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In EU, Google Accused of YouTube "Free Ride"

An anonymous reader passes along a Financial Times piece that covers a push by EU telecoms to get Google to pay them directly — years after US ISPs began rattling that sword, to little effect thus far. "Some of Europe's leading telecoms groups are squaring up for a fight with Google over what they claim is the free ride enjoyed by the technology company's YouTube video-sharing service. Telefónica, France Telecom, and Deutsche Telekom all said Google should start paying them for carrying bandwidth-hungry content such as YouTube video over their networks.... Some European telecoms groups fear Google will reduce them to 'dumb pipes' because the internet search and advertising company pays the network operators little or nothing for carrying its content. Rick Whitt, a senior policy director at Google in Washington ... said Google was spending large amounts on its own data networks to carry its traffic to the point where it is handed over to telecoms companies round the world." Note that FT.com operates on a "first few per month free" paywall basis.

449 comments

  1. Interesting by vikingpower · · Score: 2, Insightful

    Google had to, sooner or later, start fighting such a fight. Interesting is that European, and not Asian or American, ISPs are engaging it. Who wins this fight ? It could have a big impact upon how the internet looks in a few years.

    --
    Religous speak to God. Insane are spoken to by God. When all shut up, one can finally hear Shostakovich in peace
    1. Re:Interesting by Anonymous Coward · · Score: 1, Insightful

      Google wins the fight. All that Google has to do for any ISP that wants a payoff is to block YouTube for that ISP. The problem is fixed, and the customers will migrate as necessary.

    2. Re:Interesting by Anonymous Coward · · Score: 5, Insightful

      The EU has been jumping down the throats of successful American businesses for years

      Exactly. Just as it has been "jumping down the throats" of successful European businesses for years. You say successful, I say abusive and corrupt. Go figure.

    3. Re:Interesting by YeeHaW_Jelte · · Score: 4, Insightful

      "Why is it surprising? The EU has been jumping down the throats of successful American businesses for years. After they got through with Microsoft, it only makes sense that they would shake down Google as their next target."

      Firstly, EU != European Union government in this article, only the EU ISPs.

      Secondly, you make it sound like the EU is picking American businesses on purpose.

      I guess you're American and thus only hear about the US businesses fined by Neelie Kroes, but believe me, more European companies have been hit than American ones by the anti-monopoly and anti-kartel legislation.

      Thirdly, the ISPs are greedy and wrong on this count. They have paying customers. Don't like it that they actually use all of the bandwidth you promised them? Tough luck, find another business model or don't promise something you can't deliver.

      --

      ---
      "The chances of a demonic possession spreading are remote -- relax."
    4. Re:Interesting by Hognoxious · · Score: 1

      Where they can. Some countries - notably ones that point the finger at the UK for not playing nice - still have state owned monopolies.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    5. Re:Interesting by Tim+C · · Score: 1

      Google had to, sooner or later, start fighting such a fight. Interesting is that European, and not Asian or American, ISPs are engaging it.

      What? Even the summary mentions that American ISPs have already tried this, though with no success to date. European ISPs are just following American ISPs' lead.

    6. Re:Interesting by Eraesr · · Score: 1

      I think the reasoning of the ISP's is not that Google is causing their pipes to get clogged up, but that Google is succesful with their services because the ISP's are providing their customers with bandwidth. If they didn't provide the bandwidth, Google wouldn't even exist.

      Personally I think this reasoning is flawed, as the entire Internet is one big network of individual parties that all live off of and because of each other, like a big symbiontic collection of entities.
      If this were ruled against Google, then one could interpret that as any website would need to pay ISPs because they all depend on the existence and services of ISPs.

    7. Re:Interesting by icebraining · · Score: 3, Insightful

      Of course the argument is flawed. Google is not pushing data. Their clients want to access Google, and are paying for that.

      I'd say, if Google and all the other online services didn't exist, the ISPs wouldn't exist either (why the hell would we pay them?). So I'm hoping they're told to fuck off.

    8. Re:Interesting by NickFortune · · Score: 1, Insightful

      It's worth noting here that the FT is a Murdoch paper, and that Murdoch has a real hate-on for Google at the moment. A pinch of salt may useful for some of the opinions tossed around as fact in TFA.

      Also, if Google end up having to pay ISPs in Europe, you can bet lobbyists will use that as a reason to reopen the debate stateside.

      --
      Don't let THEM immanentize the Eschaton!
    9. Re:Interesting by rwjyoung · · Score: 2, Insightful

      What ever happened to Common carrier status ? If ISP's start charging like this, surely they should loose any common carrier status they claim to have now and become responsible for what they carry, opening them up to all the liabilities that come with that. If they are anything other than big dumb pipes they have to accept responsibility for all the child porn and copy write material flowing across there networks.

      --
      Watch me build my house
    10. Re:Interesting by SerpentMage · · Score: 3, Insightful

      All I can say is Jackass!

      http://www.nytimes.com/1992/03/07/business/canadian-lumber-penalized.html?pagewanted=1

      Canadian Lumber penalized

      http://www.google.ch/search?hl=en&ei=J0PES87yPOiXOP3XjdkP&sa=X&oi=spell&resnum=0&ct=result&cd=1&ved=0CAcQBSgA&q=American+steel+tariffs&spell=1

      "American steel tarriffs"

      http://www.guardian.co.uk/business/2004/apr/28/brazil.usnews

      "American Cotton Subsidies illegal"

      My point is that America is neither better nor worse with respect to breaking the trade rules games.

      But because of jackass's like you, you think that it is poor poor America that always suffers! BS!

      Again I am not saying America is good, nor bad. America is dealt bad cards at times, and deals bad cards as well. So if you are going to complain please keep the argument to Google and the ISP's and not "America" and "Europe"

      --

      "You can't make a race horse of a pig"
      "No," said Samuel, "but you can make very fast pig"
    11. Re:Interesting by Anonymous Coward · · Score: 3, Informative

      FT is owned by the Pearson Group. It is not a Murdoch paper.

    12. Re:Interesting by NickFortune · · Score: 1, Informative

      You're right. I'm getting it mixed up with WSJ. My bad :(

      --
      Don't let THEM immanentize the Eschaton!
    13. Re:Interesting by YeeHaW_Jelte · · Score: 1

      "Also, if Google end up having to pay ISPs in Europe, you can bet lobbyists will use that as a reason to reopen the debate stateside."

      Estimated chance of that happening: nil to none at all.

      Estimated chance of ISPs being clobbered over promising bandwidth they can't reasonably supply to all their customers: better than average.

      --

      ---
      "The chances of a demonic possession spreading are remote -- relax."
    14. Re:Interesting by TCDown · · Score: 3, Insightful

      I have been banging on about your third point for some time. Especially where I took out an "Unlimited" bundle to only then start getting warnings about contravening "acceptable use" policies. Where were they when I signed up. On several occasions I just sent a link back to my ISP to an online dictionary definition of the word "Unlimited" and heard no more. But now it seems that the ISP want paying from both ends, I pay for my bandwidth and Google pays for me to use it??? Doesn't seem right to me.

    15. Re:Interesting by Schoenlepel · · Score: 2, Interesting

      I'm from the Netherlands, so I don't deal with the providers in question.

      Interesting detail is that these companies are mostly large monopolies, so google could simply start complaining about monopoly abuse.

      And for added worries to those companies: the EU tends to respond quite allergic to monopoly abuse.

      If that wasn't enough, wait until various consumer organizations learn about this. While they're basically powerless in the US, over here they can generate a world of hurt for companies.

      I'd actually like them to try this, things can become really interesting over here if that happens. The net result will probably be guaranteed net neutrality by the various national laws.

    16. Re:Interesting by HungryHobo · · Score: 0, Offtopic

      where the hell did this silliness about "common carrier status" come from?

    17. Re:Interesting by Anonymous Coward · · Score: 2, Interesting

      Interesting how you can always find Deutsche Telekom behind these ideas. I'm so sick of their self proclaimed sanctity. I say let DT block youtube so that all the users migrate to another ISP. My bet is that would be the very last thing they ever did as an ISP.

    18. Re:Interesting by Anonymous Coward · · Score: 0

      It's worth noting here that the FT is a Murdoch paper, and that Murdoch has a real hate-on for Google at the moment. A pinch of salt may useful for some of the opinions tossed around as fact in TFA.

      Also, if Google end up having to pay ISPs in Europe, you can bet lobbyists will use that as a reason to reopen the debate stateside.

      It isn't a Murdoch pape. You may be confusing it with The Times.

    19. Re:Interesting by zzyzyx · · Score: 1

      I'd like to point out that the 3 operators in question are the former state monopolies of Spain, France and Germany. They long for the good old times when they could charge as much as they wanted while pretending to do a good job. Their opinions are not necessarily shared by the governments, and even some other ISPs are perfectly fine being the 'dumb pipes' they always have been.

      Also they're not really fighting with Google since discrimination is currently not allowed (in France at least), and the matter is currently debated and will be solved only by new legislation.

      Last thing, the summary is a bit US-centric in this regard but not only Google is the subject of their criticisms, local content distributors are targeted as well.

    20. Re:Interesting by KahabutDieDrake · · Score: 0, Offtopic

      Where is the mod option for "delusional"?

    21. Re:Interesting by rhook · · Score: 1

      Why should they have to fight this in the first place? Its not like the ISPs aren't getting paid for bandwidth, that is after all what their customers pay for.

    22. Re:Interesting by NickFortune · · Score: 1

      It isn't a Murdoch pape. You may be confusing it with The Times.

      Yep, my mistake.

      --
      Don't let THEM immanentize the Eschaton!
    23. Re:Interesting by Anonymous Coward · · Score: 1, Informative

      And fourth, the EU is lagging behind the USA on all these fronts anyhow. As the summary says, the major USA ISPs have already voiced this particular threat.

      Of course, it's okay when it's USA company vs USA company, but replace one of those with a damn foreigner and it's a different story. Not that US-based xenophobia is all that different to xenophobia anywhere else, I suppose.

    24. Re:Interesting by Sockatume · · Score: 4, Interesting

      You're using "The EU" to refer to both the EU's competition regulators, and EU-based businesses. The former have nothing to do with the current action, and the latter are behaving as they would be expected to in an unregulated free market: petulantly and with no regard for their customers.

      --
      No kidding!!! What do you say at this point?
    25. Re:Interesting by Anonymous Coward · · Score: 1, Funny

      Why have all these criticisms of the EU been modded Troll? It confirms my suspicions that, for as critical as Europeans can be of the US, they don't realize what's going on in their own midst. They've made punishing success an art form.

    26. Re:Interesting by mcvos · · Score: 5, Insightful

      I think the reasoning of the ISP's is not that Google is causing their pipes to get clogged up, but that Google is succesful with their services because the ISP's are providing their customers with bandwidth. If they didn't provide the bandwidth, Google wouldn't even exist.

      If they didn't provide the bandwidth, they wouldn't exist, as their customers would switch to their competitors who did provide that bandwidth.

      They're trying to get a free ride off Google's success, when all they really are is "dumb pipes". Google doesn't reduce them to that, it's what they are by nature, and for some reason they desperately wish they were something else.

    27. Re:Interesting by digitig · · Score: 1

      more European companies have been hit than American ones by the anti-monopoly and anti-kartel legislation.

      From the articles I've read about the EU fining companies, I think you meant to say "more European companies have been hit than American ones by the anti-profit legislation."

      Monopolies and cartels do tend to be profitable, so there is some correlation, yes.

      --
      Quidnam Latine loqui modo coepi?
    28. Re:Interesting by delinear · · Score: 1

      Exactly right - maybe there is an argument against ads, since most people don't particularly want to see them and yet we're paying to download them (and of course Google would be included in that sector, but an ad impression is much less bandwidth intensive than a video). In terms of content, if I download something it's because I want it and am paying for it - get that, ISPs? I'm paying for the bandwidth, not just renting a tube down which someone else can pay to send their content. I'm sick of paying for an advertised service and not getting what I pay for.

    29. Re:Interesting by Anonymous Coward · · Score: 1, Informative

      And it is not like the ISP's can really do anything about it. What are they going to do? Block youtube? Happily we have quite some competition here in europe between ISP's and the customers will just vote with their feet

    30. Re:Interesting by YeeHaW_Jelte · · Score: 1

      Your suspicions surprisingly didn't need much confirming then ... for all you can say about the EU with all its behemoth bureaucracy, babylonian confusion and unsurpassed contradictory aims, economically its been a great success, allowing formerly national companies to operate on a European scale and stimulating growth and properity.

      Forcing monopolies to break up or killing bad business practices is just part of keeping the internal European market healthy and consumer friendly.

      It has nothing to do with "punishing success". That's just a sad meme if you think, as most people do, success to the disadvantage of all but the shareholders is a good thing.

      --

      ---
      "The chances of a demonic possession spreading are remote -- relax."
    31. Re:Interesting by delinear · · Score: 1

      "Also, if Google end up having to pay ISPs in Europe, you can bet lobbyists will use that as a reason to reopen the debate stateside."

      Estimated chance of that happening: nil to none at all.

      Estimated chance of ISPs being clobbered over promising bandwidth they can't reasonably supply to all their customers: better than average.

      Agree with the first point, not so much with the second. The way this works is the big business always stomps on the little guy. In the ISP to customer relationship, the ISPs stomp on our consumer rights by not providing what they advertised, and apart from the occasional admonishment from a toothless body like Offcom, they get away with it. When that same ISP goes up against Google, though, well then they'll feel what it's like to be told to assume the position.

    32. Re:Interesting by Anonymous+Brave+Guy · · Score: 3, Insightful

      Why have all these criticisms of the EU been modded Troll?

      Probably because there is no (-1, Factually Incorrect) moderation, for which quite a few of the anti-EU posts in this discussion would qualify.

      Alternatively, (-1, Offtopic) would be more relevant in several cases, since we are talking about EU ISPs here and not European-level government.

      Also, who said anything about Europeans "punishing success"? Again, this isn't the people of Europe acting, it's the ISPs. In case you hadn't noticed, almost everyone in this discussion thinks they're just making a greedy cash grab, including the commenters from Europe.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    33. Re:Interesting by lorenlal · · Score: 5, Insightful

      The EU ISPs aren't the first ones who suggested this.

      To the ISPs who complain that Google turns you into a "dumb pipe:" Yes, that is the idea. That is the service that we, as consumers, buy from you. We would be quite happy if we could lease some relatively inexpensive, and very dumb pipe. Google doesn't pay you to ship their content, because *we pay you to allow us to fetch that content.* Last I checked, you made some decent money doing so. Stop treating our broadband connections as a revenue stream and start treating it as the service it once was.

    34. Re:Interesting by delinear · · Score: 1

      Also, what are they going to do if Google refuses to play ball - they can't force it to pay, they can only say pay up or don't serve our customers. How long will they keep their customers or their monopoly once people can no longer watch kitten videos?

    35. Re:Interesting by Ruede · · Score: 0, Flamebait

      wow you are stupid.

      the issue with microsoft is was the IE story and somewhat governmental.
      the companies complaining about google/youtube are not governmental.

      the cloud shit has little to do with that. it is 'just' youtube and its ginormous traffic amount....

      google was just smart by becoming an ISP and having a connection at certain locations. not my problem that the business of traffic to another provider is such a retarded one. tough shit for the other providers, i paid to use google and youtube... stop complaining!

    36. Re:Interesting by bsDaemon · · Score: 1

      it's a legal-esque term that nerds like to throw around whenever it sounds relevant without really knowing what it means, sort of like 'safe harbor' actually meaning "if you stick to the rules in t1.678, t1.ias, or other formats specified by calea, you can't lose your license to be the phone company for failing to procure the data we have a warrant for" and not something like its more Nautical implications.

    37. Re:Interesting by bytesex · · Score: 1

      They're originally telco's. They're not used to being dumb pipes because only a decade or so ago, they mostly weren't.

      --
      Religion is what happens when nature strikes and groupthink goes wrong.
    38. Re:Interesting by HungryHobo · · Score: 5, Insightful

      No it's worse than that.

      How it is:
      User pays their ISP for their connection
      Server owner pays their ISP for their connection.

      How the ISP's want it:
      User pays their ISP for their connection
      Server owner pays their ISP for their connection.
      Server owner pays every other ISP again and again and again.

    39. Re:Interesting by mr_mischief · · Score: 1

      ISPs are not common carriers in the US. I'm not sure the term even applies in the EU. Telephone companies in the US are common carriers. ISPs owned and operated by telephone companies still are not common carriers.

    40. Re:Interesting by MeNeXT · · Score: 5, Informative

      They were always dumb pipes. They pretended that they had content in order to push out the small ISP's. When people learned what the Internet was about the stopped using the ISP's content. Too bad the small ISP's are no longer here to testify.

      --
      DRM? No thanks, I'll just get it somewhere else...
    41. Re:Interesting by jimthehorsegod · · Score: 1

      Certainly in the UK, and I assume elsewhere in Europe (since half our communications industry is French, Spanish or German anyway) the ISPs have become convinced that they have a right to 'monetise' our connections beyond the monthly subscription. They all seem intent on proving pay-per-view VOD services and the like, and I think this is part of their effort to 'defend' something they have no right to, and that nobody wants

    42. Re:Interesting by Chaos+Incarnate · · Score: 1

      Most ISP customers would probably blame YouTube and get on with their lives, and not realize that their ISP is censoring them.

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    43. Re:Interesting by icebraining · · Score: 4, Insightful

      maybe there is an argument against ads, since most people don't particularly want to see them and yet we're paying to download them (and of course Google would be included in that sector, but an ad impression is much less bandwidth intensive than a video).

      I don't agree.

      First, even if there was such argument, it would be from *consumers*, not the ISPs, since it's the costumers who are paying for the bandwidth, as you rightfully said.

      But unlike the ISPs, who *are* being paid for the bandwidth and now want to double charge, in the case of Google, nobody's paying for their service; ads are their only payment. What you're saying is that Google should provide those services without any kind of payment.

      Personally, I prefer to watch some ads than to pay for a Google subscription.

    44. Re:Interesting by thsths · · Score: 1

      > Google had to, sooner or later, start fighting such a fight.

      I agree, but I would have assumed Google to start the fight by demanding peering fees for access to youtube, not the other way round. After all, Google has the content, and the customers pay for internet. So while the videos flow from Google to the customer, the money flows from the customer to Google.

      The telcos charging from both sides is just the good old dinosaur like approach. The world revolves around us, and we can charge for everything: making calls, receiving calls, not receiving calls, not making calls, connection fee, monthly fee, the lot!

      In my view telcos are already "dump pipes", and that is a good thing. Now they just need to get cheap.

    45. Re:Interesting by Andy+Dodd · · Score: 1

      Here's how I see it going:
      1) First ISP finally "Takes the plunge" and puts their money where their mouth is and blocks Google until they pay
      2) ISP's tech support is flooded in angry calls from customers, many of whom leave for any alternative possible (sadly, many in the USA don't have alternatives)
      3) ISP returns access to YouTube to their now smaller customer base
      4) Other ISPs look at what happend to ISP 1 and forget about this idiotic idea

      --
      retrorocket.o not found, launch anyway?
    46. Re:Interesting by bsane · · Score: 1

      They were always dumb pipes. They pretended that they had content in order to push out the small ISP's. When people learned what the Internet was about the stopped using the ISP's content. Too bad the small ISP's are no longer here to testify.

      Mod parent up- this is exactly right.

    47. Re:Interesting by n4f · · Score: 1

      I agree with the symbiotic relationship analogy. If services like Google and Youtube didn't exist, people would have no need to pay an ISP for high speed internet access. If I just need to get my e-mail, dail-up is just fine. This is just a money grab attempt.

    48. Re:Interesting by jo_ham · · Score: 1

      Although the FT is not under Murdoch's wing (yet) I am always reminded of Mark Watson (I believe it was his line) on Mock the Week:

      (in the style of a voice over) "You're watching Sky News....... you might want to double check everything you just heard".

    49. Re:Interesting by Culture20 · · Score: 2, Interesting

      They're originally telco's. They're not used to being dumb pipes because only a decade or so ago, they mostly weren't.

      Wha? What is a Telecommunications company besides a dumb pipe? Does your phone company's hold-muzak count as original content?

    50. Re:Interesting by Anonymous Coward · · Score: 0

      lorenlal has this exactly right. ISPs need to understand that their role in the market is simply to provide a big, fat pipe that moves as much data from A to B as quickly as it can when it is told to do so. Nothing more, nothing less.

      If they start thinking that they're going to be able to charge content providers for sending content over their network when their customers are already paying to access that content they need to think again. If they're unlucky one or more big content providers will turn around and fuck them over by saying "We're forbidding users on your network from accessing our content." See how well the ISP can deal with their users suddenly being cut off from Google, all Google Apps, You Tube, Yahoo, Twitter, etc., etc. They'll change their tune real fast or start losing customers to other ISPs that can access that content.

    51. Re:Interesting by Fred_A · · Score: 2, Interesting

      They're originally telco's. They're not used to being dumb pipes because only a decade or so ago, they mostly weren't.

      I don't get this "dumb pipe" thing. What other kind of pipe do they hope to sell ? In Europe ISPs typically sell three services when they hook you up via ADSL : Internet access, telephone (via VOIP) and TV (as streamed MPEG2 or 4). Some of them separate those offers but increasingly, you tend to just get the whole package, whether you want it all or not.
      My ISP only has one offer with all 3 services on top of ADSL2+ (and a WiFi and video-recording set top box thrown in) for 30 €/month (in France). No cap or limit on anything. You also get IPv6 if you like and a user settable reverse DNS.

      But behind this is really just a dumb tube. They do have streaming video servers and VOD services (which I never tried) that could be seen as a kind of update to the useless portal page each ISP feels like it needs to have. Although strictly speaking that data isn't on the Internet. Just on their network.

      Are there *any* ISPs that have anything of value to add to their "Internet tube" ? I doubt it. They can offer services to piggyback on the connection but that's pretty much it I think. Mostly, what they seem to have to offer is restrictions these days...

      --

      May contain traces of nut.
      Made from the freshest electrons.
    52. Re:Interesting by Runaway1956 · · Score: 2, Insightful

      "Thirdly, the ISPs are greedy and wrong on this count. They have paying customers. Don't like it that they actually use all of the bandwidth you promised them? Tough luck, find another business model or don't promise something you can't deliver."

      And, that is the entire story in a nutshell. I don't download and upload 24/7 - but if I felt like it, that's my right. I'm paying for the service, they promised a little more bandwidth than I EVER see, so I can use it. It ~15 gig of download per month is breaking them, then they should have priced it 5 or 10 dollars higher.

      The killer is, I know that I have dozens of neighbors who go online to check their email, browse around for 1/2 hour, play a game or two, then shut their computer down. They never download ANYTHING. Even families with kids who download a lot of music don't use all their bandwidth. Phhht. Every one of us is being overcharged, if you ask me.

      But, I don't want to see a pay system that charges for actual bandwidth used, either. You KNOW that when they convert, they'll round up, then pad the figures, so that I'll be paying triple my present fees, for less than half my bandwidth!

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    53. Re:Interesting by Runaway1956 · · Score: 1

      Sadly, most - well, maybe not "most", but "many" Americans judge another man's value by the size of his bank account. Or, by the apparent size of his bank account. That's why status symbols are so important here. A guy might be in debt way over his head, but if he can drive a Farrari, then he's a *S*U*C*C*E*S*S* - complete with the stars. Someone like myself who drives old clunkers because he's not willing to waste 20 to 50 grand on shine is a worthless nobody in America.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    54. Re:Interesting by Dog-Cow · · Score: 1

      No they wouldn't. Google wouldn't block the ISP at the router. They would serve up a page explaining the problem to the viewer, suggesting that to comply with their ISP's wishes, Google will have to start charging the viewer directly instead of providing the free service they have enjoyed until now.

      People hate being told they have to pay for stuff they've been getting for free, especially when their neighbor on a different ISP still has it for free.

    55. Re:Interesting by rtb61 · · Score: 1

      DSL of course makes that a lie. DSL service is over a phone line, no different to a digital voice transmission in principle, even when it comes to cable, once cable carries one phone call, then all data transmission on that same hardware should be bound to common carrier status. You can not attempt false differentiations between communications on the same infrastructure, in some vain attempt via cartels and collusions to inflate profit margins.

