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
If cable companies take more money from their customers, with little extra investment in new technology or staffing, it means another sector of the economy loses out. Pay an extra $20 for internet access, that's 1 less dvd you're buying from a MPAA affiliated company.
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.
Used bandwidth doesn't consume more stored resources than unused bandwidth. Idle network bandwidth is lost forever and can not be used to improve the network performance at a later time. That's why data volume isn't a good metric for the consumed good - bandwidth used at peak times is. In a functioning market, volume pricing would result in prices that don't reflect the ISPs costs and therefore in uncompetitiveness for the ISP which uses this flawed pricing 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.
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
It's bye bye World of Warcraft, and hello text-based mud!
You have a very weird system over there. In the UK, one company, BT had a monopoly on the telephone system. This was recognised and legislation was put in place that the last 'mile' of the connection could be used by any company offering services many years ago allowing me to choose from multiple ISPs as long as there was space in the junction box for the hardware. Now there is concern that BT again may be able to monopolise the next 'evolution' as we move towards fibre to house, so there are calls to prevent this from happening.
In the US there seems to be a focus on the government doing what is good for corporate greed and not what is good for society. :(
Here in Sweden and many other parts of the world, we have cheap, fast 100 mbit/s and even 1000 mbit/s Internet connectivity at flat rate.
How about you American idiots expand and upgrade your Internet infrastructure so everyone can have more bandwidth instead of making people pay for using bandwidth?
You guys have slow, expensive, censored shitty Internet. Your Internet connectivity is even worse than Eastern block shit countries like Poland.
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 !
Old content driven, highly scripted, highly time controlled, ads you can't block or skip while live, we drive the narrative money.
VS
New internet you go where you want, sandbox type choice for the user, ads are there but can be dialed down at the user end, DIRECTLY sells stuff to people, lets people connect in multiple ways, old we drive the narrative content still there but also many many other points of view.
Andddddddd, fight!
Really, I know what I'm doing...Ohhhh, look at the shiny buttons!
(I know, I know: lies, damned lies and...)
Mark Twain aside, if you still wanted to promote laissez-faire economics (not that that's always appropriate), the FCC should ensure that there is enough competition in a given market (far from today's sorry reality in the U.S.), publish GOOD (useful) STATISTICS on speed (indexed by time of day perhaps), latency, uptime, etc. Then let the consumers decide how they want to be billed. Or at least that's how it SHOULD work out, I don't understand how market forces haven't eliminated the insanely complex and restrictive 2-year contracts most people are locked into. Lobbyists perhaps?
If people are provided accurate information they SHOULD choose the most efficient/best product for the cheapest price (except for "Geffen goods"). That's why ratings agencies are absolutely crucial to a properly functioning market; nothing was "wrong" with sub-prime mortgages, it's just that the ratings agencies were giving them AAA ratings (because they were being paid by the issuers). Those guys should be "castrated and blinded" (another literary reference, this one from "The Visit") or at least made bankrupt and their officers thrown in prison!
*Disclaimer: I've worked in Cable for years*
They have been innovating. You can only fit so many channel frequencies into a line before you have to upgrade the line your using or find a new way of transmitting over the existing infrastructure. Any innovation that would allow for an exponential addition of channels to the existing infrastructure would be a gold mine. They're trying, and they're all in it together. When was the last time you heard of any one cable company inventing anything? They don't. They have a group dedicated to research which helps all of them.. Anything that the group comes up with is made an industry standard, basically IEEE for cable.
But going back to the infrastructure: cable companies are obviously bound to this. And it costs a lot to both maintain and upgrade. The first half of the 2000's many companies used cable internet and later cheap phone service to multiple advantages.
1 was generating more revenue by increasing the amount of services their customers subscribed too. This also lead to increased customer loyalty, since its one thing to cancel just your internet service if a company pisses you off but another all together to consider dropping a company that hosts your TV, Internet, and phone.In upgrading a system of say, 50k subscribers you could double the amount of money it generated, which means
2 the increased revenue offset the costs of upgrading systems to support the new features. Think back 10 years ago, what was the fastest speed you saw in major cities? 3-5 Mbps if that. Some area's have 50+ Mbps now.
3 by increasing the capacity when HD came around many systems where already ready for the initial wave of channels. They did innovate, which is why many area's have 50+ HD channels available now if you have an HD converter. Without the investment into rewiring many area's, cable would never be about to touch satellite as far as competition in many area's.
Upgrading systems costs an insane amount of money. That more than anything is the reason that cable monopolies exist, the cost of entry prohibits competition. To install a new plant in an town of 50k takes something to the tune of 2-3 million dollars, with zero guarantee on how long it will take to recover that cost, if ever. Cable lines have reached their limit unless someone comes up with a new way of multiplexing, and if its that significant a step up you'll see it deployed very rapidly. Some companies are switching to fiber but the cost is insane. And where as if someone cuts a cable line the service could be back up in an hour, if someone cuts a fiber line it could take significantly longer.
Having said all that, the "Usage Allowance Plan" is a crock of shit. It is exactly what it is being labeled as, a stop gap measure to keep people from dumping the TV service. Because cable companies get charged by the broadcasters based on their install base*, which includes internet only customers in some cases, they're trying to stop the current trend of "Internet for everything" since it inverts #1 & 2: less revenue generated, but now node capacity has to be increased. Does it make it fair for the consumer? Of course not. Are the amounts for the usage plans in use by the larger companies fair? Considering that a large % of the subscribers never come close to the cap, it depends. COULD they offer an 'unlimited' package? Yes. Which is why its a crock of shit, their could be a way to pay more if you use more, but thanks to other industries showing that micro-payments for additional service is a viable model for monopolies that isn't likely to happen. Hence this whole hullabaloo, they're trying to have their cake and squeeze money out of it too.
