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Time Warner Defends Comcast In Level 3 Dispute

MojoKid writes "On December 21, the FCC will finally vote on adopting net neutrality rules. This may (or may not) have been caused by Comcast's spat with Level 3 after Level 3 won a big contract to handle Netflix's video streaming. Grind it all together, output it to Facebook and you get this campaign: 'Save the Internet: Stop Comcast from Blocking Netflix. Without strong net neutrality rules, companies like Comcast can demand fees from innovative companies like Netflix in an attempt to choke consumer freedom and coerce users to adopt its own video services instead.' Comcast insists that this has nothing to do with blocking the upstart Netflix's business but about how much of Level 3's traffic it must carry before they get to send Level 3 a bill. Level 3's traffic has greatly increased thanks to Netflix. On Thursday, Comcast's frienemy, Time Warner, issued a statement of support for Comcast that explained the pro-cable provider side of the fight."

315 comments

  1. Double Dipping? by Anonymous Coward · · Score: 0

    Doesn't Netflix pay Comcast for bandwidth already? Why do I need to pay beyond my subscription when Netflix is already paying for the bandwidth?

    1. Re:Double Dipping? by Squiddie · · Score: 1

      Because they need more money and they have a right to it because it's pro business to let them do what they want.

    2. Re:Double Dipping? by Anonymous Coward · · Score: 1

      No, Netflix does not pay Comcast anything. That is the entire dispute.

    3. Re:Double Dipping? by ByOhTek · · Score: 2

      One concept may moving to a credit card type funding model.

      If you charge the people who have less influence, or are more of a captive audience, in the deal, and then lower the prices or add perks to those who are not as much of a captive audience, then you get a lot more money through a large customer base. The people of the captive audience can't afford to buck the system, and the people who can don't know enough or care enough to.

      --
      Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
    4. Re:Double Dipping? by Anonymous Coward · · Score: 0

      I pay comcast for access. Netflix pays level3 for access. If comcast didn't get netflix, i'd switch to one who does. How does this benefit comcasts users other than make netflix cost more?

    5. Re:Double Dipping? by Anonymous Coward · · Score: 0

      AFAIK Netflix isn't being charged, Level 3 is. They had a peering agreement with Comcast a while back and Comcast feels that Level 3 violated it by massively increasing the amount of traffic that was routed over the peering connection. It's pretty much your typical peering dispute, but since Netflix is involved it has slight elements of a net neutrality issue.

    6. Re:Double Dipping? by Anonymous Coward · · Score: 0

      This isn't how it works.

      Even if Comcast drops Level3 completely, you will still get Netflix - Level3 will just pass off the traffic to someone who does peer with Comcast. It'll be slower than if Level3 directly peered with Comcast, but it will still get there.

      Netflix doesn't need to pay Comcast anything. Netflix is already paying Level3 to be their CDN. Level3 just now needs to pay for the bandwidth they're using.

    7. Re:Double Dipping? by theghost · · Score: 5, Insightful

      It is double dipping, but not like you think.

      I pay my ISP for bandwidth. ISPs want to charge Netflix for bandwidth too.

      If i'm using more bandwidth now because of Netflix, that should be between me and my ISP, but ISPs don't want to mess with that relationship for fear of pissing off customers and spurring real competition in the marketplace. It's cheaper to buy legislation mandating your business model than to compete.

      If we had real competition then net neutrality would be a non-issue because we could choose open networks over closed ones, but with the near-monopoly of the big operators in most markets, it's usually just a choice between their crappy service or another crappier, more expensive option.

      --
      The only thing necessary for the triumph of evil is that good men do nothing.
    8. Re:Double Dipping? by Anonymous Coward · · Score: 0

      But why is Level3 using Comcast's bandwidth? Isn't it the other way around? It's Comcast's customers who requested the traffic!

    9. Re:Double Dipping? by Anonymous Coward · · Score: 4, Informative

      That's the closest someone has come so far in this discussion, but it's not quite accurate. Comcast and Level3 had an agreement where basically they just swapped traffic for free. Each side sent approximately the same amount of traffic, so an even exchange seemed fair. Now that agreement is about to expire, and at the same time the numbers have changed significantly. Now Level 3 is sending significantly more traffic to Comcast than Comcast is sending back, so the previous "even swap" agreement no longer makes sense, since it's not, you know, even. Netflix and net neutrality really have nothing to do with any of this, and as much as it pains me to say this, I agree with Comcast (though I'll continue to pray that they die a slow death and then rot in hell for all eternity).

    10. Re:Double Dipping? by Danse · · Score: 5, Insightful

      This isn't how it works.

      Even if Comcast drops Level3 completely, you will still get Netflix - Level3 will just pass off the traffic to someone who does peer with Comcast. It'll be slower than if Level3 directly peered with Comcast, but it will still get there.

      Netflix doesn't need to pay Comcast anything. Netflix is already paying Level3 to be their CDN. Level3 just now needs to pay for the bandwidth they're using.

      Huh? Aren't Comcast's customers, the one's who are streaming Netflix, already paying for that bandwidth that they're using? This sounds like Comcast wanting to double-dip.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    11. Re:Double Dipping? by nharmon · · Score: 4, Interesting

      No, Netflix does not pay Comcast. They used to, in a sort of indirect way. Netflix used to pay Akamai, a content delivery network, to deliver streaming video to customers. Akamai does this by having data centers all over the place that can serve up content faster than anything centralized. And Akamai pays to link their data centers to Comcast so they can do this.

      Well, here comes Level 3. Traditionally a backbone provider, they go to Netflix with a sweetheart deal on delivering content. Netflix dumps Akamai for them, and Level 3 realizes they lack the bandwidth to Comcast needed to deliver Netflix's streaming video. So they want additional links to Comcast, like Akamai had, only they don't want to pay for them. And why? Because they're a backbone provider, peer links should be free.

      So Level 3, not wanting to pay Comcast (probably because those costs were not factored into what they charged Netflix), is playing the Network Neutrality card to provide CDN services under the guise of a backbone provider. But in reality Comcast isn't saying they are going to degrade Netflix traffic. But that they won't provide additional bandwidth for one service for free.

      At the end of the day the customer is going to pay Comcast to deliver that content one way or another. Whether it is directly in the form of higher internet prices, or indirectly through Netflix in the form of higher subscription fees; I see very little difference.

      Anyway, Comcast's letter to the FCC is worth reading.

    12. Re:Double Dipping? by SaroDarksbane · · Score: 1

      If only I had mod points. More people need to see this and understand what's really going on here before the "OMG NET NEUTRALITIES!" bandwagon starts up in full.

    13. Re:Double Dipping? by Kazymyr · · Score: 2

      Mod up. The end users are already paying Comcast for the bandwidth. Why should anyone else do it again?

      --
      I hadn't known there were so many idiots in the world until I started using the Internet -Stanislaw Lem
    14. Re:Double Dipping? by gorzek · · Score: 2

      Yeah, Level3 should already be paying for the traffic they send to Comcast's network. That's usually how peering agreements work: you pay for traffic that you send to another network, but not traffic that you are receiving. Uploading costs money, downloading doesn't. It's why most broadband service is structured with low upstream bandwidth.

      If Comcast doesn't like what Level3 is paying them to accept L3's traffic, they should renegotiate. It shouldn't matter if the upsurge in traffic is due to Netflix or streaming porn.

    15. Re:Double Dipping? by TheRaven64 · · Score: 3, Informative

      Because that's how peering works. If you buy a connection from an ISP, or a socket in a datacenter, then you pay the upstream provider for bandwidth. They typically pay a big upstream provider for their connection. Sometimes, however, two networks will agree that it is mutually beneficial for them to be connected and so will agree to peer - i.e. neither pays the other for transit. The definition of a Tier 1 network is one that only has peering agreements, or agreements where others pay for transit (i.e. pays nothing for off-network traffic, and may be paid for it). A Tier 3 network is one that only has transit agreements (i.e. pays for all off-network traffic). A Tier 2 network is one somewhere in the middle, with a mixture of peering and transit agreements.

      Typically, a peering agreement has an agreement that says that the amount of traffic flowing in one direction must be within some percentage of the amount flowing in the other direction. A lot of big ISPs have agreements like this, which are somewhere between a peering and a transit agreement - if the balance of traffic remains approximately equal, neither side pays, but if one side is sending more traffic to the other, then one side pays. Whether this counts as a peering or a transit agreement is largely based on which case is expected to be the most common.

      In this case, L3 and Comcast have an agreement which regulates the amount of traffic that L3 can send to Comcast without paying. Recently, however, Netflix has moved from their previous network provider to L3. This has dramatically increased the amount of data that is flowing from L3 to Comcast, so L3 is liable to pay.

      Normally, this would result in a fairly simple renegotiation of the peering or transit agreement, but because network neutrality is such a buzzwordy topic now, it's being spun as a network neutrality complaint, because Comcast operates a service that is vaguely similar to Netflix. All of the big networks and ISPs benefit from this, because it serves to muddy the waters surrounding network neutrality just as the FCC is about to rule on the issue, and detracts from the real issues at stake.

      Presumably the aim is for L3 and Comcast to convince the FCC that this is what network neutrality means, and get them to impose network neutrality rules that require them to come to the same sort of transit agreement that they would normally have reached anyway. Then the FCC and the politicians can claim 'we did our part for network neutrality', ignorant voters are happy because their politician stood up for something that the media told them vaguely was important and in their interests, the ISPs are happy because there is no real regulation on network neutrality. The average customers and small businesses are fucked, but no one cares about them.

      --
      I am TheRaven on Soylent News
    16. Re:Double Dipping? by Danse · · Score: 1

      I think Comcast (and others) charging both ends of a transfer for the bandwidth is the issue here. Comcast customers have been sold plans that allow them to transfer a certain amount of data. Why is Comcast trying to charge both the senders and receivers for that data transfer?

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    17. Re:Double Dipping? by Anonymous Coward · · Score: 0

      You're assuming a peering agreement where two parties swap traffic for free (a.k.a. settlement-free peering) is based on an "even swap". That ain't necessarily so. The peers may swap an uneven ratio of traffic for free as long as it's in their mutual interest, and ISPs do that all the time. As one of the parent posters noted, this traffic is requested by Comcast's users, and, as such, it *should* be in Comcast's best interest to forward that traffic to its paying customers. As another parent poster mentioned, Comcast would get this traffic via an alternative route anyway if they decided to de-peer with Level3. So, essentially, Comcast is just throwing a tantrum because they want to double-dip and people are calling them on it.

    18. Re:Double Dipping? by dfgchgfxrjtdhgh.jjhv · · Score: 4, Informative

      You need to ask your government why there is a lack of competition in the ISP market in your country.

      Network Neutrality is a non-issue used to cover up the real problem. It is only an issue at all in the USA.

    19. Re:Double Dipping? by zzsmirkzz · · Score: 1

      . Now Level 3 is sending significantly more traffic to Comcast than Comcast is sending back

      Yes, but they are sending it to Comcast's customers who requested it. It's not like the traffic is just being funneled through Comcast's network as a shortcut, Comcast is the end-point. It is their customers who are causing the increase in traffic, not Netflix/Level 3 - they are just the source. So instead of charging their customers more for their increased demand, Comcast is trying to charge Level 3 more for having data their customers desire. From my perspective it just seems backwards. Why should Level 3 have to pay Comcast to provide the data that Comcast's customers want and are paying Comcast to deliver? It's double-dipping, burning the candle from both ends, or however you want to put it and wrong.

    20. Re:Double Dipping? by morgan_greywolf · · Score: 3, Insightful

      Netflix doesn't need to pay Comcast anything. Netflix is already paying Level3 to be their CDN. Level3 just now needs to pay for the bandwidth they're using.

      Level 3 isn't using any of Comcast's bandwidth. Comcast's paying customers are requesting the videos from Netflix. Netflix pays for the bandwidth they are using from Level 3. Comcast's customers are paying for the bandwidth they are using from Comcast when the streaming video crosses their network.

      What Comcast would like to do is get paid from their customers and from Level 3 for the same data. That, my friend, is called double dipping.

      The bottom line is that if Comcast's customers found that Netflix was unacceptably slow, they would have to sign up with some other video-on-demand provider, and Comcast would like it to be them.

    21. Re:Double Dipping? by Guspaz · · Score: 0

      Because that's not how the internet works? You have to pay something (be it money, or accepting traffic) to connect to any network. Doesn't matter if you're a retail customer, or a network operator customer. You want to connect to the Comcast network and move data through it, you have to compensate them in some way.

      That's how it works for every single network operator on the planet... Why should Level3 get to connect to the network for free? If every network operator were required to let other network operators connect to them for free, where exactly is the revenue going to come from for ISPs that don't have any retail customers?

    22. Re:Double Dipping? by 0100010001010011 · · Score: 1

      So the solution is to have all Comcast users seed as many "Ubuntu Distributions" as possible. Equaling the bandwidth.

    23. Re:Double Dipping? by dfghjk · · Score: 1

      That's right. The fallacy here is that Comcast calls it "Level 3's traffic". It's not Level 3's traffic, it's their own customers' traffic that they've already been paid for.

    24. Re:Double Dipping? by Guspaz · · Score: 2

      If Level3 isn't using any of Comcast's bandwidth, I guess they won't mind then if Comcast shuts down all interconnections to Level3's network. Level3 can connect to Comcast's network through a third party.

      Comcast does not want to get paid twice for the same data. They want all people who connect to their network, regardless of who they are (cable customer or ISP customer), to compensate them in some way. That, my friend, is how the internet works. That is how every network provider in the world operates.

    25. Re:Double Dipping? by msauve · · Score: 1

      "Aren't Comcast's customers, the one's who are streaming Netflix, already paying for that bandwidth that they're using? This sounds like Comcast wanting to double-dip."

      zactly. Unless Level3 is somehow using Comcast as a transit network, in which case Level3 needs more peers, and Comcast has a right to bitch. But, I doubt very much that's the case.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    26. Re:Double Dipping? by memyselfandeye · · Score: 1

      I'm fairly sure this is a peering issue as has been stated many times. If Level3 is cut out of the private exchange, you'll still get Netflix, it will just take normal 'longer' transit routes to your house instead a shorter route at their private exchange(s).

      Why should Comcast have to foot the bill for power and equipment and maintenance so Level3 can send traffic to you faster? It's not like these are $99 Linksys routers we're talking here. With a near 1:1 ratio that might make sense, but I'm kinda thinking Comcast is actually not the bad guy here.

    27. Re:Double Dipping? by dfghjk · · Score: 1

      "But in reality Comcast isn't saying they are going to degrade Netflix traffic. But that they won't provide additional bandwidth for one service for free."

      Comcast has already been paid for that service by their own customers who are requesting the Netflix traffic. That's where the lie resides.

    28. Re:Double Dipping? by Guspaz · · Score: 1

      Comcast charges less to terminate traffic on their own network than to pass the traffic on to some other network... Comcast is trying to charge Level3 to move traffic over Comcast's network, just like every other network operator in the world.

      Imagine the telephone analogy. If person A wants to call person B, they must each pay for a telephone line. What you're suggesting is that the telephone company should give person A a free telephone line because person B wants to receive the call. No, that's not how it works. Both parties must pay for telephone lines to make calls through the telephone network.

    29. Re:Double Dipping? by postbigbang · · Score: 3, Informative

      No, that's not quite how the Internet works. You're describing the legacy telecom interconnect that masquerades as the theory behind the Internet. In the old days, SS7 was used as the message to charge/clear/balance long distance calls and 'wire time'.

      Comcast wants to make it tougher for Netflix to succeed over Xfinity offerings, because Xfinity competes directly at all levels with Netflix via Neflix's content delivery network/CDN, who is Level 3. Because the traffic is lopsided, e.g. downloads from L3 are huge, and the traffic from Comcast is small, Comcast feels they must charge for this imbalance.

      In reality, the Internet was conceived with one of it's principals as equal access- meaning that if you stick a leg on to the network, your run whatever traffic in an unimpeded fashion, no matter what direction, what time of day, what protocols, etc. To help QoS, you might be nice and respect various QoS protocols so as to not screw up isochronous media types, like audio and video. But Comcast doesn't believe in that. They believe their cable system is unique and God-given, and therefore, the rules do not apply to them. Netflix/L3 caved, because if they didn't, your next flick w ou ld l ook li ke th is.

      --
      ---- Teach Peace. It's Cheaper Than War.
    30. Re:Double Dipping? by msauve · · Score: 1

      "Uploading costs money, downloading doesn't. It's why most broadband service is structured with low upstream bandwidth."

      Huh? The asymmetry to users is because of the way subscriber connections tend to be engineered (like DOCSIS cable modems and DSL) - they're built on the assumption that a "home" user sends small requests and gets large responses, and so that's the way they balance the available broadband bandwidth between send/receive. At the peering level, all the connections are symmetrical - there's no difference in cost.

      Your website is aptly named - profound nonsense.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    31. Re:Double Dipping? by morgan_greywolf · · Score: 2

      Peering:

      Peering is a voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the customers of each network. The pure definition of peering is settlement-free or "sender keeps all," meaning that neither party pays the other for the exchanged traffic; instead, each derives revenue from its own customers. Marketing and commercial pressures have led to the word peering routinely being used when there is some settlement involved, even though that is not the accurate technical use of the word. The phrase "settlement-free peering" is sometimes used to reflect this reality and unambiguously describe the pure cost-free peering situation.

      (emphasis mine)

      That, my friend, is how the Internet works and that is how it worked from the beginning.

    32. Re:Double Dipping? by Alrescha · · Score: 1

      Comcast has already been paid for that service by their own customers who are requesting the Netflix traffic. That's where the lie resides.

      This.

      One wonders why Comcast doesn't have to pay Level 3.

      A.

      --
      ...bringing you cynical quips since 1998
    33. Re:Double Dipping? by Anonymous Coward · · Score: 2, Interesting

      Your ISP doesn't come after you for more money because they have already sold you that 5 mbps connection. You are not using more than your alloted 5 mbps so they really have nothing to come after you for. The problem is that they have oversold their bandwidth. They sold that same 5 mbps connection to you, and to your neighbors hoping that you all would not use enough of that bandwidth at the same time to notice. So when something like Netflix comes along and everyone decides to use it at the same time things get shaky. They are afraid people will start to realize they are not getting the 5 mbps they were sold. The solution? Hold that popular service ransom at the other end, hoping they can get a payday they can then use to either upgrade their infrastructure or line their pockets with before the customers start asking questions. Incidentally I think this is the same reason (at least here in Canada) we are suddenly seeing ISP starting to enforce download caps. They claim it is because of the dirty, dirty pirates but I believe it is because they are afraid of Netflix and similar services increasing peoples use of the services they have paid for and they realize they can do a little double dipping. Pay for the connection and pay for the data.

    34. Re:Double Dipping? by nharmon · · Score: 1

      Comcast customers paid for a specific amount of bandwidth to Comcast's internetwork, not to Netflix. That's the problem, Comcast can not be expected to provide end to end bandwidth to services not on their network. And I am sure their customer agreements to do not gurantee as much.

      After all, why should Netflix partner with Level 3 at all? They could simply call themselves a backbone provider and demand free links to all of the different major ISPs.

    35. Re:Double Dipping? by VGPowerlord · · Score: 3, Insightful

      What you're missing from this equation is that this traffic used to be handled inside Comcast's network, likely at a lot of different locations, because Akamai used to be Netflix's CDN and Akamai colocates servers with ISPs for quicker response times.

      In other words, this is new external traffic to the network, and I have a feeling no matter where it passes into Comcast's network, they're going to want an increase in money from whomever is passing it in.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    36. Re:Double Dipping? by morgan_greywolf · · Score: 1

      Read the first paragraph on the same page:

      Peering is a voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the customers of each network. The pure definition of peering is settlement-free or "sender keeps all," meaning that neither party pays the other for the exchanged traffic; instead, each derives revenue from its own customers. Marketing and commercial pressures have led to the word peering routinely being used when there is some settlement involved, even though that is not the accurate technical use of the word. The phrase "settlement-free peering" is sometimes used to reflect this reality and unambiguously describe the pure cost-free peering situation.

      Instead, Comcast would like get paid from their own customers and from Level 3/Level 3's customers.

    37. Re:Double Dipping? by Sepodati · · Score: 3, Informative

      In reality, the Internet was conceived with one of it's principals as equal access- meaning that if you stick a leg on to the network, your run whatever traffic in an unimpeded fashion

      I don't know what reality that is, but it's not ours. If you want to connect to someone else's network, you either pay or agree to a ratio of traffic. Once that deal is made, THEN, yes, you can send any kind of content you want.

    38. Re:Double Dipping? by kalirion · · Score: 1

      If Comcast doesn't like what Level3 is paying them to accept L3's traffic, they should renegotiate. It shouldn't matter if the upsurge in traffic is due to Netflix or streaming porn.

      That's exactly what's happening, and Level3 is throwing a hissy fit about it.

    39. Re:Double Dipping? by zzsmirkzz · · Score: 1

      What you're suggesting is that the telephone company should give person A a free telephone line because person B wants to receive the call. No, that's not how it works.

