Net Neutrality and Carrier Incentives To Invest
An anonymous reader writes "In policy debates before Congress and the FCC, the big ISPs and wireless carriers (Verizon, AT&T, Comcast, Cox, Sprint) argued that net neutrality rules would give them less incentive to upgrade their networks. The reality is just the opposite, says Infoworld's Bill Snyder, citing a game-theoretic work done by two researchers at the U. of Florida's business school. If carriers can charge premium prices for expedited service, they have an incentive not to invest. Hmm, this reminds me of the agriculture business, where prices are sometimes propped up by paying farmers not to grow crops."
With wireless technology developing as it is, is there any chance that some day we can create our own ad hoc internet without relying on expensive cables and thus expensive carriers?
I suppose we would still need some kickass routers, but it's not like open source projects are completely devoid of money. Wikipedia has tons of hardware, no?
I wish as much as anything, we could get the Feds to stop all farm subsidies, especially corn.
WTF should we be doing this? It isn't like we have food shortages in the US. Let's grow all we can...sell it to other countries, but there is no need for taxpayers to pay someone to NOT grown something.
Especially since so many of the farms are large corporations now....
But, sadly, it'll never happen...there's always an election around the corner, and they won't want to piss off states like Iowa, etc.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
Don't know the cable companies! They are completely right- you as the hoi polloi are wrong.
Happens at work too- people are more motivated to work if they're paid for not working.
At a restaurant- I'm more likely to order food if it tastes disgusting and I don't like it.
When I'm in Soviet Russia, Jokes are more likely to tell me if they are not funny.
"That's the way to do it" - Punch
...is what you used to call 'regular service' yesterday.
Case in point: Data caps. there were no data caps before, services wee running just fine...and somehow, a couple of years later, you need to pay more for the same data transfer.
It's artificial shortage is what it is.
I am glad that someone did some academic research to prove this, but it seems unnecessary. Isn't the entire point of eliminating network neutrality just so that carriers can charge more for their existing bandwidth? They slow down a site, then charge you to restore the speed back to what it originally was. Or they charge you a fee to make your packets a higher priority than your neighbor's. Either way, no infrastructure changes were required. The highway analogy the article uses is spot-on.
Can someone explain to me why Republicans keep spewing this illogic about Net Neutrality? Why all the hate and rhetoric? It's really a very simple, and should be a non-partisan issue.
Industry is a bunch of spoiled children these days. They cry and scream and throw a tantrum, threatening to take their ball and go home unless they get bribed with candy to behave. Remember a time when all it took to get a business to make a wise move was prove it would make them more money? Neither do I.
Yeah, sure it does.
When you look at how fast Veizon has been rolling out the 4G coverage the arguement that carries will not upgrade their networks losses some steam. The incentive right now is to push as many customers onto the 4G network as fast as possible. Double data deals if you upgrade your device to 4G are going on right now at Verizon.
I suspect that 3G users will be pinched as service "degrades" over time just like carriers did when digital towers were replacing analog.
If you upgrade your base quality of service, you are going to eat into your revenue from selling quality for particular services A la carte. If a carrier is charging you and or netflix to provide a quality connection why would they invest in making the network "better".
Is...is this a bot of some kind?
I, for one, am totally shocked.
Shocked I tell you.
What do I know, I'm just an idiot, right?
If there is no competition, then the ISP can just charge more for the basic service with net neutrality or create a premium service otherwise. The key to fair pricing is competition. An ISP which charges extra for a premium service will lose customers if there are competitors with better service or lower prices, and an ISP which charges high prices for basic services will also lose customers if there are competitors with better service or lower prices. Get it? COMPETITION. Make the rules such that there will be competition and the rest will sort itself out. Step 1: Make existing monopolies rent out their infrastructure.
I guess it must have ran out of theme parks, blackjack and hookers.
They aren't providing a service; they are manufacturing a scarcity of service. Any producer or provider will ultimately do this if they are not regulated in some fashion. They will build out a minimum of infrastructure for a maximum of profit. And they will never stop raising fees. Our great-grandparents understood this, so electrical utilities and such are government-regulated monopolies. Some things can't be covered by free market economics. Wiring all homes is one of those things.
Where I'm from, farmers are paid not to grow crops because L.A. doesn't have enough water rights.
Here's simple logic on 'carriers' or ISPs:
ISPs either have a monopoly or pseudo monopoly (in practicality) or they have competition. Therefore, there are two types of situations:
1. Monopolistic - Upgrading networks not necessary
2. Market-based - Carriers must upgrade networks to compete or lose customers
In either situation, there are two types of sub-situations:
1. Net-neutral - Carriers must upgrade networks to satisfy bandwidth demand, content decided by individuals
2. Prioritized - Upgrading networks not necessary, low-priority traffic dropped, content decided by corporations
What we have now in most of America is Monopolistic, Net-neutral. Carriers are arguing for Monopolistic, Prioritized. Consumers demand Market-based, Net-neutral. What should we get? Market-based, Either. What will we get most likely? Monopolistic, Prioritized.
