oversold and can't cope with the costs. Subsidise us."
Well, fuck you BT. You made your bed; Lie in it.
Finally had enough. Come see us over at https://soylentnews.org/
When you charge pennies for a service - the big UK ISPs have been on a race to zero for years now - you'll come unstuck when people actually want to use the service. Duh. Whatever happened to charging a fair price, and then delivering a fair service? It's not rocket science.
Super Awesome Broadband
If all these ISPs realized advertising unlimited internet use would sell people on the idea they could use unlimited internet use maybe they should have built their infrastructure to handle it, or not market it as such. If they have anyone to whine to, it's themselves and their own short sightedness.
..BT (not for them, mind you, just with them on technical projects), all I can say is that if BT (and OpenReach) would spend more on their hardware and infrastructure and less on their asinine marketing and the outsourcing of their customer support (which is a hugely inefficient operation), and all the other stupid crap that they spend money on, this would be a none-issue.
Hey, BT, you still have a freaking monopoly, despite the creation of OpenReach. If you can't make money with a monopoly, you deserve to go under.
I find it frustrating when ISPs falsely accuse content providers of "getting a free ride". It's not free, it's far from free, the BBC pay huge bandwidth costs to deliver content.
BT should not be allowed to blame "the internet" for loss in profits because of a poor business model. Especially as BT Wholesale accounts for a savage percentage of the UK broadband market.
Stop whining.
I mean, why even enter into discussions with them? It's not like they're obligated to. If BT decided to cut them off I'm certain there would be a massive backlash from their customers as it's certainly a very popular service.
It's time for BT to die and make way for municipally owned fiber. Hell, it's been time for at least 5 years.
Here's an independent UK ISP ratings site. BT is third-from-bottom for a reason.
All the top ISP's on the list implement download quotas instead of throttling and port blocking to manage traffic, it is the fairest solution to load management IMHO.
"I bless every day that I continue to live, for every day is pure profit."
People might diss Virgin Media, but at least they host iPlayer and other TV on demand services like 4od, and provide them through their cable box (however naff the box is!).
BT's crapness in this regard suggests to me that their 21CN (21st century network) is just a pile of shit that has costed billions like everything else they do.
The whole point of iPlayer, etc, is that people will be using it when they have free time (i.e., in the evening) to catch up on TV they have missed. If it is unusable at this time due to throttling, then what's the point? It's not like we're talking about 8mbit streams either...
* disclaimer - I used to work for BT
It seems obvious to me that any ISP (including BT) should pass these bandwidth costs on to the consumer.
One of several things will happen:
I would even pay money if the BBC would allow me legally to access their content. Outside of britain there is no way you can get access legally.
The same goes for hulu.com btw, which is only legally acessible from within the USA!
Maybe they can make up the shortfall with the proceeds from Phorm.
C-x C-s C-x k
BT is the principal landline telecommunications supplier in the UK. Most of their income is generated from being a wholesale infrastructure supplier, so I don't understand why there is a "bandwidth delivery problem". Since BT must have the cheapest cost of getting bandwidth from one location in the UK to their customer base. BT can well afford to put multiple 10GbE into LINX and/or BBC directly and connect 1GbE into every local exchange/Point-of-Presence.
So the question has to be asked, what specific thing is it that stops these things from taking place ? Could is be that upgrading equipment at both ends of a fiber optic medium might increase bandwidth by 10 fold but decrease the comodity value of that same bandwidth by 8 fold. Which also has the effect of decreasing the comodity value of all other bandwidth products a telco has for sale. Net result is less profit.
BT inherited their network from the government when it was the "GPO", maybe it is time for the GPO to come back so that the monopoly position BT has is rebalanced against the technological improvements of the past 10 years that a state owned entity could push forward. Some people in the UK don't like privatisation and other people don't like nationalisation, but I say we should have both (at least 2 companies) and let the customer spend their money with the company who best serves their interests.
It is my understanding that when you are a content supplier, people pay you to get connected to you, since you have the content that your "consumers" are paying you to get to. Within reasons the cost of bandwidth is free to the BBC (over and above some ~£million costs to setup, own and manage). Internet bandwidth at neutral exchanges must look pretty cheap compared to satellite video bandwidth needed for a world leading TV, radio, news and media organisation. The money for connectivity flows in that direction, consumer to producer.
Well, I guess that depends on whether or not customers can find another ISP...
:)
Personally I'd like to see regulation from EU...
BT, Britain's biggest broadband supplier, has thoughtfully averted complete congestion of the Internet by throttling all use of the Internet on its cheapest broadband package, blaming the BBC iPlayer, everyone else on the Internet and magical pixies.
Customers on the I Can't Believe It's Eight Megabits package have all Internet data flow cut off entirely under its "fair use" clause during "peak periods," defined as being between the hours of 12:00 midnight and 11:59pm. "However," said a customer service telephone voice menu, "the connection itself runs at the full eight megabits the entire time. That we guarantee absolutely."