      Yes, they both need access to the physical line that the call is routed over and both have to pay for it. This parallels Comcast/Level 3 - Level 3 pays Comcast for the physical connection to Comcast's network, this is fine.
      Where your analogy breaks-down is where this conversation started - (cell phones aside) the caller is the one who pays for the call, not the receiver. Only one side pays for the usage of the line, the side that initiated the call. In the Level 3/Comcast scenario, Comcast's customers are initiating the data transfer and are the ones responsible for increasing the traffic on Comcast's network and adding to Comcasts costs and therefore they should be the ones who pay for it. It's not Level 3's fault Comcast promised unlimited Internet to their customers and their customers are finally taking advantage of it, that's Comcast's problem. To be clear, I have no problem with Level 3 having to pay for bandwidth for data that goes through Comcast's network but doesn't terminate there, that is perfectly reasonable. I just have a problem with the way Comcast frames this argument - they say it like Level 3 is just pushing this traffic onto their network, unsolicited when it is Comcast's customers (basically Comcast itself) that is requesting the data be sent. I mean come on, if Comcast wins this, they can just sit there and request data from Level 3 all day everyday and just bill Level 3 for it! How does that make any sense at all????

    40. Re:Double Dipping? by nharmon · · Score: 1

      The disconnect (pun intended) here lies in the expectation that Comcast provide end-to-end connectivity between their customers and any possible end-point the customer demands at the speed the customer demands, even if that end-point is not on their network. That is simply unreasonable, and has nothing to do with network neutrality.

      The problem with your thinking is that Comcast was paid to provide their customers access to their internetwork at a guranteed speed, not to any other end-point the customer demands, and certainly not Netflix.

    41. Re:Double Dipping? by Anonymous Coward · · Score: 1

      "If Comcast doesn't like what Level3 is paying them to accept L3's traffic, they should renegotiate."

      They did renegotiate. Level 3 accepted the new terms and signed the deal. Then Level 3 started the public complaints. And according to Comcast, it doesn't matter what the the upsurge in traffic is due to, it's just that Level 3 told them the volume of data would be more than doubling over what had previously been agreed to.

    42. Re:Double Dipping? by Guspaz · · Score: 1

      You don't seem to have noticed the "exchanged" part of that definition. This implies that there is an equitable exchange going on here, which is what Comcast wants. An equitable exchange. Level3 doesn't want such an exchange.

    43. Re:Double Dipping? by Rockoon · · Score: 1

      Oh I think it *is* a network neutrality issue.

      From the Comcast customers point of view, traffic originating on L3's network is being discriminated against if Comcast stops accepting that traffic even though its destination is Comcast.

      Allowing this sort of thing sets up an easy way for all consumer ISP's to discriminate, making its own services far more competitive than they would be had there been a level playing field.

      --
      "His name was James Damore."
    44. Re:Double Dipping? by Sepodati · · Score: 1

      It doesn't matter that Comcast customers are requesting it. They're only requesting the service because Level 3 is offering it. You can't expect to just start up any service you want and shit high volumes of traffic to other networks for free.

      Network upgrades need to be paid somehow. Either Comcast increases rates to customers or it gets money from the network sending unequal amounts of traffic to Comcast. It isn''t double dipping, Comcast and Level 3 are customers of each other.

    45. Re:Double Dipping? by postbigbang · · Score: 1

      Sure you pay. I have seen very few deals where a ratio was capitulated to.

      --
      ---- Teach Peace. It's Cheaper Than War.
    46. Re:Double Dipping? by gorzek · · Score: 1

      If L3 accepted then I don't see what they have to bitch about.

    47. Re:Double Dipping? by Guspaz · · Score: 1

      Where your analogy breaks-down is where this conversation started - (cell phones aside) the caller is the one who pays for the call, not the receiver. Only one side pays for the usage of the line, the side that initiated the call.

      That's not how telephony works for most of the world. Most places, both sides pay for the call. This applies to the US too when it comes to cellphones and VoIP, and it applies to landlines most places outside of North America.

      It's not Level 3's fault Comcast promised unlimited Internet to their customers and their customers are finally taking advantage of it, that's Comcast's problem.

      It's not Comcast's fault that Level3 promised gigabits of connectivity to Netflix, and Netflix is taking advantage of it. That's Level3's problem.

      I just have a problem with the way Comcast frames this argument - they say it like Level 3 is just pushing this traffic onto their network, unsolicited when it is Comcast's customers (basically Comcast itself) that is requesting the data be sent

      Network providers don't get metaphysical about the reason the data transfer exists, about who requested what or why. Packets come in, money or packets go out.

    48. Re:Double Dipping? by Anthony+Mouse · · Score: 1

      If every network operator were required to let other network operators connect to them for free, where exactly is the revenue going to come from for ISPs that don't have any retail customers?

      Assume there is a world where there are no ISPs that have no retail customers. (Never mind that that is already basically the case.) Why is that a bad thing?

    49. Re:Double Dipping? by CyprusBlue113 · · Score: 1

      Comcast customers paid for connection to the internet, not comcast's garden.

      --
      a handful of selfish greedy people are no match for millions of selfish, greedy people -u4ya
    50. Re:Double Dipping? by Attila+Dimedici · · Score: 4, Informative

      If Comcast doesn't like what Level3 is paying them to accept L3's traffic, they should renegotiate.

      That is what this is about, Comcast is telling Level3 that they need to renegotiate their peering agreement because Level3 is about to significantly increase the amount of traffic they send over Comcast's network. Netflix used to use Akamai as one of their primary ISPs. Akamai paid Comcast for the traffic they sent to Comcast's network. Level3 had a peering agreement with Comcast whereby they didn't pay to send traffic to Comcast because Comcast sent as much traffic to Level3's network as Level3 sent to Comcast's. That is about to change with Netflix switching from Akamai to Level3. Level3 is screaming because they undercut Akamai's price to provide service to Netflix on the basis of not paying Comcast to send data to Comcast's customers.
      This has nothing to do with Netflix competing with Comcast (at leat not that anyone has so far offered any evidence for), this is about Level3 increasing the amount of traffic they send over Comcast's network without a similar increase in the amount of traffic that Comcast sends over Level3's network.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    51. Re:Double Dipping? by Jartan · · Score: 2

      Yes you have it exactly right. In our reality companies like Comcast are supposed to PAY to connect to the internet (ie Level3) or agree to a ratio of traffic. They agreed to send Level3 as much data as they received. Now they can no longer meet that agreement and should be paying Level3 some money.

    52. Re:Double Dipping? by gorzek · · Score: 1

      Upstream is also limited to minimize end users setting up servers. There is no technical reason to restrict the upstream to a small fraction of the downstream except that one costs more than the other. Comcast doesn't do that because people don't "need" it, they do it because they want a ton of upstream traffic incurring peering charges with their upstream provider (i.e. Level 3.)

      Apparently, Level 3 signed a new agreement and contracted to pay Comcast for the traffic it would be delivering. If Level 3 doesn't like it I suppose they could demand equal upstream charges to accept data from Comcast.

      I should have stated my original post more clearly. Obviously, the hardware Comcast and Level 3 own is just as capable of sending data in one direction as it is the other. But peering agreements typically only charge to send data upstream. In this case, Level 3 would be sending Netflix data upstream to Comcast, which wants to be paid for it.

      I think it's only problematic if Comcast is charging an exorbitant amount per byte vs. whatever they're charging other downstream providers.

    53. Re:Double Dipping? by VGPowerlord · · Score: 1

      It is double dipping, but not like you think.

      I pay my ISP for bandwidth. ISPs want to charge Netflix for bandwidth too.

      But Comcast isn't trying to charge Netflix. Comcast is dealing with Level 3.

      Peering agreements are based on, and always have been based on, the difference between traffic of two connected networks. Level 3 is the largest ISP, controlling a large share of the North American Internet backbone, and route pretty much all traffic between dial-up and VoIP providers, in addition to being interchange points for most major ISPs, including Comcast... at present. It would not surprise me in the least if Comcast and Level 3 currently have a symmetric peering agreement, despite cable being asymmetric, because of this.

      However, if they pile on a bunch of additional traffic that Akamai used to handle within Comcast's network, then that changes. And since Akamai was hosting it inside Comcast's network before, Comcast likely has a good notion of exactly how much traffic that is.

      Oh, did I mention this means Akamai isn't paying Comcast to host those services inside its network any more?

      If i'm using more bandwidth now because of Netflix, that should be between me and my ISP, but ISPs don't want to mess with that relationship for fear of pissing off customers and spurring real competition in the marketplace. It's cheaper to buy legislation mandating your business model than to compete.

      Why would Netflix's bandwidth usage magically go up between November 30th and December 1st? Here's a tip: it didn't. However, because Akamai used to pay Comcast to colocate CDN servers that supplied Comcast with local Netflix mirrors, even no change in Netflix usage means an increase in traffic across Comcast's network, and a massive increase in incoming traffic where Comcast and Level 3 (or whomever else handles Netflix traffic) interconnect.

      If we had real competition then net neutrality would be a non-issue because we could choose open networks over closed ones, but with the near-monopoly of the big operators in most markets, it's usually just a choice between their crappy service or another crappier, more expensive option.

      Use a time machine and go back to the early 90s and tell NSFNet not to privatize the U.S. Internet backbone then! The government used to have control of the Internet backbone, but sold it off... in 10 sections, as I recall. I have no idea who all owns parts now, but if I recall correctly the big ones are AT&T, Verizon, and Level 3, with Level 3 owning the majority.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    54. Re:Double Dipping? by gorzek · · Score: 1

      I'm so confused. Someone else said L3 already renegotiated with Comcast and is just pissed about the deal they got. Oy.

      Thank you for your explanation, it's substantially more detailed. I didn't figure Netflix really had anything to do with it--traffic is traffic, as far as Comcast is concerned. Hurting Netflix would be a nice effect for Comcast's VOD service but it doesn't seem to be a sufficient motive for all this.

    55. Re:Double Dipping? by ArcherB · · Score: 3, Interesting

      You don't seem to have noticed the "exchanged" part of that definition. This implies that there is an equitable exchange going on here, which is what Comcast wants. An equitable exchange. Level3 doesn't want such an exchange.

      And I think you missed this part:

      The pure definition of peering is settlement-free or "sender keeps all," meaning that neither party pays the other for the exchanged traffic; instead, each derives revenue from its own customers.

      Sorry, but this is bullshit. If Comcast is allowed to get away with this, then Time Warner can charge Level 3. Then AT&T can charge Level 3. Then Verizon and Sprint will charge Level 3. Then these companies will charge each and every web page and web service to be allowed access so their customers can access web content.

      Eventually, you're going to end up with different ISP's having access to different web pages/services. For example, you might be allowed to only use Google, Netflix, and Slashdot on Time Warner. Comcast will grant you access to Yahoo, Redbox and Engadget. On your Microsoft phone, you will have access to Bing, MSN, and MSN (through payoffs to each carrier). Carriers/ISPs will advertise that they allow for more web pages than their competition and charge their customers (You and me) for the privilege to access the only the content served from the highest bidder. Meaning if you are content provider, you better have a big bank roll as the amount you are willing to pay will have a direct effect on the amount of customers that want to access your service.

      --
      There is no "I disagree" mod for a reason. Flamebait, Troll, and Overrated are not substitutes.
    56. Re:Double Dipping? by Sepodati · · Score: 1

      What Comcast would like to do is get paid from their customers and from Level 3 for the same data. That, my friend, is called double dipping.

      No, it's not. Comcast and Level 3 agreed to exchange traffic directly at a set ratio. If they didn't agree to this, they would have had to use a Transit network to exchange traffic and that would cost them. This way the exchange is free, so long as it stays at whatever ratio was agreed on in the peering agreement. Now the ratio agreed to has been violated and Level 3 has to pay for the extra traffic they're sending. This is a pure traffic issue and it's irrelevant whether the traffic is coming from Netflix or another Level 3 customer.

    57. Re:Double Dipping? by Attila+Dimedici · · Score: 1

      Someone else mentions that this traffic used to be handled by Akamai and that Akamai colocates servers on Comcast's network. What they didn't mention was that Akamai, also, paid Comcast to send this traffic. Now that Level3 is handling this traffic Comcast wants them to pay the fee that Akamai paid. Level3 doesn't want to do that because they offered Netflix a lower CDN price than Akamai based on not having to pay Comcast to handle the traffic (this is me reading between the lines).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    58. Re:Double Dipping? by Demonantis · · Score: 1

      That makes so much more sense then the other explanations. I hate it when people talk about bandwidth in this situation as if it is a fixed commodity being traded.. What I don't get is why isn't Level 3 and Comcast both willing to pay for the upgrading costs. Why should level 3 pay to increase the backbone of another network? They do need to find a new peering agreement, but what Comcast is asking for is abusive. Comcast should be interested in promoting service access to its consumers which it obviously is not happening in this case. I don't think net neutrality could even fix a system that is this fubar from companies abusing monopolies. Government regulation would be much more effective.

    59. Re:Double Dipping? by UWC · · Score: 1

      Very very well explained VGPowerlord. I wish I had mod points. Instead, I'm giving you my first comment in some number of years. Use it wisely. Or not. Anyway, your description of Akamai's distributed nature brought it further together for me. Comcast's mistake has been in letting this seem like they're targeting Netflix traffic specifically. If it's a content-agnostic peering agreement they're after (and I hope it is), then it makes total sense. When it seems like they want to make a special fee specifically for Netflix traffic is when it seems anticompetitive.

    60. Re:Double Dipping? by Guspaz · · Score: 1

      Why is it already the case? Can you point out any retail customers for, for example, Savvis?

      In your analogy, since all costs are paid by retail customers, there is no transit (since an ISP has no reason to move data between two different networks since they won't be paid for it) and now every ISP in the world is required to interconnect with every other ISP in the world. Very few companies could afford to do that, and we'd likely end up left with a small handful of ISPs per continent. No network operator could survive unless they had millions upon millions of customers to cover the costs of connecting to everybody else.

    61. Re:Double Dipping? by Jartan · · Score: 1

      That's usually how peering agreements work: you pay for traffic that you send to another network, but not traffic that you are receiving.

      You are leaving out one very important fact. Peering agreements are made based on the concept that some of the traffic you are sending is going through the network to another network. Comcast doesn't do that though. They just take the data and deliver it to their users.

    62. Re:Double Dipping? by TheRaven64 · · Score: 3, Informative

      Oh I think it *is* a network neutrality issue.

      Then you have no idea what network neutrality means, no idea what the issue at question is, or both.

      From the Comcast customers point of view, traffic originating on L3's network is being discriminated against if Comcast stops accepting that traffic even though its destination is Comcast.

      L3 is going from a 1:1 peering agreement to a 5:1 traffic ratio. Do you think that Comcast should just keep letting them pay nothing? If so, great for every other ISP - they can now get a cheaper deal from L3 than from Comcast to carry traffic to Comcast's customers and there's nothing that Comcast can do about it.

      Allowing this sort of thing sets up an easy way for all consumer ISP's to discriminate, making its own services far more competitive than they would be had there been a level playing field.

      Allowing what sort of thing? Depeering is something that has happened loads of times before in the history of the Internet, and quite a few times in the last few years. It happens whenever the traffic ratio between two peers suddenly shifts, as happened when L3 gained Netflix as a customer.

      This has absolutely nothing to do with network neutrality. Comcast is not rejecting traffic because it comes from Netflix. Comcast is not rejecting traffic because it is streaming video. Comcast is threatening to reject traffic because it is not covered under their existing peering agreement and they want a new transit agreement. Any other company would have to get a similar agreement. Without the ability to form these agreements, the Internet would not function at all.

      --
      I am TheRaven on Soylent News
    63. Re:Double Dipping? by Guspaz · · Score: 2

      then Time Warner can charge Level 3

      They already do. Level3 pays either in money or bandwidth.

      Then AT&T can charge Level 3.

      They already do. Level3 pays either in money or bandwidth.

      Then Verizon and Sprint will charge Level 3.

      They already do. Level3 pays either in money or bandwidth.

      Then these companies will charge each and every web page and web service to be allowed access so their customers can access web content.

      They already do. Those web hosts pay for their connectivity, and each network along the way gets compensated.

      You see where I'm going here?

    64. Re:Double Dipping? by hey! · · Score: 1

      Well, look. We all know that Comcast would like to steer you towards *their* media offerings, which of course many of us have zero interest in., They'd love to be able to lock you into their content, to go back to the late 80s when you didn't have much choice about where you go programming other than to drive to the video store.

      However, their having self-serving, nefarious motives doesn't mean they don't have any valid points here. Level 3 is getting cash from Netflix with which they can, if need be, beef up their infrastructure to handle a lot more time sensitive traffic. They then hand that traffic to Comcast, who in order to handle all that traffic has to add more infrastructure. But Level 3 proposes that Comcast invest almost as much money as it does to carry this traffic, but that Comcast (unlike Level 3) should get no additional compensation. Essentially, Level 3 has externalized half the marginal costs of carrying Netflix traffic while privatizing all of the marginal revenue. Is that fair?

      Of course Comcast's customers are paying for Internet service, but Internet protocols weren't designed to handle very large streams of data where *consistent throughput is critical*. Statistical multiplexing is a critical assumption in making Internet service affordable for everyone. You don't size your bandwidth for the peak demand, you exploit the high variability of bandwidth demand to fit 100 customers on to a link that is maybe only 10x the peak demand of any of them.

      Now you can mix a little low quality video streaming into the mix and not disturb the statistical assumptions of the network. But introduce a *lot* of *HD* content that is *streamed*, and suddenly we're in a world where maybe we'd have been better off going with ISDN than TCP/IP. A network provider should be able to throttle a connection periodically to assure that every user has fair access to the bandwidth available. That wouldn't be a problem for customers renting or buying movies from Apple, but Netflix users are going to scream bloody murder unless the playback software buffers enough content to play without skipping. And if it does buffer enough content, they might have to wait a few minutes to fill up the buffer. That would be fair, and it's not going to kill anyone to have to wait five minutes for a movie to buffer before playing, but they'll still complain.

      Such throttling would not in my opinion be a violation of network neutrality if it were applied equally to every content source, including the network provider's own. Alternatively a system where regulation enforced reasonable fees for carrying high volumes of time sensitive traffic would also be fair, if politically impossible.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    65. Re:Double Dipping? by divisionbyzero · · Score: 1

      This isn't how it works.

      Even if Comcast drops Level3 completely, you will still get Netflix - Level3 will just pass off the traffic to someone who does peer with Comcast. It'll be slower than if Level3 directly peered with Comcast, but it will still get there.

      Netflix doesn't need to pay Comcast anything. Netflix is already paying Level3 to be their CDN. Level3 just now needs to pay for the bandwidth they're using.

      Huh? Aren't Comcast's customers, the one's who are streaming Netflix, already paying for that bandwidth that they're using? This sounds like Comcast wanting to double-dip.

      Uh, cause that's not how the internet works? The end-users pay Comcast for "internet connectivity" by which is usually meant the ability to connect to any other location on the internet. That's usually called "full transit" when you are talking about deals between networks rather than consumers. Now since not every host on the internet is on Comcast's network Comcast must negotiate with other networks to get access to those other hosts. Further since Comcast has no idea which hosts to which its users may want to connect it must either directly or indirectly negotiate deals with *all* other networks connected to the internet.

      The most efficient way to do so is directly through peering. In order for the arrangement to be fair the ratio of traffic passing between networks ideally should be 1:1. If it's not, the one out of balance should compensate the other. Even if the out-of-balance network has to pay it's still likely cheaper to peer than not. If the networks do not peer, then they must purchase transit from each other or another network that connects both of them, if they want to communicate. As you may have noticed a network doesn't have to directly connect to every other network. It just has to do so transitively. Thus the most well-connected networks (i.e. "backbones" or Tier 1 providers) usually charge the most because it's easier to connect to one network (the backbone) than thousands (every network on the internet).

    66. Re:Double Dipping? by I(rispee_I(reme · · Score: 1

      "It doesn't matter that Comcast customers are requesting it. They're only requesting the service because Level 3 is offering it. You can't expect to just start up any service you want and shit high volumes of traffic to other networks for free."

      Yes, good thing there's not a group of people who have already paid Comcast to receive high volumes, perhaps even "unlimited" volumes of traffic from Netflix.

      Because that would mean that Comcast's business model is fundamentally flawed, and we might see them begin to flail litigiously.

    67. Re:Double Dipping? by Sepodati · · Score: 1

      lol... so you're trying to say that Level 3's traffic stayed the same, but Comcast's return traffic dropped by 5? Sure, in THAT reality, Comcast or whatever the ISP is would end up paying.

      In our reality, that's not what happened, though.

    68. Re:Double Dipping? by Shakrai · · Score: 1

      There is no technical reason to restrict the upstream to a small fraction of the downstream except that one costs more than the other.

      Yes there is. ADSL operates on a limited range of frequencies (determined by cable quality and distance) on a single pair. Each channel that you allocate to upstream comes at the expense of downstream channels. When you are aiming your product at people that download a lot more than they upload (i.e: the vast majority of residential customers) it makes more sense to allocate more of your limited number of channels to downstream than upstream.

