The Coming Internet Video Crash
snydeq writes "First, it was data caps on cellular, and now caps on wired broadband — welcome to the end of the rich Internet, writes Galen Gruman. 'People are still getting used to the notion that unlimited data plans are dead and gone for their smartphones. The option wasn't even offered for tablets. Now, we're beginning to see the eradication of the unlimited data plan in our broadband lines, such as cable and DSL connections. It's a dangerous trend that will threaten the budding Internet-based video business — whether from Netflix, Hulu, iTunes, Windows Store, or Google Play — then jeopardize Internet services of all sorts. It's a complex issue, and though the villains are obvious — the telecom carriers and cable providers — the solutions are not. The result will be a metered Internet that discourages use of the services so valuable for work and play.'"
It needs to be regulated like a public utility.
As providers try to cap their data plans, new market players will emerge and take over by offering unlimited plans that consumers want
Right?
Commentators (including myself) have been predicting the end of the internet (as we know it) for almost two decades now -- but I (and all the others) have been proven wrong.
Yes, the demand for bandwidth is growing at a huge rate -- but so is the provisioning of that bandwidth.
If you live in a country like New Zealand (where I live) you get used to living with capped data plans -- they're just a part of life and, to be totally honest, it's never really been an issue for me -- despite the fact that I do a *lot* of online video, as you can tell by my Youtube Channel.
Sure, the arrival of IPTV will change the picture a little, as TV programming starts to make up an increasingly high percentage of the total traffic -- but hey, nothing's free and many people pay for cable so why not pay for IPTV in a way that includes the bandwidth you use as well? (as will soon be the case).
Uncapped internet? Never had it, never really needed it. I have 120GB a month and that's all I need -- perhaps because I don't like the kind of dross I find on TV anyway. Quality of content is *far* more important than the quality of the image.
It started with the old hourly charges from the old services like CompuServe and AOL, then "because of consumer demand" they went to Unlimited.
Notice this article talks about the "entertainment" side. Look at the Cloud side.
1. "Everyone use your software from the Cloud! It's nice and fluffy!"
2. "Let's cap bandwidth so that when you pull your data every 7 seconds you burn 4 megs, and then you will hit your cap and we can charge the fees."
If I was better at graphic design, I've wanted to make "chart news" with trends like these pointing in opposite directions in 2010 that becomes 2012's news when they collide.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
A market controlled by cartels or monopolies is not free, and is every bit as bad as a market controlled by a government.
I know you were being sarcastic. I am just adding to the thought.
With so many people ditching Cable and Sat TV plans in favor of an Internet-Only household, and with the Cable Companies being the majority providers of Internet Access, of course we had to see this coming.
Vz and Comcast aren't going to sit idly by while their subscribers ditch the media services and keep only the delivery service, and spend their money at Netflix and other media services.
The question is, will it be considered anti-competitive for them to allow unlimited delivery of their own media over the pipe, while charging extra for media from their competitors? I certainly think that's anti-competitive, and where net neutrality needs to come into play. But, I doubt we'll see it happen, at least in the US.
Free market never really works well with critical infrastructure.
You can't have a monopoly or a monopolistic cartel without government intervention. "Free market monopolies" are a misnomer, as the company that has provided such a high quality, low cost product that no-one can compete with them must continue to provide such quality, or risk new competition arising.
I see you failed to read all seven books of Adam Smith on what capitalism is, and are a servant of the Mercantilists that opposed Capitalism.
-- Tigger warning: This post may contain tiggers! --
Actually, no, there are a LOT more than 2-3 solutions...
The major reason for usage capping is not the backbone costs of all of that bandwidth, it's oversubscription; the cable companies can't provide unlimited guaranteed bandwidth to everyone all the time.
However, they do have an absolutely MASSIVE pipe coming into your home, even if it is shared - the problem is they are using almost all of it to send you 799 TV channels you aren't watching while you are tuned to the 800th. If they just dumped the traditional broadcast system to use ALL of the available frequencies for IP-based video, the whole oversubscription problem would go away.
Of course, then they might actually start having a backbone issue, but that's a nice scalable problem they have been continuously solving for decades...
Austria has unlimited data plans.
;-))
I have a SIM card from drei.at that you can use without a contract and recharge on a monthly basis. It comes at 15 EUR a month and gives you high speed HSDPA+ without a cap. Also, my regular internet comes wireless these days: I have an LTE contract at 49 EUR a month that gives me unlimited 100MBit down and 10MBit up. I live in central Vienna and I actually get the advertised speeds.
There you go Sweden, plus we have better weather and better food (and we don't extradite
Finland — I didn't even see "limited" data plans last month when I shopped for a plan, it was all about how much bandwidth you can use.
My exception safety is -fno-exceptions.
Romania.
It does have and will probably always have unlimited data plans. For mobile devices there are speed caps once you go over a certain threshold, but that's it. The difference between subscriptions is basically the threshold size (6 GB, 20 GB, 100 GB, etc).
For regular broadband (CAT5, fiber optics and so on) there's no threshold and probably there won't be any, because ISPs here are in direct competition. There's no location I know of in Bucharest where you can't choose between at least 3 different ISPs. There are offers for new subscriptions, e.g. 6 months for 50% price or 3 free months, etc.
RDS (my ISP) offered me a free as in beer 3G dongle which allows unlimited traffic with no monthly threshold. I have downloaded a few ISOs through 3G when their regular line was down a few weeks ago at about 4 Mb/s sustained throughput.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)