BT has recently sold the technology to China, where it was put into operation today, blocking Twitter, Blogger, Microsoft Bob Hope and the live webcam of the coffee pot at Cambridge University. "We will not put up with the drop in productivity social networking sites cause," said a spokesrivercrab. "After the terrible onslaught of blue screens at the Olympics, we will stop at nothing to protect patriotic citizens from the influence of Microsoft. And they love us for it. Just find one who doesn't!"
"Besides," said the BT phone menu, "we're still better than Virgin. A high bar to aim for, I know. But you get such better fail whales over a phone line than a cable."
http://rocknerd.co.uk
BT have a Heavy User package (£20.54pcm) that contains the following as part of it's description...
If you can't afford to provide it then don't advertise it, fuckwits. Manage your customer's expectations properly and stop making promises you can't keep, it's a much more sustainable business model.
In other new the BBC has announce it will start charging BT for the content that BT customers download.
OK I just made that up. But what the BBC is doing with the iPlayer is driving up demand for consumer broadband ... this is good for ISPs not bad. Every time the bbc mentions now available on the iPlayer (lots) any punter with out broadband has another incentive to give ISPs more money.
BT is already getting paid to deliver zeros and ones to its customers by its customers, why should they get paid twice?
BBC is already getting charged to push their zeros and ones to the internet, why should they pay twice.
If BT finds this situation unpleasant they could just block the iPlayer, I think this would be a very good way to see how many customers the BBC has given them, as BT watches them leave.
They could just start selling only what they can provide, instead of selling what they haven't got.
If Google really cared they would fix Android Chrome to reflow text, instead of discriminating
Wait, hold on - BT were short-sighted enough to bypass laying down a high-bandwidth system through the UK while there was time, and now people are raping their servers because of their own short-sightedness, they want someone ELSE to pay for the mistake?
To me the Answer to this is simple. ISP are moaning becuase it eats bandwidth on thhere pipe to other networks. if people like BT and Virgin mirrored the bbc iplayer servers locally then they can serve there shows with no impact. this is like how ISP host there own News group servers. ISP can then offer 100% of there speeds to people using the server but not impact the backbone. This would also help BBC load balence there servers. I would love to hear what others think about this
Iplayer actually could have helped: by actually using Bittorrent instead of their own invented Bittorrent-like protocol, and spreading the load, it could have cut the piracy bandwidth load of people downloading BBC television shows. But their business choices completely ruined the possibility.
1: They chose Windows Media Player to provide their desired DRM, which meant they had to go and stream it anyway for Linux and Mac users.
2: Their interface sucks so badly no one in the UK wants to use it. (At least not the sys-admin there I've discussed it with.) No one cares whether the episode of a child's program you want to see showed at which timeslot, you shouldn't have to scroll through all the times to pick the 6:30 AM or the 10:25 AM or the 2:30 re-run, just name the show and let people grab it.
3: Even when turned off, Iplayer quietly sucks your bandwidth for its Bittorrent like protocol without telling you. So it interferes with your other usage, and companies have to tell their own staff not to run it on their laptops or VPN connected machines, etc.
Unfortunately we have different communication technologies overlapping here, each with its traditional pricing structure. They don't fit.
The Internet has always been free to the end-user, thanks to the generosity (and perhaps intelligent self-interest) of parties like the US federal government, owners of the many servers that forward packets to us all, and - let's not forget - even telcos. Where I live, in southern England, I can buy ISP service for about $20/month upwards. That gets me continuous Internet access using ADSL, over a telephone wire designed for speech only, with a maximum bandwidth of about 2Mbps (because I live 3 miles from the exchange). On a good day I might get 2.8 Mbps, on a bad day (and perhaps due to contention) down around 1.5 or even less.
Now this is perfectly adequate for almost everything I want to do. I use email (and have since 1980); download with ftp; browse the Web; and other such traditional activities. The only time I bump my head on the ceiling is when I have to download a really big file, or (occasionally) watch some streaming video that I can't download in its entirety first.
Where it breaks down completely, of course, is if I want to download (or worse stream) movies, watch live sporting events in full glorious technicolour on a large screen without graininess or intermittent motion; or watch TV. That's because the Internet was never intended for those activities, most of which are better adapted to the plain ol' steam TV set (complemented by a video player, DVD player, etc.) Why on earth would thousands (potentially millions) of individuals download high-bandwidth material over separate, contending, low-bandwidth links, when much of that same material is freely broadcast through the air they breathe? It doesn't make very good engineering sense. More to the point, it doesn't make good economic or business sense. Movies, TV, sport, music and other live entertainment have traditionally been things you had to pay for - whether by buying a ticket, subscribing, or just watching tedious commercials.