      DOCSIS has a similar limitation, albeit for different reasons. The upstream channel needs to accommodate dozens to hundreds of modems that compete for time slots to transmit in. Owing to this limitation and others the upstream channel has considerably less bandwidth than the downstream channel. On DOCSIS 1.1 the bandwidth is roughly 42/10mbit/s. On 2.0 and 3.0 it's 42/30mbit/s.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    69. Re:Double Dipping? by StikyPad · · Score: 1

      Whether it is directly in the form of higher internet prices, or indirectly through Netflix in the form of higher subscription fees; I see very little difference.

      Seeing as I'm not a Netflix customer, I see a big difference.

    70. Re:Double Dipping? by bws111 · · Score: 1

      Let's suppose the NetFlix (or a similar service) is hosted on Comcast, and is only accessible from Comcast's network. By your logic, Netflix should be able to connect to the network for free, because the other Comcast customers have already paid. That makes no sense at all. So why would it change just because instead of fiber connecting directly to Netflix's servers the fiber is connected to Level3's router?

    71. Re:Double Dipping? by Sepodati · · Score: 1

      Comcast is charging anyone that wants to send traffic over its network. Just like every other provider. You pay to send traffic. If the traffic is equal, they'll just end up paying each other the same amount, so instead they agree on a settlement-free exchange. Now the traffic is no longer equal. Comcast is sending X and Level 3 is sending 5X. End result is that Level 3 ends up paying for that additional 4X of unequal traffic.

    72. Re:Double Dipping? by dgatwood · · Score: 1

      Why should Level3 get to connect to the network for free?

      I think you have it backwards. Why should Comcast get to connect through Level3's network for free?

      Generally speaking, companies providing a service charge companies whose customers want to access that service. This means that Comcast pays to get better access to servers like YouTube that are hosted by other networks like Level3, not the other way around. The very notion of Comcast charging Level3 for better access to their customers is absurd.

      YouTube is providing a service. Comcast's customers are just consumers. They're interchangeable. Services like YouTube aren't. Therefore, in the grand scheme of things, faster access to YouTube matters, and faster access to Comcast's customers don't. YouTube doesn't benefit from those faster pipes. They get paid the same whether the customer gets a lower bandwidth stream or a higher bandwidth stream. They get paid whether it stutters every once in a while or not, so long as it isn't degraded beyond usability. Comcast's customers, on the other hand, demand better service, so Comcast should have to pay.

      If Comcast wants to not pay such exorbitant bandwidth costs for peering, maybe they should have thought of that before they decided to become an ISP that almost exclusively caters to individual customers and small businesses. There's nothing inherently stopping Comcast from rolling out true business-grade pipes with guaranteed bandwidth to big businesses and putting themselves on a level playing field. They merely have chosen not to do so, and that's their choice. The consequence is that as ISPs go, they just aren't very important, so they have to pay to peer, and nobody pays them to peer. That's just the way the Internet works.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    73. Re:Double Dipping? by Attila+Dimedici · · Score: 1

      I may be mistaken about the timing of renogiating, but yeah this is basically Level3 trying to use PR to get a better deal out of Comcast (something I think they based their pricing to Netflix on being able to get).
      It looks to me like Level3 is pissed because they negotiated a deal with Netflix that undercut their competitors by a significant amount based on not having to pay Comcast anything for peering and now Comcast is saying they have to pay the same as their competitors and that Netflix deal isn't looking so good anymore.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    74. Re:Double Dipping? by Anthony+Mouse · · Score: 1

      Why is it already the case? Can you point out any retail customers for, for example, Savvis?

      I think I may have been defining "retail customer" very broadly. I was thinking that anyone who is paid by an endpoint for access, or who in turn pays their uplink provider for access which is resold to downstream endpoints, is a retail customer. So then you get a hierarchy in which everyone pays the network closer to the core of the internet and is paid by the network farther from the core, and the core networks peer with each other but not with others, who they charge.

      Given that definition of "retail customer" do you agree with me? Or can you identify a specific flaw that this simplification hides? Because the idea that there is no transit does not seem to happen: the network providing transit is closer to the center and so gets paid by both networks it is providing transit for.

    75. Re:Double Dipping? by StikyPad · · Score: 1

      Equitable isn't necessarily measured in bytes in each direction. In this case, the equity is the ability for Comcast customers to access Netflix (and other sites that route through Level 3). The only way this wouldn't be seen as an equitable arrangement by a network dominated by end-users, with traffic overwhelmingly flowing in one direction, was if Comcast had some sort of competitive offering with a quirky name that starts with an X.

    76. Re:Double Dipping? by DJLuc1d · · Score: 1

      If every network operator were required to let other network operators connect to them for free, where exactly is the revenue going to come from for ISPs that don't have any retail customers?

      lolwut ? That is how the internet has worked since the beginning of time. Do you not understand that the internet is just a series of connected networks ? Comcast does have retail customers, so that is a moot point anyways.

      Why should Level3 get to connect to the network for free?

      Because their customers are paying for the privilege of accessing content from any provider

    77. Re:Double Dipping? by bws111 · · Score: 1

      Suppose you are an ISP, and some guy comes to you and says 'I have a great idea for an internet service. Your customers will love it, and I am going to get rich. All I need you to do is provide me with a few GB/s links that I can hook my servers to. And by the way, your customers already paid for the ability to download my data, so I expect you to provide me with the links for free.' Would you (or any sane company) actually go for such an arrangement? How is that any different from what Level3 is doing?

    78. Re:Double Dipping? by Rockoon · · Score: 0

      Then you have no idea what network neutrality means, no idea what the issue at question is, or both.

      So you claim. Would you care to back that up?

      L3 is going from a 1:1 peering agreement to a 5:1 traffic ratio.

      This is just bullshit. Its always 1:1 in this case.

      One sender of the packet.
      One receiver of the packet.
      Both networks carry the packet.

      Thats fucking 1:1.

      What you are talking about is if Comcast was in the middle of sender and receiver.. but Comcast is not, being the endpoint that they are.

      Thats why this is a neutrality issue. Comcast will always be an endpoint, so its own competitng services would have an automatic price advantage.. not because they could provide it cheaper, but because they charge the competition a fee.

      --
      "His name was James Damore."
    79. Re:Double Dipping? by dei5 · · Score: 1

      To start out I want to say that I understand peering is a standard practice which is used by all ISPs. I merely want to examine the facts of the exchange process. * Comcast wants to charge me for the download and charge L3 for the upload. * Comcast wants to receive payment for both the upload and download of the same content. * If L3 were some other consumer/customer of the Comcast network then they would be charged based Bytes/second instead of on Bytes.

    80. Re:Double Dipping? by funaho · · Score: 1

      Netflix traffic, in theory, is already paid for. L3 is being paid by Netflix to send the traffic, and Comcast customers are paying Comcast to receive it. What Time-Warner described sounds more like a transit peering arrangement, in which L3 is passing at least some traffic to Comcast that is not terminating on Comcast but on networks to which Comcast is connected. Maybe L3 and Comcast do in fact have a transit peering agreement in place, but it seems rather unlikely. Comcast isn't really in the long haul network business and I can't imagine anyone wanting to use them for transit, except maybe as an absolute last resort, such as during a mass outage caused by a backhoe apocalypse.

    81. Re:Double Dipping? by bws111 · · Score: 1

      So by that sound logic any business running servers should have the ability to put such servers on an ISP's network for free, because other people have already paid for the ability to download?

    82. Re:Double Dipping? by UWC · · Score: 1

      They previously didn't have to pay Level3 because Comcast and Level3 worked out a peering agreement that assumed general parity of inbound versus outbound traffic, and neither one had to pay. Now that Level3 is serving up Netflix content, the traffic Level3 is sending into Comcast's network is much greater than the amount coming out of Comcast onto Level3. They need a new peering agreement, and this one is going to have to address the imbalance in traffic.

    83. Re:Double Dipping? by Guspaz · · Score: 1

      The problem is that there is no "core" to be closer to or farther from. If the first ISP in the chain needs to get a packet to the last ISP in the chain, it picks an ISP that it connects to who both advertises that it has a route to the last ISP, and is closer to the last ISP. Through this manner, the packet eventually gets where it's going. There is no obvious point along the way where it makes sense to switch which party is paying.

      If you want to define "retail customer" in terms of who pays who, and define "pay" to be strictly cash, and want to define the class of ISPs that have no such customers, then that is the definition of a tier 1 ISP. There are currently 11 ISPs that are agreed to be tier 1. Level3 is one of them, as are most of ma bell. Comcast is not.

      It's likely that one of the reasons why Level3 does not want to pay Comcast is because Level3 would lose their status as a tier 1 ISP, although that doesn't necessarily mean anything important.

    84. Re:Double Dipping? by msauve · · Score: 1

      Comcast isn't a backbone provider. It's a retail ISP, and the vast majority of it's customers are home consumers. Since it's customers pull more data than they push, Comcast must expect to receive more data from its peers than it delivers. That's simple common sense.

      It's Comcast's customers who are requesting Netflix streams, and it's Comcast's customers who are paying to receive them. Asking Level 3 for payment to deliver is undeniably double dipping - to deny traffic from Netflix via Level 3 is simply to deny the service their own customers have paid and contracted for.

      Level 3 pulled something similar a few years ago with Cogent, but that was very different. Both were backbone providers, and Cogent was effectively using Level 3 as a transit network, and thereby transferring costs onto Level 3.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    85. Re:Double Dipping? by metrometro · · Score: 1

      No no no, here's the deal. The increase in traffic from Level3 is not TRANSITING Comcast's network, it is TERMINATING on Comcast's network. That is a big, big difference. Because it means that the more subscribers Comcast has, the more traffic Level3 has to send them. Comcast is already getting paid for the increase in traffic at a rate of $50 a month times a lot of people.

      And this is only not a net neutrality issue in the technical sense that they aren't discriminating against packets. But a huge ISP that happens to own a huge cable TV business threatening to stop serving their own customers the website of a cable TV competitor certainly seems to capture the essence of the net neutrality fight: Would you like to access the Verizon/Google Internet or the Comcast/Disney Internet? Uh, neither?

    86. Re:Double Dipping? by Mister+Whirly · · Score: 1

      Basically they are saying they accepted the agreement under duress, because had Comcast just dropped them, there may have been interruption of services. Now that Comcast isn't going to "unplug" them, they are talking about the deal.

      --
      "But this one goes to 11!"
    87. Re:Double Dipping? by Anthony+Mouse · · Score: 1

      There is no obvious point along the way where it makes sense to switch which party is paying.

      I'm not sure that changes much. Yes, when you have a connection between e.g. a large Tier 2 and a Tier 1, there is some question as to whether the Tier 2 should pay the Tier 1 or whether there should be "settlement free peering". In either event, the Tier 2 would be paying far less for the same bandwidth as a Tier 3 would.

      The problem is that if you go the other way, things start to break. So Comcast (Tier 2) says Level 3 (Tier 1) has to pay them because Comcast has control over access to their customers and no one may send them data without paying Comcast. Now Level 3 has to squeeze the other endpoint for more money in order to pay off Comcast. The endpoint starts to feel the pinch.

      Unless the endpoint is Hulu (which is owned in part by Comcast/NBC) in which case they can just get a good deal on bandwidth from Comcast/NBC. Which is why people are talking about network neutrality. ISPs charging Tier 1 providers for access to their customers means the ISP gets to pick winners and losers in the content market because all they have to do is refund some of their tithe to specific content providers while pricing all of the others out of the market.

    88. Re:Double Dipping? by bl968 · · Score: 1

      Businesses don't pay a data provider for access to customers. They pay for access to the network nothing more nothing less. I buy a certain amount of bandwidth to the internet. That gives anyone on the internet access to my content who wants it. When someone from Comcast requests data from my service I am not arbitrarily sending unwanted data to Comcast, Comcast users are utilizing the bandwidth they paid for from their internet provider to get bandwidth from my internet provider. It's that simple my internet provider makes money from me their customer, Comcast makes money from theirs customers. Only big tier 1 providers like Level 3 get to make money from both ends. Comcast becomes a level 3 customer to ensuring that their customers have access to content that is available from level 3's network. Such as my data.

      Some idiot with a business degree is trying to change the system that has been in place since the internet was created to their favor. They want to limit consumer choices by making sure that your or I, or the Facebook's, or Myspace's, or Youtube's can't get a foothold to get started without them making money from it first. It's a whole new world of media consolidation.

      --
      "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    89. Re:Double Dipping? by bl968 · · Score: 2

      According to Comcast's letter, what Level 3 was offering Comcast was free connections from their network enable data to flow faster for Comcast users; and all comcast had to do was make the physical connection available. If Level 3 did not do this then Comcast would have had to bear the brunt of the traffic its self. That is exactly how the system is supposed to work. Otherwise Comcast would have purchase additional bandwidth connections to provide their customers with access to the data they are requesting. What Level 3 offered was equatable and on the whole very inexpensive for Comcast and would have provided better service to their customers.

      --
      "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    90. Re:Double Dipping? by TheRaven64 · · Score: 1

      Okay, that answers my question. You have no clue at all about how peering / transit agreements work between any of the networks that comprise the Internet. Take ten minutes to educate yourself, and then come back to the discussion.

      --
      I am TheRaven on Soylent News
    91. Re:Double Dipping? by crypticedge · · Score: 3, Interesting

      I'm sorry, but you've been consistently wrong the entire time in this thread. Level 3 is a Tier 1, they do not pay other ISP's for the connections. This is part of the conditions of being a Tier 1. Level 3 in fact sells connections to Verizon (who happens to pay them a monthly fee for their customers to access the internet) as does Time warner, AT&T, Sprint and nearly every single other US ISP except other Tier 1's (Comcast is NOT a tier 1 nor have they ever been)

      The fact is Comcast pays Level 3 a monthly fee for their interconnects, and rents over 70% of their fiber from Level 3 (who owns the majority of the fiber in the US, thanks to the DOD)

      Now Comcast is trying to cut their bill, by pulling a media circus on the netflix deal, when it's traffic that is destined to end on Comcast's network. Traffic that's being sent to the last mile ISP is never to be considered as a "peer" agreement, as it's purchased bandwith. This is where Comcast is in the wrong, and has been the entire time. People defending Comcast in this case proves how little they know about how the internet truly works, and it's my hope that Level 3 tells Comcast to fuck off and depeers them as Comcast is in violation of the peering agreement by trying to shift last ISP traffic to it and then collect for traffic they have already charged their customers for. This is known as double dipping, and Comcast is guilty of trying to do it in this case, just as they have been in the past.

    92. Re:Double Dipping? by theghost · · Score: 1

      I don't need to ask - i spelled it out in the original comment.

      "It's cheaper to buy legislation mandating your business model than to compete."

      --
      The only thing necessary for the triumph of evil is that good men do nothing.
    93. Re:Double Dipping? by Impy+the+Impiuos+Imp · · Score: 1

      All Netflix has to do is, in their video player, when it stutters, put up a screen saying, "The reason you cannot see this smoothly without waiting for it to mostly download is because Comcast is throttling your bandwidth. Here's the Comcast phone number you can call to let them know your displeasure."

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    94. Re:Double Dipping? by crypticedge · · Score: 1

      Because Comcast pays Level 3 a monthly fee for those links and to rent the fiber for its backbone?

    95. Re:Double Dipping? by bl968 · · Score: 1

      So Comcast is selling customers access to nothing is that what you are trying to say? LOL you must have a business degree! That is what comcast is supposed to pay it's provider for. Comcast does not exist in a vacuum.

      --
      "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    96. Re:Double Dipping? by clodney · · Score: 1

      This is hardly my area of expertise, but I think this is where the common sense notion of how it ought to work and how it works in practice start to conflict.

      Apparently, the history of peering agreements is that they don't pay attention to the ultimate destination of the data, just volume. So in that sense, Comcast is absolutely right that the ratio is changing dramatically and that settlement free peering is no longer appropriate. Some percentage of data is transit across the network, some is delivered directly to the network, but that seems not to have factored in to the pricing.

      The common sense view is that the traffic is being delivered to Comcast's network at the request of Comcast's customers, so therefore Comcast should be paying L3 to deliver the traffic, not the other way around.

      Who is in the right depends which set of assumptions you want to use.

    97. Re:Double Dipping? by Anonymous Coward · · Score: 0

      L3 is going from a 1:1 peering agreement to a 5:1 traffic ratio. Do you think that Comcast should just keep letting them pay nothing?

      This.

      Yes I do. The reason I do is because I pay Comcast to act as my ISP, allowing me to download the content *I* choose. Why should L3 also pay Comcast to deliver my Netflix stream when I am already paying Comcast for that privilege?

      The way I see it, with Verizon LTE services now available in my area, Comcast should be sucking both my and L3's collective cocks if they want to be in this thing for the long-haul. Piss me off and I move my traffic to air, sayonara bitches.

    98. Re:Double Dipping? by bl968 · · Score: 1

      Yes because Comcast's users have requested data from Netflix, a Level 3 customerl; so the traffic was routed via Level 3. Comcast users have paid for Netflix's data and thus Level 3's transmission of that data to them. Remember Comcast's customers are not paying solely for upstream bandwidth but bidirectional bandwidth.

      --
      "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
    99. Re:Double Dipping? by theghost · · Score: 1

      Agree completely - you are correct.

      I simplified and substituted Netflix for the real players. The real issue is that those players don't want to change their business to respond to changes in the technology and the overall ecosystem they operate in and it's a big fat lose-lose situation for the consumers because of that ecosystem is fubar.

      --
      The only thing necessary for the triumph of evil is that good men do nothing.
    100. Re:Double Dipping? by Guspaz · · Score: 1

      If Comcast cut all connections to Level3, comcast customers would still be able to reach Netflix just fine... Not only does Netflix not rely exclusively on Level3, but Comcast would be able to use other routes to Level3.

    101. Re:Double Dipping? by Late+Adopter · · Score: 1

      As I understand it, Akamai also operates slightly differently (and less costly from Comcast's perspective): they colocate some of their CDN nodes with ISPs so external bandwidth isn't used when content hosted there is requested.

    102. Re:Double Dipping? by Guspaz · · Score: 1

      People defending Comcast in this case proves how little they know about how the internet truly works

      Hmm...

      Level 3 in fact sells connections to Verizon (who happens to pay them a monthly fee for their customers to access the internet) as does Time warner, AT&T, Sprint and nearly every single other US ISP except other Tier 1's

      You don't seem to know as much as you think you do. Verizon, AT&T, and Sprint are three of the eleven tier 1 networks. They don't pay Level3 a dime.

      Seven of the eleven tier 1 networks are based in the US. Four of those seven (the three you mentioned, plus Qwest) also operate major consumer ISPs.

    103. Re:Double Dipping? by cforciea · · Score: 1

      That is a terrible analogy. Netflix is paying their direct bandwidth provider for bandwidth. You can't form an analogy that doesn't involve a peering agreement between two networks, because that is the entire issue at hand, not bandwidth usage at either endpoint.

    104. Re:Double Dipping? by Anonymous Coward · · Score: 0

      Suppose you are an ISP, and some guy comes to you and says 'I have a great idea for an internet service. Your customers will love it, and I am going to get rich. All I need you to do is provide me with a few GB/s links that I can hook my servers to. And by the way, your customers already paid for the ability to download my data, so I expect you to provide me with the links for free.' Would you (or any sane company) actually go for such an arrangement? How is that any different from what Level3 is doing?

      If I ran an ISP and my customers were actually downloading countless TBs of data from your sites you bet I would want to peer with you for free. It would make my customers happy with lower latency and significantly reduce the costs I would have to pay my upstream to carry the same traffic for me using a less direct route.

      Now if you were being a dick and using my network for transit to other ISPs then you bet I would L3+Cogent your ass.

      This by the way is exactly why many ISPs choose to peer directly with google to provide their customers with fast access to google, gmail and youtube.

      The Internet works best when exactly these forms of mutually beneficial relationships are in play.

    105. Re:Double Dipping? by gujo-odori · · Score: 1

      Yes, we are. Comcast is being compensated by me to provide me with last-mile bandwidth. If I use more than whatever the cap is, then I have to compensate them some more. I never get near that amount, though.

      What do I expect from Comcast in return? A big, fast, dumb, *neutral* pipe that carries any traffic I want. If they are going to prioritize some classes of traffic (VoIP, for instance), that may be OK so long as they prioritize everyone's VoIP equally. However, I'd rather have a last-mile pipe so big that QoS is superfluous.

      If they need to do QoS, that should be across their core or distribution layers, and again, prioritized traffic should be neutral. Charging L3 extra for what I'm already paying Comcast to do is B.S.

    106. Re:Double Dipping? by Stray7Xi · · Score: 2

      Thought experiment: I want to transfer data with you. I have Cable, you have fios and they have a peering agreement. We transfer roughly same amount and things work great. Then one day our business relationship changes and we both want me to transfer 10x as much data. My cable plan allows it and has enough bandwidth to handle it. Your fios plan also allows it and has enough bandwidth. However the interlink between cable and fios networks can't handle the new surge of traffic.

      Who should pay for the new interlinks?

      That's what this issue is about. This isn't about net neutrality because comcast isn't targeting netflix. It's a problem of raw amount of traffic and who pays for it. Traditionally it's been the sender (not the requester, these are big backbone networks and don't have the capability to track state of billions of connections). This is because it's cheaper to add bandwidth to servers then clients. A server can be colocated, clients can't.