*ask anyone who's worked for a Cable call center about NFL network. Just don't do it when they're holding something stabby.
X
I pushed for usage based charging in my university as an alternate to the previous scheme of free bandwidth except for fining the top 20 users at £2/gig. They now charge by the amount charged per gig by the UK academic network (JANET) of ~15p (23c) and I think that's perfectly reasonable. Usage based charging is not a bad idea. In fact, it's pretty great for the majority of consumers. Why shouldn't people pay for what they use? Where it's bad is where there isn't appropriate competition to drive the price to the correct network cost, but monopolies are a problem for fixed rate plans, too.
"similar to the way utilities charge for electricity. By switching to this model, the cable companies can increase their profitibility"
This sounds like ignorant idiotism at its peaks. Most of you here will remember (some might still live it...) the modem days, pricing per kilobyte, browsing web pages with ads, images and everything disabled, replying to e-mails offline and sending in batch, no online video, no streaming radios, and sometimes still ridiculously high bills at the end of the month.
That's where you're headed, and they will call it progress.
You people recently seem to try to make those people's decisions increasingly easier who consider moving to the US.
Like, consider regular flat rate dsl prices. There were times when we were looking from central europa with awe towards the cheapness over the pond. Today, a 1.5mbit dsl in PST costs almost exactly what we pay for a 5mbit dsl in CET. And now they're "evolving" you back to usage-based fees. Nice.
I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
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.
So let me get this straight, the government is suggesting that government supported monopolies (teleco & cable) change their behavior (in a way negative for the consumer) in one monopoly area in order to help their business in a different monopoly area?
Maybe it's time that the these monopolies are broken up. There is a reasonably obvious need for local monopolies on who owns and maintains the cable infrastructure. There appears less of a need for a monopoly on content providing over that cable. Since they are obviously leveraging the monopoly status in the first to extend the second, it's time to break 'em up.
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
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
So, I take it the US has decided to lock in its technological gains from these last two decades, and will be out of the race for the next 40 years? Because that is what this is saying.
Remind me how ISPs in other countries offer faster speeds, for less? And this is supposed to be an improvement?
I am John Hurt.
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.
How many people do you know who understand what watching an hour of TV costs in terms of electricity usage? Sure, if it cost $3/hr they'd figure out sooner or later what was costing them so much, but it's no reason not to meter electricity.
It's also worth noting that electric companies offer incentives for more efficient appliances even though they profit from selling more KWh - capacity has costs as well.
Besides, without even looking, I'd make the bet that there's a Firefox extension that will tell you page sizes.
The trick with metering will be to have a very low connection fee (like phone or electric) and a reasonable per-bit cost, even in monopoly areas.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
The fundamental flaw here is that cable capacity is shared between *all* users from the local node, i.e. everyone in your street, unlike ADSL.
Therefore, there's not really much improvement to be made. The only possible optimisation with this hypothetical IP system would be to "detect" that everyone is watching Australian Idol (or whatever people watch these days) and then allocate more capacity to that program perhaps to improve video quality. Otherwise, if everyone is watching something different it's no different to the current "broadcast" situation. DVB is compressed, usually with an MPEG-4 class of video codec, so it's already highly efficient.
Oh, and particularly with digital transmissions, there already is a substantial channel changing delay anyway, even with "broadcast" style DVB. Especially the case with MPEG-4 I've noticed, up to a couple of seconds even on modern receivers; even if the channel is on the same transport stream (i.e. same carrier), while it waits for enough key frame data to accumulate. Even worse delay if its on a different carrier, because the lower level receiver has to synchronise to that.
South Korea is smaller Geographically than 39 United states and has a population of close to 50 million. Kentucky, which is slightly larger geographically has a population less than a 10th of that.
Population dictates cost. Economically South Korea can support that. because for every mile of network they build they potentially support 10x more people than in Kentucky. The cost to bring that speed to all area's of Kentucky then would increase 10 fold. There is a reason that we don't have high speed in our rural areas - it costs too damn much.
X
What has stoppped your ISP from metering your usage for the last several years?
And why would they start?
This is slightly off the mark, and worth an OT reply, I think. (I am motivated in part by also having a Canadian background; I am now a naturalized US citizen.)
The electoral college is made up of "electors", with one elector being in the college for each congressman and senator, plus three additional electors for the District of Columbia (represent!). The electors are nominally free to vote for any eligible presidential candidate, but in practice vote for the candidate who wins a majority of the votes in their state, and have done so in every modern election.
The reason a president can win the electoral college without winning the popular vote is that the electors in the electoral college are not apportioned according to population. Each state gets two senators, irrespective of population, and various states' congressional districts are different sizes in practice. This means that low-population states are over-represented in the college relative to their proportion of the population, so it's possible to put together a majority of electoral college votes corresponding to a minority of US voters.
The possibility that a member of the electoral college might vote for a different candidate than the popular vote in their state has a name, it's called the "faithless elector". This does happen, but has never changed the outcome of a US election.
2*3*3*3*3*11*251
Many cable companies already implement Switched Digital Video where only the channels that are actually being watched are sent down the wire. This may actually explain the couple second delay that you have experienced when changing channels. This allows the cable companies to offer more channels than their system has the capacity to support.