AFAIAC, the really important aspect of this whole thing is that the Internet itself should remain free - as in speech and as in beer (apart from content-neutral ISP fees). Unfortunately, there are pople like this http://blogs.zdnet.com/BTL/?p=19552&tag=nl.e539 who reckon otherwise. We have got to make sure they don't get their way.
I am sure that there are many other solipsists out there.
I'm sure BT would loose plenty of customers if BT starts blocking iPlayer.
Customers are already paying for their bandwidth. This is just a clear case of BT wanting to be paid twice.
Greedy scum.
While I appreciate at the end of the day it's "who wants to look like the bad guy" when the bills come in for payment, BT or BBC ( via the license fee), just another example of a greedy telco cutting corners and costs and who didn't keep pace with the demands of the internet. They set up and sold a service, thinking not many people will be interested other than a bit of browsing and some emails, just like the old dial-up days. Things took off and now they are fighting to stay in control. You should have metered it from the outset, like you do with mobile and landline calls!
Just like the UK's transport system, we got ours set up first, ran it into the ground without maintaining it and sit here crying now it's all f**ked and broken, looking for someone else to blame for the mess!
Honestly, that's the most ON TOPIC troll ever. Mod him troll, but not Offtopic.
This is just BT believing that because they used to be the national phone service they have a right to dominate any communications market and charge whatever they like.
There is a simple solution to this: the BBC should just ignore them. If they decide to limit or block access to iPlayer then I'm sure their competition will make mincemeat of them given its popularity. All they need to do is advertise that they have iPlayer access and let the market decide - this is one time that leaving things to the market might actually work.
in a cut-throat broadband market, something is going to have to give â" and net neutrality may have to be chucked overboard.
That's not how a cut-throat market works. In a cut-throat market, the thing that has to give is the company, not the customer. Whose throat is getting cut here, anyway.
why not charger the customer more for broadband access or not offer cheap 'unlimited' rates.
What this actually! is about is Net Neutrality and they use this as a lever. And our polititians will be dump enought to fall for it.
sad sad sad
Why don't BT just charge their customers to cover the costs and stop whinging about it?
I despise BT. I am forced to have a BT phone which I rarely use just in order to be able to get an ADSL connection with another, better, ISP.
For that privilege I have been paying out about £160 a year on top of the ADSL fees from the ISP. BT has an iron grip on the UK's Telecom infrastructure decades after the government monopoly was privatised and OFCOM was set up to oversee the introduction of an open market. They have done little that was worth doing. The sooner BT is broken up, the better.
Complaints to OFCOM get excuses and justification in response, while the EU monopolies comission have criticised the UK for having a 'watchdog' which is not doing its job, and too close to the telecoms industry.
Charge by the bit.
Charge more for more expensive qualities of service, e.g. "slow bulk - delays up to 1 hour allowed" is less than "bulk - delays up to 1 minute allowed" is less than "sub-second response required" is less than various degrees of "real time/interactive traffic" like voice, video, and real-time gaming.
Within each of these latency QOS tiers, "no packets dropped" would be more expensive than "99.9% of packets go through" would be more expensive than "95% of packets go through." The command-and-control and action-scenes of games may require no packets be dropped. The "mere background" for games may be able to tolerate dropped packets. Likewise, audio and video should be tolerant of dropped packets.
Of course, don't pull a Time-Warner - be reasonable about pricing: Assuming usage patterns don't change, your overall revenue shouldn't change when you shift from flat-rate to tiered pricing. If it does it makes you look bad. Of course, usage patterns will change and your gross and net revenues may go up or down.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Im sorry but doesnt the BBC pay for its bandwith? Its being hosted by someone and not for free thats for sure. If theses ISPs want to cry about bandwith,then get out of the ISP business or comeup with a better competing product.
Jack of all trades,master of none
Ya know what? Maybe, just maybe, streaming real-time video of for-profit television programs just isn't something that our current incarnation of an Internet should be doing.
You want to watch on the computer? Just download the programs you want to watch while at work at a rate that doesn't over-burden our infrastructure, then when you come home it's there. I guess after all these problems that are apparently happening b/c we're streaming video, transferring TERRABYTES of just temporary data, maybe we should evaluate if this is something worth doing?
I think the traditional car analogy applies well here. Imagine Amoco complaining to auto makers that their cars are using too much gasoline and driving up gas prices, and therefore they should give Amoco money to subsidize the cost of gas.
Anyone can see that is ridiculous, and the idea of charging the BBC for the costs of running an ISP is just as absurd.
I'd look at iplayer's protocol and see if it's cacheable. If it's cacheable, then this is the ISPs' fault (users: switch to another ISP who knows how to apt-get install squid). If it's not cacheable, then it's the BBC's fault (users: stop using iPlayer and pirate your content instead).