      Net neutrality definition is heavily debated but I define it as discriminating how you handle traffic based on:
      1. Source and/or destination
      2. Protocol or Type of service
      3. Content

      Which Comcast is not doing in this case. Comcast is an evil evil company, but I'm afraid they're right in this case.

    107. Re:Double Dipping? by Anachragnome · · Score: 1

      "I don't know what reality that is, but it's not ours. If you want to connect to someone else's network, you either pay or agree to a ratio of traffic."

      But I, as a Comcast customer, already paid them to deliver said Netflix data to me. How do they figure they can charge Netflix for the SAME THING when I already paid for it?

      Comcast lives in a world of double-dips, triple-dips and outright shenanigans.

      Remember when cable was supposed to be user-supported Television (as opposed to ad-supported)? Now you have the ads back AND they are charging the content providers as well.

      I've long suspected Comcast of injecting reset packets into my datastream as it pertains to my use of a Samsung set-top device I use to watch Netflix on my television--the service is seriously degraded on that device, but not others such as this PC I am using. I wrote an email to Netflix explaining my suspicions and was pleased to see a firmware update to my device within two weeks that seemed to fix the problem. It lasted about two months before the degradation started again.

      Interestingly, if I run a Netflix movie on my PC (I just turn off the monitor) at the same time I am watching on the Samsung, the data to my Samsung unit is not degraded. It appears that specific device types are targeted--the ones that carry all of the Comcast advertising streams. Degrading the service on my PC wouldn't make sense--they would be degrading their own product. I just see this as further proof that my suspicions are correct.

      As a customer, I am caught in a crossfire, but is plain to see who is wearing the black hat here and it ain't Netflix.

    108. Re:Double Dipping? by StikyPad · · Score: 1

      If Comcast cut all connections to Level3, comcast customers would still be able to reach Netflix just fine...

      Would they? I thought they were moving their content servers to Level 3 exclusively?

      Comcast would be able to use other routes to Level3.

      Potentially, assuming Level 3 didn't decide to drop all packets originating from Comcast IPs.

      Regardless, the point remains that Level 3 provides access to content providers, Comcast provides access to content consumers, and each gets to charge its customers. That's a pretty equitable arrangement by most standards.

    109. Re:Double Dipping? by robotandrew · · Score: 1

      Level 3 is not SENDING anything. Comcast ('s customers) are REQUESTING data FROM Level 3 (Netflix).

    110. Re:Double Dipping? by robotandrew · · Score: 1

      Network providers don't get metaphysical about the reason the data transfer exists, about who requested what or why. Packets come in, money or packets go out.

      Right. Comcast is REQUESING more data from Level 3's network, therefore they must pay for that data imbalance. Unless you are suggesting that Level 3 should pay for sending data that Comcast requests?

    111. Re:Double Dipping? by Anonymous Coward · · Score: 0

      L3 is going from a 1:1 peering agreement to a 5:1 traffic ratio. Do you think that Comcast should just keep letting them pay nothing? If so, great for every other ISP - they can now get a cheaper deal from L3 than from Comcast to carry traffic to Comcast's customers and there's nothing that Comcast can do about it.

      This misses the problem entirely. The problem, originally, is with the model of the Internet and with selling customers X bandwith.

      The thing here is, you can't sell X bandwidth period, because you don't control the whole line. You can only sell X bandwidth to so and so pipes period. And of course, those pipes will only be connected to so and so pipes, and the bandwidths of those pipes vary; rinse, repeat. What you're saying proves it. Continue on with your theory, see what happens.

      Comcast cuts L3 off. L3 must pay other "providers" to deliver traffic to Comcast. So it pays for 1 bandwidth to other providers with the money it saves from the Comcast agreement. And so Comcast customers only get a 1 bandwidth connection to Netflix, even though they need 5 bandwidth to watch it, and even though they're paying for 5 (or more) bandwidth.

    112. Re:Double Dipping? by mabhatter654 · · Score: 1

      On top of that the REAL issue is that the data doesn't go "through" Comcast to anybody except THEIR customers, who are paying for "internet" access. This is why we have the breakdown. Nobody is running large internet services over "retail" providers because those ISPs have long structured themselves to be "leechers-only". The ENTIRE POINT of that decision 15 years ago was to create the stuffed pipes we have now. One set of companies own the cross-country "highway" but another set of companies own the "last mile".

      it's not really a "peering" situation at all. It's Comcast trying to charge somebody for "access" to Comcast's internet customers.

      In a world with proper "net neutrality" Netflix would be able to host their data where it was closest to the customers, but the current network layouts make ISPs "gatekeepers" for ALL customer traffic, even when folks across the street have ATT vs Comcast the traffic is routed "out" to Chicago then back to Michigan. It's all incredibly wasteful.

    113. Re:Double Dipping? by Anonymous Coward · · Score: 0

      At the end of the day the customer is going to pay Comcast to deliver that content one way or another. Whether it is directly in the form of higher internet prices, or indirectly through Netflix in the form of higher subscription fees; I see very little difference.

      That's a pretty big difference if you're a Comcast customer who doesn't use Netflix, or vice-a-versa.

    114. Re:Double Dipping? by dave562 · · Score: 1

      This should be modded up but I'm short of mod points. This is the most concise description of the issue I have read.

    115. Re:Double Dipping? by suutar · · Score: 1

      That brings up the question, are Comcast's customers paying comcast enough to cover all the costs of moving all that data? The old amount, yes; comcast wasn't getting money from Level3 so we must assume that it was paid for by customers. Now that more customers are demanding more data, the flat-rate fees may not be enough anymore, and getting Level3 to chip in (which they would presumably pass on to Netflix et al) keeps them from having to jack up customer prices (obsnark: as much as they would normally)

    116. Re:Double Dipping? by postbigbang · · Score: 1

      I believe that there ought to be common carrier status, so that someone runs the wires (or wireless) and service providers rent that infrastructure from the geography (municipality, state, etc.) and offer their services atop that.... just like utilities were supposed to work.

      Comcast is trying to save bandwidth to not only cover infrastructure costs, but also to make money from Netflix, one of their greatest competitors. The last mile *ought* to be owned by the local community or region, and Comcast should rent from them. But this is heresy.

      --
      ---- Teach Peace. It's Cheaper Than War.
    117. Re:Double Dipping? by Danse · · Score: 1

      Comcast is charging anyone that wants to send traffic over its network. Just like every other provider. You pay to send traffic. If the traffic is equal, they'll just end up paying each other the same amount, so instead they agree on a settlement-free exchange. Now the traffic is no longer equal. Comcast is sending X and Level 3 is sending 5X. End result is that Level 3 ends up paying for that additional 4X of unequal traffic.

      By that logic, I shouldn't have to pay much at all since I only send a tiny fraction of the data that is sent to me by others. Unfortunately that's not how my ISP sees it. I'm paying for both upstream and downstream transfers, with limits on both. Apparently they do charge twice for the same data, once to whoever send it, and again to whoever receives it.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    118. Re:Double Dipping? by Alrescha · · Score: 2

      Stop parroting the same old argument that Comcast is making. Comcast isn't a peer, it's a large endpoint. One could claim that Comcast isn't carrying *any* traffic for Level3 - it's all to the benefit of Comcast (and their customers). One conclusion is that Comcast should pay Level 3 for the privilege of connecting to Level 3.

      (I'm aware there is danger in oversimplification, but come on)

      A.

      --
      ...bringing you cynical quips since 1998
    119. Re:Double Dipping? by txghia58 · · Score: 1

      And you dont think that they weren't paying more in colocation fees than lvl3 is going to be paying in bandwidth?

    120. Re:Double Dipping? by nharmon · · Score: 1

      And Comcast customers are getting what they paid for: a connection to the internet. But this goes beyond that and into the realm of a sustained QoS from Netflix. No Comcast customers are paying for that.

    121. Re:Double Dipping? by nharmon · · Score: 1

      If you really think Comcast internet service includes end-to-end QoS then you know even less than your condescending anti-business mentality lets on.

      Oh, and my field is mathematics, not business. So go apply your troll somewhere else.

    122. Re:Double Dipping? by Rockoon · · Score: 1

      You have no clue at all about how peering / transit agreements work

      I know how peering and transit agreements work.

      Comcast is not a peer. Do you understand that? Comcast is not a peer. They are not the backbone. They are not transiting packets from one network to another. They are not a peer.

      You have taken the little knowledge you've got and misapplied it.

      Lets try this one more time.. Comcast is not a peer. Comcast is a provider.

      --
      "His name was James Damore."
    123. Re:Double Dipping? by foobario · · Score: 1

      I pay Comcast for bandwidth so I can access various content over the internet. Netflix pays Level 3 for bandwidth so they can provide content to people like me. Now Comcast says they should be receiving payment for allowing the data with which I have elected to use my bandwidth?

      Comcast should be paying Netflix for providing the content that brings customers to purchase Comcast's services; they should also be paying Level 3 for dutifully delivering that data down the big pipes until it reaches Comcast's smaller pipes and eventually finds its way into my home.

      Netflix, (or Slashdot or any other content on the web) are like the fruit on the tree;
      Level 3 are like the people who deliver the fruit to the stores;
      Comcast is the store;
      and I am the store's customer.
      And Comcast thinks this arrangement entitles them to a share of the wholesale fruit profits? When the presence of that fruit in Comcast's store is the only reason I go to that store? I pay Comcast for the fruit. They don't need the delivery companies to pay them as well - the very idea is absurd.

    124. Re:Double Dipping? by Thing+1 · · Score: 1

      Mod parent up please, excellent analysis.

      --
      I feel fantastic, and I'm still alive.
    125. Re:Double Dipping? by Danse · · Score: 1

      And Comcast customers are getting what they paid for: a connection to the internet. But this goes beyond that and into the realm of a sustained QoS from Netflix. No Comcast customers are paying for that.

      Comcast customers pay for a connection to the internet, with a specific speed range, and a limit on how much data they can transfer up or down. So, if Comcast is also charging whomever is sending the data down to their customers, then effectively both the customer and the sender are being charged for the same data. Apparently this charging both ends of a connection for the same data is common practice.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    126. Re:Double Dipping? by camg188 · · Score: 1

      I read the linked statements from Comcast and TWC and neither one clearly states why their peering costs are not covered by their clients' subscription fees.

    127. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      All you people supporting Comcast need to stop. You clearly have no idea how the internet works. While I realize that cable ISP and the physical cable companies are the same entity so it's hard to separate the costs of renting a physical line vs sending/recieve data, let me demonstrate with what I think is a more apt analogy: DSL connections. Here I can rent a DSL line from the telco, and I can pick an ISP that is not the telco. I pay money to both. I understand that I have to pay my telco to rent a line. However, my DSL connection is highly asymmetric. I typically download 200GB/mo and upload maybe 5GB/mo. Should my ISP be paying me? After all, they are sending tons of data onto my internal network. Just like Level3 is doing to Comcast! The key point to note here is that I am an end-point (as viewed from my ISP). There are no other ways of getting data to where it is needed without passing through me. Thus I pay for the privilege to connect to the internet from my ISP. The same thing is true for Comcast. There are no ways of getting data into the customer's hands without going through Comcast. Sure L3 can depeer Comcast, but all that traffic must go through Comcast somehow. If Comcast is content to let their customers deal with subpar video streaming, then either their customers would complain to Comcast (ideally) or Netflix (who can explain that the customers need to complaint to Comcast, because it refuses to peer to get a faster route to their content)

    128. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      If I had mod points, I'd mod you down. What you just said exactly proved his point. DSL connections CAN be symmetric. Look up SDSL. The reason they are NOT symmetric because consumers WANT more download bandwidth. When ISP X supplies a symmetric connection, and ISP Y supplies an asymmetric connection, who do you think Person A would choose? Thus this is a lost opportunity cost to ISP X. Not technical. Similarly for DOCSIS. While there is small overhead for communication, there's no reason why the effective bandwidth can be made symmetrical if they had engineered the spec that way. Market forces are why we have asymmetrical connections.

    129. Re:Double Dipping? by Sepodati · · Score: 1

      You're paying for the telco to deliver that 5GB/mo to the correct peer so that you can reach your service. Level 3 is paying so that their content can reach the end user. Pay to transmit.

      As an end-user, you pay a set amount for the right to transmit up to your limit (whether you use it or not). Level 3 likely pays per GB that's over the amount of data/content that Comcast is sending to them.

      If the two organizations/peers transmit equally to each other, it's a zero sum game, so neither one pays the other.

      If Comcast was charging per GB downloaded AND charging Level 3 or whoever for the transmission across the network, then I'd agree that it was double-dipping.

    130. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      And why isn't the telco paying me the equivalent of 200 GB to get it from my WAN facing router to my computer? Pay to transmit indeed.

    131. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      Sorry that should be ISP. I'm already paying my telco for physical usage of the line.

    132. Re:Double Dipping? by Sepodati · · Score: 1

      You can ask, but your ISP has every right to say no, just as Level 3 could have said no. Level 3 knows they are offering a service that's only useful if you can connect to other network's customers, though, so they paid. If they didn't, they'd either lose all of Comcast's customers or have to pay another network transit fees to go through their network in order to get to Comcast.

      You need to become an equal at a large enough amount of traffic before you have any bargaining power, though. Run FlixNet off your network where your ISP's customer are pulling GBs of traffic from your network and your customers/users are pulling an equal amount of GBs from the ISPs content offerings and you've got some bargaining power to try and become a peer. You'll still pay for traffic that transits the ISPs network to get to the rest of the Internet, though, just as Comcast and Level 3 do.

    133. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      Correct, my ISP has every right to say no. However, L3 wouldn't have to pay another network's transit fees, because Level3 could just hand off the content to one of its other Tier 1 peers. Those peering connections are orders of magnitude more voluminous than the L3 -> Comcast connection and wouldn't affect their ratio severely enough to warrant a renegotiation. So who pays Comcast for peering then? If every Tier 1 provider stuck to their guns, all the tier 1 providers would depeer Comcast and we would have a fractured internet. This is why L3 paid and sets a DANGEROUS precedent for the rest of the internet. It did not want to be the one who fractured the internet.

    134. Re:Double Dipping? by Sepodati · · Score: 1

      The whole point of a Tier 1 is that you don't have to transit another network. If Level 3 depeered with Comcast, they'd HAVE to transit another network in order to get to Comcast.

      You think they're just going to dump the traffic off to AT&T and say "handle this"? AT&T's peering policy says "No transit or third party routes are to be announced; all routes exchanged must be peer's and peer’s customers' routes"[1], so Level 3 isn't even getting Comcast's routes from AT&T. Qwest and Verizon's policies say something similar. So who is level 3 going to dump the traffic off to without arranging for transit?

      Each of those peering agreements also mention a 1.5:1 or 1.8:1 or at most a 2:1 traffic ratio must be maintained and exceeding the ratio will require compensation.

      Level 3 paid because they knew they were exceeding the ratio and it would cost more to buy transit.

      [1] http://www.corp.att.com/peering/

    135. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      You are doing this wrong. AT&T is the one who announces routes to Comcast. If L3 depeers Comcast, it has no knowledge of how to get to Comcast. So it asks its peers (AT&T). AT&T routers would then announce their known route to Comcast and L3 would pass the traffic. Thanks for proving how much you know of the internet. If you are still not convinced. Think about this from the flow of money standpoint.. Netflix is paying L3 so it can move data across their network. Because they are a customer. Comcast subscribers are paying Comcast TO MOVE data across their network because they are a customer of Comcast. Why should L3 have to pay Comcast? Both networks are moving the same amount of data between both points.

    136. Re:Double Dipping? by warpuck · · Score: 1

      1. AOL WAS a content provider. 2. I am not paying Comcast.net to be my content provider. 3. I own an antennea. 4. I own a blu-ray player. 5. I have a cell phone. 6. LIFE CAN GO ON without content provider access. 7. Netflix & Blockbuster still send movies thru the mail. 8. I am not impressed by Xfinity. 9. Taking the cable box and modem back to Comcast is an option. I have used that option previously. 10. If enough COSTomers leave they will be like AOL or they will adjust. 11. NO BUSINESS CAN SURVIVE WITHOUT CUSTOMERS!

    137. Re:Double Dipping? by Sepodati · · Score: 1

      If L3 depeers Comcast, it has no knowledge of how to get to Comcast. So it asks its peers (AT&T). AT&T routers would then announce their known route to Comcast and L3 would pass the traffic.

      You have no idea how BGP or peering works.

      Both networks are moving the same amount of data between both points.

      NO, you're paying for Comcast to transmit your packets to Level 3 and Level 3 is paying Comcast to transmit their packets to you.

    138. Re:Double Dipping? by AzN1337c0d3r · · Score: 1

      You have no idea how BGP or peering works.

      So what you're telling me is that if L3 Comcast link goes down for any reason at all, all Comcast customers would lose access to Netflix because L3 can't pass on their traffic?

      Do you really think the internet is that fragile?

      NO, you're paying for Comcast to transmit your packets to Level 3 and Level 3 is paying Comcast to transmit their packets to you.

      Why isn't Comcast paying me to transmit their packets? After all, they are dumping a lot more traffic into my network than I am into theirs.

      I am using exactly their rationale they use to justify charging L3.

    139. Re:Double Dipping? by rakaur · · Score: 1

      It is not transmit. It is delivering. They're not transmitting over Comcast's network to someone else, as in a peer. They are delivering TO Comcast's network. I can ask someone to pay me to send me content, but Comcast can? That's retarded, and so are you.

    140. Re:Double Dipping? by Anonymous Coward · · Score: 0

      Don't expect any answers from this shill. Just review his post history, which is pro-Comcast to a degree that's indicative of either personal involvement or wanton disregard for logic. His stance is essentially "If I have no problems, then neither does anyone else."

    141. Re:Double Dipping? by Anonymous Coward · · Score: 0

      And what you're missing is that Comcast's customers are requesting this traffic. If the traffic was just passing through L3 then Comcast would have to pay L3 for it. Why should L3 pay Comcast when Comcast's customers are already paying? L3 wants to set up new links for this traffic and pass it to Comcast for free, but Comcast wants money to recieve traffic their customers are requesting. Seems like an odd business model Comcast have. If Comcast don't think they are getting enough money for delivering traffic to their customers then maybe they should charge their customers more.

  2. Peering Agreement by phantomfive · · Score: 2

    Don't they have some sort of peering agreement that covers this? Aren't they supposed to charge their peers, and their customers, more when their bandwidth usage goes up? Or am I missing something here? Obviously telcoms are greedy and will try to take whatever they can, but isn't there already a channel established for that?

    --
    Qxe4
    1. Re:Peering Agreement by Anonymous Coward · · Score: 4, Informative

      Don't they have some sort of peering agreement that covers this? Aren't they supposed to charge their peers, and their customers, more when their bandwidth usage goes up? Or am I missing something here? Obviously telcoms are greedy and will try to take whatever they can, but isn't there already a channel established for that?

      Nope. You've got the gist of it.
      Comcast and Level3 had a settlement free peering agreement based on a roughly 1:1 traffic exchange. Level3 now wants to send 5:1 more traffic to Comcast, meaning their settlement free peering agreement is no longer valid. Comcast is just trying to negotiate a new peering agreement.

      Funnily enough, Level3 was in Comcast's EXACT position back in 2005 with Cogent. Cogent wanted to send more traffic than Level3 was sending, and Level3 said "Nope, no more settlement free agreement. Get out your wallet!"

      Comcast has peering agreements with other CDN's, and Level3 wants to leverage their old peering agreement to bust into the CDN market here. They are trying to pass the cost of increasing their CDN presence off to Comcast and Comcast's customers rather than paying for it themselves.

      If anything, consumers should be pissed at Level3, not Comcast, because this will directly increase Comcast's operating costs... and we all know those costs are passed on to the consumer.

    2. Re:Peering Agreement by Anonymous Coward · · Score: 1

      Yes, they do. AFAIK, Level 3 struck a deal with Netflix that substantially increased their traffic on Comcast's network. Comcast looked at it, said "If you're going to send us 10x the traffic that we send you, then we're not peering anymore - you've got to make up the difference", and Level 3 started whining about how the evil, evil Comcast wasn't rolling over and letting them abuse their peering relationship.

      (Don't get me wrong, Comcast *is* evil. Just not in this particular instance.)

      In other words, anyone complaining about this is being a complete idiot. Yes, there are peering agreements, and this is the way they work, and have worked, for years.

    3. Re:Peering Agreement by RingDev · · Score: 5, Informative

      Peering agreements are what we typically see at back bone and transport level connections.

      The bandwidth going either way is roughly even.

      For example, if Level 3 wanted to get packets to an AT&T customer, and Comcast owned a network between those two points, Level 3 and Charter could have a peering agreement so that Level 3 could send data over Comcast's network and vice-verse. If Comcast is sending a lot more data out for transport over Comcast's network than Comcast is sending back, then there may be a fee included.

      That's all fine and good. But, in this case, Level 3 isn't sending data to AT&T customers. They are sending data to Comcast's customers. Customers that requested the data. Level 3, being proactive for Netflix, is trying to get a direct connection to Comcast's network to reduce backbone data transfers. Even if this agreement falls apart, Level 3 will still be routing the data to Netflix, but it will be coming over an existing back bone connection. It will offer worse performance for Comcast's customers, and it would waste more bandwidth on the back bone.