      As always google as for any other up loader never gets a free ride, the cost of transmission of traffic is paid for by the down loader, the person who request that data and pays for it, the ISP's customer. To attempt to charge both is simply double dipping, charging twice for the same traffic to inflate profit margins.

      The larger ISP's ie. Telco incumbents where pushing for these schemes to create content distribution and retail monopolies. Where they would distribute content they were selling free of transmission costs and for any competing retailer they would simply price transmission costs up high enough to put them out of business (it would be cheaper to manufacture storage media and send it by post than to electronically transmit it).

      --
      Chaos - everything, everywhere, everywhen
    56. Re:Interesting by arose · · Score: 1

      The way this works is the big business always stomps on the little guy.

      This is generally true, but much less so in Europe then America. ISPs just might be forced to provide what they advertise over there.

      --
      Analogies don't equal equalities, they are merely somewhat analogous.
    57. Re:Interesting by Chaos+Incarnate · · Score: 1

      I was thinking more that the ISP would block Google at the router.

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    58. Re:Interesting by pentalive · · Score: 1

      No, the last thing they ever did would be to unblock youtube, then hope their customers come back.

    59. Re:Interesting by postbigbang · · Score: 1

      You still distract the argument. ISPs provide pipes. Now they're (actually continuing to be) miffed because they can't troll the content.

      But the EU ISPs will be no different than US ISPs, who no longer have net neutrality to worry about.

      ISP clients want circuits, not toll gates with snorting trolls deciding what we're going to consume based on *their* product mix.

      This is a battle to take to the wall. Circuit providers don't get ad revenues unless WE choose the content/services they provide. Competing with the trolls will be tough-- they have a monopolistic mind set and greed on their side.

      --
      ---- Teach Peace. It's Cheaper Than War.
    60. Re:Interesting by Maxo-Texas · · Score: 1

      Both may be true (Microsoft unfair/illegal behavior & EU selectively picking on American companies*) - or we may just not be hearing about the EU companies that the EU is jumping down the throats thereof.

      Could someone in the EU enlighten us as to whether the EU has had similar actions towards large EU Corporations and provide a few examples?

      * Microsoft (and IBM) are basically not American companies any more. 75% of IBM's employees are over seas and Microsoft is at about 50/50 and headed towards IBM. I think this is going to bite them a bit as the rupee/lahk and the yuan appreciate sharply over the next few years an wages continue to inflate at 20% annual rates.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    61. Re:Interesting by commodore64_love · · Score: 1

      I don't understand this:

      - Google pays for internet access (even if Google owns the lines, there's still a cost they have to pay).
      - The viewers (us) also pay for internet access to Telefónica, Tele'com, Telekom, et cetera.

      The end. Why should Google have to pay yet another additional fee? It makes no sense to me.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    62. Re:Interesting by ivucica · · Score: 1

      Please explain in which way telecommunication companies were not a dumb pipe a decade or so ago. BBS != telco. Compuserve and AOL != telcos a decade or so ago, they were BBSes, content providers. Exactly a decade ago, dot com crash, right? Were the telcos the dotcoms that crashed? No?

      Telcos are dumb pipes. Some try to provide content, but that content sucks for us techies, and even others find their content much more fun at the likes of Facebook and Youtube. What do the telcos hold? News aggregation portals.

      Content delivered by your service provider != Internet content; more like intranet content. If your service provider delivers Internet content, then that's the only point at which it is considered an ISP. Therefore, ISP's goal is to e a dumb pipe. Always was, always will be.

      (This post is an amalgam of my experiences in Croatia and what I hear about what's the state of things in US&A.)

    63. Re:Interesting by commodore64_love · · Score: 1

      There are two ways to "win" in the free market:

      - Compete directly with a viable product, as google did with their widely popular youtube and search engine.

      - Petition the government to fine, breakup, or otherwise damage your competition so you can introduce your OWN version of youtube/search engine instead of being "just a dumb pipe". In other words get Big Brother to help you beat-up the other guy, rather than compete fairly one-on-one.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    64. Re:Interesting by commodore64_love · · Score: 1

      Minor fix:

      User pays their ISP for their connection
      Server owner pays their ISP for their connection.
      Server owner pays [users' ISP].

      That's really what is going on. The user's ISP wants to double-dip by billing both the User and Google every time the user views a youtube video (or other google content). Greedy bastards.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    65. Re:Interesting by commodore64_love · · Score: 1

      No, the last thing Deutsche Telkom would do is sue all the other ISPs with the claim of having an "exclusive license" thereby using government to drive those ISPs out of business, and leaving users with no place to go.

      A monopoly is dangerous.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    66. Re:Interesting by commodore64_love · · Score: 1

      I'd like to see a "per 100 GB" charge.

      First 100 GB might be $25, and each additional 100 GB would be $10. I consider that preferable to hitting some arbitrary limit, and then the company yanks access for a month to "punish" the user. Metering is preferable. People who barely use their connection pay $25 while those who watch Webtv 24/7 would pay around $100 due to their high usage. Everyone pays their fair share.

      And I wouldn't worry about padding either. The phone, electric, natural gas, and gasoline companies don't pad their charges, so why would I suspect the internet company doing it? Besides it's easy enough to double-check with a software gigabyte meter, plus appropriate government oversight.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    67. Re:Interesting by commodore64_love · · Score: 1

      >>>economically its been a great success

      Ask Iceland, Greece, and Poland if they agree. (Probably not.) There are benefits for Europe as a whole, but often at the expense of those smaller member states on the fringes.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    68. Re:Interesting by HarrySquatter · · Score: 2, Informative

      *facepalm* ISPs have never been common carriers.

    69. Re:Interesting by Anonymous+Cowpat · · Score: 1

      exactly. The ISPs customers are paying for whatever they want to be transported to them. If anything, Google should start billing the ISPs for providing the content that their customers want to see into the ISPs networks.

      --
      FGD 135
    70. Re:Interesting by Carewolf · · Score: 1

      - or we may just not be hearing about the EU companies that the EU is jumping down the throats thereof.

      This.. There you have the truth.

    71. Re:Interesting by eleuthero · · Score: 1

      and then you have to wonder what everyone currently doing end runs around their ISPs filters and such via proxies is going to do ... I can just see a bunch of ISPs in Europe that aren't part of the tort group offering free proxy service to Google in response to any real suit.

    72. Re:Interesting by Shotgun · · Score: 1

      I think Google should respond with a lawsuit against the ISPs whose customers are sucking down all those videos and eating into the bandwidth that Google paid for. Or better yet, redirect the user's to a page saying, "We can't serve you the video you want to see, because your ISP says that your bandwidth hasn't been paid for."

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    73. Re:Interesting by Dega704 · · Score: 1

      Indeed. And I do believe the ISPs owe quite a bit of their customer base to Google. Haven't services like Youtube increased their subscriber numbers significantly? This is less about what is fair and more about sour grapes at the fact that Youtube is an absolute sensation passing over their lines and they aren't making a goldmine off of it.

    74. Re:Interesting by Shotgun · · Score: 1

      They are so far into the "dumb pipe" category that they were able to get specific legal protections to protect their dumb pipe from what went through it. "Heh, you can't sue us because some drug dealers made a deal over our phone lines. We don't monitor every call. We're just a dumb pipe." Now, it is, "Heh, you can't sue use because there is some child porn in our squid cache. We don't monitor every download. We're just a dumb pipe."

      Bastards. I'll lobby for the dismissal of net neutrality if the legal protections are dismissed with it.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    75. Re:Interesting by Sancho · · Score: 1

      Not where I live. Where I live, all we've ever had was dial-up and then Big Content ISPs. We never had a broadband provider that wasn't a telco or part of a cable conglomerate.

    76. Re:Interesting by complete+loony · · Score: 1

      Paying for bandwidth used was the norm in Australia, and initially there usually wasn't an explicit limit on the price. As people complained about getting $2K+ monthly bills the ISP's swapped to monthly limits, after which point your connection was throttled to modem speeds (these days 128kbps is about the norm) without charging you any extra or disconnecting you completely. And with most ISP's you can probably upgrade your monthly allowance or buy a one off block of data when you run out.

      And it works out fairly well. You still get people who don't use all their data allowance. You don't get enormous unexpected bills. The ISP's actually get paid for the bandwidth you use and have an incentive to add capacity to their networks. Competition between ISP's helps to push consumer prices down. And the people who download heaps all the time pay more than the people who don't.

      --
      09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
    77. Re:Interesting by not+flu · · Score: 1

      This is incorrect. EVERYBODY uses youtube, word of mouth alone would be enough to inform everybody except the most socially isolated - and while I don't have experience with German media, at least here it would definitely be covered on the news.

    78. Re:Interesting by stonewolf · · Score: 1

      That is because you are not a greed head telecom CEO who is still trying to make a 1200% profit on caller ID even though everyone else gives it away.

      If they see you making a profit by the use of their network they feel they are entitled to at least 90% of the profit because you could not do it without their network.

      That is their point of view, sick as it is. It is a lot like the pirates of old who would take half your cargo and let you go.

      Stonewolf

  2. Seems like the bandwidth has already been paid for by grimsnaggle · · Score: 5, Insightful

    Google bought some bandwidth to be able to send site content to users. Those users bought some bandwidth to be able to receive it. What's the problem?

  3. Desperate attempt... by Andrioid · · Score: 1

    If you look at the other pole, users in these areas are getting 'free content' instead of paying for it. What about those profiting directly from Internet users? Commercial streaming services, premium usenet providers. This is just a desperate attempt by telecommunication companies to remain relevant.

  4. dumb pipe by slart42 · · Score: 5, Interesting

    Some European telecoms groups fear Google will reduce them to 'dumb pipes'

    And I 'dumb pipe' is all I ever expected from my ISP, and it is what I'm paying for! If they want Google to pay for delivering the content, I will get access for free, right? Bullshit.

    1. Re:dumb pipe by Anonymous Coward · · Score: 0

      Yup.

    2. Re:dumb pipe by yerpo · · Score: 0

      Exactly. Users pay their ISPs for data transfer. Isn't it actually illegal to charge twice for the same product or service? If they aren't happy about the costs of transfering large amount of data across their networks, they can raise the prices (and watch the customers go elsewhere).

    3. Re:dumb pipe by hutkey · · Score: 0

      Whom should my friends pay for all the gossip I get by talking over the telephone/mobile to them for hours...tabloids?!

      ISPs are losing it..wait they are already dumb. duh.

    4. Re:dumb pipe by Anonymous Coward · · Score: 0

      if they want google to pay, they should sever the peering arangement.

      sounds like the isp wants to have their cake and eat it too, and make somebody else pay for said cake

    5. Re:dumb pipe by HarrySquatter · · Score: 1

      Isn't it actually illegal to charge twice for the same product or service?

      Based on what law would it be illegal? On the other hand, yes it would be highly unethical to do so.

    6. Re:dumb pipe by Anonymous Coward · · Score: 0

      If you have cable services in the U.S., don't you pay for your "package" monthly, plus have to sit through adverts as well?

  5. Who pays? by aitan · · Score: 5, Insightful

    Yes, those poor telecoms that gives their users free access to the internet must be paid back by Google. How does Google dares to provide content and expect the charity telecoms to be the only ones that pay for those bills. I'm outraged.

    Wait a minute....

    Then why my telecom is sending me a monthly fee?

    1. Re:Who pays? by Hognoxious · · Score: 1

      Then why my telecom is sending me a monthly fee?

      Where do I sign up? Mine sends me a monthly bill.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    2. Re:Who pays? by nacturation · · Score: 1

      Then why my telecom is sending me a monthly fee?

      Where do I sign up? Mine sends me a monthly bill.

      A bill? Luxury. Mine sends me an invoice.

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    3. Re:Who pays? by PingSpike · · Score: 1

      Invoice? Luxury! My ISP sends me a bag of goat entrails, which customer service informs me I must decipher all on my own.

    4. Re:Who pays? by Anonymous Coward · · Score: 0

      Yes, those poor telecoms that gives their users free access to the internet must be paid back by Google. How does Google dares to provide content and expect the charity telecoms to be the only ones that pay for those bills. I'm outraged.

      Wait a minute....

      I think it will soon be the other way around. Google will demand payment from the ISPs for access to gmail, youtube, and all the other services Google offers.

    5. Re:Who pays? by Hognoxious · · Score: 1

      Is it sent by the department of accounting department? See meaning 1. http://www.thefreedictionary.com/bill

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    6. Re:Who pays? by nacturation · · Score: 1

      Is it sent by the department of accounting department? See meaning 1. http://www.thefreedictionary.com/bill

      Indeed, however I was jokingly referring to definition 5(a).

      See also: http://www.thefreedictionary.com/whoosh and http://www.youtube.com/watch?v=Xe1a1wHxTyo

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    7. Re:Who pays? by Anonymous Coward · · Score: 0

      Sending you a fee implies paying you. Sending a bill implies demanding payment from you. These are not the same thing.

  6. European Telecoms by qbast · · Score: 5, Insightful

    Dear telecomns, in case you have not noticed: you are 'dumb pipes' and always were. Get over it, stop whining and start providing the bandwidth you advertise.

    1. Re:European Telecoms by Anonymous Coward · · Score: 0

      I guess ISP's had plans to operate something like the banking system, were only a small fraction of the real money exists, and the whole thing is working on the assumption that never all the people want to draw their money from the bank at the same time. The analogy with the bandwidth is obvious, they want to create out of thin air and sell bandwith that not exists, based on the above principle. And services like youtube, ruin their statistical models. So, get real ISP's and sell only real bandwidth you can provide simultaneusly.

    2. Re:European Telecoms by mr_mischief · · Score: 3, Insightful

      All ISPs sell bandwidth proportional to usage cycles. Your government doesn't build roads for everyone to drive the same mile of it at once. Your local restaurant doesn't cook all a day's meals at once. It's natural, considering not everyone uses their full service all the time, to sell proportional to usage patterns.

      The problem is that most ISPs these days use a ratio that is well behind the actual usage patterns of their users. An ISP will likely never build out for the full burst bandwidth of all users combined exactly once. There's no need to do that. However, they should build out enough capacity to cover what their users are actually going to try to use, plus about 50% for news peaks when everyone is checking for headline updates.

    3. Re:European Telecoms by Anonymous Coward · · Score: 0

      Stop assuming a digital network will be used in the same way as a physical road or physical anything. It's not possible for me to sit at the dinner table and eat while driving to the mall. It IS possible for me to sit at the dinner table and eat while I log important online meetings in the other room for later review.

      The problem with your excuse of "selling bandwidth proportional to usage cycles" is that they're dictating what that usage cycle is suppose to be while at the same time claiming it's "unlimited" in BIG BOLDED FONTS on all their advertising.

    4. Re:European Telecoms by DavidTC · · Score: 1

      That's not the problem. The problem is that they simply don't want to be honest, because being honest would either result in large customer annoyances, or a tiered system.

      And they're still making an assload of money overcharging people for 'high speed' DSL who don't want 'high speed', they want 'low latency' and 'high burst speed'.

      The way it's set up now, it's like everyone paying 24 dollars a day in gas, because people average 60 mph and their car gets 30 mpg, there are 24 hours in the day, and they're charged fifty cents a gallon.

      Which might, indeed, be some sort of 'average' that works out , but it isn't really reasonable for people who drive 10 minutes into town every day, and it isn't reasonable for ISP to collect from NASCAR drivers who drive 24/7.

      The way it is now is just stupid, and the fact ISPs are bitching and whining about people who go over their estimates, who cost them more than they pay, while not giving a flying fuck that probably half the people paying their services are buying too much internet by fiftyfold, tells you what's actually going on. As does the fact they're bitching about services that cause people to use two-thirds their supposedly purchased bandwidth, for an hour or two. (Things like Hulu and Netflix.)

      ISPs need to charge the actual price of gas plus a flat fee. And they can do some 'cell phone' type pricing, where you buy estimated bandwidth in advance, and get charged or throttled if over. But they're currently happy with overselling to almost everyone, it's just those people who 'abuse' them in in the other direction that's pissing them off.

      --
      If corporations are people, aren't stockholders guilty of slavery?
    5. Re:European Telecoms by Anonymous Coward · · Score: 0

      What you say is true, but not natural. And the analogy is not good. In the restaurand, when I order a meal, I have to get it, regardless of how many people have place orders at the same time. And for the roads, I don't pay any company for a private road...I pay just to use/share the roads, whitch is not the case with ISPs, because I pay for 1Mbps. I dont pay for 1Gbps/10000*(bandwidth usage pattern ratio)

    6. Re:European Telecoms by PerfectionLost · · Score: 1

      If I have fiber going to my doorstep, I want to be able to use 100% of that bandwidth. In your analogy, electricity is the gas of computers.I pay for the electricity myself.

    7. Re:European Telecoms by mr_mischief · · Score: 1

      The analogy is fine. If you live in a town of 20,000 people, the highway does not need 20,000 lanes in and out of it. It does need enough lanes that 20,000 people plus all their visitors can get in and out at the posted speed limit.

      What bad (read: most) ISPs are doing is telling you the speed limit is 100 (units of your choice) and you're deadlocked with other drivers to 20 because there aren't enough lanes.

      You're not paying for 1Mbps dedicated end to end. You're paying for the ability of X of their Y customers, including you, to use 1 Mbps simultaneously. The problem isn't that you're not getting 1Mbps end-to-end dedicate. It's that their assumptions when they set X proportional to Y was way too low. Z people are using it, and Z > X. Z people can't actually use their upstream at a time at full rate. That's the problem.

    8. Re:European Telecoms by mr_mischief · · Score: 1

      A digital network is physical. The fiber and towers only handle so much capacity. The switching and routing equipment, the radios and lasers, and sometimes the number of fibers or the number of towers actually have to be upgraded.

      It is entirely possible, BTW, to eat while driving. Your insistence on eating at the dinner table doesn't change that. In any case, it's entirely possible for you to eat while another person from your household (unless you live alone) drives to the mall.

      Selling bandwidth proportional to usage cycles is not an 'excuse'. It's how things are supposed to work. You, personally, do not need an OC-192 to every hosting site on the planet. It's all shared infrastructure.

      In the end, though, you are right about the problem. The problem is absolutely that they are dictating the usage cycle rather than basing their service on actual usage patterns. If you read my post again, you might actually find I already said that:

      The problem is that most ISPs these days use a ratio that is well behind the actual usage patterns of their users. An ISP will likely never build out for the full burst bandwidth of all users combined exactly once. There's no need to do that. However, they should build out enough capacity to cover what their users are actually going to try to use, plus about 50% for news peaks when everyone is checking for headline updates.

    9. Re:European Telecoms by mr_mischief · · Score: 1

      The problem is customers don't want metered access, even if it saves them money most months. They don't understand computers, the Internet, and data transfer well enough to know that they won't be one of those metered-usage horror stories about a $3000 phone bill.

      In fact, one PC infected with a nasty worm like Code Red, Slammer, or Conficker or some spam-sending trojan can easily put people on a metered upload plan over their allowance if it's not cleared up. Luckily for most Windows users, downloads are usually all that's metered even on the metered or capped plans. If someone gets a rarer trojan that downloads lots of data as a zombie dropbox for its master, they could hit caps for download easily without usage by a human.

      The ISPs sell "unlimited" because that's what customers demand.

      The real problem is they try to undercut one another on price (to the point that most local ISPs just gave up) by using their nasty marketing gimmicks. The "unlimited doesn't mean unlimited" farce is what pisses people off. If the ISPs would just charge enough for their unlimited plans to actually offer unlimited usage and come up with some fair metering system (with a fee cap somewhere a bit above the unlimited plan's price) for people who are usually lighter users, then we wouldn't have this mess. The "unlimited, but it's really X GB" plans are basically fraud, and that has nothing to do with reasonable oversubscription of the ISP's peering or upstream capacity.

      The problem is that the current amount of oversubscription is not realistic and average total usage is actually more than what the ISPs forecast or are willing/able to build out to service.

    10. Re:European Telecoms by Anonymous Coward · · Score: 0

      How about some better examples?

      Water and electricity are designed for most people to be using them at the same time.

    11. Re:European Telecoms by DavidTC · · Score: 1

      People only want 'unlimited' because they're trained by the ISPs very own commercials to want unlimited. 'Limits', and the lack thereof, is entirely unrelated to what people actually want from their ISP. People want 'instant response' from their ISP.

      People want web pages to come up as fast as possible. People want to be able to watch streaming video. 75% couldn't care less how fast stuff downloads, and even more couldn't care about how much they're allowed to download. Because they're downloading everything while using the computer, be it a web page or streaming video, and hence can't possibly hit any bandwidth caps unless they're watching twelve hours of video a day. It's constant unattended users of the connection that hit limits, and there's a small fraction of users who actually know how to do that.

      'People want unlimited', yes, but solely because companies constantly run ads touting 'unlimited' like it's some sort of useful feature.

      Making it a real hassle to people who actually want unlimited, and would pay for it, and people like me who do download things, but would be perfectly willing to have some sort of daily connection cap or something...if, of course, they'd advertise and sell that tier.

      And the cost of overages should never be more than twice simply buying the actual 'unlimited' plan. People should be getting hit with unexpected $200 bills, not $3000. You might have a valid point 'If ISPs can't rip people off one way they will another', but that's hardly a reason to give up.

      If the ISPs would just charge enough for their unlimited plans to actually offer unlimited usage and come up with some fair metering system (with a fee cap somewhere a bit above the unlimited plan's price) for people who are usually lighter users, then we wouldn't have this mess. The "unlimited, but it's really X GB" plans are basically fraud, and that has nothing to do with reasonable oversubscription of the ISP's peering or upstream capacity.

      So, yeah, that's exactly what I was saying.

      The problem is, once you introduce people to the concept that they're using about 2% of the 'internet connection' they purchased, and have always been using that much, but have paid full price this entire time, you're going to have some annoyed people, but, more importantly, be unable to undo that.

      --
      If corporations are people, aren't stockholders guilty of slavery?
  7. But the fact is - they are dumb pipes by supertjx · · Score: 5, Insightful

    Google should just tell those telecom companies to block YouTube from their networks if they think it's taking up too much bandwidth. Let's see who suffers.

    1. Re:But the fact is - they are dumb pipes by fearlezz · · Score: 5, Insightful

      Google should charge those ISPs for making their dumb pipes interesting enough for users to buy.

      --
      .sig: No such file or directory
    2. Re:But the fact is - they are dumb pipes by kodr · · Score: 2, Informative

      I think it's already the case in France with the operator Free. I experience some massive throttling during evenings and week-ends, which doesn't happen if I go through a proxy.

    3. Re:But the fact is - they are dumb pipes by gmthor · · Score: 1

      You should investigate further since this kind of throttling is probably illegal in the European Union (read European Union \subset EU). In germany, the Chaos Computer Club would be happy to investigate this. You probably have a similar association, too.

      --
      How do I uncompress my MD5 archive?
    4. Re:But the fact is - they are dumb pipes by El_Muerte_TDS · · Score: 1

      And users should charge Google for visiting YouTube so that get an income from advertising, and charge Google for uploading content to YouTube so that people will visit.

      This starts to look like a circular dependency. We might as well not charge anybody and thereby save money on accounting.

    5. Re:But the fact is - they are dumb pipes by LordVader717 · · Score: 1

      Not really, all it depends on is bargaining power. Google definitely has the upper hand here, because of the popularity of YouTube.
      And so do the customers by the way, who can instantly cancel their ISP if they start blocking traffic.

    6. Re:But the fact is - they are dumb pipes by grahamm · · Score: 1

      And so do the customers by the way, who can instantly cancel their ISP if they start blocking traffic.

      Not when the customer is locked into the contract with the ISP for a 12 or 18 month term.

    7. Re:But the fact is - they are dumb pipes by LordVader717 · · Score: 1

      I had that in mind. But such a disruption in performance would normally give you the right to withdraw from your contract. Obviously this varies depending on jurisdiction.

      It also depends on how stubborn you ISP is, but blocking YouTube will certainly get a lot of people really pissed. ISPs tend to shy away from court cases that create precedent.