The fact we even need a study to prove that the carriers are lying is ridiculous. The best incentive to force ISPs to upgrade their networks is MORE and DIVERSE competition. It is not free-market competition when the only 'normal bandwidth' Internet access at home for a consumer is a choice between either the local cable company or local telco. It is not free-market competition when the only cellular bandwidth is a choice of 1 of 3 major carriers that control hardware and software of the devices and lobby in unison to our government. Carriers are essentially arguing to continue a monopoly and ignore advances in technology that allow unlimited upgrades in bandwidth.
Instead of arguing net neutrality at all, if our lawmakers started making it easier for some competition in the marketplace, ISPs that do not deliver all traffic quickly would die off.
--- We need more Ron Paul!
... & become the law of the land?
He's just suffering brain damage from his encounter with the Italian water drinking conspirators.
"Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
Be careful, there was almost an intelligible thought in there.
"I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
you start a business, and we impose regulations to prevent you from abusing your tacit monopoly be it global or regional. Comply with them or spend more lobbying dollars.
do not threaten the customers hoping they will back you. verizon and AT&T subscribers enjoy some of the shittiest wireless service in the first world, comcast customer experience is comparative to that of an internet subscriber in rural india. cox service, if it ever gets installed, is just as bad. Sprint does nothing more than bait-and-switch its customers hoping they remember the CEO chortling about some amorphous unlimited everything plan on paid advertising.
Good people go to bed earlier.
Today most homes is either hooked directly up on fiber or hook up on cobber with translation to fiber not very far away... I'm guessing here, but I think ad hoc wireless networks, would be crazy unreliable, slow, insecure and have an extreme latency...
Require some truth in advertizing from them. Enact legislation where if they do not meet there advertized speeds one average during peek times they are fined and eventually loose there monopolies. There networks are cash cows network upgrades are a simple matter of trending and re engineering for wired networks. They want to suck all the money they can out and avoid capx purchases to make there bonus bigger. Honestly most monopoly services should be bid out where the carrier offering the most for the least gets the contract. I would love to see AT&T loose out on DSL and have to give up that franchise, they have no cost of bandwidth (paying your sister company does not count) but aggressively limiter there subscribers.
No sir I dont like it.
is that there's a good reason to prevent over farming. Over farming tobacco turned Virginia into a desert in the 1800s. Plus in agriculture you sometimes have to get people to grow food that's not profitable but that people need to eat, e.g. it might be a bad year for potatoes, but we still need potatoes.
The trouble with net neutrality, indeed with any concepts on the Web, is that we're brushing up against a post-scarcity economy here. There really isn't any analogy that works because we've never done that before.
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If I were Jobs, I'd stomp in, put my bare feet up on your desks, give you the old staring laser eye, and say: "The Internet is shit. We need to make a new one."
Apparently he was of the same mind as I. In 2006-2007 he wanted to build a new data network using 802.22, the old TV spectrum which goes through walls quite well, to build a new nationwide WiFi network.
Image this. A 99 dollar box, an Apple Net box, as it were, that anyone could buy and plug into the wall. It automatically meshes with any other AppleNet boxes it can detect, and starts passing packets, at a really, really high speed - those frequencies are capacious.
Data, voice, all the same.No network carriers, unless perhaps the government could just operate major long-distance backbones through the agency of private companies as a cost of having a civilization. That last might become unnecessary as the number of nodes in the mesh increase geometrically; like Bittorrent, the more people participate, the faster the network becomes.
No carriers. No profit. All we need is bandwidth and a simple box anyone could buy.
You could make outdoor ones that have tiny solar panels, and just plant them anywhere you can get permission. More the infinitely better.
And in the future, some genius will solve the interference problem. Interference in radio is a hardware/software solvable limitation, not a physical one. True; research it, it's fascinating. When we have fast enough processors, we can solve that problem and crowd thousands of channels on the same frequency.
This is all not only feasible, it is absolutely necessary for our economy and our personal freedom - not to mention we won't be robbed forever by two or three corporations. We need to remove the aspect of centralized control from our communications structure.
1934
"I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
Here's a thought. Why don't we just do it anyway? FCC be damned.
You are an idiot. The Senate voted last week along party lines whether or not to repeal Net Neutrality. Guess which side voted which way?
When industry reps for government policy based on whether or not that policy would give them an "incentive to do X", they almost invariably really mean "profit without doing X".
(They are more likely to be honest if they talk about a policy that would give someone else an incentive to do something, especially if that something would create more opportunities for profit in the industry doing the advocacy.)
They will be less enticed to provide more bandwidth.
What part of: More product = More Customers. Better Value / Price = Happier customers willing to pay more.
That's like, the system. Don't bypass that system, unless we can strip you of management and turn you into a crown corporation (a Canadian/Brit/Aussie concept, but something the U.S. should consider).
