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Legislation Would Prohibit ISPs From Throttling Online Video Services

Dega704 sends this story from Ars: "A Senate bill called the 'Consumer Choice in Online Video Act' (PDF) takes aim at many of the tactics Internet service providers can use to overcharge customers and degrade the quality of rival online video services. Submitted yesterday by U.S. Sen. Jay Rockefeller (D-WV), the 63-page bill provides a comprehensive look at the potential ways in which ISPs can limit consumer choice, and it boots the Federal Communications Commission's power to prevent bad outcomes. 'It shall be unlawful for a designated Internet service provider to engage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or effect of which are to hinder significantly or to prevent an online video distributor from providing video programming to a consumer,' the bill states. A little more specifically, it would be illegal to 'block, degrade, or otherwise impair any content provided by an online video distributor' or 'provide benefits in the transmission of the video content of any company affiliated with the Internet service provider through specialized services or other means.' Those provisions overlap a bit with the FCC's authority under its own net neutrality law, the Open Internet Order, which already prevents the blockage of websites and services. However, Verizon is in court attempting to kill that law, and there is a real possibility that it could be limited in some way. The Consumer Choice in Online Video Act could provide a hedge against that possible outcome."

49 of 222 comments (clear)

  1. Not going to happen by TheNastyInThePasty · · Score: 4, Informative

    Too many Dems are in bed with Hollywood and too many Repubs will scream about socialism because it places limitations on big business.

    --
    The best thing about UDP jokes is I don't care if you get them or not
    1. Re:Not going to happen by Xicor · · Score: 5, Informative

      all i can think about is time warner and youtube. all youtube videos are throttled so horribly with time warner that i cant even watch 480p. time warner also cuts off the buffering after a certain amount of time, so you cant just leave it buffering all day either.

    2. Re:Not going to happen by girlintraining · · Score: 4, Interesting

      all i can think about is time warner and youtube. all youtube videos are throttled so horribly with time warner that i cant even watch 480p. time warner also cuts off the buffering after a certain amount of time, so you cant just leave it buffering all day either.

      That's why when I browse Youtube, I use a plugin that lets me download the .mp4 files raw... then they can throttle all they want. I just have 20x connections going at a time. Because fuck you Time Warner, that's why.

      --
      #fuckbeta #iamslashdot #dicemustdie
    3. Re:Not going to happen by Jah-Wren+Ryel · · Score: 5, Informative

      all i can think about is time warner and youtube. all youtube videos are throttled so horribly with time warner

      Here's how to fix it. A good friend suffers under TWC and applied that fix over a year ago (that site is not the only one to discuss, just the first one I clicked on in google), since then youtube has been great for him.

      http://mitchribar.com/2013/02/time-warner-cable-sucks-for-youtube-twitchtv/

      --
      When information is power, privacy is freedom.
    4. Re:Not going to happen by Technician · · Score: 4, Insightful

      This is one of the reasons I dropped Comcast. As soon as an alternative was an option, I switched. Dropped my price about $10 per month (beyone the promotoion rate) and increased by BW by 3X. Now Comcast wants me back offering "faster than DSL" Xfinity brand service.

      I tell them every time that they blew their chance at retention. The answer is good competition. Market forces will kill companies that provide poor service. This does not work where there is a monopoly market.

      Now a 3rd option is in my area. Haven't noticed any throtteling on Netflix or Youtube. Even a test torrent worked just fine. Until Quest screws up, I'll stick around. I even have 3 VOIP lines with other providers that show no sign of throtteling. 2 lines are on an ATA (Linksys PAP2T-NA) and the third is a softphone Google Talk/Voice.

      Always avoid the companies with a media divison to protect. Remember the Sony Diskman. Too DRM Serial copy protected to be of any real studio use. Hard disk recorders and Digital Audio Workstations simply took the market. Cable companies will find a void they created will be filled by the competition.

      Verizon does have something to fear. There may be lawsuits when upstream congestion causes 3rd party content to be delivered slower than their own content not due to throtteling on their part. This law can only cause them headaches even if they don't throttle.

      --
      The truth shall set you free!
    5. Re:Not going to happen by Anonymous Coward · · Score: 3, Interesting

      time warner also cuts off the buffering after a certain amount of time, so you cant just leave it buffering all day either

      I see that happening too, not on Time Warner, and assumed it was a youtube bandwidth-cost-savings-feature. Youtube doesn't want to send you data that you might never even watch.