    8. Re:But the fact is - they are dumb pipes by Yetihehe · · Score: 1

      Funny, my ISP Vectra (Poland) switches my bandwidth from 2mbit(what I've bought) to 4mbit from 22:00 to 6:00 (probably there is less traffic in those hours). I've tested it and it typically works as fast as they advertise.

      --
      Extreme Programming - Redundant Array of Inexpensive Developers
    9. Re:But the fact is - they are dumb pipes by mcvos · · Score: 1

      This starts to look like a circular dependency. We might as well not charge anybody and thereby save money on accounting.

      Exactly. Isn't everybody benefiting from internet already? If they think they're getting a bad deal, why don't they quit the internet business and find something more profitable?

      Because they're getting a pretty good deal. They're just overestimating their power.

    10. Re:But the fact is - they are dumb pipes by delinear · · Score: 1

      I'd like to see how well such a contract would stand up in court, where the customer pays for internet service only to find, three months later, that some of the prime websites have been blocked. I certainly wouldn't continue to uphold my side of the contract as a customer if the service being offered as the ISP's side of the bargain had fundamentally altered, despite the clauses they include in the contracts, the contract itself still ultimately has to pass the test of reasonableness.

    11. Re:But the fact is - they are dumb pipes by mcvos · · Score: 1

      Not when the customer is locked into the contract with the ISP for a 12 or 18 month term.

      But doesn't that contract specify that the ISP has to provide internet access? If they intentionally start blocking access to parts of the net, shouldn't customers be within their right to consider the contract void? After flooding the helpdesk for a couple of weeks, at least?

    12. Re:But the fact is - they are dumb pipes by mcvos · · Score: 1

      La Quadrature du Net might be interested, or they might know an organisation that is.

    13. Re:But the fact is - they are dumb pipes by NotOverHere · · Score: 1

      What I wouldn't mind occasionally seeing is Google using is power of Bully Pulpit (as indirectly granted by the millions of people viewing their websites), and doing a redirect from Youtube to a message page (if even for just a single hour).

      The ISP associated with your IP believes that it is due compensation for delivering this content to you. The content has already been paid for by the included advertising, thus making it free to the end user. If you believe you received this message in error because you have already paid for access to the internet, you are encouraged to contact your ISP, or if necessary, your local elected government official.

      Link to ISP's website.
      Link to ISP's customer service.
      Link to a List of Elected Officials for your area.
      Link to list of Service Providers for your area.

      If Google wanted to play hardball, it already has most everyone's (somewhat)undivided attention.

    14. Re:But the fact is - they are dumb pipes by cynyr · · Score: 1

      and watch their customer base run away in droves.

      --
      All of the above was encrypted with a Quad ROT-13 method. Unauthorized decryption is in violation of the DMCA.
  8. They're getting it wrong by Elementalor · · Score: 5, Insightful

    The European Telecom operators should know that we, Internet subscribers, pay for our connection top Euros to be able to access sites like Google, Gmail or Youtube. Google is offering most of their services for free to their users and we, as clients of the Telecom companies, are already paying.

    At least, Spain's Telefonica CEO demonstates he's just a parasite that doesn't know about what he's talking except getting more money from Google and their clients. If you understand the Spanish talked by a almost drunk man, you'll get the point watching this video:

    http://www.youtube.com/watch?v=rVADWAxOZtg

  9. Where is the greed tag? by cjeze · · Score: 2, Informative

    If they complain about high traffic from google/youtube they should block them and let their users decide themselves if they want a ISP that will provide these services.

    1. Re:Where is the greed tag? by Joce640k · · Score: 1

      Yep (and Rupert Murdoch is free to join them...)

      --
      No sig today...
  10. Why don't telecoms pay google? by astrashe · · Score: 4, Interesting

    If we're not going to buy into net neutrality, why does it follow that google should pay the telecoms? Why shouldn't they pay google for enhancing their service?

    If google stopped serving pages to people connecting through specific ISPs, those ISPs would go under. Who here wouldn't change their provider if they couldn't get google? You wouldn't really be on the net without google.

    1. Re:Why don't telecoms pay google? by Anonymous Coward · · Score: 0

      If we're not going to buy into net neutrality, why does it follow that google should pay the telecoms? Why shouldn't they pay google for enhancing their service?

      If google stopped serving pages to people connecting through specific ISPs, those ISPs would go under. Who here wouldn't change their provider if they couldn't get google? You wouldn't really be on the net without google.

      If we're not going to buy into net neutrality, why does it follow that google should pay the telecoms? Why shouldn't they pay google for enhancing their service?

      If google stopped serving pages to people connecting through specific ISPs, those ISPs would go under. Who here wouldn't change their provider if they couldn't get google? You wouldn't really be on the net without google.

      If we're not going to buy into net neutrality, why does it follow that google should pay the telecoms? Why shouldn't they pay google for enhancing their service?

      If google stopped serving pages to people connecting through specific ISPs, those ISPs would go under. Who here wouldn't change their provider if they couldn't get google? You wouldn't really be on the net without google.

      While it might sounds obvious when people say that ISPs should be dumb pipes and that customers are already paying for the bw, it is not.

      I do believe that telcos are acting as greedy bastards that are spitting on their on plate, in some markets like EU having the big players playing along the same song and actually enforce it creates us a BIG problem, big enough for at least put some pressure over google. Actually enough pressure to have it building their own data network even venturing into finance trans-pacific cables.

      This is also the same reason why these telcos are getting nervous, is not about google usig them to deliver the content, the last mile will always be their responsability and supplying connectivity comes with the responsability. It is instead because they are losing precious bucks by being side-tracked. Today google tomorrow Facebook and all the others that grow to the same size.

      All big corporations do the same when the world where they live changes faster than they can adapt. Just look at media industry these days, it's a big mess.

      Anyway life is not as simple as it could be because there's this thing called local loop / last mile that will "always" depend on these big telcos all over the world.

      Consumers voice has an important role here because this discussion is hardly about google vs telcos, it is much more about content/information vs telcos.

      Who likes to lose the rank of top of the chain food?

  11. Isn't someone already paying for this traffic? by Sockatume · · Score: 5, Insightful

    Like, the customers? If I'm paying for 10GB of data at 10Mbps each month, and the ISP is oversubscribed to uselessness, that's not Google's vault, that's the ISP's false advertising at work.

    --
    No kidding!!! What do you say at this point?
    1. Re:Isn't someone already paying for this traffic? by HopefulIntern · · Score: 1

      10GB per month??? How do you manage it?? I shifted 150GB last month!

    2. Re:Isn't someone already paying for this traffic? by Anonymous Coward · · Score: 0

      This may come as a shock to you, but in some places the monopoly problem is worse than in your location.

      For instance, here in South Africa I only get 1GB per month (both directions). After that, Telkom will only allow me to communicate within this country. (Which has nothing, for this very reason. I've yet to locate so much as a search engine. At least there are Debian mirrors.)

      It is possible to get more, but uncapped connections are completely unaffordable. I can't remember the numbers now, but I think it started somewhere around R1000/month for fairly low-speed ADSL, line rental not included.

    3. Re:Isn't someone already paying for this traffic? by nacturation · · Score: 2, Informative

      It is possible to get more, but uncapped connections are completely unaffordable. I can't remember the numbers now, but I think it started somewhere around R1000/month for fairly low-speed ADSL, line rental not included.

      For the benefit of others who, like me, had no clue: about $137 USD (source) plus whatever line rental costs are.

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    4. Re:Isn't someone already paying for this traffic? by delinear · · Score: 1

      I'd just be happy to be told what my monthly allowance is, in clear and simple text, not subject to fair or acceptable usage (I've never hit whatever the theoretical limit is, but as someone who requires web access to work, it's worrying whenever I have to download a couple of big linux distros or whatever in a month, not knowing if I'll get my access cut).

  12. Utter stupidity. by Sparx139 · · Score: 1

    This is like suing a car manufacturer because somebody got run over by a car they created.

    --
    Our culture doesn't get smarter, it just finds new ways of being retarded.
    1. Re:Utter stupidity. by srussia · · Score: 3, Funny

      This is like suing a car manufacturer because somebody got run over by a car they created.

      A better car analogy might be highway operators trying to charge manufacturers of SUVs as they take up more space when driven by motorists on the toll-road.

      --
      Set your phasers on "funky"!
    2. Re:Utter stupidity. by Anonymous Coward · · Score: 1, Insightful

      It's more like fast food chains suing car manufacturers because drive-throughs attract a lot of customers.

    3. Re:Utter stupidity. by Thanshin · · Score: 0

      A better car analogy might be highway operators trying to charge manufacturers of SUVs as they take up more space when driven by motorists on the toll-road.

      I understand the funny mod, but that's one of the few car analogies in /. that actually works.

      If I ever have to explain this situation to a non geek that's exactly the analogy I'll use.

    4. Re:Utter stupidity. by raynet · · Score: 3, Insightful

      Before using that analogy remember that some toll roads already charge you more if you have a bigger vehicle and people seem to think that is ok.

      --
      - Raynet --> .
    5. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Governments around the world are what can be called "highway operators" and they are indeed charging the manufacturers and motorists by using motor taxes and taxes in general.

    6. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Yes, but it't the user who uses the car who gets charged on the road, not car manufacter.

    7. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      He probably should remember that a non-geek wouldn't catch the subtle point of the analogy. He wrote "highway operators trying to charge manufacturers".

      Customers pay extra via taxes/tolls, just like customers pay for the bandwith they use to their ISPs. Everybody is ok with that.

      Now, the ISPs want extra money for a service that has already been paid for. Exactly as if toll-road operators would ask extra money from manufacturers of big cars, after already asking extra money from the driver.

    8. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      They charge _you_ more (just like you pay more for a 25mbps pipe than for a 384kbps pipe). They don't charge the car manufacturer a fee in addition to your increased fee (what those telecoms want to do)

    9. Re:Utter stupidity. by TheLink · · Score: 4, Insightful

      Not really, it's more like the highway operators charging motorists tolls, and then trying to get the destination cities/towns/villages to pay as well.

      --
    10. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      That would be because the damage done to the road is proportional to the weight of your car to the fourth power. In other words, a slightly heavier vehicle does a lot more damage to the road. No one is saying that the *manufacturers* of the cars should pay for what the *drivers* do.

    11. Re:Utter stupidity. by sFurbo · · Score: 1

      The analogy still works, that would be analogous to users paying more for faster internet connections, which they do. The toll roads do not, however, send invoices to the car manufacturers when people use the toll roads with bigger cars.

    12. Re:Utter stupidity. by raynet · · Score: 1

      Yes, but I would hate if that analogy was used to support metered internet usage.

      --
      - Raynet --> .
    13. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      No, it's worse. It's like charging the Yellow Pages and/or certain businesses for bringing so much road traffic to and from particular sites off the "dumb pipe" highways. Google isn't even in the car business. It's the ISP-paying users that generate most of the traffic.

    14. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      >some toll roads already charge you more if you have a bigger vehicle and people seem to think that is ok.

      That's exactly the point - the toll road can charge the people who drive down it whatever they think the market will bear.

      They don't get to charge the people who choose to use their road AND the manufacturers of the cars that people use on the road.

      Imagine if a toll road told Ford that they would stop allowing any Ford-built car on their toll road unless Ford pays them an annual fee.

      That would obviously be ridiculous, in the same way it would be ridiculous for ISPs to charge both users and content providers.

    15. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Heavy trucks do pay higher fees to use the roads.

    16. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Before using that analogy remember that some toll roads already charge you more if you have a bigger vehicle and people seem to think that is ok.

      You are not a SUV manufacturer, but a motorist so analogy doesn't apply in real life. Please reread:

      A better car analogy might be highway operators trying to charge manufacturers of SUVs as they take up more space when driven by motorists on the toll-road.

    17. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Oh yes, the owner of the vehicle, but not the manufacturer.

    18. Re:Utter stupidity. by raynet · · Score: 1

      I am sure SUV manufacturers also own cars and drive with them? So it is like Google (SUV manufacturer) and random smaller websites (the other drivers).

      --
      - Raynet --> .
    19. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Road owners charge the driver of the cars, not the manufacturer.

      To ALSO charge/sue the manufacturer is completely wrong.

    20. Re:Utter stupidity. by mcvos · · Score: 1

      I think it's the other way around. Car manufacturers want money from popular shops and restaurants because they make so much money from people who go there by car.

    21. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Exactly. That is the correct analogy: after all, if there were no "destination cities" of interest on the other side of the highway (i.e. Youtubeville), why would any motorist want to take that highway (and pay the toll) anyway? Everyone would prefer the "competitor's highway" ;)

    22. Re:Utter stupidity. by shentino · · Score: 1

      Since ISPs are pure shit when it comes to giving you the bandwidth you paid for I'd entirely favor metered usage.

      At least there it would be harder for them to screw you over and get away with it. Because presumably you could also meter your own bandwidth and if your meter and theirs are way apart you can call shenanigans.

    23. Re:Utter stupidity. by mr_mischief · · Score: 1

      It's usually already metered. That's what "acceptable usage" usually means. "Unlimited" doesn't mean unlimited in most situations when it comes to data transfer.

      BTW, your ISP is paying for data transferred, not just a line connection. That's why they want to pass that cost on to you. If they are big enough, they are paying minimally for the data transferred, but they still have to build out their capacity at some point no matter how long they leave it oversubscribed in the meantime.

      The reason they like to advertise unmetered plans is because that's what people who don't run networks for a living want. Mom and Pop don't want to worry whether Junior downloaded 548 MB or 723 MB of lolli porn last night. They have even less of an idea what a MB really is than a Kw/h. They just want to pay the same amount every month.

    24. Re:Utter stupidity. by R2.0 · · Score: 1

      The car analogy I use is "What if the Pennsylvania Turnpike started charging Amazon directly because Amazon "uses" the road to get their packages to customers? This, despite the fact that Amazon has already paid UPS, and UPS pays the Turnpike for use of the road? No? How about this - shippers who pay extra get "expedited" access to the turnpike, and those who don't get "regular" access. Sound reasonable? Sure - until you find out that "regular" access means 1 tollboth, no EZPass, and "expedited" means plenty of booths with highway speed EZPass. Sure - you don't have to pay "extra" to get on the Turnpike, but the advantages of doing it are wholly wiped out by the longer wait times.

      --
      "As God is my witness, I thought turkeys could fly." A. Carlson
    25. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      People seem to think it's ok because it's kind of proven that larger, heavier vehicles do more damage to the road than smaller, lighter ones. The tolls aren't (just) because the road operators want to fill a money vault the size of Scrooge McDuck's.

    26. Re:Utter stupidity. by Joce640k · · Score: 1

      Makes sense - heavier cars wear the road out faster (no, really..)

      OTOH telecoms networks don't wear out because of heavier electron flow caused by BitTorrent so your analogy just collapsed.

      --
      No sig today...
    27. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Sure. But do they charge the drivers more if you load your car with stuff from Walmart, and then also go asking Walmart for money because of the extra traffic and weight they are putting on the roads?

    28. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Before using that analogy remember that some toll roads already charge you more if you have a bigger vehicle and people seem to think that is ok.

      Some of us do pay for more bandwidth than others. I think that is where your bigger vehicle analogy fits.

    29. Re:Utter stupidity. by raynet · · Score: 1

      That is an amazing idea, I am sure the toll road authority hopes to do just this.

      --
      - Raynet --> .
    30. Re:Utter stupidity. by Firas+Zirie · · Score: 1

      Your analogy doesn't apply here. ISPs do in fact charge you more when you want to use more bandwidth (analogous to your bigger car).

      In this case what's happening is (in a car analogy no less) that some new theme park opens which is very popular (YouTube), so more people start driving their cars on government owned roads to visit it (ISP pipes). The government is making the visitors (ISP clients) pay tolls to use the road (bandwidth), but now also wants to make the theme park owner (Google) pay for being so popular that many people want to visit them! Which is a bullshit argument since if the theme park wasn't there, no one would use the road to get to it which would mean no revenue for the government.

      These greedy ISPs just want to profit off of Google's success.

    31. Re:Utter stupidity. by Thanshin · · Score: 1

      Before using that analogy remember that some toll roads already charge you more if you have a bigger vehicle and people seem to think that is ok.

      That's completely irrelevant, as for the analogy to be wrong the toll roads would have to charge the big car manufacturers.

    32. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Much better analogy:

      Toll road operators charging hauliers a percentage of the value of their cargo.

    33. Re:Utter stupidity. by srussia · · Score: 1

      Not really, it's more like the highway operators charging motorists tolls, and then trying to get the destination cities/towns/villages to pay as well.

      Youtube is not being singled out because of traffic. It is being singled out because of bandwidth use. So, the correct analogy would be a destination that attracts not just a high number of users, but also all of them driving SUVs, as opposed to a just-as-popular site (say, Twitter) which attracts mostly Smart car drivers.

      --
      Set your phasers on "funky"!
    34. Re:Utter stupidity. by Anonymous Coward · · Score: 0

      Except the equivalent to car manufacturers in this analogy is the computer manufacturer, and the ISPs aren't (yet) asking for their customer's computer manufacturers to pay them anything.

  13. Telefonica and others... WATCH OUT by viraltus · · Score: 0

    If you push it companies might start doing exclusive deals with other ISP to use their web services and if, for example, they take YouTube to others ISP banning telefonica out of it well... you can shove your hyperexpensive Internet fees up your sore asses.

    --
    Dear /. CENSORS that set people's Karma to Neutral when you disagree with them: FUCK YOU!!
  14. Better a dumb pipe by Anonymous Coward · · Score: 0

    Than an asshole pipe.

  15. Note to telecoms by diablovision · · Score: 4, Insightful

    Note to telecoms: You were, are, and always will be, dumb pipes. Stop complaining, it used to be that you guys made respectable money selling dumb pipes to people who needed them. Of course, that was back before you became a bunch of bloated gasbags intent on squeezing every last packet out of the internet.

    --
    120 characters isn't enough to explain it.
    1. Re:Note to telecoms by SQL+Error · · Score: 1

      Shorter Note to Telecoms:

      Shut up, dumb pipe.

    2. Re:Note to telecoms by Anonymous Coward · · Score: 0

      If they aren't dumb pipes, do they become responsible for content they carry?

    3. Re:Note to telecoms by mdielmann · · Score: 1

      Telecoms weren't always dumb pipes. Remember when people actually had to make physical connections between two lines in order for a call to be completed? Back then, they provided value that couldn't be found elsewhere. Now, in the age of automation, they provide a simple service - keep the machines running and maintain the physical network.

      --
      Sure I'm paranoid, but am I paranoid enough?
  16. When you're right... by Anonymous Coward · · Score: 0

    Gotta agree with you guys, those guys don't understand that they are and always have been 'dumb pipes' and it was never free, they charge their freaking users already.
    Get off the f'in greed wagon and stop trying to screw everyone.

  17. applies to all content! by muckracer · · Score: 3, Insightful

    Dear Mr. NuttyProf,

    we have noticed you've been having a personal web site since 1993. With the statistics you graciously provide publicly we gather, that your site gets accessed several dozen times per month. Since we provide the channels bringing your content to our customers, we'd like to request you to review the attached contract and initiate a monthly fee of $14.95 in order for us to continue to serve your needs in the high quality you have come to expect of us....

    Sincerely,

    AnyOfTheLargeISPs

  18. Re:Seems like the bandwidth has already been paid by Anonymous Coward · · Score: 0

    the taxi driver does not want ot be paid for the ride alone but also depending on the content of your baggage. Be prepared for a strip search.

    broken analogies aside: the enduser alraedy paid for the bandwidth. Google does probably not pay for its bandwidth - more likely it has peering arrangements with most carriers. Being a major carrier itself this is the normal business.
    I sniff greed and envy on the Telcos sides. "baaahh...this one makes more money than we do! Government, please help us to take a shar from its cake! Even though we do have a different business model we still feel entitled to a share on other companies income!"

    its disgusting

  19. Seems perfectly reasonable to me... by jafo · · Score: 5, Insightful

    It's not like these telecoms customers are paying them for access to the Internet, so they need to get their revenue from somewhere. Oh, wait...

    This is not cable TV, you can't "unbundle premium channels", stop clinging to your ancient business models and come up with a good one.

    What I don't think they've fully thought out is the end-game. Possible options:

    1) Google pays them. Google then starts getting invoices from every ISP around, from the little mom-and-pops to the tier-1s demanding a cut of the pie.

    2) Google cuts them off so that the above doesn't happen. These ISPs customers start screaming "Why am I paying you for access to the Internet, when you aren't providing it?" and they start switching to other providers that aren't pulling this.

    Come on, telcoms! You're already charging users for access to the Internet, and the businesses they visit for access to the Internet. How many more times do you need to get paid?

    They seem to think they're in a position of power because they control the "eyeballs", but those eyeballs will go to another provider if you don't provide access to the services they want.

    1. Re:Seems perfectly reasonable to me... by Anonymous Coward · · Score: 2, Informative

      The second option you give may sound nice, but we've seen this happen too many times in the US:

      User 1: My Internet connection sux and I'm paying top money for it!
      ISP: Well, we advertised "up to," so that really means that you can't get more than that.
      User 2: Just change your provider, idiot!
      User 1: I wish I could...
      User 3: Yeah, just change your provider!
      User 1: There are no other providers.
      User 4: Change the provider already!
      User 1: ...

      There are many regions in Europe where the same applies, and you fail to account for the fact that multiple telecoms have requested this from Google, which means that if Google gets blocked by two or three, there will be a lot of people ending up with a connection to a "broken" Internet. If this was a fair market and we had real competition and _each_ user had the possibility to choose from at least 5 providers, shit like this would never happen.

    2. Re:Seems perfectly reasonable to me... by Stan+Vassilev · · Score: 1

      2) Google cuts them off so that the above doesn't happen. These ISPs customers start screaming "Why am I paying you for access to the Internet, when you aren't providing it?" and they start switching to other providers that aren't pulling this.

      There may be areas where you can't pick another ISP, that said, something else may happen.

      In China, when you cannot reach a site, you can't opt out of China's firewall, but you use proxies. Many, many, small, widely geographically, randomly distributed proxies.

      Might be a pain to use for videos, but I never underestimate a user hellbent on getting his funny cat video.

      Good luck to the ISPs sending thousands of little invoices to every one of those proxies.

    3. Re:Seems perfectly reasonable to me... by Anonymous Coward · · Score: 0

      I generally agree with your argument, but in reality it's not quite as clear cut. Network operators can harm Youtube/Google (and other streaming services) significantly by adapting their consumer pricing schemes. At least in Europe, mobile networks for example have not moved to unlimited flat rate plans. They typically offer a relatively low data volume (1GB) at full speed and throttle to GPRS speeds after that. A plan like that is not suitable for media consumption, but customers accept it because it's a simple pricing scheme, there's no risk of overage fees and there's no risk of being without basic internet access after using too much bandwidth. All the landline network operators have to do is adopt similar schemes: Provide basic flat rate access with just enough included full-speed volume for typical low-bandwidth usage (static web sites, email, etc). When all "power users" have left for greener pastures, the operator can reduce the prices for the basic plans by 20% and keep all the profitable consumers, while the competition must deal with high bandwidth users who don't want to pay proportionally more.

    4. Re:Seems perfectly reasonable to me... by TedRiot · · Score: 1

      In Finland the government divided cable and service operators a while back. The telecoms who do both, have to have the same prices for renting cable to their own service operators as they have to external service operators. This means that when I buy my ADSL from the service provider, the service provider pays the cable provider and I'm free to switch service providers at will. I myself have my ADSL from the service provider that doesn't own the cable that comes to my house, although that the cable provider also provides ADSL service, but I didn't want theirs. I was able to get better service for less money from another provider.

    5. Re:Seems perfectly reasonable to me... by GORby_ · · Score: 2, Insightful

      Hmm, sounds like a good idea for Google to just buy 1 ISP in each hypothetical country where all ISP's are blocking access to Google (if it ever gets this far) and offer reasonably priced unfiltered internet access... Let's see how long the ISP's keep blocking Google and other high bandwidth services when they see all their customers run away.