      This is a pretty clear case of Comcast taking two dips from the coffers. Once from the users who are paying for data to be transferred to them via Comcast's network, and again from Level 3 that is providing the requested data to Comcast.

      -Rick

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    4. Re:Peering Agreement by BagOBones · · Score: 3, Informative

      If you have been following the details of this, yes they have existing agreements but they go like this..

      If I provide content, and your users are consuming it, I don't pay you, your customers do as they are the content consumers. We work together making sure the pipes between us are big enough to keep up with demand without charge.

      Comcast has changed it to:

      If your content is really really popular and we need bigger connections between us, I am going to charge you for the larger connections on my side, because I am not charging enough for what my customers are consuming.

      --
      EA David Gardner -"... but the consumers have proven that actually what they want is fun."
    5. Re:Peering Agreement by Anonymous Coward · · Score: 1

      They do very likely have an agreement but traffic patterns change over time. And when you are Comcast or Cox or someone who probably has more end users than large sites versus Level 3 or Google which has more large sites than users, you end up with a significant traffic imbalance. But Level 3 is (I believe) the largest carrier of Internet traffic, there will likely be a lot of stuff that people wish to access that will come out of their network. It is like the original AT&T argument that kicked off the whole 'net neutrality' discussion years ago where it sounds like they really have an issue with rates on the customer side but want to try to charge the content providers instead. At least that is the way this thing always ends up looking to me. It doesn't seem likely that Level 3 needs Comcast's network for a lot of transit traffic and the claim that it isn't Netflix is partially a smokescreen IMHO.

    6. Re:Peering Agreement by commodore64_love · · Score: 2

      Good summary.

      It also seems pretty obvious that Comcast is trying to protect its TV/Movie business. They figure if customers are not watching HBO or USA or whatever, but instead watching netflix, then Comcast will try to charge extra for the privilege. Their TV/Movie business may collapse but they can still collect fees off the streaming netflix business.

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

      That's all fine and good. But, in this case, Level 3 isn't sending data to AT&T customers. They are sending data to Comcast's customers.

      Two points:

      1) Comcast almost certainly has multiple business units operating with their own budgets. It's pretty likely that one of the BUs is for Comcast's backbone, while another is for their residential customers.

      2) CDNs (and Level 3 is acting as a CDN here) usually pay ISPs to host their servers locally. They usually do this with one ISP per geographical region, and other ISPs will still use the server. So it is very much a case where the CDN needs to pay to transport data across the network to other ISPs customers.

    8. Re:Peering Agreement by Zeek40 · · Score: 1

      If your content is really really popular and we need bigger connections between us, I am going to charge you for the larger connections on my side, because most of my customers have no alternative to my service, the government isn't regulating my monopoly, and my second Yacht still wasn't big enough.

      I think that's a little more accurate.

    9. Re:Peering Agreement by Erioll · · Score: 1

      It depends on who's lying. Level 3 said they wanted the additional fee for video. Comcast says it's just an imbalance in the amount of data in their existing peering agreement, REGARDLESS of the type of traffic.

      Personally, I'm more willing to believe Comcast here. Imbalances can happen for a huge number of different reasons. This one is obvious: they're going to be taking on a HUGE amount of extra data from Level 3 specifically because of Netflix.

      Think of it this way, if roughly the same amount of data is going back and forth, they both can say "it's about even, so we're not going to charge each other." But if suddenly a LOT more is going one way than the other, then they can start charging more. It's no different than me going to my ISP and saying "I'm going to increase the amount I'm uploading by 10x, but you'll still charge the same right? You mean you want to charge me more now? But YOU are requesting a bit from me still! What do you mean no?" That's what Level 3 is doing by the sounds of it.

    10. Re:Peering Agreement by Trailer+Trash · · Score: 3, Informative

      If anything, consumers should be pissed at Level3, not Comcast, because this will directly increase Comcast's operating costs... and we all know those costs are passed on to the consumer.

      Why will this increase Comcast's operating costs? It's not going to affect Comcast's customers Netflix usage, so their overall traffic won't go up, it'll just be coming from a different peer.

    11. Re:Peering Agreement by socrplayr813 · · Score: 1

      Except that this is content that was requested by Comcast's customers, who are already paying Comcast for the traffic. My understanding is that peering agreements are for sending information through a network to someone else's network.

      ie. If I drive from New York to New Hampshire, and pass through Vermont. There would be an agreement between New York and Vermont (and/or Vermont and New Hampshire) for allowing me to pass through, while New Hampshire's costs would be covered by their citizens and businesses.

      There may be more to this that I haven't seen, but I've read several articles about this in the last couple of days and nobody's shown any evidence that this has anything to do with content or actual peering. Comcast just wants to be paid twice for the same traffic. Time Warner is backing them because they want in on the double payments if this works.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    12. Re:Peering Agreement by MBCook · · Score: 4, Insightful

      The difference is that Cogent was sending traffic across Level 3's network, when in this case Level 3 is sending traffic to Comcast.

      If Level 3 and Comcast were peers in between two other endpoints, I could understand this. But that's not the case, Comcast is one of the end points. Doesn't Comcast owe their customers the ability to receive the traffic they want?

      Also, it's not like Level 3 is suddenly going to quintuple traffic to Comcast and everything else stays the same. The fact that Netflix movies are going to be served from Level 3 means they are not being served by someone else, which should free up some of the ports they are so worried about.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    13. Re:Peering Agreement by dfgchgfxrjtdhgh.jjhv · · Score: 1

      That different peer might pay them.

    14. Re:Peering Agreement by silas_moeckel · · Score: 3, Interesting

      Did Comcast become transit free when I was not looking? Nope they still buy transit L3 should grow a pair and cancel there settlement free peering with Comcast, worst case is they end up with an imbalance with another transit free provider. Right now comcast is not paying for the bandwidth L3 should grow a pair and make them pay for those bits even it's to att or similar. Time Warner is in the same boat. Look at it more as Comcast needs to find some source of packets to send to L3 to get the ratio's back inline if they want to play with the big boys. Take a look at there network http://www.robtex.com/as/as7922.html Comcast is an obvious bad actor they like many of the cable co's chew through AS numbers because they don't want to have a backbone they do want everybody to do the hard work for them.

      --
      No sir I dont like it.
    15. Re:Peering Agreement by dmayle · · Score: 1

      I'm glad you've got the points, because this is the first intelligent response I've yet seen on the subject.

      To add my two cents, Comcast's argument is with regards to Level 3 as a CDN, and how other CDNs are paying access fees.

      Let's think about that for a moment... At some point an ISP like Comcast had the brilliant (if morally repugnant) idea of charging CDNs access to their customers. Since a CDN makes money off of reaching customers, their service is only valuable if they can reach the customers, which puts them in a bind. They have to pay, and the CDNs customers pay because they wish to provide their clients a better experience.

      Let's look at that last one again to see how truly evil Comcast is in this scenario. Comcast has customers who pay them for net access. Instead of opening their arms to CDNs, which are a FREE way to get better service for their customers, they've decided to make CDNs pay to make service better for Comcast's customers.

      This means that Comcast is introducing barriers to improving the service of their own services. Why? Because they can. I'm a locked-in Comcast customer, and I really wish I had any options.

    16. Re:Peering Agreement by Anonymous Coward · · Score: 0

      please excuse my stupidity, but perhaps some of you smart folks out there can explain something to me, as i seem to be missing part of the relationship between Comcast and L3.
      Isn't the reason that Comcast is pulling more data from L3 because Comcast customers are requesting that data?
      Hasn't the bandwidth( aka equipment and maintenance costs) to receive that data already been paid for by Comcast customers?
      Doesn't this basically come down to Comcast being paid twice for the same work. charging both the content provider and the receiver?

    17. Re:Peering Agreement by kaiser423 · · Score: 1

      That's all fine and good for peering, but that's not what this is.

      Terminating segments are different from peering segments. The data terminates inside of Comcast's network. Comcast's network has specifically asked for that data to be delivered to it. Then they want to charge Level 3 for delivering that data to it.

      Now, if Level 3 was passing massive amounts of data *through* Comcast's network, without having similar amounts pass through theirs, that would be a peering disagreement.

      But this is not peering, it's terminating. The data is inherently going to be imbalanced, but the *sink* is in Comcast's network, and the *source* is outside of it.

    18. Re:Peering Agreement by Guspaz · · Score: 1

      If I want you to call me on the telephone, should I have to pay for your telephone line? No, we each pay for our own telephone line, and then you can call me as much as you like.

    19. Re:Peering Agreement by dfghjk · · Score: 1

      That's right, it won't change Comcast's operating costs at all. What's happened is that Comcast is no longer getting paid on both ends of the pipe because one of the customers got a better deal elsewhere. In response, Comcast want to send a bill to the competition who took that customer.

    20. Re:Peering Agreement by Anthony+Mouse · · Score: 5, Informative

      Comcast and Level3 had a settlement free peering agreement based on a roughly 1:1 traffic exchange. Level3 now wants to send 5:1 more traffic to Comcast, meaning their settlement free peering agreement is no longer valid. Comcast is just trying to negotiate a new peering agreement.

      It's a little more complicated than that.

      Here's what the dispute is really about: The way the Internet works (obviously) is that you buy access from your ISP (e.g. Comcast), they in turn (perhaps through some number of additional intermediaries) buy access to the backbone from a Tier 1 provider (like Level 3). If you were a big enough network, you could 'peer' without paying anything (since there was no particular reason for one network to pay the other vs. vice versa). The way it worked in the Old Days was that data centers would always be uploading more than they download, so the rule of thumb became that if you upload too much data without downloading, you can't peer for free -- a rule of thumb to distinguish data centers from ISPs and make them pay. But it is unheard of for a backbone provider to pay an ISP -- because it is inefficient. ISPs like Comcast always used to have approximately symmetrical load to their uplink providers: Their customers would download more than they upload, which means they would have "surplus" upload bandwidth "for free" which they could sell to local data centers. Selling to data centers like this is efficient because otherwise the surplus upload bandwidth is lost -- use it or lose it.

      Some of these data centers in modern times turned into CDNs like Akamai. The CDNs kind of messed with the model. Instead of connecting Comcast's network to buy Comcast's surplus upload bandwidth to the backbone, they connected to Comcast networks to serve content only to Comcast's customers. In other words, they evened out Comcast's uplink to Level 3, not by increasing upload traffic as was the traditional model, but by decreasing download traffic from the backbone. But that still works.

      So now what's happening with Level 3? Netflix is moving from Akamai to a data center operated by Level 3 which is only connected to Comcast through Level 3's backbone. What this does from Comcast's perspective is a) deprive them of the money Akamai was paying them, but b) give them a huge amount of "free" upload bandwidth. What Comcast is then supposed to do is the efficient thing: to shop this surplus bandwidth around to data centers. Or sell Comcast Business customers higher upload rates. Or whatever. They're supposed to sell it, because they can sell it most efficiently -- there is a pipe going into Comcast which is only full in one direction and the only way to fill it is to put something which uploads a lot on the Comcast side.

      Comcast apparently doesn't want to do that. I can really only think of two possible reasons for this: First, there is so much upload bandwidth that no one would possibly want to buy it. (I find this to be pretty unfathomable. Supply and demand says that if the price is right, someone will pay.) And second, Comcast is double dipping and trying to sell access to their customers as a scarce resource; in other words, trying to force Level 3 to pay more for the bandwidth than it would sell for on the open market because buying it from Comcast is the only way to get access to Comcast's customers and they want to charge monopoly prices.

      Funnily enough, Level3 was in Comcast's EXACT position back in 2005 with Cogent. Cogent wanted to send more traffic than Level3 was sending, and Level3 said "Nope, no more settlement free agreement. Get out your wallet!"

      No, Cogent was sending traffic over Level 3's network to third party networks. In this case Level 3 is sending traffic to Comcast customers. Level 3 has no monopoly on access to third party networks. There are other backbone providers. Comcast has a monopoly over access to Comcast customers -- that's what makes it different.

    21. Re:Peering Agreement by Jartan · · Score: 1

      That argument is BS. Here's the relevant line from wiki http://en.wikipedia.org/wiki/Peering

      The pure definition of peering is settlement-free or "sender keeps all," meaning that neither party pays the other for the exchanged traffic; instead, each derives revenue from its own customers.

      The reality is that Level3 usually CHARGES companies like Comcast money for peering. I'm actually a bit confused how Comcast could get a settlement free peering agreement in the first place. However they managed it the idea that an end user network like Comcast would whine about being allowed to leech more traffic off of a tier 1 like Level3 is frankly absurd.

    22. Re:Peering Agreement by socrplayr813 · · Score: 1

      That's the point. I'm paying the phone company for my line, you're paying the phone company for your line, and the phone companies have separate agreements with each other to make our connection possible.

      Comcast is trying to get both its subscribers AND Level3 to pay for the same traffic. There's no middle man in this case, so the whole issue of peering agreements is just a load of crap.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    23. Re:Peering Agreement by Rockoon · · Score: 1

      This isnt quite right.

      The analog would be that if I called you a thousand times a month and you only called me once, that I should pay more than you.

      --
      "His name was James Damore."
    24. Re:Peering Agreement by Guspaz · · Score: 1

      And two Bell customers both have to pay Bell for the same phone call. What's your point? Comcast is trying to get two parties who wish to exchange data to pay for this exchange. Comcast provides a pipe between the two entities, and wants both ends of the pipe to pay for it.

      People keep talking about how they want ISPs to behave as "dumb pipes", but then object when they actually do.

    25. Re:Peering Agreement by CyprusBlue113 · · Score: 1

      This is *exactly* the situation, and all the other comments about peering etc are just trying to muddy the issue.

      --
      a handful of selfish greedy people are no match for millions of selfish, greedy people -u4ya
    26. Re:Peering Agreement by Anonymous Coward · · Score: 0

      While I'm a Socialist, in this case why not let the big companies negotiate mano-a-mano. If this results in excessive costs to consumers than regulate those costs like utility rates are regulated

    27. Re:Peering Agreement by Anonymous Coward · · Score: 0

      They are trying to pass the cost of increasing their CDN presence off to Comcast and Comcast's customers rather than paying for it themselves.

      Bullshit. The reputation management firms are getting thick out here.

      This is about serving content to Comcast customers. Comcast should always bear 100% of the cost of anything generated as a result of the service Comcast sells to its customers. If Comcast's customers are generating so much traffic that Comcast is losing money on bandwidth costs, then Comcast needs to charge them more. Can you imagine if we had this outlook in other markets? What if Ford started charging radio stations for the "cost" of installing radios in its cars? After all, there's an expense there and the radio stations are making money off those people demanding their content.

    28. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Alternatively, Comcast could reroute more traffic through Level 3's network, bringing the traffic differential closer to parity. That's not necessarily the best business decision though, since maintaining the 5:1 traffic ratio means they get to generate revenue off the deal.

      I just want to point out that there is an alternative to what Comcast is doing, not to apply any particular morals to either decision.

    29. Re:Peering Agreement by socrplayr813 · · Score: 1

      And two Bell customers both have to pay Bell for the same phone call.

      Two Bell customers are NOT paying for the same phone call. They both pay for continuous access to the network. Only the person making the call is paying for the call itself. Of course, this isn't even really relevant because the internet does not work the same way as the phone network.

      What's your point? Comcast is trying to get two parties who wish to exchange data to pay for this exchange. Comcast provides a pipe between the two entities, and wants both ends of the pipe to pay for it.

      People keep talking about how they want ISPs to behave as "dumb pipes", but then object when they actually do.

      This has nothing to do with whether or not Comcast is acting like a dumb pipe. You're not even talking about the same thing I am. Are you even reading what I'm typing?

      Comcast gets paid by its subscribers to provide access to any and all internet content that they want. Level3 is hosting content that those customers want, so Comcast is supposed to make the necessary connections to get it. Level3, in this case, is merely providing access to the content that the subscribers have already paid for.

      Comcast wants, in addition to its subscribers money, money from Level3 to be able to SERVE the content. They're double-dipping. It might be different if Level3 were using Comcast's network to transmit the content to other ISPs, but nothing I've read has talked about that.

      Ironically, what started this whole thing was a proactive action by Level3 to reduce the overhead and improve the efficiency of these connections, which would probably save Comcast money/man-hours/equipment load/whatever.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    30. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Consumers should be pissed at the ridiculous way peering is organized in the US. Whenever data is transferred between two networks, and the endpoints are in those two networks, both parties have been paid by their customers, i.e. those who have requested that traffic, and none of the parties should pay. It's something else if the traffic is passing through a third network.

      Over here in Germany, a large chunk (1.6Tbit/s) of the peering traffic is handled by a non-profit, paid for by the ISPs that connect there according to the bandwidth they use (independent of the direction).

    31. Re:Peering Agreement by Shakrai · · Score: 5, Informative

      Why will this increase Comcast's operating costs? It's not going to affect Comcast's customers Netflix usage, so their overall traffic won't go up, it'll just be coming from a different peer.

      Akamai delivered Netflix (and other content) to Comcast's customers by buying colo rack space in Comcast's POPs and pulling in their own private lines. Level 3 is dumping the traffic onto Comcast at a much smaller number of peering points, thus Comcast has to use their long haul network to transport the traffic across the country instead of having it originate inside a POP nearer to it's final destination.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    32. Re:Peering Agreement by VGPowerlord · · Score: 1

      This will increase Comcast's operating costs, because prior to this, Netflix paid Akamai to host things on the Akamai CDN, which has servers located inside Comcast's network. This meant that Netflix traffic traveled from the closest Akamai mirror inside the network to the user.

      Now, traffic must come from outside the network, and travel from a Comcast-Level 3 interchange to the user.

      At the very least, this means a significant increase in bandwidth usage at the network interchange points between Comcast and Level 3... which is likely why Level 3 requested a number of new interchange points, although reports seem to differ as to who is expected to pay for said points.

      Before I forget, this also means Akamai is paying Comcast less, because it's using less bandwidth.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    33. Re:Peering Agreement by Shakrai · · Score: 1

      Two Bell customers are NOT paying for the same phone call. They both pay for continuous access to the network. Only the person making the call is paying for the call itself.

      Cell phones charge for incoming calls too in the United States on the vast majority of plans.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    34. Re:Peering Agreement by Shakrai · · Score: 1

      It also seems pretty obvious that Comcast is trying to protect its TV/Movie business. They figure if customers are not watching HBO or USA or whatever, but instead watching netflix, then Comcast will try to charge extra for the privilege.

      As much as I hate cable, you do realize that Comcast's video services help to pay for the costs of maintaining that huge HFC network, right? If everybody cuts the cord on video services then costs for internet service will go up by a non-zero amount. I don't pay for video services from Time Warner because I don't find them to be worth the money but let's not pretend that it has a non-zero cost on the local cable company if everybody ditches video in exchange for data only services.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    35. Re:Peering Agreement by Sepodati · · Score: 1

      My understanding is that peering agreements are for sending information through a network to someone else's network.

      No, that's a transit agreement and you pay for sending the traffic.

      Peering agreements are set up so that you don't have to use transit networks.

      Technically, they're probably both peering agreements, but one you certainly pay for the other you pay less or even nothing.

    36. Re:Peering Agreement by VGPowerlord · · Score: 1

      At some point an ISP like Comcast had the brilliant (if morally repugnant) idea of charging CDNs access to their customers. Since a CDN makes money off of reaching customers, their service is only valuable if they can reach the customers, which puts them in a bind. They have to pay, and the CDNs customers pay because they wish to provide their clients a better experience.

      I have an idea, I'll run a video games store and you can run a mall. Now give me free shop space! After all, it benefits your customers! Oh, and don't forget that you're the one paying security guards, maintenance staff, electric bills, water bills, etc...

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    37. Re:Peering Agreement by matthewd · · Score: 1

      Based on reading Comcast's letter, it sounds like what they want to be paid for is the setup for the 27-30 extra ports ($50k per) and associated recurring costs ($25K per port per year) that are going to be required to provide enough bandwidth between Level 3's network and Comcast to handle the new additional traffic Level 3 is sending to them.

    38. Re:Peering Agreement by mattack2 · · Score: 1

      ISPs like Comcast always used to have approximately symmetrical load to their uplink providers: Their customers would download more than they upload, which means they would have "surplus" upload bandwidth "for free" which they could sell to local data centers. Selling to data centers like this is efficient because otherwise the surplus upload bandwidth is lost -- use it or lose it.

      So this sounds a lot like the Carbon credit market.

    39. Re:Peering Agreement by socrplayr813 · · Score: 1

      Unless I'm missing something, Bell does not provide cell service in the US.

      And cell networks are still very different from the internet, so it's not anymore relevant than the original phone argument anyway.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    40. Re:Peering Agreement by socrplayr813 · · Score: 1

      And that'd be fine if Level3 were just sending them traffic, but it's traffic that is being (will be) requested by Comcast's own customers.

      Again, I have largely been ignoring the issue of Level3 sending Netflix traffic through Comcast's network to other ISPs, but I haven't seen that mentioned anywhere yet. If that's Level3's plan, then yes, Comcast should get something for it, but only then. Level3 should not be paying for connections that are serving Comcast's own customers.