    6. Re:Not going to happen by CastrTroy · · Score: 5, Interesting

      I don't think that's Time Warner. I'm with Rogers here in Canada, and I get the same experience. I've heard similar complaints from people with all kinds of ISPs. Basically the problem, as far as I know, is that Youtube is broken. Youtube tries to cut down on network usage, so they try to stream it to you just fast enough so that you only ever have a minimal amount in the buffer. The problem comes when the connection fails, or you sneeze, or it's tuesday, and the stream slows down just a bit. This causes your buffer to empty, which makes the video stop. There' also major problems with them reconnecting to the stream. Once the connection is dropped, or the buffer is empty, you pretty much have to reload the whole page before it can start streaming the video again. I spent 20 minutes trying to watch the last 10 minutes of a 1 hour video last weekend because this was happening continuously. I can watch videos all day every day with any other streaming service, but for some reason, Youtube just can't get it's act together.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    7. Re:Not going to happen by alen · · Score: 2

      depends on the video

      youtube has caching servers to cached the most popular videos inside the ISP's network, everything else has to fight for bandwidth

      i've had youtube problems on AT&T, verizon, ios, android, on almost any platform.

    8. Re:Not going to happen by Mitchell314 · · Score: 4, Funny

      And grown locally too, without injected hormones. Did you know that most artificial steroids used on digital content leads to premature bit rot? Digithol Rightose Managemone being one of the worst of the bunch.

      --
      I read TFA and all I got was this lousy cookie
    9. Re:Not going to happen by Anonymous Coward · · Score: 3, Informative

      I suspect youtube has had a massive spike in traffic in the past year or so. And not like 20% more, more like 500%.
      I suspect a LOT of people are doing what I'm doing.. Not watching regular TV at all, or only watching a few of the good shows that are worth watching(Probably downloaded, via DVD, or netflix - again like me. Only suckers wait for a broadcast that happens at a specific time)

      I've found content on youtube that's vastly more interesting and entertaining than what I've found on TV. EE video blogs. People doing tear downs and analysis of equipment. People actively in research showing off cutting edge lab equipment and how they use it. Letsplayers playing obscure old classics, playing new games, playing bad games, playing good games. The amount of content is staggering and it's growing at an astonishing rate.

      There's an AMAZING video blog dedicated to the old British spectrum computer and it's a very comprehensive and amazing view of the old computing world across the pond we dint see here in the US. They guy covers history, old companies, old games, old hardware, and stories from the period. - Really watch this. It's fucking amazing.
      http://www.youtube.com/user/BuckingTheTrend2008/videos

      Point is there is a A LOT of really good stuff you can find that probably caters to your interests, and the popular guys make enough money off of youtube alone to do it full time so they can produce content you can watch every day. (Some have viewership that rivals small cable networks - staggering to think about) There's more stuff in my daily subscription feed than I can watch.

      I'm just going to link some of my favorites - A lot of this stuff is odd, but so am I. That's what makes this great.

      Electronics -
      http://www.youtube.com/user/EEVblog/videos
      http://www.youtube.com/user/mikeselectricstuff/videos
      http://www.youtube.com/user/TheSignalPathBlog/videos - This guy's stuff blows my mind.

      Video games/geek stuff/wierdness -
      http://www.youtube.com/user/ashens/videos
      http://www.youtube.com/user/NintendoCapriSun/videos
      http://www.youtube.com/show/lgr/videos
      http://www.youtube.com/user/BlueXephos (The yogscast crew is one of the biggest youtube groups ever - Who knew that fucking around and playing video games can pull in millions?)
      http://www.youtube.com/user/Northernlion/videos
      http://www.youtube.com/user/GameGrumps/videos

    10. Re:Not going to happen by TangoMargarine · · Score: 3, Informative

      Downloadhelper + VLC locally = Winning. After enough time it practically becomes a habit.

      --
      Unity? Screw that: XFCE. Slashdot Beta? Screw that: SoylentNews. Australis? Screw that: Pale Moon. UX developers DIAF
    11. Re:Not going to happen by girlintraining · · Score: 2

      id you know that most artificial steroids used on digital content leads to premature bit rot? Digithol Rightose Managemone being one of the worst of the bunch.

      That's why it's a controlled substance that only licensed providers under strict government regulation can prescribe it. It is usually prescribed as a treatment for Avaritia Maximus, a degenerative condition frequently seen in industry executives. It's the result of occupational exposure to high levels of bogon radiation.

      --
      #fuckbeta #iamslashdot #dicemustdie
    12. Re:Not going to happen by vlueboy · · Score: 2

      I spent 20 minutes trying to watch the last 10 minutes of a 1 hour video last weekend because this was happening continuously. I can watch videos all day every day with any other streaming service, but for some reason, Youtube just can't get it's act together.