    6. Re:Seems perfectly reasonable to me... by Anonymous Coward · · Score: 0

      Don't underestimate how entrenched Google is in what most people perceive the Internet as being. Meaning: if Google simply blocks all traffic from those ISPs to Youtube, they will probably maintain 99% of their current users; I'm pretty sure ISPs who get blocked from Youtube cannot claim the same. Any consumer-level ISP has MUCH more to lose by being blocked from Youtube than Google.

      It's obvious that, if this escalates, Google will not be the one backing off. They already have the level of peering of a tier 1 ISP _and_ they have some of the most accessed content and services on the Internet, so good luck to any sub-tier 1 ISP trying to apply pressure on Google

    7. Re:Seems perfectly reasonable to me... by Anonymous Coward · · Score: 0

      But you mentioned that EVERY ISP is invoicing Google, which means I will not have anywhere to go if I want to switch. This is like the cable TV issue...I have two choices: Comcast, or AT&T. I don't want either! They both work against their customers, but their duopoly has left me with little recourse. If I lived alone, I'd dump them both, but I have a famliy to keep happy.

      There will be no choice one day...it's going to happen.

    8. Re:Seems perfectly reasonable to me... by Anonymous Coward · · Score: 0

      Option 2 is probably why the telcoms are acting in concert. Once Google cuts of an ISP, there will inevitably be lawsuits and hypocritical complaints of monopoly abuse.

      I suppose that in the telcoms's dreams, Google will be forced by government regulators to provide their services AND will be required to pay for the privilege.

    9. Re:Seems perfectly reasonable to me... by mcvos · · Score: 1

      1) Google pays them. Google then starts getting invoices from every ISP around, from the little mom-and-pops to the tier-1s demanding a cut of the pie.

      2) Google cuts them off so that the above doesn't happen. These ISPs customers start screaming "Why am I paying you for access to the Internet, when you aren't providing it?" and they start switching to other providers that aren't pulling this.

      3) Google says: "Okay, we'll charge your users for access to our broadband content, and then give that money to you. By the way, since they're your users and you already have a financial relationship with them, could you help us by handling the financial side of this? You can keep the money. No need to get us involved at all, in fact. Enjoy your extra money."

    10. Re:Seems perfectly reasonable to me... by mcvos · · Score: 1

      At least in Europe, mobile networks for example have not moved to unlimited flat rate plans.

      Don't generalise. I live in Europe and pay my European mobile network provider a flat rate for unlimited data.

    11. Re:Seems perfectly reasonable to me... by mcgrew · · Score: 1

      This is not cable TV

      I think you've hit the root of the problem; now that cable companies are providing internet service, they want to run the internet like they do cable. Greedy+stupid=???

    12. Re:Seems perfectly reasonable to me... by Tom · · Score: 1

      you missed the obvious:

      3) Google ignores them

      Because what are they gonna do? Cut Google.com and YouTube on their side? Yeah, right.

      --
      Assorted stuff I do sometimes: Lemuria.org
    13. Re:Seems perfectly reasonable to me... by starfarer42 · · Score: 1

      What I don't think they've fully thought out is the end-game. Possible options:

      1) Google pays them. Google then starts getting invoices from every ISP around, from the little mom-and-pops to the tier-1s demanding a cut of the pie.

      2) Google cuts them off so that the above doesn't happen. These ISPs customers start screaming "Why am I paying you for access to the Internet, when you aren't providing it?" and they start switching to other providers that aren't pulling this.

      I don't think you've thought out what would happen if Google took option #2. If they started to selectively block certain ISPs then they would be facing a *huge* antitrust lawsuit. You can't use your dominance in one market to unfairly influence competition in another.

      A better option for Google would be to start charging the customers of these ISPs. After all, isn't that what any corporation does when faced with rising costs? They pass those costs right on to the customer so it doesn't affect their bottom line. Suddenly "free access to Google" would be a real selling feature for any ISP that *doesn't* try to extract money from Google. In the end you'd have the same effect: customers would switch to ISPs that are more favorable to Google, but they'd definitely have a strong defense against any antitrust charges.

    14. Re:Seems perfectly reasonable to me... by stiggle · · Score: 1

      Isn't Google already looking at becoming a fibre based ISP in parts of the USA?

    15. Re:Seems perfectly reasonable to me... by Nerdposeur · · Score: 1

      A very interesting point. There have been stories lately about Google offering cheap fiber service in select areas.

      It sounds to me like the same tactic they used releasing Chrome: not to get everyone to switch to their product, but to shame the the other browsers or ISPs with their superior quality, generate buzz, and make the other guys improved. End result: better browsers, better ISPs, and more Google traffic.

    16. Re:Seems perfectly reasonable to me... by jafo · · Score: 1

      "If they started to selectively block certain ISPs then they would be facing a *huge* antitrust lawsuit."

      It really depends on the terms... If the telcoms were to make an ultimatum like "we're going to start billing you on May 1 for traffic you send", then google could stop passing traffic to them. This kind of reminds me of the situation that lead to me installing the only global filter rule I've ever done in the 12 years I've been running an (admittedly small) ISP. I forget the exact details, but this guy mailed saying that he considered traffic coming from our network to be "computer trespass" or similar wording. What choice do I have other than to block traffic going to his IPs? ISTR that the exact situation was that he had subscribed to a mailing list that one of our customers runs, and a spam message got through to the mailing list, and this was the action he decided to take instead of using the "unsubscribe" Mailman URL.

      But, I think the person who said "option 3: Google does nothing and lets the telecoms do the blocking" has it exactly right.

    17. Re:Seems perfectly reasonable to me... by jafo · · Score: 1

      You're co-mingling the two options. If option 1 is selected by google, then there is no blocking and no need to switch ISPs. If option 2 is selected, then there are alternatives: the ISPs that aren't asking google for the money (since google isn't paying it, why would other ISPs demand the non-existent money and cut off access to google?).

    18. Re:Seems perfectly reasonable to me... by jafo · · Score: 1

      I don't agree with your statement that "high bandwidth users" don't want to pay proportionally more. The thing is that most ISPs just simply won't offer other plans, or they do in insane ways. For example, with Comcast they have added a 250GB "cap" over which you risk getting cut off. They don't have a plan for paying $100/month for 500GB. They have 2 plans: 5Mbps/.7Mbps 250GB for $40, or 8Mbps/.7Mbps 250GB for $60. They have no other plans. We have a wireless ISP that offers a 5Mbps/2Mbps service for $100/month which I signed up for, then found there's a neighbors tree in the way.

      The low usage users that are interested in paying for less can easily be handled by having a traffic limited service that is 20% cheaper, whether offered by the same ISP that is servicing the heavy users, or by a competitor that wants to take these lower use users.

      You don't have to try to alienate the high usage users in order to increase profits. Just make your service plans plans reasonable...

  20. Grrr.... evil moves by Tei · · Score: 4, Funny

    Telefónica is like neandertal people, really. I have read some declarations from the director, and I was forced to check the date.. I was like a talk from the dictator Franco. And France Telecom is everything that is wrong with corportations plus everything that is wrong by govern owned industry.

    Can these two companys die, please?

    --

    -Woof woof woof!

  21. Re:Seems like the bandwidth has already been paid by somersault · · Score: 5, Insightful

    Indeed. The bit that really got me was:

    Some European telecoms groups fear Google will reduce them to 'dumb pipes'

    That is really all that they are, or at least should be. They are not content providers, they are merely facilitators.

    --
    which is totally what she said
  22. Net Neutrality Conference video stream by guerby · · Score: 2, Informative

    There's a net neutrality conference organised by french regulators with people from google and FTC, video stream is available RIGHT NOW with real time english translation here: http://video.arcep.fr/arcep_13042010_en.html

  23. Of course they are by Sycraft-fu · · Score: 5, Insightful

    All this bitching, be it in the US or the EU, is just about the telecoms wanting to double-dip. All bandwidth is paid for, one way or another. In the case of extremely large connections, like connections between Tier-1 ISPs, the cost is shared between the two ISPs. When they peer, it is an agreement where they say "You pay the costs of your equipment and lines, we'll pay the costs of ours, and we don't charge each other anything to trade data." At every level down from there, it is paid by a smaller consumer. If you are a smaller ISP, you pay the bigger ones for access to their networks. Individuals, businesses, etc then pay those ISPs for access to their network. All the bandwidth is being paid for.

    They just want to double charge. They want to tell Google that they should have to pay because Google's data goes over their network.

    Of course, if push came to shove, I'd bank on Google winning. Dumbass ISP X says "Ok, we are throttling Google traffic and/or blocking Youtube." Google says "Ok, we are blacklisting all your IPs and showing your users a page that explains what dicks you are and what you need to change for us to restore access." My bet? Consumers get furious at their ISP and either force a change, or simply switch to a new one.

    1. Re:Of course they are by SakuraDreams · · Score: 1

      Or the European Commission could tell Google to get out of the EU. If they disobey, their assets are seized. Google will lose a ton of advertising as customers in the EU are no longer able to view their ads. Granted other businesses in Europe will lose out too and governments will lose tax revenue too.

    2. Re:Of course they are by zippthorne · · Score: 1

      I don't think that the conclusion is foregone. The issue, at least on the US side, is that there are few enough ISPs now that if you find your ISP "doesn't have google" the other two might not either. This would be a pretty obvious collusion situation, and therefore would go unprosecuted.

      --
      Can you be Even More Awesome?!
    3. Re:Of course they are by Sycraft-fu · · Score: 1

      I think that might generate a rather unfavorable response from the US government. There are some free trade agreements around that would run afoul of. Also there is the matter of the citizens in Europe. Last I checked the countries were Democracies at their core. The citizens might not at all be happy with the explanation of "You can't access Gmail or Youtube or Google search anymore because our telecoms are greedy and want to double charge and we want to force Google to allow that. On and by the way we are facing trade sanctions from the US because of it." Perhaps they find themselves without jobs come the next election.

      Also who's to say Google doesn't leave? While there are plenty of advantages to having a physical presence in a country, Google operates in the one medium without borders. You don't even know where the servers are you connect to when you connect to Google (unless you specially check). The can serve content to anywhere, from anywhere. So they leave Europe and relocate the European sites to other countries. What then? Does the EU erect a multi-country firewall the likes of what China has? Would their citizens stand for that level of oppressive censorship? Would their agencies obey such an order that is against their own laws?

      Finally, yes, Google might just up and leave, period. No matter how big your market, no matter how high the revenues, if costs are high enough, it isn't worth it. It is really that simple for business. If costs exceed revenues and there's no way to shrink costs or grow revenues, then there's no profit and it is time to pack up shop. Please remember Google did precisely this in China.

    4. Re:Of course they are by Anonymous Coward · · Score: 0

      The commission is not a monarch. Their powers are limited by EU treaties. In particular they cannot tell any random company to get out of the EU market.

    5. Re:Of course they are by Tim+C · · Score: 1

      Or the European Commission could tell Google to get out of the EU.

      On what grounds? What makes you think the Commission would side with the ISPs rather than with Google?

    6. Re:Of course they are by CODiNE · · Score: 0

      Of course, if push came to shove, I'd bank on Google winning. Dumbass ISP X says "Ok, we are throttling Google traffic and/or blocking Youtube." Google says "Ok, we are blacklisting all your IPs and showing your users a page that explains what dicks you are and what you need to change for us to restore access." My bet? Consumers get furious at their ISP and either force a change, or simply switch to a new one.

      And then the ISP goes "Ok, we are blacklisting all your IPs and forwarding all users to bing. They won't even see your page."

      --
      Cwm, fjord-bank glyphs vext quiz
    7. Re:Of course they are by FlyingBishop · · Score: 1

      This gives me an idea. Can we re-brand the net neutrality debate? People don't have a fucking clue what net neutrality means. But if we make it about telecoms double-billing, that's a whole different game.

    8. Re:Of course they are by JasterBobaMereel · · Score: 1

      The EU is not like the US Federal Government...it is not a single government either, it does not have the power to cripple Google, or in this case the willingness to, it is essentially a fight between the ISP's and Google

      The ISP's in the UK have already tried this with the various "watch again" services from the TV companies, they tried to force the TV Companies to pay for the extra bandwidth that these services were generating, like Google they were already paying for a high bandwidth connection to serve this content and the customers were mostly on "Unlimited" connections ...

      --
      Puteulanus fenestra mortis
    9. Re:Of course they are by mr_mischief · · Score: 1

      The problem is that the data isn't Google's. It's data the user has requested Google send them. From the ISPs' point of view, it's their customers' data. They want to charge Google for being the endpoint from which their customers request data.

      As usual, there's a car analogy here. The ISPs are a tollway on which their customers are driving. The ISPs want to charge the toll to the car manufacturer as well as the driver, even though the driver already completed the transaction with the manufacturer and the manufacturer has no further interest in the car.

    10. Re:Of course they are by xaxa · · Score: 1

      Also who's to say Google doesn't leave?

      Google's accountants. All their money is made in Ireland, where the appropriate taxes are very low.

    11. Re:Of course they are by fulldecent · · Score: 1

      Imagine what the internet would be like if companies and consumers had kept thinking this way!

      AOL 4 and huge .ART files, anybody?

      --

      -- I was raised on the command line, bitch

    12. Re:Of course they are by Anonymous Coward · · Score: 0

      Especially since "Net Neutrality" is now:

      (a) ISP's not limiting services for the connection you pay for (ongoing since the 90's, when you wanted to run httpd on your home machine)

      (b) ISP's wanting to double-dip with their extortion tactics ("Nice packets you've got there, Google. It'd be a shame if they didn't make it across our network...")

      (c) Comcast's variant on (A) which included interstate wire fraud, packet forgery, and DoS attacks.

    13. Re:Of course they are by Anonymous Coward · · Score: 0

      Needlessly complicated story. Here's a better one:

      Two guys owe each other $100 so they agree to forgive the debts. Nothing has changed but now they're debt-free!!!!

      MIND BLOWING STUFF, BRO.

  24. Dumb pipes, and the media lobby all over by djkitsch · · Score: 1, Redundant
    1. As other commenters have said, they are dumb pipes - that's how they pitched themselves (when they were getting established) and that's how consumers see them. Now they're trying to renegotiate the tacit contract on which the "Internet age" was established. I call bullshit.
    2. 2) This is the media lobby, with its broken business model all over again. Whilst it's understandable that execs are panicking over their capacity problems, that's the point: it's their capacity problem. Short-sightedness on the part of the network planners - one supposes - left them vastly underestimating the amount of data they'd need to carry, and they're trying to get the content providers to cover the costs of their mistakes. It's something akin to power companies demanding a cut of TV ad revenue, since if it wasn't for them, there'd be no TV at all!

    It's the combination of these two points which makes it so noxious. We (as consumers) have been encouraged to treat broadband providers as another passive utility company, as fundamental to modern life as electricity and gas. Now they're trying to have it both ways, and suggest that at the same time, they're an active participant in content consumption and should be compensated at both ends.

    So, which is it? Passive utility, to be taken for granted and paid monthly without a thought, or active content platform due recognition but with responsibility for quality of service? Something tells me that either way, consumers will not be the winners here.

    --
    sig:- (wit >= sarcasm)
    1. Re:Dumb pipes, and the media lobby all over by grahamm · · Score: 1

      It's something akin to power companies demanding a cut of TV ad revenue, since if it wasn't for them, there'd be no TV at all!

      Or more like the power companies demanding payment from the TV companies because of the peaks in power demand which come during the TV ad breaks as lots of people turn on the kettle at the same time. Or the water/sewerage companies because of peaks in demand as lots of people run water to fill the kettles and flush their toilets during the ad breaks. It does not help with this that, at least in the UK, most stations co-ordinate their ad breaks to discourage channel hopping.

  25. What is the purpose of ISP? by Taco+Cowboy · · Score: 4, Insightful

    Providing bandwidth for their users to do what they want? Is that the purpose of ISP?

    Or is there any other purpose? Like laying down ground rules, like the Ten Commandments:

    1. Thou Shalt Not View Video Online

    2. Thou Shalt Not Use Too Much Bandwidth

    3. Thou Shalt Pay Through Thy Nose

    4. Thou Shalt Obey Everything

    5. Thou Shalt Hath No Right

    6. Thou Shalt Be Grateful

    7. Thou Shalt Giveth Us All Thy Money

    8. Thou Shalt Sacrifice Thy First Child For Us

    9. Thou Shalt Let Us Screw You

    10. Thou Shalt Not Complaint

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:What is the purpose of ISP? by delinear · · Score: 4, Insightful

      ISPs want what they've always wanted - to have "unlimited" deals that they can charge a premium for, but which customers will subscribe to and not use - i.e. money for nothing. We're already paying for the content to come down the pipes, if we're not paying enough they should just tell us that, I'd rather have an honest pricing scheme than one where I don't know where I stand in terms of "fair usage" (and to me, if I'm paying for unlimited downloads, fair usage should be everything up to and including infinite downloads, but not a kilobyte more, but that's a different matter) and one where the content providers are now going to get screwed, too.

    2. Re:What is the purpose of ISP? by OeLeWaPpErKe · · Score: 1

      The problem with this is, of course, that per-customer dedicated bandwidth costs (at least) $20 /mbit/month. So a supposedly "modest" 20 mbit connection would run you $400 per month, and have a setup fee over $1000. This is a very good price for that bandwith, if you attempted to buy this not being a large telco you'd easily pay double that.

      Since customers refuse to pay this, other methods have to be found.

      Dedicated bandwidth, with which you can do as you please without limits, are perfectly for sale. They're "Business" deals in most ISPs I know of. Now if all residential users agreed to pay that price and agreed not to go take the lower-monthly-rate-but-massively-oversold deal there is no problem.

      Can you say "snowball's chance in hell" ?

      The sad thing is, one regularly sees on online fora discussions about how this-or-that provider is 0.30$ cheaper per month. Equally inflammatory comments of course, equal accusations how the telco's (large and small) are sleeping with the devil.

    3. Re:What is the purpose of ISP? by Qzukk · · Score: 1

      They're "Business" deals in most ISPs I know of.

      Haw, most ISPs I know of around here charge businesses out the nose and if you're buying DSL or Cable for your company, it's still oversubscribed and offered without a SLA. The sole reason to pay more is because you're a business and it's unfair that someone might make money off of someone's technology and not give it to them.

      If you want real dedicated bandwidth with a real promise to keep the internet turned on, you get a T-1 connection or better, and it starts around $400 for 1.5Mbit with installation fees depending on location. And then, you're usually just getting a line to your local phone company so you're still at the mercy of whatever your phone company decides to do to your contract "subject to change without notice" (just ask TekSavvy).

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    4. Re:What is the purpose of ISP? by InsaneProcessor · · Score: 3, Insightful

      Make the users pay. They are the ones that want to view the content. Oh wait...If they jack up the price, the users will go somewhere else.

      --

      Athiesm is a religion like not collecting stamps is a hobby.
    5. Re:What is the purpose of ISP? by Maxo-Texas · · Score: 1

      I think "unlimited" is understood to be "unlimited" in the same sense as a buffet restaurant.

      However, it's been *several* years now. While the ISP's might have a right to bitch about 200gb a month downloaders, they really have no right to bitch about 40gb per month downloaders any more. And they should be upgrading for larger capacity in the future.

      And we have to pay for those upgrades in our regular bills.

      I use the internet heavily (online TV, torrents) and I've never come close to irritating comcast so I can't imagine what people must do to hit those levels.

      Perhaps adblock and flashblock are saving more bandwidth than I thought.

      I get the feeling that for a site like slashdot, the advertising bandwidth is now way over the data bandwidth.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    6. Re:What is the purpose of ISP? by magisterx · · Score: 1

      I can't agree more. ISPs should be 'dumb pipes'. I tried AOL a very long time ago, and I much prefer the dumb pipes. Granted that I am in America and not Eurose, but I have already paid for the ISP to carry the traffic. To have them bill again for that is double dipping at best.

    7. Re:What is the purpose of ISP? by mweather · · Score: 1

      While the ISP's might have a right to bitch about 200gb a month downloaders, they really have no right to bitch about 40gb per month downloaders any more.

      I have a 25 megabit connection. If I download 200 GB in a month, my connection was only used to capacity for 17 and a half hours, or roughly 2.5% of the month.

    8. Re:What is the purpose of ISP? by Maxo-Texas · · Score: 1

      When you walk into a chinese buffet, there is about 400 pounds of food sitting on the buffet. You eat less than 1% of the food on the buffet.

      There is "all you can eat" and there is "all you can eat".

      Obsessing over the word "unlimited" would be like obsessing over the fact they said "all you can eat" but also "reserve the right to refuse service".

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    9. Re:What is the purpose of ISP? by WNight · · Score: 1

      Unless they pitched you out for a food fight, wastage, etc, they couldn't pitch you out for eating too much.

      They reserve the right to not serve you - something they don't need to do as you have no right to be served - but that doesn't mean they can decide to not provide the service they have contracted to provide. Once you order and pay they lose most of their "right to refuse service".

      ISP's don't have a "way" to cheat customer by offering unlimited accounts that aren't, they simply do and count on it being almost impossible for an individual to sue a company successfully. It's exactly the same business model as offering things for sale and simply not delivering a third of them - absolute outright theft.

    10. Re:What is the purpose of ISP? by Maxo-Texas · · Score: 1

      No it's not.

      I am a heavy internet user (downloading including linux live disks and openoffice, videos, online gaming) and I've never come close to the limit in my life.

      What's happening is more like what was happening at Cornell back in 2001.

      http://www2.cit.cornell.edu/computer/students/bandwidth/charts.html

      20 users were using more bandwidth than several thousand other users combined.

      Just like the chinese buffet, at the end of the month, the ISP can say, "Sorry, we will not do business with you any more" and set you FREE to go find cheap internet elsewhere.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    11. Re:What is the purpose of ISP? by mweather · · Score: 1

      "When you walk into a chinese buffet, there is about 400 pounds of food sitting on the buffet. You eat less than 1% of the food on the buffet." But I do get all I can eat. I do not get all I can download. See the difference?

    12. Re:What is the purpose of ISP? by Maxo-Texas · · Score: 1

      No. If you go into a chinese buffet and eat several meals worth of food, they will refuse your business. They may even stop you mid meal and say "that's it".

      It's rare and only happens if someone is being truly excessive-- like say the 20 users out of several thousand who are each consuming more bandwidth than the rest combined.

      Just keep pushing them hard- they'll put in the proper legalese (in many cases they already have) and drop your business or put you on metered billing.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    13. Re:What is the purpose of ISP? by Maxmin · · Score: 1

      And let us not forget the corrolary to Moore's Law: "The bandwidth of telecoms doubles every fifty years."

      --
      O lord, bless this thy holy hand grenade, that with it thou mayest blow thine enemies to tiny bits, in thy mercy.
    14. Re:What is the purpose of ISP? by OeLeWaPpErKe · · Score: 1

      My point was more along the lines of "everyone paying less than $400 for 1.5Mbit should not complain about cost cutting measures".

      For obvious reasons.

    15. Re:What is the purpose of ISP? by Qzukk · · Score: 1

      "everyone paying less than $400 for 1.5Mbit should not complain about cost cutting measures".

      It doesn't work that way in any other field.

      Should I not complain about problems with my car because I paid less for it than I would have paid for a Bentley? Should I not complain about the poor construction of my house because I paid less for it than I would have a mansion?

      Sure, I could buy the Aston Martin of internet connections and cruise in style, but I expect my Hyundai to get me where I want to go, without surprises like getting shut out because Hyundai is billing Disney World for graciously permitting me to drive my car there and therefore deserves half of Disney's revenue.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    16. Re:What is the purpose of ISP? by L1feless · · Score: 1

      It is Funny I was thinking the exact same thing. I thought the purpose of an ISP is to provide an internet connection. The users are then charged for that internet connection which covers costs and is obviously profitable (look at the ISP's CEO's boats). Why aren't the telecoms going after American Idol for flooding the phone lines with calls when they ask all those Tweens to vote? Or better yet lets go after the World Cup for causing a flood of viewers on the cable networks for watching... The ISPs are in the business of providing bandwidth to their users and are being paid very well for doing so. I hope the European courts do not disapoint me and throw this ridiculous claim out of the court room.

