FCC Boss Backs Metering the Internet
An anonymous reader writes "FCC Chairman Julius Genachowski has publicly backed usage-based pricing for wired internet access at the cable industry's annual NCTA Show. He makes the claim that it would drive network efficiency. Currently most internet service providers charge a flat fee and price their packages based on the speed of the service, while wireless providers are reaping record profits by charging based on usage, similar to the way utilities charge for electricity. By switching to this model, the cable companies can increase their profitibility while at the same time blocking consumers from cutting the cord and getting their TV services online."
By switching to this model, the cable companies can increase their profitibility while at the same time blocking consumers from cutting the cord and getting their TV services online
The problem with this model is that it's very hard to control your usage. There's no practical way to know in advance how much a particular click will cost. Of course, the providers love it for exactly that reason.
So, cable companies failed to innovate, and depsite seeing this coming, didn't change.
Now their entire world is threatened by the internet, and the FCC are attempting to apply a band-aid to help keep their business model going. This will also be to the detriment of the consumer, and ultimately progress.
Sorry, but his application of the 'band-aid' is fundamentally wrong. In business, if you fail to innovate and keep ahead, you will eventually be surpassed by someone else/another business whereby they are ahead of the curve or willing to change. This is happening, and frankly, the cable industry has no-one to blame but themselves for failing to innovate.
They didn't innovate, and now they are realising that they are fast becoming obsolete.
the cable companies can increase their profitibility while at the same time blocking consumers from cutting the cord and getting their TV services online.
Does this mean that the current motivation behind mr. chairman is cable tv being worried about customers preferring internet video to their subscriptions?
He makes the claim that it would drive network efficiency.
This 'efficency' would then mean 'compensation for the loss of profit'?
FCKGW 09F9 42
Over and over we go through this.
Metering has the eternal problem that ends with a enraged customer calling customer support over the shocking bill at the end of the month. AOL used metered services for years. When they finally went flat-rate, their business exploded with more customers than they could handle. When AT&T shifted from metered and offered flat-rate data for iPhone, they got more customers than they could handle.
Metered services can be good alternatives or add-ons to a flat-rate service, but they will be filling specific needs. A serious gamer may want low-latency. A serious file sender may want high-bandwidth on-demand. (I need to get this huge file sent to the office NOW.)
Metered services also have one big sore-spot: the meter itself.
- when do you get to see the meter? Just once per month at billing time?
- who verifies the meter is accurate?
- how are ISPs prevented from abusing the meter? Recall that long ago, laws had to be written to stop phone companies from charging for calls before they were actually answered.
- how are bytes being counted? Bytes are not counted like phone minutes. Packets are re-transmitted out of necessity. Do they count twice?
... but I get this feeling that under the current administration America is actually going backwards on a lot of things
Ever from the start of the so-called "Information Hiway" the users had fought hard to get the flat-rate package from ISP
It has been that way for decades and suddenly officials from the Obama administration supporting the metering of Net usage
It is also under Obama administration that the MAFIAA tried (and fortunately failed) to push their SOPA bill - and if my memory served me right, the Obama administration was supporting the bill, and only after stern objection from millions of Net users that the Obama administration changed their mind
I am afraid to think what will happen i4 years from now if this administration is to win the upcoming election
Muchas Gracias, Señor Edward Snowden !
US is a corporately own and run state, pretty much fascist at this point.
I got a feeling, stuff like AdBlock will be much more popular then, who wants a video ad eating up their BW on a site, especially since the ad is larger then the entire site itself.
I think the metered result from the wireless companys will look back as a failure. When the technology was new they could justify a metered way of doing things, the internet started in similar fashion, you remember 250 hours free from AOL? yes i know, nightmares of AOL, but you do remember that right? it was dropped eventually and the same thing is happening with wireless. Currently i pay 50.00 a month for unlimited text, data, and voice, i can even tether it to my laptop.