Can we see some statistics on how much it's costing in support calls due to poorer than advertised speed/latency/availability? I'm pretty sure these companies are spending millions (billions?) on support personnel they wouldn't need if their services WORKED and their pricing system wasn't INSANE.
These companies want to report increased revenues to their shareholders. From the statistics they are spreading on how many users will be affected by tiered (capped) service and the probable level of support and billing required to implement it there won't be any more profits for these companies (though I suspect we'll find their implementation would be surprisingly aggressive/unfair/hostile/targeted/unfair/illegal [in some areas, particularly people with no legal recourse, as always] and will produce incredible profits [some of which might come from law enforcement inducements for disrupting subversive information users]). Which is really how we should support good ISPs:
A: go with them.
b:do illegal things
c: bring them court order reinbursement money
d: give subsequent generations internet freedom
e: Profit, culturally?
That analogy falls down. Bandwidth is a high fixed cost, nearly zero marginal cost resource. Once some level of capacity has been installed, the cost to carry one additional megabyte is zero (assuming the capacity limit isn't reached). So its a question of how best to distribute the fixed charges among the users. That is, the capital costs incurred by burying all that fiber in the first place.
The whole Net neutrality thing is an argument about price discrimination and its use to manage classes of users rather than directly addressing network load. In a free market, this is rightly left up to the private parties. But seeing as how the telecoms involved are using public property (air waves or utility corridors) to provide their service, we (the public) should have some say in how various user classes (among other things) are to be treated.
Have gnu, will travel.
The paper assumes a monopoly, as in there is only one ISP, just as the highway analogy does. A monopoly can only exist by keeping pricing low enough to prevent competition or by force (governmental or physical). In the former case, it shouldn't really matter a great deal to consumers whether you have a free market or not as profit margins are likely similar to those that would exist under competition. For example, if you have the one road that exists in the highway analogy, you need to keep prices for your "skip ahead" service low enough for it to be unattractive for a competitor to build another road. In the latter case, you get government to do your bidding through lobbying, blackmail, whatever to prevent other roads from being built and charge whatever you please. With Net Neutrality, the question is should we allow those who own a road to charge what they want and compete or should we say there shall be no discrimination on price and no skip ahead service? If you answered the latter, what do you think about airlines having first class sections or bars offering ladies' nights? If you believe those two things are evil, then Net Neutrality must be passed. If you believe they're perfectly acceptable and you are a Net Neutrality supporter, you may want to rethink your position...
Net neutrality is a solution searching for a problem. How many providers are actually providing tiered services right now? And what if there were a sudden scarcity of bandwidth, wouldn't we want our ISPs to have some tool to prioritize traffic, say, I don't know, a pricing system?
Personally I've never lived anywhere where my ISP was operating in a monopolistic environment. I can think of many choices locally for purchasing network access including wireless providers, DSL, satellite, cable - the list goes on.
Also most posters here assume that without NN laws the ISPs will just hold supply steady and raise prices indefinitely. Total BS for two reasons. One is competition and the other is that people have a limit on what they are willing to pay for internet access. If there are 2 ISPs who are charging $100/month for internet access, they will inevitably compete on price and quality of service by expanding network capacity to poach customers from one another.
To understand their logic, consider this thought experiment: Imagine that you own a freeway -- say, Highway 101 through Silicon Valley -- and you had the power to pluck a car from a traffic jam with a helicopter and deposit it on a clear stretch of the road. Naturally, drivers who could afford the service would be happy to sign up.
"That highway is like the Internet, and the individual cars are the packets of data. The ISP is essentially the gatekeeper that controls the flow of cars on the highway. If the ISP is allowed to snatch any car from the back of a very long line and put it in front of everybody else when the driver of the car pays a priority delivery fee, would the ISP have an incentive to keep the road congested or to expand the road capacity?" they wrote.
The answer is pretty obvious: If you can make more money by keeping your network congested, why would you invest money to make it less crowded?
Recent work and research seems to indicate that, no, it's not just an issue of thermodynamics through caloric content. Unfortunately, many of the top proponents and researchers are of the sensationalist and inflammatory type. (Like the UCSF dude who proclaims "Sugar is Poison!". 95% of the science and research is exactly correct, and very well done, but I just wish he would shut up because I think he hurts his own cause.)
Think of it this way-- you know what has lots of calories? Petrol. Will drinking hydrocarbons make you fat? So who cares if a burning doughnut changes water temperature the same amount as a crunchy shrimp roll (both around 500 kcal)? Eating each will have a different impact on metabolic reaction, and energy storage.
How far back has this idea gone?
I'm trying to think of a car analogy here...
Ford cars run better/faster on Ford gas?
Vote monkeys into Congress. They are cheaper and more trustworthy.
The final connection to the house should be run as a utility that is completely separate from the ISPs. The ISPs would terminate at neighborhood substations and all ISPs would use the same last-mile connections.
This would minimize the startup costs since you don't have nearly as much cable plant to deal with.