    17. Re:What is the purpose of ISP? by WNight · · Score: 1

      Just like the chinese buffet, at the end of the month, the ISP can say, "Sorry, we will not do business with you any more"

      Yeah, at the end of what you've contracted for they can decide if they wish to keep dealing with you. That's the above-board way to do it, and the legal way.

      But if you've noticed ISPs who decide that unlimited doesn't mean unlimited, cut access in the middle of what you've paid for and don't even refund the prorated payment.

      As for some stupid stat about power users consuming more bandwidth, who fucking cares? You know what unlimited means, right? Not that it'd be reasonable to provide, but maybe people shouldn't promise what they have no intent to deliver.

  26. Errm.... by Demena · · Score: 1

    I don't want the telcos to be anything more than dumb pipes. That is what I am paying them for. I am not paying them for Google's contents.

  27. In the year twooo thousaannnnd by Anonymous Coward · · Score: 0

    Excelent strategy telecoms... lets try to predict this:

    1- You block Google related pages
    2- People screaming
    3- Google says with a coolface "PROBLEM ISP CUSTOMERS?"
    4- Google creates Google ISP "We now provide internets also... and TV... and Phone? Google Telecom here?"
    5- ????
    6- Bankrupt Telecoms regret step 1 but prefer saying that google monopolized everything.

  28. Re:If YouTube Must pay then every tiny site must p by TheCowSaysMooNotBoo · · Score: 2

    Yes, pulling out of Europe is a valid option. No customers there.

  29. we pay by Valpis · · Score: 1

    “These guys [Google] are using the networks and they don’t pay anybody,” he[César Alierta, chairman of Telefónica] said.

    No, we, the users, are using the google services and we already pays you for this access.

    There is not a single Google service that is not reliant on network service,” he [René Obermann, Deutsche Telekom’s chief executive] said. “We cannot offer our networks for free.”

    And you don't, we still pays you for this service.

    STFU and deliver what we want and pays you for.

    --
    who shot the cat in the hat to experiment is insane
  30. Dear Telecoms by vadim_t · · Score: 5, Insightful

    A dumb pipe is precisely what you are, and should continue being.

  31. If ISPs need to do this, their prices are wrong by jonwil · · Score: 1

    If the total amount of money paid by customers to the ISP is not enough to cover the bandwidth costs in the YouTube age, instead of going after Google, they should increase their prices so what the customer pays is enough to cover the outgoing bandwidth costs.

    But they dont want to do that because they will loose customers.

    1. Re:If ISPs need to do this, their prices are wrong by mr_gorkajuice · · Score: 1

      Your reasoning is sound.
      Thought experiment: so, now all ISP's actually raise their prices to a level where they have a viable business model, rather than attempting to hoard as many net-loss customers together as possible. After ISP's worldwide lose 60% of their clients, it becomes obvious to established physical-goods companies, medias, government instances and certain major IT companies that they can no longer rely on everyone and their mother using the internet to order their concert tickets, do their banking, and check the stock of their local IKEA online.
      An initiative of content suppliers worldwide figures that it's good business to sign agreements to support ISP's for the purpose of keeping end user bandwidth pricing low.

      I guess my point is - surely, the ISP's are to blame. But the internet is young still, massive changes are still likely to happen, and at this point, they've probably done the world a massive favor by dumping prices to the point where they almost seem to be unselfishly giving away internet for free, for the benefit of society as a whole.
      Targetting Google specifically is obvious, given the fair dataload caused by YouTube. In the grander scheme of things though, taking the issue to court might actually serve as a quicker transition than raising prices, waiting for content providers to react on decreased web-based market penetration, and voluntarily accepting similar terms.

      Google generating massive revenue and ISP's struggling to survive doesn't seem fair given their interdependance. Raising end user prices is a possible fix. Charging content suppliers for market penetration is a different possible fix.
      It likely conflicts with net neutrality on several accounts, but what good is net neutrality if only a small portion of the population can afford access anyway? It wouldn't be the first beautiful idealistic vision to fail based on harsh realities.

  32. The Internet is a "pull" network by AlecC · · Score: 2, Insightful

    Those YouTube megabytes are being requested by end users. It is they who are getting the "ride" - and it is usually not free. Google/YouTube is just making content available on demand - as is just about every other data supplier on the net except spammers. The only people getting a free ride are spammers, because they are using a "push" mode. Before they stop or slow my YouTube, which I want, let them do something about spam.

    --
    Consciousness is an illusion caused by an excess of self consciousness.
    1. Re:The Internet is a "pull" network by GPLHost-Thomas · · Score: 1

      I would agree with that ... if it was the case for all content provider. Why would google have this for free, when we (web hosting companies) all pay for hosting content and bandwidth? Is it that because it's Google and you like Youtube, it should be free? I highly do not agree.
      Let's say I want to make a youtube-like. Will all ISP in the world give me bandwidth for free? I don't think so. That makes it very hard, if not totally impossible, for anyone to build a site comparable to youtube. This is really unfair business, and should not continue. I would go up to say that both FT and Google could be sued for this kind of agreement if others can't have the same one.

    2. Re:The Internet is a "pull" network by John+Hasler · · Score: 1

      > Why would google have this for free...

      They don't. They pay in kind. Look up "peering".

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    3. Re:The Internet is a "pull" network by GORby_ · · Score: 1

      I think the cost of an infrastructure which allows you to negociate peering agreements isn't something you should underestimate. Google pays (more than you'll probably ever own) for infrastructure, which it then shares with other big players . That's a completely different league. If you want to put your server(s) on the net, you'll have to rent a spot in a rack, and pay the associated fees for your connection to the net.

  33. Telecoms = Water company by HopefulIntern · · Score: 1

    To make a comparison, I think the Telecoms companies should be just like the water company. At the end of the day, they provide a pipeline, of sorts, which provides a medium. You turn the tap on, you get water. It is not the water company's prerogative to come to your house and boil your kettle. They give water, you pay for it and use it how you like. If only the telecoms/ISP would realise this, and accept their place, everything would be a lot easier.

    1. Re:Telecoms = Water company by Anonymous Coward · · Score: 0

      No, because you're paying the companies for the use of the pipes (telco infrastructure in our case) and the water (internet content). So it is not the same. It would be as if you paid 1 company for handling the pipes to your house and then you get water for free. In any case, this is the typical example of blaming others for your lack of imagination (or will) to innovate, invest and transform your business model.

      Nothing stops said telcos to create their own (paying or not) youtube like service, or whatever they might find suit to create more revenue (for example IPTV).

    2. Re:Telecoms = Water company by AHuxley · · Score: 1

      Water can be good fun too
      http://exiledonline.com/water-wars-billionaire-thugs-scheme-to-pull-off-katrina-style-wealth-transfer-that-could-destroy-california/
      The problem with the EU telcos is they want to be a "Telstra" an Australian bell and cash up on every packet in and out of their EU thiefdom using exclusive pipes.
      The "you can select any isp you want" but they all touch our wholesale at some point dream.
      End users and optical peering should cover all their costs ..
      So the question to some smart EU journalist is 'where is the leak' - why is the cash flowing out so fast that subscribers and 'free' peering is showing the telcos to be running on empty?
      Did the cost of some telco trace decree for bulk Nokia Siemens monitoring kit prove to expensive to hide?

      --
      Domestic spying is now "Benign Information Gathering"
  34. everyone wants money from google by kangsterizer · · Score: 1

    in france they want to tax google (obviously paying for traffic wont work, taxing might)
    this brings money to the gvt, which is controlled by the companies anyways.

  35. Ironic, isn't it? by Namarrgon · · Score: 4, Insightful

    On one hand we have content providers like Murdoch saying Google should pay them for the content Google is providing access to.

    And on the other hand we have telcos saying Google should pay them because they're providing access to Google's content.

    It's the fate of any success story; Google has money, they want it for themselves, and they think it's easier to get Google's than to earn their own.

    --
    Why would anyone engrave "Elbereth"?
  36. The crazy thing is, they might get away with it by Bearhouse · · Score: 3, Insightful

    Yeah, yeah, you're all saying "this is crazy, I've already paid for my bandwidth"...and you're all correct, but:
    As we've seen here recently, common sense or 'fairness' seems to have little to do with ISP regulation and/or behaviour.
    (See /. passim : FCC in USA, filtering in Australia...)

    Here in Europe, many countries tax blank media and playback devices [http://en.wikipedia.org/wiki/Private_copying_levy] in order to 'compensate' artists for 'lost' revenue.
    How long before Europe's telcos, (most of whom have strong lobbying power), actually get something like this either legislated, or get Google to cough up some money just by threatening to get it legislated?

    They're already trying to grab some of Google's ad revenue:
    "French President Nicolas Sarkozy is mulling a recommendation to impose a tax on Internet ad revenues in France. The proposal is aimed at helping the French culture industries survive the new digital age. But critics say it is absurd, unworkable and will do little more than prop up failing business models."
    [http://www.spiegel.de/international/europe/0,1518,670837,00.html]

    1. Re:The crazy thing is, they might get away with it by Rakshasa+Taisab · · Score: 1

      Here in Europe, many countries tax blank media and playback devices [http://en.wikipedia.org/wiki/Private_copying_levy] in order to 'compensate' artists for 'lost' revenue. How long before Europe's telcos, (most of whom have strong lobbying power), actually get something like this either legislated, or get Google to cough up some money just by threatening to get it legislated?

      Yeah, and what are they going to do, tax users for accessing Youtube? Or better yet they can block Youtube until Google pays.

      Followed by millions of angry users switching to another ISP.

      --
      - These characters were randomly selected.
    2. Re:The crazy thing is, they might get away with it by Stuntmonkey · · Score: 1

      They're already trying to grab some of Google's ad revenue: "French President Nicolas Sarkozy is mulling a recommendation to impose a tax on Internet ad revenues in France. The proposal is aimed at helping the French culture industries survive the new digital age. But critics say it is absurd, unworkable and will do little more than prop up failing business models."

      ...and now you understand why Google has no physical presence in France. Same with Italy. The "failing business model" in this case is a country's leaders thinking they can regulate the internet just as they've always regulated physical goods.

    3. Re:The crazy thing is, they might get away with it by Bearhouse · · Score: 1

      Followed by millions of angry users switching to another ISP.

      You're missing the point. You can easily switch ISP, you cannot easily switch country.

    4. Re:The crazy thing is, they might get away with it by delinear · · Score: 1

      Followed by millions of angry users switching to another ISP.

      You're missing the point. You can easily switch ISP, you cannot easily switch country.

      Governments might be greedy but they're not, for the most part, stupid - not when it comes to feathering their own nests, anyway. No government is going to take the circus out of the bread and circuses equation, it'd be political suicide.

    5. Re:The crazy thing is, they might get away with it by John+Hasler · · Score: 1

      > ...a country's leaders thinking they can regulate the internet...

      The Chinese government has demonstrated that they can.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
    6. Re:The crazy thing is, they might get away with it by mcvos · · Score: 1

      You're missing the point. You can easily switch ISP, you cannot easily switch country.

      Man, you've got me seeing a future where people have a nationality contract with a government. And you can't apply for a nationality with a different country until your two year (or longer) contract is up.

      "What? A three-strikes law? I'm switching to a different nationality provider!"

    7. Re:The crazy thing is, they might get away with it by Anonymous Coward · · Score: 0

      > Here in Europe, many countries tax blank media and playback devices [http://en.wikipedia.org/wiki/Private_copying_levy] in order to 'compensate' artists for 'lost' revenue.

      I don't know about other European countries, but here in France, this tax is intended to compensate artists for the loss of revenue due to legal private copy (backup, duplicating CDs so you have one for your car and one for home...). This is called the droit à la copie privée: http://fr.wikipedia.org/wiki/Copie_priv%C3%A9e

      This tax is not supposed to pay for copyright infringement.

      (Apparently it's not the same in Spain, and that's why a court recently found sharing through bittorrent legal due to a tax already paid for)

    8. Re:The crazy thing is, they might get away with it by Jer · · Score: 1

      Sometimes in a democratic country it's easier to switch a government than it is to switch an ISP.

      Take away people's cat videos and you might just see chaos in the streets...

  37. start charging the Europeans for everything by dltaylor · · Score: 2, Funny

    Given that it was a European (well, Briton, but it is on "that" side of the Atlantic), working at a European facility, that mucked up a perfectly good Internet with this "web" thingie, all of the non-maintenance traffic other than mail, telnet, and ftp should be billed to the EU, plus a royalty for Al Gore, since he invented the entire thing.

  38. Trick? by 0ld_d0g · · Score: 1

    Isn't this just a trick so that they can later collude and increase the service charges across the board? Get publicity of their faux-plight and then go - "See, we tried to give you guys cheap internet but.."

    Or maybe they're just testing the waters to see what they can get away with w.r.t. setting precedents. On a related note, this a systemic problem with overzealous capitalism. Every quarter the profits and revenues must go up - more, more, more. After a while, when you can't really drive them up any more, what do you do? (DRM?) Please note that I'm not arguing to abolish capitalism. I quite like it and have benefited greatly by it. As with all things, capitalism too has its flaws.

  39. Googles owes ME money too then! by jbb999 · · Score: 1

    I've noticed that whenever I watch a video on youtube that google use some my MY bandwidth too to send it to me! They seem to think they can just do this without paying me a penny for it! How dare they! :)

  40. The customer already paid for it. by miffo.swe · · Score: 5, Insightful

    The ISPs have it all backwards, presumably with full knowledge of the real problem. The customer pays for a connection to the internet. The customer then uses it to access popular services, like Youtube or Facebook or any other of this months fad.

    Many ISP has vastly oversold their capacity to their customers and engaged in price fights that has made internet access well below what they should cost. They know its going to be a cold day in hell before the customers agree on a big price hike this late in the game so they try to wring money out of the popular services the customers use their bandwidth on.

    Since the ISPs sell access to the internet they have nothing, absolutely nothing they can demand from services on the internet. They made this mess by charging to little for all to much bandwidth, well, sucks to be wrong dont it?

    --
    HTTP/1.1 400
    1. Re:The customer already paid for it. by Anonymous Coward · · Score: 0

      They know its going to be a cold day in hell before the customers agree on a big price hike this late in the game so they try to wring money out of the popular services the customers use their bandwidth on.

      I did. I switched my internet provider to one which cost over twice the price.
      On the plus side I now enjoy access to nntp (text newsgroups were blocked!), any UDP based protocol, and normal speed access between lunch time and 2 in the morning ("peak time"!)

      You get what you pay for, low cost ISPs provide low quality internet, it's the same as groceries. spend half the money on soup and your soup tastes like shit.

    2. Re:The customer already paid for it. by misexistentialist · · Score: 1

      Maybe, but I think you are giving ISP executives too little credit. It's more likely that problems are arising because they aren't meeting lofty profit expectations than because they are selling below cost.

    3. Re:The customer already paid for it. by shentino · · Score: 1

      If ISPs really are hurting that badly for money and think they can't compete, they need to start going bankrupt like good capitalists.

    4. Re:The customer already paid for it. by wisnoskij · · Score: 1

      I really do not think that ISPs sell internet well below what it should cost, at least if you are taking about anywhere in North America.

      We all get outrageously high prices for internet access.
      At least if you go with any companies that advertise, switch to any that don't and they are half the price (but 99% of people still use one of the big name big price companies).
      I think that is pretty good proof that price fights have not really lowered the cost much.

      --
      Troll is not a replacement for I disagree.
  41. Microsoft moving the Google fight to Europe ? by Anonymous Coward · · Score: 0

    TurboHercules, a French company in a fight with IBM, is puppeteered by M$.

    Now M$ might just give a push to the European telecoms to try the same thing as in the US. C'mon, the attacks almost have matching checksums.

    Due to higher market regulation in the EU and due to the fight taking place between European telecoms and en evil US corporation (Google), there might be more of a chance for the telecoms to win something.

  42. Re:Seems like the bandwidth has already been paid by Stan+Vassilev · · Score: 2, Informative

    Google bought some bandwidth to be able to send site content to users. Those users bought some bandwidth to be able to receive it. What's the problem?

    Technically Google doesn't buy lots of bandwidth nowadays, the way people might imagine. They instead hook directly to many peers and at the backbones. That said, when the rest of us pay for "bandwidth", we pay exactly for building and maintaining the kind of infrastructure Google built themselves. But it explains why on the surface you can spin it like they did.

  43. Re:Seems like the bandwidth has already been paid by Anonymous Coward · · Score: 0

    [dumb pipes] is really all that they are, or at least should be.

    Actually, google itself is not making any content either. Its users are.

  44. Easily solved.... by mubes · · Score: 3, Insightful

    ....any ISP that thinks Google isn't playing fair should just not allow connections to the Google Empire for their customers.

    Then we'll see how long it takes for the free-market to self correct. I give it about 30 days, most of that time being required for the ISP to staff up their disconnections department.

    1. Re:Easily solved.... by cpghost · · Score: 1

      Then we'll see how long it takes for the free-market to self correct.

      It could take longer than you think. All those ISPs mentioned in the article are in fact big nationwide network providers (owners of the WAN cables and infrastructure), with near-monopoly on the pipes. Most smaller ISPs are actually subcontractors to those big ones. If those 800lb gorillas decided to depeer Google, it would immediately affect most other ISPs too.

      --
      cpghost at Cordula's Web.
    2. Re:Easily solved.... by John+Hasler · · Score: 1

      > If those 800lb gorillas decided to depeer Google...

      Google will depeer them. Google owns a lot of fiber.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  45. Re:If YouTube Must pay then every tiny site must p by gmthor · · Score: 1
    Did you even read the article? Three telcos where saying that Google should start paying. You know that there are a lot more out there, who would be happy to service their customers.
    The actual bad thing is that they want to use other businesses to join them, but that have a complete different problem with Google.

    To increase the pressure on Google, the telecoms groups are interested in finding common cause with content owners such as media companies, which get little or no money from the technology company when it aggregates their content on Google News.

    --
    How do I uncompress my MD5 archive?
  46. i work for a european isp by mvar · · Score: 1

    and this is just plain fucking stupid..If those ISPs think Youtube hammers their precious network bandwidth, perhaps they should block Youtube for a change. And see what happens then..dumb pipes..

  47. Re:Seems like the bandwidth has already been paid by somersault · · Score: 1

    I didn't say they made it, I said they provided it. Services like YouTube are great for providing everyday users with a high availability, high bandwidth platform to reliably distribute their content to a large audience (regardless of the merits of said content).

    --
    which is totally what she said
  48. Re:If YouTube Must pay then every tiny site must p by TheCowSaysMooNotBoo · · Score: 1

    I was replying to an AC who was going on a "USA USA USA" rant - sorry for the confusion. Should have quoted him.

  49. Telecoms are stupid. Google is "internet" by kornerson · · Score: 1

    Do telecoms know how many people belive that internet is "google.com"? I've seen hundreds of people entering urls at the search box of google.com. And if you ask them to write the url at the proper place they look at you with puzzled faces... What google should do is pull the plug. Customers will not understand why they are not getting internet on their connection.

  50. Google should.. by jerryluc · · Score: 1

    just say: "If that's to much bandwith for you, then just block youtube". I know i wouldn't buy an ISP for internet without youtube.

    1. Re:Google should.. by lattyware · · Score: 0, Offtopic

      While I agree with the sentiment, 'I know i wouldn't buy an ISP for internet without youtube' is not a valid sentence. Try 'I know I wouldn't pay for an internet connection from an ISP that didn't give me access to youtube.' - You don't own the internet, the ISP or youtube, you use them.

      --
      -- Lattyware (www.lattyware.co.uk)
  51. Accounting by TapeCutter · · Score: 4, Interesting

    "This starts to look like a circular dependency. We might as well not charge anybody and thereby save money on accounting."

    Remminds me of the story about the rich man and the poor village....A rich man walks into a hotel in a poor village where all the bussinesses are in debt. He gives the hotelier $100 for a room on the condition that if he doesn't like it he will take the money back and leave. The hotelier gives him the keys, confident the rich man will like the room he takes the $100 and pays the grocer for the food he bought on credit. The grocer takes the $100 and pays back the farmer the money he owes him, the farmer uses it to pay back the blacksmith who then goes to the hotel to pay off his debt to the hooker who in turn gives it to the hotelier for past rent. The rich man comes back dissatisfied with the room, takes the $100 and leaves the village. Nothing has changed but the village is now debt free.

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    1. Re:Accounting by Inconexo · · Score: 1

      Only that the hotelier has rented the room for free!

    2. Re:Accounting by Mindcontrolled · · Score: 1

      Actually, the village was debt free from the beginning - everyone owed someone else $100 and was owed $100 by someone different in a circular fashion, balancing to $0 for everyone. The story only works under the assumption that there is zero liquid cash in town, so the balancing can't actually be realized.

      --
      Ubi solitudinem faciunt, pacem appellant.
    3. Re:Accounting by hasdikarlsam · · Score: 1

      It's an amusing story, but that exact thing - on a larger scale - is what happens if an economy has too little money in it.

      It's why we can't use a gold standard. The money supply has to expand or shrink at the same rate as the economy.

    4. Re:Accounting by mehrotra.akash · · Score: 2, Insightful

      But, wouldnt the hotel have to borrow money to pay back the rich man, thus going into debt again?

    5. Re:Accounting by dangitman · · Score: 1

      But the hotelier is still in debt.

      --
      ... and then they built the supercollider.
    6. Re:Accounting by Shoe+Puppet · · Score: 1

      No, the hooker owed the hotelier money.

      --
      (+1, Disagree)
    7. Re:Accounting by Anonymous Coward · · Score: 0

      Uhhhh... if the hotelier paid the grocer, then he wouldn't have the $100 to give back at the end.

      Do you write children's books perchance?

    8. Re:Accounting by TapeCutter · · Score: 1

      Yeah, but try telling Ron Paul fans that all currency is based on trust.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    9. Re:Accounting by TapeCutter · · Score: 1

      "The story only works under the assumption that there is zero liquid cash in town"

      I think that's the moral of the story, as hasdikarlsam points out below the available currency must expand to meet the growth of the economy.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    10. Re:Accounting by Anonymous Coward · · Score: 0

      "This starts to look like a circular dependency. We might as well not charge anybody and thereby save money on accounting."

      Remminds me of the story about the rich man and the poor village....A rich man walks into a hotel in a poor village where all the bussinesses are in debt. He gives the hotelier $100 for a room on the condition that if he doesn't like it he will take the money back and leave. The hotelier gives him the keys, confident the rich man will like the room he takes the $100 and pays the grocer for the food he bought on credit. The grocer takes the $100 and pays back the farmer the money he owes him, the farmer uses it to pay back the blacksmith who then goes to the hotel to pay off his debt to the hooker who in turn gives it to the hotelier for past rent. The rich man comes back dissatisfied with the room, takes the $100 and leaves the village. Nothing has changed but the village is now debt free.

      The value of interest free debt is the dollar amount of the debt reduced for the chance that the debt will be repaid. So assuming that all of the people were equally likely to not default on their debts, the net of each of their assets and liabilities were already zero.

      The hotelier's business is based on pricing a night's rent based so that the expected revenue from the arrival rate of travelers and prostitutes is greater than expected expenses. The hotelier took a "double or nothing" style bet from one of those travlelers and lost. He's down the amount of income he would have received if he had insisted on the standard rate with no refund guarantee.

      So ultimately the change on an opportunity cost basis is the difference between the bet that the rich traveler would not walk out without a refund guarantee and the bet that the rich traveler would not demand a refund on a higher rate.

    11. Re:Accounting by nedlohs · · Score: 1

      The exact same thing can't happen in reality - all it takes is 1 cent to loop around the debt cycle 10000 times and it is all cleared out.

      And no that isn't what happens with a gold standard, a money supply that doesn't expand at the same rate as the economy results in price deflation. If it doesn't shrink at the same rate you have price inflation.

      Now some people think deflation is the end of the world and results in economic investment plummeting and a self perpetuating cycle of doom, but that's unrelated to a chain of debt.

    12. Re:Accounting by nedlohs · · Score: 1

      You should try reading children books, might help to improve your comprehension of simple stories.