It's really that simple.
I think it's absurd that they are shaking down people for money for allowing access to content, when they are not allowing people from other countries to access the content by any means - even paid means.
I thought these guys were business people. I have money, let me pay for something I want!
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Be a Content Provider or be a Bandwidth Provider. You SHOULD NOT be both. Conflict of interest!
Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
So what happens in Autum when Sky Player comes to Xbox Live and the Xbox Live / Zune HD movie service starts offering 1080p streaming movies? Last time I checked a 1080p movie was a minimum of 9GB.... BT seem to think that 30GB/month is "normal" usage, while MS want to sell you a movie which uses 1/3 of that bandwidth in under 2 hours (most likely within the 6pm-12am "peak" period). There is a massive wake up call on its way.
I only buy pepper spray that's been tested on anti-vivisectionists.
Just use get_iplayer - http://linuxcentre.net/getiplayer/. Cron it, script it, whatever. Then watch at your leisure.
BT is selling "unlimited" Internet service to its customers. If BT can't deliver the service it has promised to provide, then BT has no one to blame but itself.
Unfortunately, IP TV doesn't care how it is charged for. Everyone streaming their own private streams takes a huge amount of bandwidth. Far, far more than broadcasting does.
I think the IP TV idea is pretty much doomed because of the bandwidth requirements. It works fine when a couple of homes on a 1000 home network node are doing it. It stops working so nicely when 100 of them are. It brings the node down when 500 try it.
One solution is some flavor of Mbone.
Even as-is, IPTV shouldn't be any more bandwidth than the same number of people sucking down a large linux distro. The only difference should be that instead of delays being introduced at choke points, packets are dropped.
In any case, if you charge more for "real-time" and "no loss" qualities of service, independent of the actual data, IPTV customers will get to choose between dropped packets or a lower-quality of video during peak periods or a higher bill. The point is though, they will get to choose.
Likewise, people downloading Linux distros should be able to choose between a delayed download or a higher bill during congested periods. TANSTAAFL.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
The bbc iplayer takes up bandwidth, so does youtube but no mention of asking youtube to pay extra. :)
Both ends already pay to transport the data, now we are expected to pay the carrier for a service because it's popular!
Total bandwidth used by google must be larger than iplayer, is it because google would tell them to piss off that no mention of extra charges. What else is different?
BT saved 10 billion waiting for a magic bullet which arrived in the form of adsl but left them 10 years behind schedule, they have pissed away the profit and expect us to pay the bill for a 3rd time. nationalise them under a bbc type charter
"Bits" are not a finite resource. The use of them doesn't cost the ISP any more money than a lack of use of them. The main costs of a network are the initial deployment of infrastructure. From there all costs are very low maintenance-based ones. Charging by bit is completely illogical.
There are two very good reasons to charge by usage:
1) For bits which cross to other carriers, your ISP may have to pay an inter-network transport fee. This isn't the case for all inter-network traffic but it is for some.
2) Capacity planning is based on estimated future bandwidth needs, in particular, peak bandwidth needs. If you want capacity to exceed needs so all customers can get what they want when they want it, you need to pay for that capacity. Those customers who use today's capacity should "pay back" those investors and previous customers who paid for the pipes they are using now, so the ISP has money to spend on new, improved pipes.
Let's pretend an ISP is in a small town with 50,000 customers and it's run as a co-op. Let's say the total costs each month average $40 per customer including the costs to pay back the initial bonds and loans to build the initial physical plant and retain some income to roll out improvements every year. The ISP could charge every customer $40 and implement congestion-control during peak times and call it a day. Or, it could do usage-sensitive billing so those who were getting more benefit from the pipes paid a greater proportionate share. Let's assume that since it's a co-op any over-earnings that weren't re-invested would be returned to the owner-customers on a pro-rated basis. Two other bonuses with usage-sensitive pricing: 1) You may get more customers as low-end users who balk at $40/month can afford service, and 2) High-end users who were blindly maxing out their connections 24/7 will begin to act more rational. In many cases, this means less usage by peak users or during peak times if you have peak-time pricing. This makes future planning easier. You'll know where you really need to split a neighborhood node and you'll have the income figures to justify the expense.
By the way, this isn't just hypothetical. There are many neighborhoods in the United States where Cable TV internet speeds drop well below 50% during peak usage hours. Those cable companies need to make capital investments in their neighborhoods to fix the problem. That money has to come from somewhere. It should come from those users who are saturating the pipes during those hours more than from the users who are doing casual surfing.
As for DSL, the problem there is one of maximum speed more than shared capacity. Your maximum speed is dictated by the distance from your neighborhood box, but unlike cable you don't share a limited bandwidth pool within the neighborhood. The argument for charging by the bit is weaker for DSL and FIOS than it is for Cable- or other shared-medium Internet.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.