No, i dont think ISP will go to metered with much results, it was tried i believe and the backlash caused them to pull back..now with so much bandwidth required for free services like youtube, but also paid service like netflix, the company that will try this will lose to other company's who wont touch this; and if they all try this, then its time to start a ISP that wont..it will happen the same way the internet started and where wireless is going, eventually, a ISP will offer unlimited to compete with big money, then big money will need to follow suit to keep themselves in big money.
that being said, if they do this...ill cancel my internet and use a open wifi. (adding another level of problems for ISP)
do you know how WOW works?
it's all in the client- the actual bandwidth the game uses in play is nothing- it can played via a dialup modem.
patches on the other hand- take a fair bit o bandwidth..
welcome back- software on disc that you hand from buddy to buddy....
every day http://en.wikipedia.org/wiki/Special:Random
Note that I'm coming from a place where I don't know much about how digital cable systems work, but I'm curious:
What effect would it have on the cable system to convert all available frequencies for use on an IP network, and deliver the channel that you're watching via video-over-IP, rather than having a discrete data "channel" and delivering lots of channels of video simultaneously that you're not watching?
It seems that for the cost of a bit of channel-changing delay, they could harvest a shedload of bandwidth. Unless they've already done this with digital cable systems, then I guess I'm just catching up.
Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
They don't start wars for oil for one, though they have been known to continue them. They don't talk out their ass about how awesome God is all the time and act like uneducated jackasses. Obama spoke out in favor of gay marriage, albeit years too late. they actually tried to push through universal healthcare, although buckled under pressure from repug jackasses as per usual because they have no backbone.
You know the difference between the Obama admin and Bush? Obama has good ideas that they don't have the balls to implement. Bush had terrible ideas and giant balls yellong FUCK YEAH MERICA while screwing us over the whole time.
And yes they are both awful on copyright, the difference being that Obama actually understands how to use a computer while bush thought it was a magic box.
Gamemaker can do anything!
MyCleanPC says GameMaker is a pathetic sluggish virus-laden pedo-loving terrorist loonie spammer. Just like MyCleanPC, in fact.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
The government agency that was created to regulate communications and ensure only big corporate players can buy their way into the market, has a suggestion that would make incredible profits for the corporations it exists to serve.
See, government regulation is all about serving and protecting the public, isn't it...?
Liberty in your lifetime
Metering is idiotic. You meter water, because it's a limited resource. You meter electricity, because it's a limited resource. You don't limit bits and bytes, because any unused bits and bytes per second are LOST FOREVER. The value in a pipe that delivers bits and bytes isn't in the bits and bytes themselves, but the saturation of the pipe itself. The delivery mechanism. This whole idea is fucking ass-backwards.
My left nut if I could stop paying for sports channels. All of them, gone from my line-up and from my bill!!!
If you can't be good, be good at it!
flat rate pricing didn't come because USERS FOUGHT, corps do not give a rats left testicle- however you think people fought?
Compuserve got it's ass handed to it by the likes of aol, mindspring and earthlink because of competition.
when everyone could choose which POP to call the market created it's own efficiency- and found a way to work in a fashion that benefited the consumer, ultimately the pricing war became flat rate service.
the key to efficiency is choice of provider, followed by fiscal evolution.
The responsibility of the government, representing the people, is to ensure we have the choices.
not to write exclusive contracts with sole presence providers.
not to prop up entities with massive right of ways that don't get offered to others-- and to occasionally DENY a request to merge.
Anyone notice verizon is very in bed with comcast on a lot of deals? the fact that verizon stopped expanding fios- think it might be tied to the fact that verizon now sells comcast products? Cripes-- verizon had the poles to take on comcast territories without huge legal shenanigans- and instead they got into bed with the big fat fuck that is so efficient with it's operations (and fair with it's pricing) that it bought whole sports teams and NBC?
WHY the hell does a gov't granted monopoly service provider get to set it's rates so painfully & obviously above it's cost of operation that it can expand so far and fast. they should never have had enough money for those deals. as a gov granted monopoly they should be so bent over the 'justify the expense' audits that when you walk into the local business office customers should need their own pen to fill out a form-- cause they can't afford a box of them.
I fear every administration- unless you can vote with your dollars- you can't change anything
every day http://en.wikipedia.org/wiki/Special:Random