    13. Re:Accounting by Anonymous Coward · · Score: 0

      goes to the hotel to pay off his debt to the hooker who in turn gives it to the hotelier for past rent

      are you fucking slow? jesus christ! what do you do for a living? close helpdesk tickets that you can't comprehend because you have a 3rd grade reading comprehension?

    14. Re:Accounting by Jer · · Score: 1

      Who does he owe the debt to?

    15. Re:Accounting by Joce640k · · Score: 1

      Fail!

      --
      No sig today...
    16. Re:Accounting by Joce640k · · Score: 1

      ...and another one! Did the story have too many words for you?

      --
      No sig today...
    17. Re:Accounting by dskzero · · Score: 1

      The hooker owed him $100 and paid him back. With that money, he gave back to the rich man.

      --
      Oblivion Awaits
    18. Re:Accounting by Anonymous Coward · · Score: 0

      ...and no local banker taking a huge bonus! Perhaps we don't need them after all...

    19. Re:Accounting by stoanhart · · Score: 1

      The money supply doesn't have to change. The other alternative is that prices fluctuate based on how much gold/person there is. As populations grow, prices would deflate; as populations shrink, prices would inflate. As long as one of prices or the money supply is elastic, the system will work.

    20. Re:Accounting by DavidTC · · Score: 1

      Strangely enough, this has actually happened a few times in history.

      It happened in England once, later middle ages, where the government essentially traded away all actual currency to other countries. It essentially taxed all money out of existence, and spent it elsewhere.

      This resulted in, essentially, the invention of 'fiet currency', depending on how you looked at it. At the time, checking already existed, although a good deal less formal and only the rich would do it. Generally checks were cashed quickly. (Because no one had any form of ID, and almost no one even had a bank account, and checks was less regulated, so holding a check was just tempting people to steal it from you, or the account to run dry and the check to bounce.)

      But, when they ran out of physical cash, important respected people would write checks telling the bank to disburse funds (Which they didn't have) to the holder of the paper, (Aka, a check to 'CASH'.) which other people would then trade as if they were currency. (I don't know how you'd do change...take it back to the person, have him write two smaller checks and destroy the first?)

      They would eventually make it back to the bank for safekeeping, and half the time could magically all be canceled out. And any holders of all non-eliminated debt would get new, consolidated checks to 'spend'.

      This sounds dangerous, but it was, in a sense, self-regulated...only the rich could even write checks, and as they had to pay back all money they owed people, they weren't going to keep 'issuing' check-money.

      Incidentally, that example is stupid. What if the money hadn't come full circle? Then the hotelier would owe some out-of-town person $100 and be unable to pay! (Which is a lot different from owing some money to someone down the street.)

      It's even stupider, because it not only assumes 0 liquid cash, but that no bank exists that would lend anyone any more money. (Which then raises the question of how, exactly, everyone 'owes' all this money in the first place.)

      --
      If corporations are people, aren't stockholders guilty of slavery?
    21. Re:Accounting by WillDraven · · Score: 1

      Except the debt to the government who wants 10% of each of those transactions.

      --
      This is my sig. There are many like it but this one is mine.
    22. Re:Accounting by DavidTC · · Score: 1

      No, he's (sorta) right, because he's disagreeing with how idiots think is a 'gold standard' works, whereas you're disagreeing with how one actually work

      The problem with a money supply that doesn't expand (or contract) at the right speed is what you said. That's why we can't have a gold standard. (Hell, there isn't actually enough mined gold in the world to operate our economy.)

      However, if you have a money supply that can't expand at all, not even via fractional-reserve banking, forget small problems like 'crushing economic contraction'...you've got bigger problems to worry about.

      A gold standard does not, per se, disallow fractional reserve banking (Like, duh, existed for all of US history on the gold standard), although most proponents of the gold standard seem to think otherwise. They seem to think that, under a gold standard, all 'money', even numbers on computers in banks, would literally be backed by a piece of gold. That all money 'actually exists as gold'. This is what hasdikarlsam is arguing against.

      That would possibly be the stupidest economic system known to man. 'Price deflation' is one of the saner issues we'd have under that silliness.

      For example, people owing money would reduce, slightly, the money supply instead of expanding it. (Assuming you can actually loan people money at all, and debtors don't have to have 'anti-gold' in a warehouse somewhere.) With someone actually removing even a tiny amount of money from circulation, and without the ability to make money out of thin air, if only for a few seconds, this could actually result in 'wedged' economies like hasdikarlsam said, like a damn traffic jam or something.

      The idea of this happening to the entire US economy, however, is crazy...although a gold standard is itself crazy, and lacking fractional-reserve banking is so far crazy it can't see land, so I'm not sure it makes sense to talk about what is 'crazy' under that inconceivable system.

      So, yes, he's wrong, that a 'gold standard' doesn't result in that dumbness, as under a gold standard you'd just borrow, aka, create out of thin air, money from the bank and pay in a circle. But many 'gold standard' morons seem to think 'gold standard' = 'every individual dollar anywhere is backed with a piece of gold for it'. And they think we should go 'back' to that. (Here's a fun question...ask them how the banks failed under the 'gold standard' during the Great Depression. They won't be able to explain it, because they have no idea what they're talking about.)

      --
      If corporations are people, aren't stockholders guilty of slavery?
    23. Re:Accounting by dangitman · · Score: 1

      Whoever he got the $100 to refund the rich man from. He gave the $100 from the rich man to the grocer, so he has to get another $100 from somewhere.

      --
      ... and then they built the supercollider.
    24. Re:Accounting by dangitman · · Score: 1

      How so? Please explain your reasoning. Where does the Hotelier get the $100 to refund the rich man, after he already used it to pay his grocer?

      --
      ... and then they built the supercollider.
    25. Re:Accounting by hasdikarlsam · · Score: 1

      For the most part, you're right. The early-20th century gold standard had a lot more in common with modern economics than most of those people would like to admit.

      I've seen them argue that the reason it failed is *because* it had fractional reserve banking, however. You know, because that meant people couldn't all get their gold out.

      I've also been reading about the economic system (or lack thereof) of 17th-century Russia, whose largest problem was a lack of money - caused, again, by a lack of fractional reserve banking. It's definitely not a purely theoretical problem, just an outdated one.

    26. Re:Accounting by Anonymous Coward · · Score: 0

      and the hotelier is out of 200$ he should have earned.

    27. Re:Accounting by Anonymous Coward · · Score: 0

      I've seen them argue that the reason it failed is *because* it had fractional reserve banking, however. You know, because that meant people couldn't all get their gold out.

      Well, strictly speaking, the banks still 'fail' if they do not have fractional reserve. I mean, even if they can only loan out only the actual money they have...that still means they don't have it.

      OTOH, lack of fractional-reserve banking wouldn't have stopped the actual Depression at all, and the bank failure, frankly, didn't really have much to do with anything. On the third hand, it's entirely possible the economy couldn't get large enough to 'crash' anyway...it's like how an airplane without wings cannot, in fact, 'crash'.

      In the modern world, the current economic system is not the problem. The lack of controls on the major players, and the fact the major players are so big, is the problem.

      I've also been reading about the economic system (or lack thereof) of 17th-century Russia, whose largest problem was a lack of money - caused, again, by a lack of fractional reserve banking. It's definitely not a purely theoretical problem, just an outdated one.

      England in the middle ages ran into the 'lack of money' problem once.

      They solved it, IIRC, operating as if there was fractional reserve banking, where people would write checks for money they did not have in the bank, and then they'd trade said checks as if they were money, and at the end the bank would end up with all the checks and they'd hopefully cancel out. I.e, 'pull' fractional-reserve banking instead of 'push', where you just pretend you got loaned the money and everyone goes along with it, even the bank. (This only worked because only rich and important people could write checks.) It was sorta half-way between fractional-reverse banking and fiat currency.

      I can't remember any more of the details, though. Not even when it happened.

      And, yeah, 'out of money' actually happened a few times in 'modern' history, and presumably happened a lot more before that. Ironically, without fractional-reserve banking, under a 100% literal gold-backed system, the only way out of the problem of 'not enough physical currency' is to mine more money...which causes exactly the issue that gold-freaks thinks gold would solve. Permanently. (Whereas with fractional-reserve you can make money out of thin air and then have it magically vanishes by changing interest rates.) Heh.

  52. Re:Seems like the bandwidth has already been paid by LordVader717 · · Score: 1

    Actually, google itself is not making any content either. Its users are.

    Maybe not the content, but they're providing a very expensive service. The huge amount of storage space, the development that goes into the platform and the data centers operating all over the world are what makes youtube so usable.

  53. 'dumb pipes' by affenhund · · Score: 2, Insightful

    That's what they should be, they are ISPs...

  54. Re:Seems like the bandwidth has already been paid by IBBoard · · Score: 5, Insightful

    Some European telecoms groups fear Google will reduce them to 'dumb pipes'

    That is really all that they are, or at least should be. They are not content providers, they are merely facilitators.

    Maybe their concern is that it'll become obvious to everyone that they're dumb pipes, and that they're dumb pipes whose business model, pricing infrastructure can't cope with piping all that well.

  55. The funny thing is... by lattyware · · Score: 1

    Youtube can live longer without these ISPs than the ISPs can live without youtube. If users can't access youtube, they'll happily switch ISP to get at it.

    --
    -- Lattyware (www.lattyware.co.uk)
  56. They are NOT "dumb pipes". by TapeCutter · · Score: 1

    Not picking on you personally but will you people stop calling them "pipes", anyone with half a clue about the interwebs knows they are called "tubes".

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    1. Re:They are NOT "dumb pipes". by Anonymous Coward · · Score: 0

      Not picking on you personally but will you people stop calling them "pipes", anyone with half a clue about the interwebs knows they are called "tubes".

      You can't blame people for confusing tubes with pipes when the people running them specialise in dispensing sewerage.

    2. Re:They are NOT "dumb pipes". by GORby_ · · Score: 1

      Yeah, but the people with a whole clue call them pipes :-)

  57. Telecoms Providers Are The Free Riders by WarwickRyan · · Score: 1

    They're right that someone's getting a free ride - only it isn't google.

    My telecoms provider sold me my contract for a connection to the internet on the basis of the ability to:

    -Download Music
    -Download Films
    -Watch TV & Videos online
    -Play Games online
    -Email, chat and web

    How much are they paying Google et al for that?

  58. Solution: Stop peering with Google by Stuntmonkey · · Score: 4, Insightful

    Duh. STFU and just stop peering with them if you don't want the traffic. Of course then your customers won't get anything back when they request pages from Google. Good luck with that. Maybe they'll feel better when you pass along all your network cost savings to them. Right.

    Bullshit PR aside, the facts are plain: Your continuing to peer with Google is proof you believe you derive positive economic value by serving Google's content. Given this reality, maybe now you can explain carefully why Google owes you something?

    And when you're done answering that question, how about this one: Why is it that with TV distribution it's the cable providers paying the content providers, not vice versa as you'd propose Google do? Why shouldn't you be owing them money, for turning your dumb pipes into something people will pay $50 a month for?

    This is journalism? Does the Financial Times just run press releases now?

  59. I'm sorry! by bazorg · · Score: 2, Funny
    It's all my fault. My apologies to the ISPs. When I worked at Customer Service for one in the days of dial up, clients would ask whether visiting web sites abroad would add extra cost to their phone bill. I told them that no, all internet traffic is the same, you only pay to get to the ISP, the rest of the way is covered by the ISP.

    Now it seems that my innocent advice ruined everything... I'm sorry.

    1. Re:I'm sorry! by Anonymous Coward · · Score: 0

      No wonder you're not in that job anymore! You were supposed to say that, yes, due to an oversight the phone company was not properly billing and will add the long distance charges to the customer's bill starting next month. Furthermore a bill will also go to each of the sites the customer visits, scaled by the amount of data they download from each site. This is especially true for the "unlimited" plans where the total monthly bill has no limit (that's what "unlimited" means, right?). Customers should use the connection privilege sparingly so as not to incur excess charges.

      Bandwidth problem solved.

  60. jealous by Anonymous Coward · · Score: 1, Insightful

    I heard those comments months ago in Spain from Cesar Alierta, CEO of Telefonica. He sounded flamboyant and depreciative, almost threatening his own clients to cut the pipes if Google would not share their benefits with them.

    TELEFONICA is been called TIMOFONICA ( scam-o-fonica) by spaniards for years for their greedy approach to the business, with all the benefits they made during the .com bubble era and the consistent poor service, and high prices they delivered during the 90's when they where an almost monopolistic ISP in Spain. Now that they are been side-tracked by new business models that make benefits out of offering 'gratis' services they are suddenly surprised for not been able of making loads of money by barely making their job, and they are simply jealous.

    Let me tell you something: we are all ready to show then our middle finger.

  61. Where did you get the info on Murdoch owns FT? by Anonymous Coward · · Score: 0

    FT has been with current company for a long time and Murdoch does not own this company.

  62. The real problem by spectrokid · · Score: 1

    The real problem is that many mobile ISP's (like Telefonica) have unlimited data plans on mobile phones. Guess what; some people actually use those. Big ooops. But not all countries have this, so it is unlikely they will be able to get Google to pay for their stupidity.

    --

    10 ?"Hello World" life was simple then

  63. Nonsense by pydev · · Score: 1

    The bandwidth google uses is paid for: by ISP customers. Those customers just happen to choose to go to Google. Furthermore, there is additional accounting of bandwidth done at the point where large ISPs interconnect; any imbalances are negotiated and paid for there. But, of course, ISPs don't have any leverage there either, because if the throttled connections to Google, their customers would go elsewhere.

    What these ISPs want is to impose additional costs on Google (which Google somehow has to recoup) so that their services become more attractive in comparison. These companies want government to intervene to give their uncompetitive offerings a boost in the market.

    And they are right: Google turns them into dumb pipes. And why not? These companies are there to provide cheap connectivity. We don't want them in the content business and we should actually pass laws preventing telecom companies from doing anyhing with content.

  64. Re:If YouTube Must pay then every tiny site must p by Anonymous Coward · · Score: 0

    no, just call that one ISP's bluff and wait for them to cut off their own customers.

    when they keel over and die with no customers left you can stick their head on a spike as a warning to the rest of the ISPs

    (people *will* change their ISP if they get dicked around like that, so google won't lose them for long)

  65. Better negotiation. by samson13 · · Score: 1

    Peering links are the subject of negotiation and the ISPs don't seem to understand their position.

    I pay for my internet link. I'm not providing anything my ISP wants other than cash. I pay a competitive rate cause my ISP has competition that I'd churn to.

    The lower link tier ISPs pay for their uplinks because the higher tier ISPs provide a service they want.

    Google gets good deals cause they pay heaps for data centers and their own comms links and the ISPs that they peer with save when they connect.

    If somebody said they could save me 6-7% of my upstream charges if I gave them a port on my router I'd jump at that deal.

    If you don't like the deal that google is offering don't accept it. You just have to pay your upstream peers for the traffic. If you don't like the deal they are offering either churn to somebody else or don't offer access to the complete Internet. I guess that if you didn't offer access to the complete Internet then your subscribers would churn to somebody who did.

    One of the advantages of the Internet is the tiered structure. I pay my ISP to negotiate the routing with their peers/providers. They pay for their access and hopefully have agreements for local routes that make that cheaper.

  66. What you reap, is what you sow. by unity100 · · Score: 1

    do you think this is a coincidence, right 2-3 days after the u.s. courts killed net neutrality in favor of comcast ?

    1. Re:What you reap, is what you sow. by John+Hasler · · Score: 1

      The Federal courts didn't "kill net neutrality". They told the FCC that it must follow the law and not make rules in secret.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  67. Darius by Anonymous Coward · · Score: 0

    Your kidding right ? i'm paying my ISP for the bandwidth what's youtube got to do with that ? Now quite sure i understand the reasoning for some kind of pay.

  68. Re:Seems like the bandwidth has already been paid by Aceticon · · Score: 3, Insightful

    I notice that all on the companies mentioned are ex-state-owned companies. Basically they're the old monopoly telecoms who got to lay the telephone lines in the past using taxpayer's money and later got privatised, keeping ownership of all that infrastructure.

    Even though in most (maybe all) of the countries where those companies are based laws were passed forcing them to provide access through their lines to any company wanting to work as an ISP (a boon to competition and why Internet access is faster an cheaper in most of Europe than in the US) they are still meaningful because they own the last-mile infrastructure and get paid by ISPs that use those lines to provide Internet access.

    They still retain many of the bad habits from their days as a state own monopoly (big, fat and uncompetitive) and have only remained in their positions because of the huge barriers to entry in the landline telecoms infrastructure business.

    Given that I would say that these big, fat behmots are worried about high-bandwith Internet services because they have in fact not updated the infrastructure:
    - Until now they were relying in advances in xDSL technology to provide ever increasing speeds on top of the existing POTS copper lines. This improving of xDSL technologies is now slowing down while at the same time government have suddenly discoverd it's fashionable to rant about the need for universal high-speed Internet access to "liberate Europe's creative energies" and "Create the jobs of the future". This means that a critical mass is building that would lower the barriers to entry (or make it a better investment) to lay fiber-to-the-home.

    Once other companies have replaced enough of the installed base of last-mile POTS copper wires with fiber these guys (who never had to face any real competition in the landline telecoms business) will likelly shrink to nothingness.

    This is why they're trying to hold the tide.

  69. Re:Seems like the bandwidth has already been paid by Zaphod+The+42nd · · Score: 1

    somebody mod parent up I have no points but he's sitting at 0 and I agree with him 100%!

    --
    GCS/MU/P d- s:- a-- C++++$ UL++ P+ L++ E+ W++ N o K- w--- O M+ V- PS+++ PE Y+ PGP t+ 5- X R++ tv+ b++ DI++ D++ G+ e++ h-
  70. Double-dipping is not unheard of by tepples · · Score: 1

    Then why my telecom is [charging] me a monthly fee?

    For the same reason that channels on basic cable TV collect money from both the cable operators and the advertisers.

    1. Re:Double-dipping is not unheard of by mr_mischief · · Score: 1

      That's not true at all. The local OTA broadcaster holds copyright to their broadcast. The cable company pays them a license to retransmit that data. The ISPs do not hold the copyright to the data being transmitted by someone else. This is more like the cable company (ISP, transferring someone else's data) demanding payment from the broadcaster (Google, the provider of the data).

    2. Re:Double-dipping is not unheard of by tepples · · Score: 1

      As I understood aitan's comment, (s)he was claiming that a company is only allowed to have one revenue source for a given product; anything more is unethical double-dipping. I gave an example of a company with two revenue sources: advertisers and cable operators.

    3. Re:Double-dipping is not unheard of by mr_mischief · · Score: 1

      Having two revenue sources for two different services (providing broadcast time to advertisers and providing a copyright license to a cable operator) isn't double-dipping.

      Trying to get two revenue sources for providing the same service (moving data from Google to the user who requested it and moving data from Google to the user who requested it) is double dipping.

    4. Re:Double-dipping is not unheard of by stiggle · · Score: 1

      You mean like the **AA collecting a fee from the radio stations, then also demanding a fee from companies who have a radio playing in the background as its a 'public performance'.

    5. Re:Double-dipping is not unheard of by mr_mischief · · Score: 1

      Yeah, like that. If anything, the radio station should be the one charging (because it's their broadcast). They don't because they're selling ads based on those listeners.

      The RIAA shouldn't want to charge either, because their sales are largely driven by radio and Internet streaming. The RIAA is too greedy to allow a possible source of revenue go to build bigger sources. They're just a bunch of greedy, short-sighted bullies trying to hold a dying business model with their tightest grip. They need to learn that digital distribution is cheap, easy. and can be really profitable.

  71. Re:Grrr.... evil moves by purpledinoz · · Score: 1

    Deutsche Telekom is pretty damn evil. Try to cancel your subscription if you're leaving the country. Good luck...They will charge you every which way possible. Oh, and they charge per minute for customer service. Try to move your connection to your new apartment. Sorry, that requires that you sign a new 2 year contract. Oh, and when you finally do, it will take months before they switch you over. And they will switch it over incorrectly the first 3 times.

  72. Google needs to send the bill to ISPs by Anonymous Coward · · Score: 0

    Google to ISPs: We are spending an awful lot of money on providing content to your users, without us you wouldn't exist. Please pay 1 cent per video downloaded last monts (send bill to ISP)

    ISP to Google: We won't pay.

    Google to ISP: you have 30 days, or we will stop providing your network with free content.

    ISP to Google: Uhh, ohh, can't we just be friends and call it even ?

  73. Why do they deny what they are by pyrosine · · Score: 1

    They are dumb pipes.. when are they going to realise this? No one looks to ISPs to provide them content, except from those that choose to have an email account with them.

  74. Insane quotes by roman_mir · · Score: 1

    From France:

    César Alierta, chairman of Telefónica, said Google should share some of its online advertising revenue with the telecoms groups, so as to compensate the network operators for carrying the technology company's bandwidth-hungry content over their infrastructure.

    "These guys [Google] are using the networks and they don't pay anybody," he said.

    Mr Alierta said that if no revenue sharing agreement was possible between the internet search engines led by Google and the network operators, regulators should supervise a settlement.

    More from France:

    Stéphane Richard, France Telecom's new chief executive, said: "Let's see the development of digital society in terms of the winners and the victims. And today, there is a winner who is Google. There are victims that are content providers, and to a certain extent, network operators. We cannot accept this."

    From Germany:

    René Obermann, Deutsche Telekom's chief executive, said Google and others should pay telecoms groups for carrying content on their networks.

    "There is not a single Google service that is not reliant on network service," he said. "We cannot offer our networks for free."

    And this common theme:

    To increase the pressure on Google, the telecoms groups are interested in finding common cause with content owners such as media companies, which get little or no money from the technology company when it aggregates their content on Google News.

    All of the above mentioned people can suck Googles Googly balls and then the balls of the collective of every customer who subscribes to their pathetic services and will immediately switch to another provider and probably will participate in an antitrust lawsuit.

    This is why NET NEUTRALITY is important yet once more! This is what the greedy slimy pathetic leechy bloodsucking parasitic vomit-inducing bastards that these corporations are want from you.

    1. Re:Insane quotes by John+Hasler · · Score: 1

      > This is what the greedy slimy pathetic leechy bloodsucking parasitic vomit-
      > inducing bastards that these corporations are... ...semi-private ventures in which your governments are by far the largest (more than 25%) shareholders.

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  75. They ARE dumb pipes! by Anonymous Coward · · Score: 0

    That's all an ISP is supposed to be. Customers pay ISP for access to the internet (Google pays ITS ISP for access to the internet), paid for network traffic travels between Customer and Google.

  76. Re:Grrr.... evil moves by Yaa+101 · · Score: 1

    France Telecom is actually worse, they make their workers suicidal because they also try to suck the lives out of them, the management of France Telecom are vampires.

  77. That is ALL they are! by Anonymous Coward · · Score: 0

    DUMB PIPES

  78. Re:Seems like the bandwidth has already been paid by mcvos · · Score: 1

    Maybe not the content, but they're providing a very expensive service. The huge amount of storage space, the development that goes into the platform and the data centers operating all over the world are what makes youtube so usable.

    Same with telcos. The communication lines they provide from my home to internet exchange centers and from there to all over the word, are what makes internet so usable. It's still dumb pipes, though. Like Google, they provide capacity rather than content.

    The business models are different, though: telcos are paid by their users, Google is paid by advertisers, so it can be free for users. If telcos start changing their business model, I expect my internet connection to be free.

  79. Re:Seems like the bandwidth has already been paid by mcvos · · Score: 1

    Technically Google doesn't buy lots of bandwidth nowadays, the way people might imagine. They instead hook directly to many peers and at the backbones.

    That kind of network isn't free either. Google pays for its bandwidth by building their own network. They still pay.

  80. Re:Seems like the bandwidth has already been paid by Vintermann · · Score: 1

    And they are dumb, too, although that was optional.

    --
    xkcd is not in the sudoers file. This incident will be reported.
  81. Re:Seems like the bandwidth has already been paid by TedRiot · · Score: 1

    The problem seems to be that at least here the Telecoms are not happy anymore selling just the "dumb pipes", but they want to also try and sell services. They see it as unfair that they are late in the game and someone is already providing free (for the consumer) services that they have a hard time competing with.