      --
      The confidence of ignorance will always overcome the indecision of knowledge.
    41. Re:Peering Agreement by Anonymous Coward · · Score: 0

      It really is not double dipping. You're seeing what you want to see in the facts. This seems to be based on assumptions about the business that just aren't true.

      Level3 is selling access to Netflix the same way Comcast is to consumers. Comcast, as the owner of a network, has an interchange with the Level3 network. It may be higher up the ISP chain, but they're just networks. Just because Level3 is closer to the backbone means nothing. At the interchanges between the networks there is a meter measuring how many bits are going from Comcast to Level3, and how many are coming the other way. Bits going out from Comcast are the downstream for Level3, and bits going in to Comcast are the upstream. Level3's upstream usage has skyrocketed so Comcast no longer thinks the deal they negotiated where Comcast paid Level3, or Level3 paid Comcast, or nobody paid anybody for the data being exchanged is no longer fitting and it needs to be reworked where Level3 pays more (or Comcast pays less) for the deal they negotiated.

      To not charge Level3 would be like saying everybody should have unlimited upstream bandwidth because somebody else is paying to receive the data. Thats just not how it works, you're just blinded by the net neutrality arguments and wanting to see the internet as one entity capable of being shut down with a switch, instead of its true glory of many networks all with an important role to play and any mass of networks connected together could become the same thing. You see Level3 as the guy that hooks Comcast up to the internet, not realizing that Comcast is a big part of the internet, hooked up to Level3.

    42. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Akamai had colo in Comcast datacenters, with private lines. This will massively increase Comcast traffic. Also, this is not 100% to Comcast customers, either. Comcast's ibone is actually a fairly respectable internet backbone in its own right, with 40Gbps DWDM across large sections of North America. Level3 will be sending some traffic through Comcast to other destinations - though exactly how much is up for debate.

    43. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Why? What is Netflix going to do without customers to reach? This bullshit needs to stop. Upstream traffic is still traffic even if Level3 is considered "the internet" and Comcast is considered "the consumer network". Why do the rules of how we've always paid for network usage change when its two companies who sell network access interact? Aren't they just the same as anybody else? Even if it is requested by a Comcast customer the fact is Level3 is sending a lot of data over Comcast's network and people have always had to pay for uploading AND downloading. Uploading has always been more expensive. Therefore if one person is uploading way more than the other person is, they should pay for it. This is not new, you just look at things like an unreasonable person when it comes to your beloved internet and net neutrality.

      Where's Zapp when you need him?

    44. Re:Peering Agreement by WaffleMonster · · Score: 1

      Nope. You've got the gist of it.
      Comcast and Level3 had a settlement free peering agreement based on a roughly 1:1 traffic exchange. Level3 now wants to send 5:1 more traffic to Comcast, meaning their settlement free peering agreement is no longer valid. Comcast is just trying to negotiate a new peering agreement

      None of this passes the smell test. Just by public statements most of it is factually incorrect.

      "Until Level 3 fomented this dispute, Comcast and Level 3 exchanged Internet traffic as part of a commercial interconnection agreement"

      "Although the parties exchanged traffic at a ratio of about 2:1, with Comcast terminating more of Level 3's traffic, this was well within the industry's established bounds for "roughly balanced" traffic"

      The source for these statements is comcasts own web site:
      http://blog.comcast.com/2010/11/comcasts-letter-to-fcc-on-level-3.html

      Comcast does *NOT* have an SFI with L3, it is a COMMERCIAL agreement Comcast is a transit customer of L3. The "balance" admitted by Comcast is 2:1 .. "roughly balanced" ... It is clear the term balanced does not mean equally balanced. The 1:1 ratio is not being asserted by either side.

      There is no last mile ISPs on earth whos users do not download a heck of a lot more traffic than they upload. It is common knowledge the "balance" is not an even ratio of bits but rather a **COST BASED** estimate of equal value of those bits.

      The SFI peering language on comcasts own web site makes it clear the relationship is cost driven:

      "Applicant must maintain a traffic scale between its network and Comcast that enables a general balance of inbound versus outbound traffic. The end-to-end costs of carrying traffic between networks shall be similar to justify SFI"
      http://www.comcast.com/peering

      An equal amount of *value* determines the balance which informs the actual ratio of rx to tx.

      This begs the question what is a fair price L3 should have to pay for the honor of giving comcasts own customers the bits they requested and incidently PAY comcast to provide them?

      This seems to me about as absurd as asking UPS to pay you for the honor of delivering packages to your doorstep.

      And to bring up Cogent vs L3 as if they are the same thing just shows that you don't get it. Comcast is a last mile ISP, most of the bits going to it are consumed directly by Comcast subscribers. Cogent and L3 are both Tier-1 providers those bits are mostly intermediate TRANSIT.

    45. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Comcast seems to be completely missing the point that this traffic is coming across Comcasts network at the request of the customers on Comcasts network. Comcast isn't carrying this traffic for level 3, rather Comcast is requesting it from Level 3. This isn't traffic that originates in Level 3's network, passes through Comcasts network, then ends up in some other network. Rather, nodes in Comcasts network originate the requests, then nodes in Level 3's network respond and send traffic directly back to the nodes on Comcast's end. Disputes like this are all the fault of the #$%@%$ salesweasels who always end up in charge and dictating things to the engineers.

    46. Re:Peering Agreement by robotandrew · · Score: 1

      The grandparent cast a LOT of light on this issue and I think it helps clarify. I agree with your previous points that comcast is REQUESTING data from level 3. They should pay for this data. However, Level 3 wants more PHYSICAL access points to serve that data. Comcast should not be expected to pay for an upgrade that it doesn't want. In the end, Level 3 should pay for the new hardware and costs that they want and Comcast should pay for the extra data that it (it's customers--one and the same since you can't be an individual without an ISP) is requesting from Level 3.

    47. Re:Peering Agreement by robotandrew · · Score: 1

      My kingdom for a mod point. This is the best and most clear explanation of the issue so far. There was another poster who mentioned that Comcast only wanted Level 3 to pay for the upgraded physical link Level 3 was requesting (not sure if this is true, but if so it is reasonable as Level 3 wants an upgrade they should par for it).

    48. Re:Peering Agreement by Anonymous Coward · · Score: 0

      Netflix's library is too large to put "close" to customers, you'd need too many copies. Akamai isn't any deeper in comcast's network than Level3 is.

    49. Re:Peering Agreement by badkarmadayaccount · · Score: 1

      Maybe they should stop screwing with customers torrents?

      --
      I know tobacco is bad for you, so I smoke weed with crack.
  3. Just one question by Anonymous Coward · · Score: 0

    Why do we need cable providers for the internet? Why not -- at least in areas where government laid down the cable, or paid to have it laid -- have the government manage the cable as a utility?

    1. Re:Just one question by hedwards · · Score: 3, Insightful

      Because that would result in an "OMG teh Soshulistz" response from a lot of pro-business sources. Where I live in Seattle, I've got basically 3 choices of internet provider plus dial-up. Unfortunately, they all suck. Latency is a joke and googling for it earlier this morning and I couldn't find anybody that's operating locally that's able to provide decent latency.

      Service for cablemodems probably has gotten better since I ditched them quite a few years ago, but at that point they were actually going backwards in terms of actual service. Service was getting both slower and less reliable. DSL is getting faster, but at a much slower rate. And FiOS isn't available at all as far as I can tell, suspiciously enough they won't even tell you if there in a rough geographic area without asking for a specific address. Until recently they couldn't even locate my address let alone provide service.

      A municipal ISP as a utility or Google coming in with their service is about the only way that any of the telecoms are going to care enough to make any effort at improving service. What's particularly embarrassing is that we've got it quite good compared with most of the country.

    2. Re:Just one question by Dredd13 · · Score: 1

      Can you name some of these places where the gov't actually paid to lay the cable or did it themselves?

      Incentivized others to do it? Sure, but I'm not aware of many, if any, places where the gov't itself actually owned or directly paid for the outside plant.

    3. Re:Just one question by Nadaka · · Score: 1

      Because the cable companies will sue the local government for competing with the service it wasn't providing in the area and buy some politicians to make state laws passed that prohibit municipalities from providing internet service to its citizens. This literally has happened.

    4. Re:Just one question by JackieBrown · · Score: 1

      In San Antonio, we only have government utilies for our gas, water, and electricity. Trust me, the city plays the same price games that private companies have as well as having the abilty to declare certain levels in which water usage fees double. During the summer, you are ecven assigned watering days that are enforacele with fines

    5. Re:Just one question by hedwards · · Score: 1

      Seattle has laid a lot of fiber itself. It's mostly used by city departments and a lot of it is unused. The places that have tried to do that have ended up being sued by the telecoms that are supposed to be doing it. Leaving the municipality without the service they were trying to install and without any additional capacity.

    6. Re:Just one question by hedwards · · Score: 1

      That's not a price game, that's a practical necessity. The term is congestion pricing and particularly during the summers that there's a drought on there's not much the city can do other than raise prices and limit consumption. But summers tend to run dry in much of the world conserving the water that's there is the only way to ensure that there's plenty of it for the whole year. Happens up here in Seattle as well. The difference is that the infrastructure isn't generally created to justify increasing rates. Water rights are contentious and there isn't always enough to go around, I'm not sure why you seem to think that you're entitled to water at the same rates and as much as you like as during the winter when it's presumably less contested.

    7. Re:Just one question by JackieBrown · · Score: 1

      I'm not sure why you seem to think that you're entitled to water at the same rates and as much as you like as during the winter when it's presumably less contested.

      I don't. The levels they set before the price doubles leave us enough water that we would have plenty for 20 years without another drop of rain. Oil companies get slammed when they raise rates and their thresholds are not nearly so wide.

      I am not arguing that CPS is wrong, I am pointing out that government running utilities do not mean lighter restrictions. In fact, it is usually the opposite.

    8. Re:Just one question by bemymonkey · · Score: 1

      Just out of interest... what counts as "decent latency" in your book? I'm using a regular old DSL line without Fastpath, and the latency is fantastic for everything expect maybe twitch gaming... what exactly are you looking for? LAN-typical latencies within your state/area code?

  4. How is bill formed? by l0ungeb0y · · Score: 1, Funny

    How much Intarweb must cary befoer send Intarweb teh bill?

    1. Re:How is bill formed? by Anonymous Coward · · Score: 0

      How much Intarweb must cary befoer send Intarweb teh bill?

      THey need to do way instain compay. Who kill der inninet, cause der inninet wess profit able. IT was on the news this mrorning, a compay in US killed its favorit streemer. They are taking the one streemer back to torrent, to lady to use my pary are with its users who lost deir streems ; i am truely sorry for their lots.

    2. Re:How is bill formed? by BiggoronSword · · Score: 1

      mod++

      --
      interactive hologram, or it didn't happen.
  5. name your poison by epyT-R · · Score: 1

    corporate censorship or government censorship. either way, the best years of the network are gone.. say good bye to peer freedom.

    1. Re:name your poison by The+Hatchet · · Score: 0

      Well, it wouldn't have to be either if the FCC stayed the fuck out of content and only worked on making sure business didn't fuck over consumers by censoring data and overcharging to eliminate competition. Sadly, It seems it will be one or the other, and both are extreme. But business is going about it far more slowly that the FCC takeover will this month if it isn't stopped in time.

      --
      Where is the mod rating for "scary"? Also, ...
    2. Re:name your poison by commodore64_love · · Score: 1

      Pretty much.

      I think people who put faith in corporations are fools. But likewise I think people who put faith in government are fools too. Either way you're getting squashed by a powerful organization that considers you an ant of no importance. The CEOs are trying to screw you, but so too are the Congresscritters. You're like an old abused dildo.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  6. I'm a believer in net neutrality, but... by 93+Escort+Wagon · · Score: 1

    In the end, I think the campaign's name is going to work against them. I'm a Comcast customer, I'm a Netflix customer, and I've had no trouble watching Netflix' streaming video.

    Thing is, I understand what the underlying issue is (wrt net neutrality) - but the average person certainly won't in any detail. All they're going to say is "What do you mean, stop them from blocking Netflix? I'm having no trouble streaming Netflix over my Comcast cable, so it must not be a problem!"

    --
    #DeleteChrome
    1. Re:I'm a believer in net neutrality, but... by Anonymous Coward · · Score: 0

      I'm a Comcast customer, I'm a Netflix customer, and I've had LOTS of trouble watching Netflix' streaming video. It took a while to figure out that if I disabled HD then movies would play without stuttering/stalling. The non-HD version is usually clear as mud. I have watched plenty of HD content from other providers without a problem. Coincidence?

    2. Re:I'm a believer in net neutrality, but... by bigpat · · Score: 1

      but the average person certainly won't in any detail. All they're going to say is "What do you mean, stop them from blocking Netflix? I'm having no trouble streaming Netflix over my Comcast cable, so it must not be a problem!"

      Their netflix rates are going up as of January, possibly in small part, because Comcast is charging Netflix in order to not get blocked. So, blame Comcast and the lack of net neutrality for higher prices both now and in the future. It is as simple as that.

      And throw in the fact that it isn't that Comcast's costs are really going up, it is just that they are double dipping to squeeze more from their customers.

    3. Re:I'm a believer in net neutrality, but... by Anonymous Coward · · Score: 0

      Probably. Netflix HD video uses a far higher bitrate than e.g. YouTube 'HD'. This means significantly higher CPU usage (even though Silverlight is more efficient than Flash & HTML5) and significantly higher bandwidth requirement.

  7. You forgot one link by geegel · · Score: 2, Informative

    ... the one saying that Level 3's claims are complete bullshit and they have nothing to do with net neutrality

    Here it is

    --
    right...
    1. Re:You forgot one link by jmichaelg · · Score: 2
      The link you provide is, by it's own admission, speculative. After much blather the post resolves to:

      If this is true, and the details do line up, it's rather stunning (and incredibly braindead) that Comcast would make such a demand right now, just as the merger is close to approval. You would think that someone in management would recognize the sort of backlash such a demand would bring. Of course, again, I'm wondering if there are more details here. I wasn't aware of an online movie offering from Level 3, and I'm wondering if Level 3 was actually trying to do something more involved rather than just letting users access online content through existing connections. I'm sure the details will come out soon enough...

      followed by an update that links to another post that parrots Comcast's press release claiming the dispute is a peering issue. In short, the link you provide adds nothing to the discussion.

    2. Re:You forgot one link by rsmith-mac · · Score: 1

      IANACCIE, but how can this just be about peering?

      My understanding is that peering focuses more on what network is going to serve as the middle-man to transfer data from one part of the world to the other; this is distinctly different from the L3/Comcast situation where Comcast is the end-point(and the endpoint for an asymmetric network at that). The traffic is meant for Comcast users, so Comcast has to accept it so that their users can get what they're requesting. Why would L3 need to pay for traffic Comcast asked for in the first place?

    3. Re:You forgot one link by Anonymous Coward · · Score: 0

      Why would L3 need to pay for traffic Comcast asked for in the first place?

      Because L3 now has significantly more outbound traffic??

      It's quite simple.

      Comcast L3

      When 1:1 ratio, they basically offset each other and so they just say "fsck it, it's 'free'"
      When 1:5 ratio, then one side has to pay the other for traffic, right??

      Netflix pays L3 for network access. It's up to L3 to provide it. If Comcast went to netflix because of bandwidth, that would be net neutrality issue. But this is simple peering arrangement. L3 gets money to provide network access to popular sites. Comcast should get a piece of the pie.

      Nevertheless, net neutrality is very important. Bits from any L3 customer must be treated the same as bits from Time Warner customer or whatever. Anything else breaks the free-market.

  8. Geotargetting by 56ker · · Score: 1

    There is already geotargeted of videos online done on commercial grounds. If different types of traffic get "throttled" it'll only make it harder on the users of any high-bandwidth activity whether video, gaming or anything else where the ISPs are likely to be costed more than these consumers are paying. For example I used to be able to watch The Daily Show on the Comedy Channel's website from the UK. Since they sold the rights to E4, that isn't possible without going through a proxy.

    1. Re:Geotargetting by 56ker · · Score: 1

      Sorry that should read geotargeting not geogtargeted. I blame it on the wife watching TV next to me taking my mind off my train of thought!

  9. encrypted proxy? by Anonymous Coward · · Score: 0

    Can't this kind of thing be gotten around by using an encrypted proxy? Then Comcast can't tell which packets are from netflix as opposed to anything else.

    In fact, why aren't we doing that in general, for everything? Many more such services would pop up, it would solve the "AT&T snooping on your packets" problem, the "This video not available in your geographic area" problem, the "throttling P2P" problem, and presumably a bunch of future problems as well.

    The internet should just deliver your packets. There is no legislative solution to that. The only solution is to enforce it at a technical level.

  10. Pay for traffic by Anonymous Coward · · Score: 0

    Level 3 should absolutely pay for all this traffic they are forcing on poor Comcast. You would think that it's Comcast's own users who are requesting this traffic, and which they pay a monthly fee for, but no Level 3 is rudely raping Comcast and forcing it to take all this traffic without consent.

  11. Conflict of interest by KublaiKhan · · Score: 5, Interesting

    So long as the majority of broadband is offered by corporations that have 'content generation' as a part of their business model, there will never be a real chance for net neutrality. The conflict of interest there is just too strong a force.

    Back in the '90s, electricity deregulation was a big topic; I recall that the state of Maine ended up differentiating between the electricity providers and the electricity carriers--while before, there had been two monopolies (a biopoly?) serving different areas of the state, there was, afterwards, a number of smaller generating companies (content generation) and a couple of larger companies that provided and maintained the transmission and delivery equipment (broadband providers).

    As my parenthetical notes indicate, I think that the same model could be effectively used--or, rather, ought to be enforced--for the current debate. Differentiate the providers of the connection from the providers of the content, and much of the impetus for the anti-neutrality standpoint will go away.

    --
    In Xanadu did Kubla Khan
    A stately pleasure dome decree
    1. Re:Conflict of interest by The+Hatchet · · Score: 1

      Exactly.

      --
      Where is the mod rating for "scary"? Also, ...
    2. Re:Conflict of interest by KhabaLox · · Score: 1

      (a biopoly?)

      Duopoly. HTH

      --
      Ceci n'est pas un sig.
    3. Re:Conflict of interest by soupforare · · Score: 1

      Meanwhile, Comcast's purchasing majority ownership in NBC Universal will probably go through by the end of the year~

      --
      --- Do you believe in the day?
    4. Re:Conflict of interest by gorckat · · Score: 1

      In Maryland, electricity deregulation has (directly or not) caused massive rate increases, partly because of a lack of new generation and transmission infrastructure, Could that occur in the broadband market? Aren't we already getting less than other parts of the developed world?

    5. Re:Conflict of interest by Anonymous Coward · · Score: 0

      two monopolies (a biopoly?)

      Duopoly.

    6. Re:Conflict of interest by Anonymous Coward · · Score: 0

      duopoly.

    7. Re:Conflict of interest by KublaiKhan · · Score: 1

      YMMV; the general thinking is that by lowering the barrier to entry for generation (content providing) you get more competition.

      Obviously, the problem here isn't as much the generation as the transmission (bandwidth), but if there were more incentive for the companies that did that to invest in new infrastructure (because it's now their primary business, and it makes monetary sense for them to expand/make available as much as possible) then it would likely happen.

      Further, I'm sure there's more than enough 'dark fiber' out there to handle quite a bit more load in many markets; that alone should help out the rates.

      --
      In Xanadu did Kubla Khan
      A stately pleasure dome decree
    8. Re:Conflict of interest by Anonymous Coward · · Score: 0

      England privatised its rail network in much the same way - Railtrack owned and maintained the track, while smaller train companies ran the actual rolling stock services. I think most people would now say that whole experiment was a disaster, for many reasons. One of the main reasons was that Railtrack had little to no incentive to improve the network - why bother, when you still have a monopoly and any cost of improvement is only a hit to your bottom line?

      The best solutions in my mind are either breaking the ridiculous monopoly the cable companies have, with large scale public WIFI maybe, or government ownership of the backbone. If you want to stunt network speeds for a decade then the best way to do it would be turning Comcast into the owner of only the backbone and forcing them to sell capacity to other providers.

    9. Re:Conflict of interest by SailorBob · · Score: 1

      So long as the majority of broadband is offered by corporations that have 'content generation' as a part of their business model, there will never be a real chance for net neutrality. The conflict of interest there is just too strong a force.

      That's why here in Israel the law mandates that service is split 3 ways, one company provides physical infrastructure ( the bit pipe ), another company acts as an ISP ( basically reselling bandwidth ) and a third company provides content ( basically tv ).

      --

      Woopty Doo Basil, what does it all mean?!

  12. Stupid Summary by pavon · · Score: 3, Interesting

    The L3/Comcast issue became public after the December 21 net neutrality vote was announced, so no it didn't cause it. Secondly, from everything we've heard the net neutrality rules to be proposed will not effect on the L3/Comcast dispute as it is between network operators, and does not discriminate based on content type or source.

  13. Hannah montana by Anonymous Coward · · Score: 0

    "Grind it all together, output it to Facebook and you get this campaign: 'Save the Internet: Stop Comcast from Blocking Netflix"
    Hannah montana references on /.??

