The Five Levels of ISP Evil
schwit1 writes "Recently a number of ISPs have been caught improperly redirecting end-user traffic in order to generate affiliate payments, using a system from Paxfire. A class action lawsuit has been filed against Paxfire and one of the ISPs. This is a serious allegation, but it's the tip of the iceberg. I'm not sure if everyone understands the levels of sneakiness that service providers can engage in."
It's not just that it shows ads, it breaks lots of internet services.
People seem to forget that the web isn't just HTTP, and there are quite a few other things that do DNS lookups. And weird stuff happens when a name that doesn't exist resolves, and the connection is directed to an ad server.
The problem with that approach is that the network (at least the "last mile" leading to customers' residences) is a natural monopoly. See http://en.wikipedia.org/wiki/Natural_monopoly for a definition. For a competitor, it is usually not worthwhile to build a parallel network if he can reach only a few customers. Result: The incumbent ISP can like a fuckhead and get away with it.
A way to solve that would be a public network where the customer can choose his provider and the provider can then rent the wire from the customer's house to the next telephone exchange. Germany got that one halfway right:
When the telecommunications branch of the former Deutsche Post (public mail and telecom authority) was privatized, the new company "Deutsche Telekom" also got the network - under the condition that they rent out the "last mile" to competitors if the customer wants to go with one of those. A new regulation authority controls the price for that rent.
As a result, Germany actually has DSL competition in most places. Of course, there is still a lot of bickering between Deutsche Telekom and the competition about how much rent is fair, and the regulation authority is needed to keep the Deutsche Telekom from charging excessive rates. But by and large it works.
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