    I am an example of a very bad customer, since I don't buy my ISP's video on demand, mailboxes, computer security packages, backup services and many other services. I just want a pipe and the bandwidth from them.

  82. Greedy scum by Anonymous Coward · · Score: 0

    They are already being paid by their customers for the bandwidth used. What do they expect? to be paid twice!

  83. I think the ISPs should pay by Yaos · · Score: 1

    Just think of all the people that sign up for Internet service because of youtube, and not a single ISP is paying Google for this privilege.

  84. Re:Seems like the bandwidth has already been paid by kramerd · · Score: 1

    There is no Zaphod the 42nd agrees with the post moderation.

  85. Paywalls by bl968 · · Score: 1

    Note that FT.com operates on a "first few per month free" paywall basis.

    If you stop visiting them, if you stop linking to them, they will either open up or die. Either way it's no big loss.

    --
    "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    1. Re:Paywalls by s1lverl0rd · · Score: 1

      Linking to them is OK. No-one here reads the articles anyway :)

  86. Google acquisition of ISP! by syockit · · Score: 1

    We shall see Google acquiring ISP all over the globe in 3...2...1...

    --
    Democracy is for the people; you only vote once per season and we'll do the rest of the work for you don't have to.
  87. ...'dumb pipes'... by John+Hasler · · Score: 1

    Um, yes. That's what they are.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  88. Re:Seems like the bandwidth has already been paid by mr_mischief · · Score: 1

    I guess when you build out fiber and peering stations you get that for free. Here I come, top 5 network providers!

  89. Re:Seems like the bandwidth has already been paid by rendermaniac · · Score: 2, Interesting

    If they aren't dumb pipes does that mean the ISP's will pay Google as part of the settlement if someone successfully sues youtube? If they want to play that game it has to work both ways.

  90. In other news... by LihTox · · Score: 1

    Telecoms are also demanding a share in the profits of any business transaction conducted via telephone. "Companies have been getting a free ride for too long now, using our services to make a profit, and it's time we get our fair share." This follows the announcement by the Wall Street Journal that they will start suing people who make money off of the stock market after perusing the Journal's stock quotes, without giving Murdoch a cut of the profits.

  91. What. The. Fuck? by AmonTheMetalhead · · Score: 1

    The telco's are already being paid by me, the paying customer (one who's being bled dry in Belgium if you actually want a usefull connection), they can go STFU.

  92. Re:Seems like the bandwidth has already been paid by Threni · · Score: 1

    Perhaps Google should become an ISP. They'd hardly agree to giving money to other ISPs and they could punish the annoying ones by stopping/slowing traffic from Google's own servers.

  93. Cuts two ways by Anonymous Coward · · Score: 0

    I think it's completely reasonable: the telecoms companies should charge Google for transmitting bits, and Google should charge the telecoms co's for access to Google and Youtube. It would be interesting to see whether telecoms customers were that keen on an internet service that didn't include the world's most popular sites.

    Honestly, it turns out that the internet is a network of networks! You transmit data in order that your data is transmitted. If you decide not to play ball, others won't play ball with you. And in a battle of you vs the world, there's a predictable outcome.

    This may seem like a great idea to these companies right now. It won't look like such a good plan when they understand the extent to which they are dependent on the goodwill of others. Refer to SCO for a lesson in being a good community member.

  94. Common carrier status by janrinok · · Score: 1

    "Common carrier status"

    As far as I know, there is no such thing in Europe - it is an American status, not one that is applicable worldwide.

    --
    Have a look at soylentnews.org for a different view
    1. Re:Common carrier status by HarrySquatter · · Score: 2, Informative

      And in the US it has never applied to ISPs no matter how many times it is falsely claimed on Slashdot that ISPs are common carriers.

  95. Let's see...would it work for FedEx? by HikingStick · · Score: 1

    Customers pay to have access to request files and get the content they want. Some telcos want the content provider to pay to upload that content as well. I wonder if that model would work for FedEx. Imagine a package being shipped from company A to customer B. Company A already pays for the shipping--a cost typically passed on to the customer. What if FedEx wanted a payment on each end--a charge to company A for picking up the shipment and a charge to customer B for delivering it? I don't think anyone would tolerate that, because the company is getting paid twice for the same shipment.

    I realize that transfers along data networks are a little different, because the file may enter the stream on one network and then exit the stream via another, but it still seems like the telcos are trying to milk the cow from both ends.

    --
    I use irony whenever I can, but my shirts are still wrinkled...
  96. If Google pays for the traffic... by MyOtherUIDIsLower · · Score: 1

    ... will it be free for the telecom's customers?

    --
    My other UID is lower than this one.
    1. Re:If Google pays for the traffic... by Culture20 · · Score: 1

      ... will it be free for the telecom's customers?

      Yes. With a minor €0,01 fee for shipping and handling per packet*. That's peanuts compared to the competition!


      *Packet size shall not exceed 12772 bytes for residential connections or 65542 for business class connections. Business class connections are assessed an additional OMG You're a Business like Google Fee of €Googol/month.

  97. Re:Grrr.... evil moves by dkf · · Score: 1

    The higher suicide levels among France Telecom employees seems to be true. The article I read on it (in the Economist IIRC) said that it was probably something to do with it being a privatized form where things were not going too well in internal-management terms. (I may have misremembered that.)

    --
    "Little does he know, but there is no 'I' in 'Idiot'!"
  98. Re:Seems like the bandwidth has already been paid by somersault · · Score: 1

    they could punish the annoying ones by stopping/slowing traffic from Google's own servers.

    I think that would be seen as Bad by most legal systems.. and by most Google employees in fact.

    --
    which is totally what she said
  99. Analogy by RHaddon · · Score: 1

    That's like asking car manufacturers to pay road tax :-/ Amazingly retarded... these telecoms companies (aging dinosaurs) are just pissed cause they cant compete with the success of Youtube, just cause they oen the 'pipes' they want to own everything on them also.

  100. I'm confused. I thought you could make money, by BenEnglishAtHome · · Score: 1

    In fact, I thought you could make *lots* of money being a "dumb pipe" provider.

    What's wrong with being a profitable provider of infrastructure?

  101. Re:Seems like the bandwidth has already been paid by guruevi · · Score: 1

    Everybody "peers" at some point. As an end-user (and most website owners too) we don't have enough money to peer with any of the big players. That's why we peer with our ISP's (or host our servers at somebody else's datacenter) to provide this peering. We don't necessarily pay for bandwidth (as those agreements may vary from dedicated bandwidth pipes to pay-per-bit bandwidth) but we all pay to peer to other networks.

    Google is big enough that they can peer themselves. They chip in at the point of the core routing infrastructure just like all the other ISP's, datacenter etc. Google is it's own private ISP. When ISP's want Google to pay for bandwidth usage on their networks, they would (if they were honest) also have to start charging/paying each other to use each other's bandwidth whether it be their customers BitTorrenting between each other or connecting to a server in a datacenter.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  102. Re:Seems like the bandwidth has already been paid by LordVader717 · · Score: 1

    I didn't say they weren't. But it's apples and Oranges. Youtube is a service which relies on IP traffic, whereas telcos sell Internet connections to facilitate just such traffic. As far as they are concerned, Youtube traffic is the content that the customers want, and have paid for.

  103. This is ridiculous. by bluefoxlucid · · Score: 1

    Okay, let me explain how the Internet works.

    First off, I pay an ISP -- AT&T, Qwest, Level 3, whatever, someone leasing their lines and paying them maybe -- for access to the Internet. That means I plug into your shit, you plug into your Tier 1 provider's shit (if you're not Tier 1), and the Tier 1 providers are all plugged in to each other.

    Now, another person pays an ISP for the same thing. This person might have an agreement much different than mine; they may be an ISP buying a hook-up to Qwest, for example. Or maybe they're a content provider, and they've got a contract that says they can have so much upstream. At any rate, they pay someone, they plug into the Internet.

    Okay, get this.

    I'm paying you for access to the Internet.

    They're paying their service provider for access to the Internet.

    Since we both have access to the Internet, we can both communicate.

    Guess what? Your agreement says I have access to those resources and I can connect to them. Their agreement says they have access to the Internet and I can connect to them. Nobody owes you anything, we all already paid.

  104. Maybe Google should charge them by symbolset · · Score: 3, Interesting

    Google is now providing the traditional email, storage and content services that were once part of the expected role and expense of running an ISP.

    --
    Help stamp out iliturcy.
    1. Re:Maybe Google should charge them by commodore64_love · · Score: 1

      Ironically, this is the ISPs' own fault.

      My ISP *could* continue providing POP email and usenet newsgroups, but they have voluntarily chosen to drop them. So now I have to turn elsewhere. It's their own damn fault.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    2. Re:Maybe Google should charge them by zarthrag · · Score: 1

      And if ISPs don't pay up, google should cut THEM off! I could only imagine how fast customers would *scatter* from an ISP that won't/can't access youtube.

      --
      Why can't all fpga/microcontroller manufacturers just release free optimizing compilers???
  105. Forcing Google to provide service & pay as wel by jjo · · Score: 1

    It seems to me that the audience the telecoms are addressing are the European regulators. What the telecoms want is for government to set a price for the bandwidth Google is "using", and to force Google to continue "using" this bandwidth and to pay the government-set price. The key is to get a mandate both that google owes the telecoms (and not the other way around), and that Google is obliged both to continue providing its services and to pay for the privilege.

    From the telecom's point of view, it's a neat trick if they can pull it off.

  106. grr by Galestar · · Score: 1

    Some European telecoms groups fear Google will reduce them to 'dumb pipes

    This is exactly what a telecom company SHOULD be. They should concentrate on telecom and NOT on content.
    One could almost argue that telecom companies ganging up on a company like Google is anti-trust - using an oligopoly in one industry to leverage another.

    --
    AccountKiller
  107. Re:Seems like the bandwidth has already been paid by Culture20 · · Score: 1

    How dare you give them profit (but not as much as they hoped)! Just imagine if a restaurant owner acted this way. "Google, you ordered thirty six-foot sub sandwiches for your giant party, but you didn't buy our drinks, which are our biggest profit margin. How dare you use canisters and a rented fountain dispenser? We can't do business with you any more."
    Of course, that analogy doesn't make sense; it's more like a store owner that Google pays to have its Nexus One phone put on a endcap for high visibility, Google provides the Nexus One (content), and People buy it from the stores. Hmm, I just realized that according to this latest analogy, the store owners(ISPs) should be paying Google for the Nexus One (content), otherwise, no one could buy it at the stores.

  108. Oh, There's Always Sabre Rattling by Greyfox · · Score: 1

    Usually from some dumbass who doesn't understand the business. Like a CEO. Or Rupert Murdoch. Why doesn't it go farther than that? I assume Google either threatens to cut those ISPs off completely from their services, or they point out that (at least in the USA) they have enough dark fiber around to deliver faster, better internet to any given service area. Either option would be a death blow to most ISPs.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  109. I find ISPs amusing by archangel9 · · Score: 1

    Dear ISP:

    I am considering signing up for X Mb/sec, I expect to be able to use it, and 24/7 if I wish. What is this "acceptable use" and "monthly bandwidth limit" wording in the contract? How can you possible advertise a bandwidth rate, ask me to sign a yearly contract, then renege within your own wording and say I can only have X GB/month? By my calculations, X rate over Y time = much more than you say I am entitled to. Are you engaging in bait-and-throttle tactics here?

    Sincerely,

    Mom

  110. They *are* dumb pipes, ideally. by therealkevinkretz · · Score: 1

    What do customers need from their ISP other than connectivity to other services on the Internet? Most ISPs have stopped offering NNTP service, and I don't think most people use their ISPs e-mail servers. All I want from my ISP is "dumb pipe" service.

    1. Re:They *are* dumb pipes, ideally. by northernfrights · · Score: 1

      That was my exact response. That's all ISP's have ever been, that's what we pay them to be, that's all we ever wanted. It's scary that they feel entitled to try to be anything else.

      If they want to make money from content, they need to start providing it, not leech off those who do it well.

  111. fuck's sake by Anonymous Coward · · Score: 0

    you're telecoms groups, you're supposed to be "dumb pipes". Charge me a fee, give me bandwidth, stay the fuck out of the way. Stop trying to control my traffic.

    Beyond time for a wifi mesh internetwork anyway.

  112. Internet as Road/Walkway by kai6novice · · Score: 1

    I think Government / User should start thinking Internet as "Road" in real life. It should be a government's job to make sure the road is good, and free for everyone (from tax). No private company should dictate how many time you can walk on the "Road" (Internet) and how popular you're (such as Youtube). If that's the case, then New York City should start charging all retail store or company that attract so much tourist into Manhattan for the "Road" that they maintains.

  113. They *are* dumb pipes! by argent · · Score: 1

    Some European telecoms groups fear Google will reduce them to 'dumb pipes' because the internet search and advertising company pays the network operators little or nothing for carrying its content.

    That's because they *are* dumb pipes. That's their bloody job, moving bits around. That's all I'm paying my ISP for... I don't use their portal or email account or anything. Get used to it... you worked hard enough to become dumb pipes, throwing out services that you could actually provide more efficiently than websites like Usenet... you made your bed, sleep well.

  114. I pay the ISP for the bandwidth by jprupp · · Score: 0

    I live in Switzerland, and I pay a pretty hefty price to my ISP for the bandwidth I consume. What content I access from my computer through their network and how much data I can transfer to and from my systems is stated in a contract I made with my ISP. I would not condone my ISP forcing Google through government force to pay _again_ for the bandwidth I'm paying them for. Fortunately it seems my ISP isn't on the list, lest I would break contract with them right now for being abusive. I wish they just try to block Youtube to their customers if Google doesn't pay. I bet they would go bankrupt in a month. It is Youtube and bandwidth-hungry services that fuel the need for large bandwidth. Were Youtube not to exist, and those ISPs would have a hard time selling their high-bandwidth broadband services to customers that wouldn't need them for anything. ISPs _are_ dumb pipes, they need to get over it or start being competitive doing some other business. These ISPs on the list seem like the kind of corrupt corporations willing to immorally extract money from anyone they can. I hope they all die a horrible death.

  115. An honest question by webdog314 · · Score: 2, Insightful

    I agree that they are dumb pipes, however, that got me thinking about the arrangement I have with my cable company. What's the difference between the data (content) I am receiving over my net connection, and the data (content) I am receiving as my television service? I don't mean the bits and bytes here, I mean the actual content. My cable company would like to call themselves a 'content' provider, but they aren't making those television programs, they are simply passing them to me through a pipe. That being said, why should that part of my service be any different from my internet?

    This is sticky because I realize that the actual content providers GET PAID to have their shows broadcast/provided. Does that mean that the internet is upside down? Should the local ISP's actually be paying Google for their content?

    1. Re:An honest question by WNight · · Score: 1

      Should the local ISP's actually be paying Google for their content?

      Yes, far sooner than Google should be paying to be accessible.

      I'm paying for that bandwidth, to send encrypted backups to my ISP, game, or search on Google - it's not theirs anymore, it's MINE, and want open unrestricted access.

      I really hope ISPs do this though, because it's be funny to see Viacom vs Google - find out who customers want to deal with and who's just the local monopoly...

      I might not believe "Do no evil", but Bell Canada's motto is "Fuck 'em hard." I know who I'll choose.

    2. Re:An honest question by complete+loony · · Score: 1

      One obvious difference is that the content they are providing is served from within the cable companies network. While "normal" internet traffic must travel through their network links to/from other networks. Typically ISP's share the maintenance cost of these links based on the ratio of data that travels in each direction.

      --
      09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
  116. free market would sort this out by TechBCEternity · · Score: 1

    If google said we're not paying tough

    and an ISP blocked them, their customers would just leave for another ISP

  117. Usury is the ultimate sin. by Fantastic+Lad · · Score: 2, Interesting

    Remminds me of the story about the rich man and the poor village....A rich man walks into a hotel in a poor village where all the bussinesses are in debt. He gives the hotelier $100 for a room on the condition that if he doesn't like it he will take the money back and leave. The hotelier gives him the keys, confident the rich man will like the room he takes the $100 and pays the grocer for the food he bought on credit. The grocer takes the $100 and pays back the farmer the money he owes him, the farmer uses it to pay back the blacksmith who then goes to the hotel to pay off his debt to the hooker who in turn gives it to the hotelier for past rent. The rich man comes back dissatisfied with the room, takes the $100 and leaves the village. Nothing has changed but the village is now debt free.

    And that's is how things would work in a sane world. (Minus the prostitute.)

    And by "Sane" I mean, "Free of Usury". In fact, things would work even better than that, because the Sun keeps pumping energy into the system. The planet is one gigantic solar collector. Logically, scarcity should only ever be a temporary situation at the worst of times because there is simply so much raw energy freely available. But that's not how it works in reality. Why?

    Because of the cowardice of the Dark Side and their fear of the Universe and their resulting desire to control all variables so that nothing can hurt their precious, delicate little selves.

    I've been trying to boil the idea down to a single sentence. I've not quite managed it yet, but this is what I've got so far to explain how the world has been set up in the ultimate con job. . .

    All the money in the world is provided by the banking system. The way all of that money first gets into circulation is by being borrowed by the public and by governments. Borrowing is done at interest. If the banks decide to call in all of those debts, then all the money in the world is now gone. Except interest is still owing. So where does the money come from to pay that interest?

    The money isn't the valuable thing. Debt IS, because it automatically creates slaves.

    The banks create slaves, and thus control over the entire populace.

    That's the con job. It is exactly this simple, and it is exactly how it was intended to work by those who created it.

    The way out of the trap is to unplug from dependence upon interest bearing currency. There are many ways to do this. Can you think of any of them? Double points to those who can solve for the big ticket items, such as housing.

    Have a nice day!

    -FL

    1. Re:Usury is the ultimate sin. by Anonymous Coward · · Score: 0

      Remminds me of the story about the rich man and the poor village....A rich man walks into a hotel in a poor village where all the bussinesses are in debt. He gives the hotelier $100 for a room on the condition that if he doesn't like it he will take the money back and leave. The hotelier gives him the keys, confident the rich man will like the room he takes the $100 and pays the grocer for the food he bought on credit. The grocer takes the $100 and pays back the farmer the money he owes him, the farmer uses it to pay back the blacksmith who then goes to the hotel to pay off his debt to the hooker who in turn gives it to the hotelier for past rent. The rich man comes back dissatisfied with the room, takes the $100 and leaves the village. Nothing has changed but the village is now debt free.

      And that's is how things would work in a sane world. (Minus the prostitute.)

      And by "Sane" I mean, "Free of Usury". In fact, things would work even better than that, because the Sun keeps pumping energy into the system. The planet is one gigantic solar collector. Logically, scarcity should only ever be a temporary situation at the worst of times because there is simply so much raw energy freely available. But that's not how it works in reality. Why?

      Because of the cowardice of the Dark Side and their fear of the Universe and their resulting desire to control all variables so that nothing can hurt their precious, delicate little selves.

      I've been trying to boil the idea down to a single sentence. I've not quite managed it yet, but this is what I've got so far to explain how the world has been set up in the ultimate con job. . .

      All the money in the world is provided by the banking system. The way all of that money first gets into circulation is by being borrowed by the public and by governments. Borrowing is done at interest. If the banks decide to call in all of those debts, then all the money in the world is now gone. Except interest is still owing. So where does the money come from to pay that interest?

      The money isn't the valuable thing. Debt IS, because it automatically creates slaves.

      The banks create slaves, and thus control over the entire populace.

      That's the con job. It is exactly this simple, and it is exactly how it was intended to work by those who created it.

      The way out of the trap is to unplug from dependence upon interest bearing currency. There are many ways to do this. Can you think of any of them? Double points to those who can solve for the big ticket items, such as housing.

      Have a nice day!

      -FL

      Exponential growth (i.e. interest) is the logical consequence of a system where energy that is collected can be reinvested in energy collectors. When we reach the point where we're collecting all of the universe's energy output I'll agree with you.

    2. Re:Usury is the ultimate sin. by Fantastic+Lad · · Score: 1

      Exponential growth (i.e. interest) is the logical consequence of a system where energy that is collected can be reinvested in energy collectors. When we reach the point where we're collecting all of the universe's energy output I'll agree with you.

      The quantity of available Money doesn't expand or contract as a direct consequence of energy availability. Money's availability is arbitrarily controlled by the lenders, and never without creating interest debt. Thus, simply having more energy to spend doesn't mean systemic debt decreases.

      Put another way. . .

      Growing more potatoes doesn't magically create more dollar bills. Until you can pay your interest debt off in potatoes, the system remains fundamentally broken. Do you see?

      -FL

    3. Re:Usury is the ultimate sin. by acohen1 · · Score: 1

      Someone recently watched Zeitgeist: The Movie?

    4. Re:Usury is the ultimate sin. by Fantastic+Lad · · Score: 1

      Someone recently watched Zeitgeist: The Movie?

      Not enough someones, if you ask me. Though that rather excellent film is just one very small piece among a great many valuable articles of information available to people today. Luckily, nothing is truly hidden if one spends the time looking, so there's really no good excuse to not be actively attempting to solve the problems presented by the world. -Other than simply not having the brains or the will to grow.

      So here's a question for you: are you just another smarmy coward at the back of the class hiding behind dismissive jokes or is there some meat on your bones?

      Waking up takes repeated shocks.

      Zap.

      -FL

    5. Re:Usury is the ultimate sin. by acohen1 · · Score: 1

      Actually I did rather like it, and Addendum adds quite a bit as well. I just think its a bit funny when people repeat things from it almost verbatim. Excuse me for being cynical.

    6. Re:Usury is the ultimate sin. by jwdb · · Score: 1

      So where does the money come from to pay that interest?

      Easy: it comes from the value created by human work. Here's an exaggerated example:

      Baker loans $2 from the bank, owes $3 with interest.
      Baker buys $1 worth of flour from the farmer, turns it into 3 sandwiches worth a dollar apiece.
      Baker sells one sandwich to the farmer, repays the loan with the $2 plus a sandwich.
      End result: loans are paid off with the value of the farmer and baker's work, and everyone profited (they all have a sandwich).

      A perfectly functional system, if you stop assuming that only cash has value.

  118. ISPs shoud pay search engines by pentalive · · Score: 2, Interesting
    Actually, Google is a product that the ISP's provide to draw their customers. As are every other website on the Internet. Perhaps the ISPs should be paying Google and other search engines for making things on the Internet easy to find.

    Just think - If the only websites you knew about was the ones that you found by clicking links on websites that you started with or ones you learned about from other people. For example: Digg or Slashdot would lead to many new sites, but pdp11.org might not take you much out of it's content realm. A vast portion of the Internet would be unavailable.

  119. Re:Seems like the bandwidth has already been paid by Dog-Cow · · Score: 1

    The store owners do pay Google (or HTC) for the phones. That's why they are called resellers.

  120. Dumb Pipes always by pentalive · · Score: 2, Insightful

    They were dumb pipes even before... Imagine how it would be if they were not, you are talking on the phone with a friend and one of you mentions Pizza, suddenly a local Pizza delivery place is connected in to the conversation and asks if you would like to order a Pizza (You and your friend were actually just talking about how the Pizza made you both sick recently)

    Or even more chilling, one of you mentions some thing that, taken out of the context of your conversation, seems dangerous or illegal - and the phone call is dropped. You were planning an attack in World of Warcraft or one of the Battle Simulators and click, no phone call anymore.

    No Telcos have *always* been dumb pipes.

  121. Re:Seems like the bandwidth has already been paid by Culture20 · · Score: 1

    I wasn't talking about phones. I was talking about ISPs, Google, and bandwidth. Phones were analogies.

  122. Let's see... by Anonymous Coward · · Score: 0

    google pays its end of the deal to connect. check.

    customers on these isp ends pay their monthly fees, check.

    if these fuckers wanna double dip in such a greedy manner, try that shit on your customers..

    oh wait they wont tolerate it? oh! then why do you think a multi-billion dollar company will?

    shut the fuck up, last miles. if you hate the internet so much, stop carrying it and let smaller companies who wish to provide internet run the show.