  14. Is it really a peering issue? by Anonymous Coward · · Score: 0

    This has been stated before, but is this really a peering issue? If Comcast's customers are requesting the data, and its customers are paying for connections, why should Comcast be able to charge someone for providing the data to Comcast?

    If L3 was using Comcast's network to send data to another, non-Comcast network, I could see this being a peering issue dispute, but it sounds like the latter is the case.

    1. Re:Is it really a peering issue? by Anonymous Coward · · Score: 0

      This would rightly be called "double dipping". If Comcast customers are the ones receiving the data, then they are the ones that should be paying for it. You are right, a peering agreement is generally formed only to help offset the costs of pass-thru data, which makes sense because the transfer of that data does not benefit Comcast at all. However, we have Comcast customers consuming the data in question. Comcast obviously is not charging their customers enough to cover their own data usage. That is called bad bad business sense.
       
      I predict Comcast goes bankrupt or sells out in the next 5 years if this is how they choose to do business.

  15. Double Dipping by Anonymous Coward · · Score: 0

    Cable companies like to bill everyone twice. Example

    Subscriber and advertiser both have to pay for service.
    Subscriber and Hosting company/networks have to peer/carry traffic

    The bottom line is get out of the internet / network operator business if you don't want to deliver on your promise of 12mb for $50 a month. If you can't offer that DON'T. Don't blame everyone else
    for BUYING a service and using it.

    The only thing worse is banks, who get paid 5 five ways and still can't keep their heads above water.

  16. the big cable co's all help each other also I thin by Joe+The+Dragon · · Score: 1

    the big cable co's all help each other also I think they try to use stuff like cable labs and indemand to make it look like a 3rd party is doing the stuff they do.

  17. Why should comcast charge them for something... by Assmasher · · Score: 2

    ...I am paying Comcast for already?

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    1. Re:Why should comcast charge them for something... by Guspaz · · Score: 1

      Because everybody who connects to Comcast's network needs to compensate Comcast in some way, regardless of who they are?

      If you and I are both Comcast cable customers, and you request that I send you data, should Comcast give me a free cable internet connection? Because that's exactly what you're implying.

    2. Re:Why should comcast charge them for something... by Assmasher · · Score: 1

      No it isn't.

      What I'm implying is that if you, a comcast customer, using your comcast connection, request a PDF from my web server, why should my ISP (or myself) have to pay comcast anything? I'm not a comcast customer, YOU are. YOU already paid for the ability to do the very thing your greedy cable company wants me to pay for.

      It's simple robber baron business practices. The only reason Comcast even dares to do crap like this is that they are huge. If they were small and even remotely concerned about competition they'd never even think about doing this.

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    3. Re:Why should comcast charge them for something... by Guspaz · · Score: 1

      Your ISP is a Comcast customer. Why should I have to pay for your ISP's connection? If you want me to upload a file to your web server, should you have to pay for my cable line?

    4. Re:Why should comcast charge them for something... by StikyPad · · Score: 1

      Yes, but now Comcast will lower your bill!

    5. Re:Why should comcast charge them for something... by Assmasher · · Score: 1

      My ISP isn't anymore a customer of Comcast than Comcast is a customer of my ISP.

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    6. Re:Why should comcast charge them for something... by Assmasher · · Score: 1

      You do understand that this is a peering issue, right?

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    7. Re:Why should comcast charge them for something... by Assmasher · · Score: 1

      You owe me for one Coke-zero damaged keyboard you funny b***ard...

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    8. Re:Why should comcast charge them for something... by Guspaz · · Score: 1

      Yes, and that's my underlying point. This is a simple peering issue, there's nothing out of the ordinary here. Level3 is doing to Comcast what Cogent tried to do to Level3.

      When Cogent did it to Level3, Level3 cut off Cogent.
      When Level3 does it to Comcast, they expect a different result for some reason.

      It's pure hypocrisy.

    9. Re:Why should comcast charge them for something... by Assmasher · · Score: 1

      The ol' "two wrongs make a right" theory, eh?

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    10. Re:Why should comcast charge them for something... by Guspaz · · Score: 1

      I would suggest that two rights don't make a wrong ;)

    11. Re:Why should comcast charge them for something... by robotandrew · · Score: 2

      Wrong. Mentioned many times already, COMCAST IS THE END POINT. Cogent/Level 3 spat was about TRANSIT. Get the facts straight. You pay comcast to access THE INTERNET. Comcast then negotiates agreements to allow you to access content on other networks (hint: Comcast PAYS THE OTHER NETWORK FOR CONTENT ACCESS). If those other networks want content from comcast, they do the same thing, THEY PAY COMCAST FOR CONTENT THEY/THEIR CUSTOMERS request. It works both ways. Comcast is bitching about this now because Netflix is a direct competitor to their own offerings and they are not longer getting money from hosting Netflix through Akamai.

  18. RTFA, moron. by Anonymous Coward · · Score: 0

    RTFA, moron. This is about the FTC making sure businesses don't fuck over consumers.

    And when they DO try, you go all "FCC takeover!!!".

    1. Re:RTFA, moron. by Low+Ranked+Craig · · Score: 1

      Right, because this article isn't about the FCC voting on this on the 21st of December. Except that it is. Regardless, I fail to understand why the FCC is attempting this. It seems to me that a similar FCC attempt was struck down by a federal appeals court in April. I think someone needs to explain to the FCC that they lack authority in this area.

      --
      I still cannot find the droids I am looking for...
    2. Re:RTFA, moron. by Sepodati · · Score: 1

      The FCC was told that the authority they cited was not good enough, not that they have NO authority in this area. Whatever is voted on at the next meeting will likely have a different authority cited. It will be litigated and may not hold up either, but that's yet to be seen.

  19. Time Warner CABLE by FliesLikeABrick · · Score: 1

    Time Warner != Time Warner Cable != Time Warner Telecom

    This is about Time Warner Cable, whereas the vague term Time Warner is often used to refer to Time Warner Cable and/or Time Warner Telecom which are separate companies. (granted, the does the same thing)

    That said, having another company say that what Comcast is doing is unfortunate. Comcast is trying to bully L3 into settlement-based peering, but it is Comcast's end traffic (as an eyeball network, not a transit provider) that is causing this imbalance. If you ask me, Comcast should be the one paying L3 as a customer (like they probably were at some point).

  20. What Flavor Of Neutral? by nick_davison · · Score: 2

    Based on my admittedly limited understanding:

    Backbone providers work on the assumption that data goes both ways: I don't charge you for shoving ten lumps of data down my tubes because you don't charge me for shoving what might be nine, might be eleven lumps of data down yours. We're all doing roughly the same thing so it all comes out in the wash.

    When someone turns around and says, "Don't worry, I'll keep taking your ten lumps of data for free. Now here are the five hundred I'd like you to keep carrying for free, too. Oh, and by the way, yes I do charge the generator of all those lumps a hell of a lot for my transporting them to and dumping them on your tubes." then it's somewhat understandable to think the relationship's gone a bit one sided.

    When Netflix is using fully 20% of prime time US bandwidth (source) and Level 3 are happily billing Netflix for the right to put that on the net, it's pretty understandable the other companies who have to shoulder what's become a very one sided relationship for free are a little touchy.

    In this case, I'm tempted to agree it's not about stomping competition, not about charging one source more or less for a better or worse service, it's about whether the fundamental model for the backbone is being abused.

    I'm for network neutrality. But isn't there also a degree to which neutral also means the neutral flow back and forth, not all of the data going one way with one company charging for it and expecting the others to just suck it up?

    1. Re:What Flavor Of Neutral? by Todd+Knarr · · Score: 5, Insightful

      Except you're missing one thing here: the traffic isn't crossing Comcast's network on it's way to some other network, it's on it's way to Comcast subscribers and was requested by those subscribers. Backbone providers carry other people's traffic (eg. carrier X handling traffic originating on network A and destined for network B because A and B both have connections to X but don't have a direct connection with each other). Comcast doesn't connect other networks to the backbone, it only connects it's own subscribers. If those subscribers are incurring bandwidth costs, Comcast ought to be billing them for it. In fact it is, I'm fairly sure Comcast sends every subscriber a bill every month for their connection and turns that connection off if the bill isn't paid. If Comcast wants Level 3 to pay, then what's that bill to the subscribers for?

    2. Re:What Flavor Of Neutral? by sjames · · Score: 2

      That would be true except that each and every one of those five hundred lumps of data Level 3 puts on Comcast's network is because one of Comcast's customers requested it.

      The only time balance is properly considered is when the agreement includes transit. So Comcast would be right to object if Level 3 said "here's 500 lumps of data, hand them to AT&T please", but that's not the case, they're saying "Here's the 500 lumps of data your customers requested".

      Comcast will inevitably always be a data sink, they mostly serve content consumers.

    3. Re:What Flavor Of Neutral? by cookie23 · · Score: 1

      The difference in this case is that Comcast isn't transiting the data to some other network like a backbone does (and gets paid for), it is transiting data its own customers. Comcast's has already oversold its existing capacity by offering customers unlimited plans based on the assumption that it would actually be only a certain usage level. L3's desirable content made that assumption invalid and consumers have started using their unlimited plans more than the Comcast planed usage level. Comcast can't actually provide to customers what it promised without improvements to its network. It wants L3 to pick up the tab for expanding its network because they are, in its view, the force behind the increased usage and the reason the assumption was invalidated. That is certainly more desirably than telling shareholders and customers that it needs to lower profits or start charging more for the 'unlimited' plans they already sold in order to fund the upgrades.

    4. Re:What Flavor Of Neutral? by dfghjk · · Score: 1

      "When someone turns around and says, "Don't worry, I'll keep taking your ten lumps of data for free. Now here are the five hundred I'd like you to keep carrying for free, too. Oh, and by the way, yes I do charge the generator of all those lumps a hell of a lot for my transporting them to and dumping them on your tubes." then it's somewhat understandable to think the relationship's gone a bit one sided."

      On the other hand, Comcast has charged a hell of a lot to the consumers of those "five hundred lumps of data" and made the promise to ensure the bandwidth necessary to deliver them. Just like any provider, the fees they charge are for providing the link to the customer AND the bandwidth necessary everywhere else. It is not predicated on the ISP receiving a fee from the other end of the pipe. Comcast's position is a lie.

    5. Re:What Flavor Of Neutral? by wynterwynd · · Score: 1

      If those subscribers are incurring bandwidth costs, Comcast ought to be billing them for it. In fact it is, I'm fairly sure Comcast sends every subscriber a bill every month for their connection and turns that connection off if the bill isn't paid. If Comcast wants Level 3 to pay, then what's that bill to the subscribers for?

      This is the crux of the argument, right here.

      Comcast doesn't want to pass the costs off to customers because they don't want to issue an across the board rate hike or be the first to install metered billing. Rightfully, the extra costs should be the burden of the customer, but if you thought the complaints were loud for this issue, it's a echoing whistle in a mineshaft compared to the cacophony a rate hike or metered billing would cause. Not to mention the reactionary net subscriber loss is MUCH higher for a rate hike than for some bad PR. So they're trying to hot-potato the extra financial load around.

      Bottom line, we need to stop thinking of the internet as all-you-can-eat. The ONLY thing keeping metered billing at bay is that nobody wants to step up and be the first to implement it across the board. One day that dam will burst and a major provided will go metered. Every other ISP will follow within 6 months to 1 year, guaranteed.

      --
      "Not all who wander are lost" -- JRR Tolkien
    6. Re:What Flavor Of Neutral? by MattW · · Score: 1

      Some other people have pointed this out, but there are two flaws with your understanding:

      (1) This is not transit traffic, at least neither has described it as that. This is traffic being carried to end customers. In/out ratios matter a lot for transit traffic, where you're receiving traffic for another peer. This is where networks are connected:

      A B C D

      If C is sending B traffic for A, then B expects to be able to send just as much traffic to C for D.

      (2) "Ratios" in the peering sense often are much less about local traffic ratios - they're about long haul. If A needs to send traffic from the west coast to B on the east coast, and it has a choice between giving them the traffic at the west coast exchange and letting B carry it across the country, or they can carry it across the country and give it to B. That "long haul" cost is over a lot more miles of fiber and is therefore a lot more expensive than local exchange - a lot of these providers will already have metro fiber rings that terminate in a multi-tenant telco building, and so adding bandwidth between them is just a matter of having a big enough router, and running a cable between the ports. Carrying the traffic across the country means having fiber buried in the ground. Peering disputes often happen because of the un-evenness of the network. Even if you exchange equal traffic, if provider A has customers all of the country/world, and provider B is just in LA, provider A is bearing all the long-haul costs, and provider B is "riding free". Yes, both A and B's customers want to exchange traffic, but peering (settlement-free peering) is based in general on the "meet me halfway" principle.

      That said, there's an entirely different question here, because I've heard Comcast mention CDNs a few times. CDNs have nothing at all to do with "peering". If Comcast provides a bunch of CDN capacity on their network, if L3 wants to use a lot more CDN capacity, that's on L3 to pay. (At least as far as I know, it has always been the person delivering the content that bears the cost of a CDN. Consumer broadband providers may run and use caching servers that ACT like CDNs, but without configuration from the end sites, but they wouldn't be called CDNs.)

    7. Re:What Flavor Of Neutral? by bsane · · Score: 1

      The ONLY thing keeping metered billing at bay is that nobody wants to step up and be the first to implement it across the board.

      No- whats keeping it at bay is: Nobody wants to actually sell metered service. Then they risk losing their guaranteed $40 for people who only use 100M/month.

      Lets take current rates, and say 250G is worth $40 (what I actually pay). A gig of data is worth $0.16. You really think Comcast wants to get in that game? I'd love to see it...

      Metered service runs both ways- unless they use their monopoly and lobbying power to squeeze more money for less service out of their subjects.

    8. Re:What Flavor Of Neutral? by Todd+Knarr · · Score: 1

      Metered billing won't take off because of two things. First, people like security. They like to know the upper limit on their bill, know that it won't go above that (or at least won't without them being told and given a chance to veto whatever would cause it). Second, people know that they aren't in control of how much they download. They know that when they visit a Web page they don't know in advance whether it'll be 10K of text or 50 megabytes of graphics and sounds and advertising and Flash animations. And they're not going to want to pay per byte without having any say in how many bytes it'll be. If ISPs go the pay-per-byte route, expect a consumer backlash of "OK, but we're not paying for all the advertising and other stuff we didn't ask for. If the Web site wants to send it, bill them.".

      All in all, I expect that if one major ISP goes to metered billing, they're going to see a mass migration to other ISPs serving the same area and a drastic reduction in usage by the remaining subscribers leading to a massive decrease in revenues and a lot of unhappy shareholders.

    9. Re:What Flavor Of Neutral? by ygtai · · Score: 1

      But in this case, Level 3 is not a backbone provider anymore -- it becomes Netflix's ISP/CDN, and it looks like two ISPs connecting to each other...

    10. Re:What Flavor Of Neutral? by Todd+Knarr · · Score: 1

      Yep. Typically in that case either the two ISPs would connect to each other at a peering point, each one paying their own freight to join the interconnect, or they'd connect to backbone providers and let the backbone providers carry the transit traffic.

      But Comcast doesn't want to do either. With a standard peering point Comcast would be paying for their own connection to the interconnect, although they wouldn't be paying for data exchanged within the interconnect. Connecting to another backbone provider, Comcast would be paying that provider for the large volume of transit traffic across the backbone terminating within Comcast's network. Comcast doesn't like this. But that's just being greedy. If I keep coming to your store every day to buy groceries, what would be your immediate response if I demanded that you pay me for the privilege of having access to my shopping bags? You'd probably laugh in my face and point out that it's me wanting access to your groceries, not the other way around. The same thing here: it's Comcast's customers that're requesting the traffic, let Comcast bill them for the bandwidth they're using. Oh wait, Comcast already is. Comcast just doesn't like how much it's billing, but it doesn't want to increase the bill. Life is tough, Comcast, deal.

  21. Makes Sense by BJ_Covert_Action · · Score: 1

    I usually back up my friends in a bar fight too, even if we've had minor disagreements in the past. The difference is, of course, that me and my friends don't walk around punching people in the face for shits and giggles...or for cash.

    1. Re:Makes Sense by sideslash · · Score: 1

      Yeah. And when a friend of mine soils his Depends, I am happy to loan him a clean pair. Past disagreements don't matter.

      (j/k, but would that be more or less weird than you getting into bar fights?)

    2. Re:Makes Sense by BJ_Covert_Action · · Score: 1

      but would that be more or less weird than you getting into bar fights?

      Honestly? It depends on which fight you're talking about. I've been in some damn strange situations in my lifetime. I won't deny that.

  22. Clearly I need to adjust my agreement with Comcast by Jimmy+King · · Score: 4, Insightful

    Comcast sends way more traffic to my home network than my home network sends to Comcast. Clearly they should start paying me for using up my network bandwidth.

  23. Not Netflix trafic but customer traffic. by Teun · · Score: 1, Insightful
    This isn't Neflix' traffic, it's the traffic of Comcast customers.

    And those customers are paying Comcast to transit whatever data they want, not because it's today Netflix and tomorrow YouTube.

    So I would see it as a breach of contract between Comcast and their customers when they try to levy toll on individual suppliers to their customers.

    --
    "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    1. Re:Not Netflix trafic but customer traffic. by Guspaz · · Score: 1

      This isn't Netflix' traffic. It isn't Comcast cable customers' traffic. It's Level3's traffic. If you would like to send data to Netflix (via Level3), then it's your traffic. But you're not.

    2. Re:Not Netflix trafic but customer traffic. by kehren77 · · Score: 1

      This isn't Neflix' traffic, it's the traffic of Comcast customers.

      And those customers are paying Comcast to transit whatever data they want, not because it's today Netflix and tomorrow YouTube.

      So I would see it as a breach of contract between Comcast and their customers when they try to levy toll on individual suppliers to their customers.

      Exactly. Where does the Comcast way of thinking end? Are they going to start sending bills to every ISP that hosts a small business with a webserver?

      And if their customers stop using Netflix, does Level 3 get a refund?

  24. A solution by turkeyfish · · Score: 1

    As consumers of information we can not have a system in which certain players can create choke points on the internet to deny access and distort democracy. At the same time it is obvious that nothing in life is free and that one must accept that some kind of payment is required to build and maintain the physical infrastructure that makes such connectivity possible.

    The government needs to establish simple rules regarding the exact nature of what these fees can be based on a universal formula for all in terms of proportion of available bandwidth consumed/provided. These rules can not be based on the nature of the content or all hope for democracy and a rational market is lost as each player conjures up new ways to game the system. As long as corporations and individuals understand the fee structure and that they are not allowed to unilaterally change it, the market can get about the business of letting different players work within the fee structure to most efficiently and competitively provide services/bandwidth. This would bring a level of stability to the market, essential to developing systems architectures and services. Otherwise, other countries with far more progressive governmental policies concerning the internet like Korea, Japan and increasingly Europe and China are going to move so quickly ahead of us in terms of dominating the internet that petty conflicts like that between Comcast and Level 3 will be largely irrelevant.

    While we dither over who is going to pay what to whom for Netflix services, Korea for example is moving to systems that will provide its end users the ability to download the entire Netflix movie library in minutes for about $20/month for end users, making anything these two companies are doing essentially irrelevant to the forefront of technological change, competivness, or benefit and therefore meaningless.

    If America wants to be competitive in internet mediated business, then it needs policies that increase the number of software and hardware engineers and developers and decreases the number of lawyers, greedy corporate executives and their lobbyists, and paid-for politicians. Otherwise, we are lost.

  25. Free Market? by slim · · Score: 1

    There seems to be something terribly wrong with the US ISP market (I am not American), such that consumers can't/won't leave Comcast for another ISP, because they want Netflix.

    If the market was free, wouldn't this problem fix itself?

    (OTOH, I do think regulation mandating net neutrality would be a good thing, for other issues)

    1. Re:Free Market? by Anonymous Coward · · Score: 0

      The market is not free, and we don't have a lot of choices in the US. In most places there is only one cable provider. In most places, cable is the best option. Very few people have access to fiber optic services, such as Verizon FIOS or ATT U-verse. DSL in the US is generally a lot slower and probably less available than cable. Dry loop DSL (ie no phone line) can be almost as expensive as cable, often requires a contract, comes with stupid modem/routers, and is much slower. Basically, this means that DSL is for poor and/or cheap people, whereas people that want a good connection have to pay their cable company for it. 4G providers like Clear are more comparable to DSL. Why pay for a 6Mbps connection when you can get a 8,12,16, even 25 or more Mbps.

    2. Re:Free Market? by Rockoon · · Score: 1

      There is no such thing as a Free Market for ISP's in America.

      Your choices are DSL, because your home already had telephone lines.. Cable.. because your home already had a Cable line.. or Wireless.

      With only a few exceptions, those two wire owners will remain the only wire owners through the forces of regulation, legislation, and litigation.

      --
      "His name was James Damore."
    3. Re:Free Market? by vgerclover · · Score: 1

      There is no such thing as a Free Market in America.

      FTFY

  26. Who owns the internet? by digitaldc · · Score: 1

    Seriously? Who?

    --
    He who knows best knows how little he knows. - Thomas Jefferson
  27. Can't operate the business? get out of business! by erroneus · · Score: 1

    All these ISPs are out there to make money. We get it. But they are also in the business of providing internet access to their customers. If they block or limit access to certain points on the internet, they are failing in their business agreement and their mission. They are an ISP, not a OCPISP (Only Certain Parts of the Internet Service Provider).

    The way I see it, if you can't do something right, you shouldn't do it. AT&T apparently got in over their heads with iPhone and the problem is only getting worse with the various UMPCs with phone service capability. They want to sell a lot! They just don't want to deliver on their promises. The FTC and the FCC need to come down on these companies hard. If I offered to perform a service and ended up making excuses about why I can't do it, I couldn't stay in business for long. But as these companies often have regional monopolies and large contracts, it's not so easy to simply not do business with them. (I have a friend who is sick to death of his iPhone and AT&T's decreasing quality of service and wants to get off AT&T, but literally everyone else in his family uses AT&T... to leave AT&T would be to disconnect from his family and/or offend many people close to him.)

    It's past time for the government to represent the people.

  28. SLASHDOT MODES: JUST STOP IT! by MobyDisk · · Score: 1

    Please stop posting this! The same basic thing has been posted 3 days in a row, and every time all the +5 comments are the ones correcting it. Just stop. I'm tired of having friends say "We gotta cancel our Comcast, they are blocking NetFlix" and having to explain that the FCC is not voting to stop Comcast, and Comcast is not violating Network Neutrality. This was a simple peering dispute between two companies.

    1. Re:SLASHDOT MODES: JUST STOP IT! by digitaldc · · Score: 2

      Or, you could just explain how bad Comcast sucks in general and they will still cancel it.

      --
      He who knows best knows how little he knows. - Thomas Jefferson
    2. Re:SLASHDOT MODES: JUST STOP IT! by MobyDisk · · Score: 1

      True, there are already plenty of reasons to leave Comcast. But in our case it involved moving too, since Comcast is our only option. :-(

    3. Re:SLASHDOT MODES: JUST STOP IT! by digitaldc · · Score: 1

      Talk about a monopoly which it basically is since you don't have any choice. A friend of mine is in the same boat.

      --
      He who knows best knows how little he knows. - Thomas Jefferson
  29. But who will win the case? by Anonymous Coward · · Score: 0

    Who will win. Hmm...

    Obviously it will be decided like any other case. Who has more money, Comcast, or Netflix?

    Well crap, sucks to be society.

  30. May take - in a weird way... by meerling · · Score: 1

    If you imagine there is a great big interstate highway designed by the government that's called the Internet, and people like to drive on it, and order packages to be delivered to their homes by trucks using it we have a place to start.

    This Internet didn't go everywhere, and to get on it, people needed a driveway from their garage to the onramps, so ISPs sprung up that provide those for people, for a price. Now some of the ISPs wanted to get the access fees from a lot more people, but the Internet was too far away, so they agreed to extend the Internet buy building a new portion from pre-existing part to where they needed it. Of course it had to be just as accessible to other traffic on the Internet as all the pre-existing stuff, because they have pretty good traffic control that automatically attempts to route traffic around congestion and damage. And for a while, things continued on.

    Then some of the ISPs decided to get more money from their customers and said "Hey, give us more money per month, and we'll enlarge your driveway, maybe even make it two lanes and smooth enough to drag race on.". A while after that they decided for some reason (congestion, insufficient driveways, pure greed, whatever) that the existing traffic was too much for their resources to handle so they started making new rules. You can't drive anything larger than a subcompact, and No more trips than 2 per day, and if more than 6 delivery trucks come up your driveway per month, we're going to yank your driveway...

    Move a bit further in time, and now the the ISP is getting pissed that some other ISP or delivery company is sending lots of big trucks over the portion of the Internet they built. Is it going to their customers, or someplace else on the Internet? My point is this, I don't F-N care! You joined the game of share the internet and get paid by your subscribers, you can't just decide to charge the traffic that goes over the backbone, and if it goes to your subscribers, they are responsible for it. So get your hypocritical greedy mitts off the traffic, and try to actually make your customers happy with your 'service'.

  31. OK Comcast... by Anonymous Coward · · Score: 0

    Comcast insists that this has nothing to do with blocking the upstart Netflix's business but about how much of Level 3's traffic it must carry before they get to send Level 3 a bill

    OK Comcast, as one of your customers you send me a hell of a lot more traffic than I send you. When do I get to send you a bill?

    1. Re:OK Comcast... by Guspaz · · Score: 1

      The cost of maintaining your physical connection far outweighs the cost of the transit you consume.

  32. Re:Clearly I need to adjust my agreement with Comc by franciscohs · · Score: 1

    mod up!, thats exactly what I think. Since when is L3 sending traffic to Comcast?, unless it's a DDoS attack or something (sending large amounts of unrequested trafic). They way I see it, Comcast (it's users) is requesting this huge amount of traffic to be sent to them, so they should pay for the bandwidth.

  33. Level 3 is not sending Data to Compcast by lp_bugman · · Score: 1

    We the comcast clients are Pulling/Requesting the data to be downloaded.
    Once this is understood is very clear that Level 3 is (or any other) should pay any fee for data Comcast customers are requesting.
    It be a an other story if Level 3/Netflix was sending unrequested data on their own.

    One could argue that if some were to pay a fee for using bandwidth it should be Comcast as you can say Comcast network is requesting very large amounts of bandwidth from Level3.

    --
    BSD licensed software can't be stolen....
  34. Cut all traffic to Comcast that isn't Netflix by Anonymous Coward · · Score: 0

    Level3 should just put through Netflix data, and NOTHING ELSE. I wouldn't want to work in Comcast support offices when they start doing that. I guarantee that it will cut down on the peer traffic, and drive Comcast customers to other providers.

  35. Comcast is either right or nuts by jmichaelg · · Score: 2
    I can see one way Comcast has it right and if it's not that way, then Comcast's argument suggests something they really don't want to say.

    Netflix feeds data to level 3 which distributes it out to its servers spread across the land. The stream then is handed off to Comcast for delivery to consumers. Comcast would have a valid point if the network looked like this:
    Netflix -> L3 Los Gatos ->Comcast ->L3 Server ->Comcast ->user

    In which case L3 would be using Comcast's network to keep its distributed servers current and Comcast's complaint would be justified.

    The alternative picture, and what most of us presume is correct is looks like this:
    Netflix-> L3 Los Gatos -> L3 fiber network -> L3 Server ->Comast ->user

    In which case Comcast is on the receiving end and according to Comcast, they should be paid by L3 since more data flows their way than vice-versa. However, if that's true, then Comcast should pay me since more data flows to my PC from Comcast than vice versa.

    So Comcast, do you owe me money?

    If L3 pays Comcast, then Comcast pays me to watch Netflix movies.

  36. I don't understand. by roc97007 · · Score: 1

    It's not like Level 3 is holding Comcast down and forcing data into them. Although that's an interesting mental picture.

    Level 3/Netflix is providing a service that Comcast customers are buying. The traffic wouldn't exist if Comcast customers weren't using it. One of the reasons for choosing Comcast is that they advertise big tubes and fast throughput. In marketing terms, Netflix is an enabler for Comcast.

    I've never really understood why the various broadband ISPs advertise huge download speeds and then .... they don't want you to make use of it. I mean, WTF? So my pr0n website updates in 1/125 of a second instead of 1/8 of a second. This is not a reason to pay for big tubes. Big downloads are a reason to pay for big tubes. And besides a few geeks torrenting Nervous Nematode, (or whatever the next Ubuntu will be called) just about the only LEGAL use by non-geeks for all that bandwidth is Video on Demand. Why block the very reason for your existence? It doesn't make any damn sense.

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  37. Fix the problem in hardware by Marrow · · Score: 1

    The question is whether the movie is on a server outside Comcast's network or on a server Inside Comcast's network. Why can't they act like grown-ups and decide on a division of costs for "co-locating" a movie server inside the comcast network? Netflix does not even offer "Live" content. How much would the hardware and electricity for a file-server cost? The entire library does not have to be on the server either; just the titles in the instant queue for people who subscribe to comcast. The netflix website could start copying it to the cache machine as soon as you put in into your instant queue.

    1. Re:Fix the problem in hardware by Rockoon · · Score: 1

      Comcast would charge the same fee for that service as it is requesting of L3. Why? Because either way, Comcast has to deliver the traffic to its customers.

      Either way, the cost to Comcast is based on Total Peek Capacity, not Average Bandwidth. Its not like they have a ton of capacity that they can turn off after midnight to save money. The routers remain on.

      --
      "His name was James Damore."
  38. Here we go Liberterians/Conservatives by NiceGeek · · Score: 1

    You're the ones who are so staunchly anti-net neutrality because you think it's about a government takeover of the 'net or some such paranoid nuttery.
    This is just the beginning. I guarantee it.

    1. Re:Here we go Liberterians/Conservatives by spidercoz · · Score: 1

      It amuses me that the same people who are anti-big government are usually pro-big business and don't even realize the sad irony. Wait, amuses is the wrong word. Depresses? Terrifies? Drives to stuttering rage?

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
  39. Re:Clearly I need to adjust my agreement with Comc by Nadaka · · Score: 1

    please seed more.

    Your torrent ratio must suck.

    Note: I host a collection of open source torrents including the last 4 versions of ubuntu, my ratio for some of them is in the hundreds.

  40. If Netflix is the Internet... by John+Hasler · · Score: 1

    ...there is nothing left to save.

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  41. How I understand things... by IsoRashi · · Score: 1

    I've been following this topic over on Ars for a bit, and it's one of the few cases where I actually bother to read the comments. I have no background in network stuff, so please correct me where I'm wrong:

    Comcast and L3 have a peering agreement, which applies to traffic that is coming from one network and moving through the other network. That is, if Comcast wants to send something to a third party and the easiest route is through L3's network, the peering agreement applies. Per the agreement, no money exchanges hands as long as the traffic sent through each network remains about equal. For data intended for a network, there is no charge.

    Netflix previously was hosted through Akamai, who paid Comcast a fee to gain special access to Comcast's network. As Akamai is a straight-up CDN, they had no real network of their own -- or at least no back-bone -- so Comcast was essentially their ISP. Netflix is now contracted with L3, so traffic enters the Internet on L3's network and goes where ever it needs to go.

    Now, L3 is acting as a CDN in some capacity because they are hosting Netflix's data, and they are also acting as a service provider because they are providing the connection to this hosting service. Comcast sees that L3 is now sending a lot more traffic its way and wants L3 to pay extra due to the increased bandwidth usage. Further, L3 has requested some number of extra ports so that they can send this data to Comcast further, and Comcast has given them a small number of the requested ports but is balking on the rest due to costs. They are asking L3 to pay for the additional ports, and to pay an additional monthly fee for each port.

    I can see this a couple of ways. Say Netflix hosted with AT&T now, and they sent their traffic through L3 on its way to Comcast. In that situation, why would L3 be liable for extra fees to Comcast? On the other hand, if L3 is asking for additional equipment so that they and/or Comcast are more easily able to handle the load, then yes it may make some sense for L3 to foot some or all of the cost of the hardware upgrades they want Comcast to put in place. I guess my real question is whether Comcast is asking for money simply for profit's sake, or are they asking L3 to pay for the improvements to their network that they are making for L3's (and tbh, theirs as well) benefit?

    --
    This is not the greatest sig in the world, no. This is just a tribute.
  42. Re:Clearly I need to adjust my agreement with Comc by Jimmy+King · · Score: 1

    But I'm not downloading torrents. When I am, which is generally just WoW patches, I do seed for awhile after I am done downloading.

    Most of my inbound in Netflix.

  43. It may be ground together... by Anonymous Coward · · Score: 0

    ...but will it blend?

  44. Are the L3 servers already inside Comcast's net? by Marrow · · Score: 1

    I get the impression that Comcast does not want to saturate their bandwidth at the border routers. If the caching servers are -inside- their border routers then all the data flows on their internal (and hopefully much faster) network. Are you thinking that Comcast is is concerned about intranet traffic levels too?

  45. The inequality is still artificially generated by chainsaw1 · · Score: 2

    Comcast, (along with other final mile ISP's) typically limit upload bandwidth. These artificial caps are just that.. artificial. By corollary, Comcast is deliberately setting themselves up to receive paychecks by limiting the reciprocation on their pipe by it's customers. If you must limit yourself for financial reasons over what bandwidth you could utilize I understand, however for the sake of peering that amount should still be symmetric.

    If asymetric pipes are allowed to continue, then as long as it is monetarily beneficial to maintain a high receive to send ratio, that ratio should grow until it becomes unrealistic to maintain useful bandwidth. The download portion then becomes a marketing gimmick only as the limit will be the TCP ACK packets being sent back to the publishing application.

    Feel free to correct where/if I am wrong

    --
    - Sig
  46. How Comcast brought this on themselves... by Anonymous Coward · · Score: 1

    The purpose of a CDN is to host the content as close to the consumer as possible. It is not only fastest, but cheapest that way. Now, why would Netflix not choose to host it at Comcast? It looks like Comcast is having to learn the hard way about the value of hosting a CDN, and why extorting them is a bad idea.

    L3 and Comcast can host the content for roughly the same cost, but it is worth far more to Comcast, as hosting it locally reduce their own offsite traffic substantially. Why couldn't Comcast offer an attractive price? The funny thing is that they have to handle the traffic anyway, now they just have to pay more for their greed.

    As I understand it, CDNs used to get a free ride, as they served to cut costs for the ISP. At some point, that policy changed, and now it looks like it should be reconsidered again.

  47. This is not a network neutrality issue (yet)! by divisionbyzero · · Score: 2

    I hate Comcast but they are technically correct. Level 3 is wrong. Network neutrality is discrimination based on traffic type or protocol. Comcast is saying that Level 3 must pay for all traffic in excess of the ratio regardless of type or protocol. Level 3 is merely trying to leverage the momentum behind network neutrality in order to get the government to make-up for their poor ability to calculate margins. And given that Comcast has a monopoly on a huge chunk of eyeballs it puts a lot of pressure on Level 3 to capitulate in order to make Netflix happy. It's really Level 3 that's screwed here, not Netflix (assuming the additional router hops do not degrade quality too much). Of course, Comcast also runs some risk of losing customers/increased support calls if the quality of Netflix degrades but it is largely insulated by its monopoly in most markets. If there is anything offensive about this whole scenario, it's Comcast using its monopoly to abuse Level 3, not a net neutrality violation against Netflix.

    Of course the fishy bit is that most of this traffic just happens to be Netflix content and Comcast is a provider of similar content. Comcast claims this is merely co-incidental. That's kind of hard to believe but guessing about motives is murky business.

    Both of them are being stupid though. Level 3 looks incompetent by claiming this is a net neutrality issue and appears to be rent seeking by seeking regulation. Comcast looks like a big bully while they are trying to acquire NBC. I wouldn't be surprised to see some regulation around acceptable peering ratios between monopoly last-mile networks and other networks come out of all of this. And given the assumptions built into the download/upload ratios of most consumer broadband connections 5:1 seems reasonable.

    1. Re:This is not a network neutrality issue (yet)! by spidercoz · · Score: 1

      That's a deliberate obfuscation of the issue since amount and type of traffic are directly related.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
    2. Re:This is not a network neutrality issue (yet)! by divisionbyzero · · Score: 1

      That's a deliberate obfuscation of the issue since amount and type of traffic are directly related.

      Obfuscation is a bit harsh. And it's certainly not deliberate. You are making a true but overly simple correlation. There is a direct but contingent relationship. Email and voip may roughly be the same size but it's not the same traffic type. Net Neutrality is meant to protect more than video.

  48. bad analogy by RingDev · · Score: 1

    Your car analogy is flawed, let me restructure it to illustrate the situation:

    Lets say I own a road and lease out access to that road to a video game store, and you own a road and run a video game store.

    Your 'road' customers pay a toll to use your road.

    Our roads are not currently connected. If people want to get from your road to my road, they have to get on interstate. Which takes them out of their way, makes for a slower trip, and increase the cost for everyone as we have to maintain the interstate.

    To reduce the costs and improve the drive, I build a new road that connects directly to your road.

    Your 'road' customers can now use your road to get to both your store and to my road and the video game store leased there. It's faster and cheaper than before and everyone is happy.

    It has no effect over your road's congestion. All of the people that had been taking your road to the interstate to get to my store are now just going to take your road to my road. The same people are still doing the same thing.

    Everyone is happy, except for your video game store. Your video game store is now losing sales because the customers who used to go there can now go to my video game store.

    So you use your power over the road to charge me a fee for allowing your customers to get to my road with out using the interstate. You do this not because I am increasing the traffic on your network, but because I am taking sales from your video game store.

    And there in lies the rub. An ISP that charges/alters traffic based on competition in other markets has an unfair business advantage and is exploiting their government mandated monopoly.

    --
    "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    1. Re:bad analogy by VGPowerlord · · Score: 1

      My analogy is "flawed" because it uses the actual definition of CDN rather than Level 3's definition of "CDN."

      Normal CDNs host their servers inside an ISP's network. There are a great number of these, the largest and most well known being Akamai. Level 3's "CDN" hosts everything inside Level 3's network.

      Well, that changes things, because the traffic now originates outside the receiving ISP's network rather than inside.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    2. Re:bad analogy by RingDev · · Score: 1

      But it changes nothing for Comcast's network load.

      If 100,000 Comcast customers were streaming Netflix movies before, 100,000 Comcast customers will be streaming Netflix movies now.

      The only difference is that Comcast can now pull that data from local CDN connections from Level 3 instead of having to go out to their back bone provider/peers.

      They wind up with a better peering ratio on the backbone, their customers enjoy better streaming, and they get a huge up pipe for free from Level 3.

      This is a huge boon for Comcast.

      --
      "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
    3. Re:bad analogy by VGPowerlord · · Score: 1

      But it changes nothing for Comcast's network load.

      If 100,000 Comcast customers were streaming Netflix movies before, 100,000 Comcast customers will be streaming Netflix movies now.

      The only difference is that Comcast can now pull that data from local CDN connections from Level 3 instead of having to go out to their back bone provider/peers.

      They wind up with a better peering ratio on the backbone, their customers enjoy better streaming, and they get a huge up pipe for free from Level 3.

      This is a huge boon for Comcast.

      Unfortunately, you're wrong. Akamai used to be Netflix's CDN, and Comcast hosts Akamai nodes inside its network. By switching from Akamai to Level 3, this means there's a lot more traffic entering Comcast's network from the outside rather than just internal traffic. Sadly, I don't think its public knowledge as to how many Akamai nodes are inside Comcast's network.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
  49. I think they mean... by Anonymous Coward · · Score: 0

    how much of their users' traffic must they carry before it's not their problem.

  50. Is it Time Warner or Time Warner Cable? by Anonymous Coward · · Score: 0

    They are different companies now. One makes movies...the other distributes stuff over coax cable.....but they are very different groups, and depending on who said it, could change the impact of the statement.

  51. this whole thing is stupid. by sixsixtysix · · Score: 1

    content users pay for their bandwidth (isp) and content providers pay for their bandwidth (hosting). a little oversimplified, sure, but what is the problem?

    --
    ...
  52. Re:Are the L3 servers already inside Comcast's net by Rockoon · · Score: 1

    I get the impression that Comcast does not want to saturate their bandwidth at the border routers. If the caching servers are -inside- their border routers then all the data flows on their internal (and hopefully much faster) network. Are you thinking that Comcast is is concerned about intranet traffic levels too?

    Why would Comcast's border routers be abnormally underpowered compared to its internal routers? Comcast is not generating much traffic, so Comcast-To-Comcast traffic is currently a very minor part of the data its handling for its customers.

    --
    "His name was James Damore."
  53. Battle is over content + ad revenue, not bandwidth by jimcaruso · · Score: 1

    Comcast (trying to buy NBC Universal) and Time-Warner use cable as a low-cost way to distribute content. This is a battle over content, disguised as a dispute over bandwidth. ISPs (network operators) that own content attempt to guide subscribers to a "walled garden" of content that they provide, which is easy to do on the cable television side. The question is whether a Cable Modem (or DSL or WiMax) subscriber's agreement with their cable (network) operator permits that subscriber to use the bandwidth any way the subscriber desires, which would essentially turn cable companies (and other network operators) into "common carriers" that have no control over traffic (no ability to give preference to one type or source of traffic over another). Your wireline telephone is regulated by your state and is a "common carrier" service. Network operators do not want to be common carriers because their service levels, profitability, and services are controlled by Public Service Commission (or whatever your state calls them). As network operators (cable, telco, satellite, wireless) attempt to win you over with bundled services [video, voice, data (bandwidth), and even wireless], the line really blurs between whether subscribers are paying for bandwidth or content and whether operators are subsidizing the ISP portion of their business to attract you to their content. Network owners claim that they make capital investments that pay off for some other firm, like NetFlix. Non-network-owning, third-party content providers (owners), including online gaming, IPTV, Google TV, NetFlix, and many more have a vested interest in seeing an Open Web with features like Network Neutrality. Here is where I plug Open Web initiatives, such as Open ID (http://openid.net), Data Portability (http://www.dataportability.org), etc.