    I dunno how it is in europe, but in the US, last miles are almost 100% subsidized by taxpayer dollars, "their" infrastructure is really the government's by proxy, and by another proxy, the taxpayer's. The taxpayer sure isnt getting a free ride, neither is google.

    If anyone's getting a free ride, it's these phone companies.

    pot meet kettle.

  123. Dumb pipes going away? by flanders123 · · Score: 1

    Yesterday, ESPN told me I could watch video of a baseball game live on ESPN3.com. However, when I clicked the video, it said that my ISP was not an "ESPN3 affiliated service provider".

    I am guessing ESPN3 charges ISP's to access the video streams, not unlike how broadcasting companies charge cable / satellite companies to carry their channels.

    I think we all share a laugh when data service providers complain about being dumb pipes, because that is exactly what they are and should be. But if this move is successful for a monster like ESPN, expect others to follow....not good for us consumers.

  124. Re:If YouTube Must pay then every tiny site must p by Anonymous Coward · · Score: 0

    youtube already costs too much to run as it is. If these retarded taxes and fees are charged, youtube in Europe would no longer be profitable. And "do no evil" does not mean "take one for the team"
    google as a corporation would rather cut their losses than subsidize funny cat videos for the euro zone.

    if these are passed through, expect proxy networks to become big business.

  125. The media companies angle shows how stupid this is by ET3D · · Score: 1

    "To increase the pressure on Google, the telecoms groups are interested in finding common cause with content owners such as media companies, which get little or no money from the technology company when it aggregates their content on Google News."

    If the telecoms say that media companies are right in asking for money for access to their content, then the telecoms should pay the media companies, since they aggregate their content, giving the user one data pipe to access the entire internet. Basically (by this argument) the telecoms should pay Google, which in turn should pay the media companies.

  126. Re:Seems like the bandwidth has already been paid by corbettw · · Score: 1

    Basically they're the old monopoly telecoms who got to lay the telephone lines in the past using taxpayer's money and later got privatised, keeping ownership of all that infrastructure.

    You say that like no one had to pay for the companies and their infrastructure. When a state-owned business is privatized, it is sold off to investors, either through shares or lock, stock, and barrel (shares can also be given away to citizens, but this type is far less common). So the state, and by extensions the tax payers, are compensated for the costs involved in building out the infrastructure.

    So when you say these new private enterprises "kept" the ownership of the infrastructure, you're betraying your profound lack of knowledge in how these things work. Which means everyone can safely ignore the rest of your post, however coincidentally insightful it might be.

    --
    God invented whiskey so the Irish would not rule the world.
  127. Conflict of Interest by pentalive · · Score: 1

    It should be some form of illegal 'conflict of interest' for a company to be both a content provider and an ISP. No company can do both. That includes subsidiaries of a bigger company. I suppose we can't prevent board of director mixing though.

  128. Re:Forcing Google to provide service & pay as by John+Hasler · · Score: 1

    > From the telecom's point of view, it's a neat trick if they can pull it off.

    Well, given that the "regulators" are also their largest shareholders...

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  129. double dipping by viridari · · Score: 1

    The ISP's customers have already paid for this bandwidth. This is just pure greed.

  130. Re:Seems like the bandwidth has already been paid by pentalive · · Score: 1

    Actually, I think the taxi driver want you to pay him to take you to the Hotel, but then wants the hotel to pay him for *everyone* *any taxi* delivered in that day.

  131. Re:Seems like the bandwidth has already been paid by cynyr · · Score: 1

    peering arrangements is a form of payment, just not paid in cash, but in a service. Otherwise the carriers would not have agreed to it.

    --
    All of the above was encrypted with a Quad ROT-13 method. Unauthorized decryption is in violation of the DMCA.
  132. They should've seen it coming by Anonymous Coward · · Score: 0

    Back in the the day the telcoms were in charge with their SS7 networks etc. which had intelligence in the network and nodes (voice mail etc.) and dumb end points(phones).

    By embracing the Internet (end-to-end, stupid network, rich end points) they became nothing more than dumb pipes. With QoS etc. they try to go back to what it was, by turning the net into something it's not - controllable.

  133. They need to change the commercials by Anonymous Coward · · Score: 0

    (insert telecom)'s services will ad value to your company's business, but not that much value, well... at least not obscene amounts of value.

  134. Re:Solution: Stop peering with Google by Anonymous Coward · · Score: 0

    Your analogy with the cable providers is a bit flawed given the fact that cable providers all provide different type of content and charge according to wich content channels they provide, whereas internet is one big chunk of content, and users are not interested in buying a fragmented internet. Also, internet is unicasting, whereas cable is multicasting, meaning that infrastructure charges with cable are constant. With the internet, infrastructure costs tend to rise with time, with the amount of customer remaining constant.

    It would be a pleasure to continue this conversation with you.

  135. Re:Seems like the bandwidth has already been paid by Maxo-Texas · · Score: 1

    Aye... the taxi driver is saying, "You are going to see a block buster movie in my cab. The people that made the movie owe me some money!"

    So your charge for the ride is different depending on if you are going to pick up groceries (the farmers owe the cab driver money) or to a lawyer (the lawyer owes the cab driver money) or for a tryst with your mistress (your mistress owes the cab driver oral sex).

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  136. Well... by vegiVamp · · Score: 1

    Dear ISPs, you *are* dumb pipes. We pay you for the transference of bits over your network. Google pays their ISPs for the transference of bits over their networks. You and the other ISPs can either bill each other for the bits that come from one network onto the other, or forego that mostly pointless excercise and build general agreements in the ilk of "you pump my bits and I'll pump yours". This is called peering, and while your marketing and/or financial departments may not actually be aware of it, you are already doing it.

    In other news, the water companies want the grenadine manufacturers to pay them because they're transporting lemonade ingredients over their facilities, and they shouldn't have a free ride - they're not dumb pipes, after all.

    --
    What a depressingly stupid machine.
  137. Re:Seems like the bandwidth has already been paid by Aceticon · · Score: 1

    You seem to have setup your own strawman and proceeded to attack it in your argument.

    I never said that the values for which those companies were sold did not reflect their ownership of the infrastructure.

  138. Re:Seems like the bandwidth has already been paid by corbettw · · Score: 2, Funny

    No, but you implied it by saying the previous incarnation of these companies had their infrastructure paid for with taxpayer funds, then the new private companies got to "keep" that infrastructure. They didn't keep it, they bought it.

    Words have meanings, and if you can't be bothered to use the right ones to convey your thoughts you're going to continue to have misunderstandings like this. You need to do a better job of expressing yourself.

    --
    God invented whiskey so the Irish would not rule the world.
  139. Re:Seems like the bandwidth has already been paid by Maxo-Texas · · Score: 1

    You know... they attract too much attention to this the EU will realize this is a cash substitute and hit them with a vat.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  140. Re:Seems like the bandwidth has already been paid by Krneki · · Score: 1

    Some European telecoms groups fear Google will reduce them to 'dumb pipes'

    That is really all that they are, or at least should be. They are not content providers, they are merely facilitators.

    Maybe their concern is that it'll become obvious to everyone that they're dumb pipes, and that they're dumb pipes whose business model, pricing infrastructure can't cope with piping all that well.

    No, their business model if fine, they make a lot of money, they just, you know, want more money.

    --
    Love many, trust a few, do harm to none.
  141. All facts wrong by Anonymous Coward · · Score: 0

    1. Iceland is not a member state.
    2. Greece and Poland are bigger than most EU members.
    3. Greece has gotten very, very generous help from the EU so they're certainly not complaining.

    1. Re:All facts wrong by commodore64_love · · Score: 1

      >>>2. Greece and Poland are bigger than most EU members.

      In size Wyoming is one the biggest US members, but it's near last in terms of economic size. Ditto Greece.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    2. Re:All facts wrong by Anonymous Coward · · Score: 0

      You didn't explicitly state that you refer to "economic size" and now you evidently wish to elaborate that that's what you meant since you hope that you're right then. But instead of hoping, you should've checked facts. Since you didn't, your attempt at nit-picking failed. Greece has a higher GDP than most EU members.

  142. Let the farmer's pay for trhe beef too by cdn-programmer · · Score: 1

    Scene from Wendy's:

    Customer walks to the counter and order's a burger. Wendy's business model says the customer should pay and the customer does and enjoys the burger.

    Wendy's goes to the BEEF supplier and says: Where's the BEEF? We need more! The Beef supplier complies. Wendy's hands them a bill and tries to walk off with the BEEF. Wendy's figures they are just providing a BEEF distribution service.

    What most people don't know is that this happened to my Grandfather during the Great Depression. He was a Saskatchewan farmer and shipped a calf to Toronto. They sent him a bill because the calf didn't fetch enough to cover the transportation costs.

    My Grandfather shipped no more calves to Toronto. Maybe some people in Toronto went to bed hungry.

    In fact the telecommunications industry has been double dipping for YEARS. Google may well be able to negotiate a peering arrangement. The VAST MAJORITY of companies that provide internet content are NOT in a position to peer. So they pay for the privilege of providing free content for the telecommunications industry and clients who are often mum and pop ISP's.

    Google might have enough clout to fight this. Most content suppliers have no chance. This is a very unfair business model. The ones who pay the price are the consumers who might be missing out on websites created by some very talented people. Then we have web masters and graphics artists many of whom spend a great deal of time and money one school and tuition while learning their craft. They are looking for careers that might not materialize.

    How many people remember the Dot.Com Bubble? For those interested in economics I'll provide this link to Eric Janszen's website: http://www.itulip.com/ Eric writes of the technology bubble in a number of articles.

    Eric writes that the action of the FED after the technology bubble burst leads directly to the housing bubble and the present recession. The issue is that a lot of the reason the tech bubble burst is _because_ there was no workable business model. Companies that tried to create internet content went bankrupt.

    Look here: http://www.harpers.org/archive/2008/02/0081908

    How many billions of dollars were lost by investors as the internet unfolded and the dream of "if we build it they will come" unfolded? Well - we did come. Unfortunately there was no money in it for those who were living the dream!

    I say the greed of the telecommunications oligopoly had a lot to do with this.

  143. Re:Seems like the bandwidth has already been paid by HarrySquatter · · Score: 1

    Except the GP never said laying fiber was free. He said, and rightfully so, that Google doesn't buy bandwidth the way people imagine that they do. The way they "buy" bandwidth is by laying their own fiber and hooking into other peers.

  144. Let the farmer's pay for the beef! by cdn-programmer · · Score: 1

    Scene from Wendy's:

    Customer walks to the counter and order's a burger. Wendy's business model says the customer should pay and the customer does and enjoys the burger.

    Wendy's goes to the BEEF supplier and says: Where's the BEEF? We need more! The Beef supplier complies. Wendy's hands them a bill and tries to walk off with the BEEF. Wendy's figures they are just providing a BEEF distribution service.

    What most people don't know is that this happened to my Grandfather during the Great Depression. He was a Saskatchewan farmer and shipped a calf to Toronto. They sent him a bill because the calf didn't fetch enough to cover the transportation costs.

    My Grandfather shipped no more calves to Toronto. Maybe some people in Toronto went to bed hungry.

    In fact the telecommunications industry has been double dipping for YEARS. Google may well be able to negotiate a peering arrangement. The VAST MAJORITY of companies that provide internet content are NOT in a position to peer. So they pay for the privilege of providing free content for the telecommunications industry and clients who are often mum and pop ISP's.

    Google might have enough clout to fight this. Most content suppliers have no chance. This is a very unfair business model. The ones who pay the price are the consumers who might be missing out on websites created by some very talented people. Then we have web masters and graphics artists many of whom spend a great deal of time and money one school and tuition while learning their craft. They are looking for careers that might not materialize.

    How many people remember the Dot.Com Bubble? For those interested in economics I'll provide this link to Eric Janszen's website: http://www.itulip.com/ Eric writes of the technology bubble in a number of articles.

    Eric writes that the action of the FED after the technology bubble burst leads directly to the housing bubble and the present recession. The issue is that a lot of the reason the tech bubble burst is _because_ there was no workable business model. Companies that tried to create internet content went bankrupt.

    Look here: http://www.harpers.org/archive/2008/02/0081908

    How many billions of dollars were lost by investors as the internet unfolded and the dream of "if we build it they will come" unfolded? Well - we did come. Unfortunately there was no money in it for those who were living the dream!

    I say the greed of the telecommunications oligopoly had a lot to do with this.

  145. What the ISPs don't understand is this: by Anonymous Coward · · Score: 0

    Google's existence is one of the only reasons that many people pay to use your bandwidth in the first place.

    Without Google and without Google's sites like YouTube, there is no reason for most people to have high-bandwidth connections.

    Google depends on people having high-bandwidth connections, but more than that, the ISPs depend on Google; they depend on there actually being content available, because without that content from companies like Google, most people wouldn't have a need for an internet connection.

  146. Google, come have free bandwidth from us! by amorsen · · Score: 1

    Google is lucky enough that most ISP's are eager to peer with them just to avoid having to pay their transit providers for the traffic. The ISP I work for would happily string a 1Gbps to pretty much anywhere Google wanted to in Denmark, and allow Google free access to our customers. Alas, we're too small, and when there was talk about making all the small and medium-sized ISP's in Denmark gather in one place and offer Google an exchange point, Google said no. Denmark doesn't have enough traffic to make it worthwhile for Google to bother with a national exchange point.

    If the large transit providers start playing hardball with Google, Google can bypass them for a whole lot of customers. The only other content providers I know of in similarly enviable positions are Youtube (which is Google again) and Akamai.

    --
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  147. More Murdoch-ese? by Anonymous Coward · · Score: 0

    Isn't the FT owned by one Rupert Murdoch? He's currently winding-up the nanny-state muppets who buy The Sun regarding Facebook's unwillingness to put a useless button on their site "to protect children". The button in question links to one of the fake charities that plague the UK (this one being CEOP). Following the money leads to.....MySpace, a Murdoch-owned competitor (in his eyes, at least), hence his
    Murdoch is scumbag and I hope Facebook are able to sue for defamation/libel/whatever they can throw at him.

  148. In other words... by Nerdposeur · · Score: 2, Funny

    "How dare you provide the interesting, high-bandwidth content that help us sell our high-priced internet connections! We want a piece of that action!"

    Yes, ISPs, it's time to demand your rights! And the movement is growing:

    • Electric companies are suing air conditioning manufacturers for creating demand for electricity. "Our power plants can't keep up with these cooling freeloaders," they complain.
    • Beer companies are suing bars for creating demand for beer. "If you didn't push beer so hard, our drivers wouldn't have to make so many trips," they say.

    Justice will roll like a mighty tide!

  149. Re:Seems like the bandwidth has already been paid by DavidTC · · Score: 1

    Google, you ordered thirty six-foot sub sandwiches for your giant party, but you didn't buy our drinks, which are our biggest profit margin. How dare you use canisters and a rented fountain dispenser? We can't do business with you any more.

    Actually, that would be a fairly reasonable thing to do. Once profit margins get below a certain point, it makes sense to concentrate on other business, even if you're still 'making a profit' there. Perhaps they have a fixed amount of sandwich-making capacity and would really like to sell them with drinks. (Of course, the real solution is to charge more for sandwiches and less for drinks, but presumably their prices are some sort of 'people are stupid and overpay for drinks' trick and makes sense for them.)

    But that's not this. This is more like having a sandwich store next door to a zoo and demanding that the zoo start paying the sandwich place for 'providing' food that people eat while strolling through the zoo.

    Phrased that way, that makes sense for about a half a second. People just came to the store/ISP and paid for something, which they then ate/used while using someone's else stuff for free. No one owes anyone anything.

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    If corporations are people, aren't stockholders guilty of slavery?
  150. Re:Seems like the bandwidth has already been paid by NeutronCowboy · · Score: 1

    I'm not sure whether that is your point or not, but you make it sound as if the behavior of these European ISPs is due to their state history.

    It isn't. What these ISPs have realized is that in the current Internet format, they are relegated to stodgy, low-growth, dumb-pipe company status. These types of companies stagnate in their share price and have CEOs who do not go anywhere, don't get golden parachutes and certainly do not get rock-star billing.

    That's the problem right there. Every telecom CEO knows this. They know that they can make money and an honest living as a dumb-pipe infrastructure provider. But they don't want that. They didn't get to be CEO because they're happy with what they have. If they want to be hailed as a superhero CEO and get a $100 million compensation package, they know that they need to transform their companies into being at the core of the Internet. And the only way that that can possibly happen is through tiered pricing (where the tiers consist of sites, not data rates) and legalized protection racket for successful websites.

    Down that road is madness. But these people don't care. This is exactly the fight that everyone was worried about: the fight to keep the intelligence on the edges of the network, and away from the inside.

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    Those who can, do. Those who can't, sue.
  151. ISP = Evil? by Ornlu · · Score: 1

    When was the last time any ISP was in the news for doing something *not* evil?

    I honestly can't remember...

  152. Telecoms should go to regulators, really by ableal · · Score: 1

    Telcos bill their customers for data, and want to go to the regulators to also charge Google/etc. Fine. But, while the regulators are looking into it, perhaps they could also look into things like the "4 euro/week" subscriptions to wallpapers and ringtones, plus the premium SMS charges for 1-in-30 drawings of movie tickets, etc. The telcos' cut of those interesting money-transfer operations may not be big enough.

  153. Let me get this straight... by Anonymous Coward · · Score: 0

    Telecoms really want google to pay for the bandwidth usage generated in response to explicit requests by the customers of the telecom? What fantasy land do the execs in these companies think their living in?

    This is why we have peering arrangements to improve connectivity and lower transit costs. At some point this means ultra popular sites rightfully get a "free ride" as telecoms naturally want to peer directly to lower their transit costs and more is sent than received.

    What I would do if I were google is partner with Akami or roll my own content server for videos and other static high bandwidth content that telecoms will want to co-locate in their data center for free so that requests for videos are resolved locally lowering the telecom transit costs and providing better service to their end users.

    Like peering good network engineering is all about finding creative win-win solutions *NOT* about whining about link utilization and acting like a spoiled little bitch.

  154. American "culture" is retarded by Anonymous Coward · · Score: 0

    Actually they're not to be found because YOUR culture SUCKS so badly you can't sell intelligent programming in the American market. Nevermind the fact that Americans are such IDIOTS they don't know any other languages and can't stand subtitles.

    I know he's a troll, but I still feel like replying because I've thought about it a lot. The average American idiot is the reason the US creates such a lot of crap, and we [Europeans] get exposed to the same thing later. At least *we* have some real quality of our own [but a lot less in quantity].

    The troll also tries to create the illusion that it's somehow "American" companies involved. We all know that a lot of the global Internet traffic is controlled by huge European companies (Telefonica, TeliaSonera etc).

    Why don't you get off the European invention called the World Wide Web (See Tim-Berners Lee (British) @ CERN, Geneva, Switzerland).

  155. Re:Solution: Stop peering with Google by sootman · · Score: 1

    Maybe they'll feel better when you pass along all your network cost savings to them.

    LOLOLOLOL. You owe me a monitor cleaning. :-)

    Great point. I think the concept of "pass the savings along to the consumer" died about a generation and a half ago.

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  156. Dumb pipes by sjames · · Score: 2, Interesting

    If the ISPs don't want to be just dumb pipes, they will have to meet the requirements. Firstly, they must stop being dumb. As long as they are dumb, they won't advance. To not be just a pipe, they'll have to build something else their customers will want more than they want google. I suggest they get busy hiring the world's best and brightest for premium salaries and start building various internet based services that their customers actually want enough to willingly forgo access to google.

    If they are dumb and all they have built is a pipe, they shouldn't be surprised that they are considered to be a dumb pipe.

  157. Re:Grrr.... evil moves by donatzsky · · Score: 1

    25 suicides or so.
    The problem that FT has (apart from being a dinosaur) is that most of their employees are functionaries, so they can't sack them (even regular employees are difficult to sack here in France, but at least it's doable). What they did then was that they shuffled people around into positions and places that management knew they wouldn't like, hoping they would quit on their own. This practice has since been put on hold.

  158. Re:Seems like the bandwidth has already been paid by Anonymous Coward · · Score: 0

    Just imagine if a restaurant owner acted this way. "Google, you ordered thirty six-foot sub sandwiches for your giant party, but you didn't buy our drinks, which are our biggest profit margin. How dare you use canisters and a rented fountain dispenser? We can't do business with you any more."

    I hardly have to imagine. I used to go to a sub shop and get the cheese veggie sub (cheapest) and a free cup of water. One older women there obviously hated me and started charging me for water.

  159. Re:Seems like the bandwidth has already been paid by Threni · · Score: 1

    I doubt "legal systems" care, as they only care about breaking the law, and Google doesn't have to trade with anyone.

  160. Re:Seems like the bandwidth has already been paid by somersault · · Score: 1

    What I mean is that it would probably break antitrust laws in several countries as it could be seen as it could be seen as taking advantage of monopoly conditions if they started purposely treating non Google ISP customers as 2nd rate citizens, effectively forcing everyone over to their own service.

    --
    which is totally what she said
  161. Re:Seems like the bandwidth has already been paid by Anonymous Coward · · Score: 0

    I'm sure that they did, as you say, buy the infrastructure rather than just having to keep it. I'm equally sure that, in most cases, insiders and cronies of one stripe or another got to buy it for a small fraction of its original value, probably in exchange for all kinds of promises that the buyers never kept and never intended to keep.

  162. No Surprise At All by billstewart · · Score: 1

    Yes, a few years ago a telco president made some bone-headed remarks like that which were echoed by other bone-headed telco presidents, and public opinion spanked them very loudly, even before Google had acquired YouTube. It won't happen again in the US. Europeans like to talk about this sort of regulation, so they can get away talking for a while until reality sets in. Asia's a much more diverse market, ranging from countries like Korea which have huge bandwidth to everybody's home and short distances (so it's not a problem) to China with its well-known censorship problems to places that still act like they've got monopoly telcos run by politically-powerful rich families (even though they're technically deregulated) to places that still run networks on barbed-wire.

    Eyeball connectors need content providers and vice versa. Access to content is why people buy fast broadband connections, whether that's canned content or peer-to-peer. It makes financial sense for any connectors and providers who are big enough to matter to peer with each other, especially in markets like Europe which have large exchanges so you don't have to do long-haul part yourself (or buy it from a long-haul carrier.) Any broadband eyeball connector company that doesn't want to peer with Google is free not to, but especially in a competitive market, they risk losing most of their customers who to carriers who will let them watch videos of cats doing silly things. Also, as one content provider said to me once, we're peering with carriers A, B, and C, and if you don't want to peer with us, you're peering with all of them so you'll just get the same bits the hard way and miss the last-mile sale.

    Pure long-haul carriers are in a slightly different situation, since they need to do business with the broadband eyeball connectors and the content providers, and get money somehow. It's probably more annoying to them to haul YouTube around unless somebody's paying them, but they usually don't do free peering with geographically concentrated players, and at least in the US, Google's supposedly hauling most of the bits around themselves.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  163. Can someone please tell me how Google were able to by AzuMao · · Score: 1

    I don't understand this at all. They were able to upload hundreds of terabytes of data without paying anything, and everybody who used Google's didn't have to pay to download the stuff? How is this possible? It seems like it would be charged not zero times, but twice; once for Google to upload it, and again for whoever downloads it. How do I watch a bunch of HD videos on YouTube without paying my ISP? How do I host tons of HD videos without paying my hosting provider? I'd really like to do this too! How come everyone else can except me?

  164. Fools all by Falcon+Kirtaran · · Score: 1

    I'm not sure I understand the argument those ISPs are presenting. They feel that google should pay them for what, exactly? Distribution? That's not quite how the Internet works - you don't push things out to your users like that. Users pay their ISPs to get their packets to their destinations. Accordingly, there is really nothing wrong with being a dumb pipe as an ISP. That is what you are being paid to do. I'm not really sure what more it is these ISPs want to get into (or why). There are also implications for network neutrality here. If it suddenly matters what you are doing with the packets (providing a service, for instance, or uploading things generally), and ISPs are allowed to develop a paradigm that differentiates services from each other like they were television channels, network neutrality will be no more.