      Two things I've noticed: youtube seems to have different servers depending on the display size of your stream. Found a single video in a series that is buffering hard? Switching from 360p to 480p sometimes GREATLY improves delivery because you are fetching from a different nearby server that does not require buffering (not sure if that's changed recently)

      A recent and stupid change is that when you backtrack in a video, your browser requests the old data AGAIN. Sometimes even if just a few seconds old. Bonus: It will *drop* your current buffer section too even if it was several minutes long! Other players don't do that even with videos that are 60 minutes long.

      The only thing that comes to mind for that regression is mobile delivery experience on poor fragmented hardware with a bad least common denominator. After all, it's not the same to deliver a buffer of 300MB to a desktop for a 10 minute video than to a mobile running Froyo whose max ram is 256MB. If that is indeed what's done, perhaps they have some write once, roll out everywhere API and are betting against desktops for simplicity of encoding.

  2. Video only? by Anonymous Coward · · Score: 5, Insightful

    Should be illegal to 'block, degrade, or otherwise impair ANY content'

    1. Re:Video only? by cheesybagel · · Score: 4, Insightful

      Precisely. That was the point behind net neutrality as a principle.

    2. Re:Video only? by Impy+the+Impiuos+Imp · · Score: 3, Insightful

      I'd be fine with it remaining legal as long as ISPs were required to put it in flashing text at the beginning of their agreements: Warning! We deliberately degrade services that do not pay us extra.

      Freedom is about making decisions with knowledge, not about scam behavior where the person is hoping you miss some detail of boilerplate, where their business model, if honestly written down, goes something like, "...and here we hide the scam mechanism, hoping the consumer relies on it, because if they notice it, statistically most will balk."

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    3. Re:Video only? by Anonymous Coward · · Score: 4, Insightful

      I'd be fine with it remaining legal as long as ISPs were required to put it in flashing text at the beginning of their agreements: Warning! We deliberately degrade services that do not pay us extra.

      Freedom is about making decisions with knowledge, not about scam behavior where the person is hoping you miss some detail of boilerplate, where their business model, if honestly written down, goes something like, "...and here we hide the scam mechanism, hoping the consumer relies on it, because if they notice it, statistically most will balk."

      Yeah, yeah, competition is great except how choices do you have for your ISP in any given area?

    4. Re:Video only? by spacepimp · · Score: 2

      Sadly with the for the most part mini monopolies sanctioned around the US for Cable Co's and Verizon I think the ISP's would gladly have the blinking neon agreement there if they could get away with it. Where would you go?
      Deal with it!
      I'd rather they didn't tempt fate.

    5. Re:Video only? by spacepimp · · Score: 2

      Because in the US they have sanctioned many localized monopolies for Cable/Telcos/ISP's. If there was a true alternative for broadband and you were not beholden to the local monopoly then you could go elsewhere. For the most part in the US you cannot. Therefore there is no need for the cable co's or telco/isp to compete for your business. They can then make the internet a la carte. Oh you want the premium plus package if you want to be able to go to Google and ESPN.com. Wait you want Netflix? that'll cost you an extra ten to use that service. Of course you can always rent movies from comcastFlix and get your sports news on comcastSports and use ComcastSearch for only a little bit more per month.
      Look at the state of the cable box and the arcane dreadful interface experience. If you could go somewhere else do you think they wouldn't be improving them?

    6. Re:Video only? by shentino · · Score: 2

      Competition favors those who can cheat and get away with it. The honest schmucks get priced out of the market, and those that get caught get burned.

      This in turn gives an incentive to companies to pay off the regulators to look the other way.

      It pays to lie.

    7. Re:Video only? by Adrian+Lopez · · Score: 2

      "With the ISP I work for currently, 0.1% of our customers cost us 50% of the bandwidth. It isn't right that a few punks think they can try to destroy service for everyone else with what looks like an attack."

      It isn't right to advertise high speeds only to cripple people's connections for making full use of the advertised bandwidth. If you can't deliver on what you promise, stick to promising 28.8 kbps and see how that works out for you.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
  3. Why just video? by Anonymous Coward · · Score: 5, Insightful

    I also don't want Verizon intentionally de-prioritizing my Vonage VoIP traffic, for example. Or a cable company that's tied to CNN.com making MSNBC.com's images load slower to make the site seem less appealing to read from.

    What we need is a very stiff, broader law that says, in a nutshell: ISPs provide bandwidth, period. In selling Internet Access, you're not allowed to block, degrade, or de-prioritize select traffic based on the type or source of said traffic. You're not allowed to effect the same by over-prioritizing preferred sources or types of traffic. Legitimate QoS for the purposes of improving overall customer experience is ok, but the QoS rules have to be (a) publicly details to your consumers, and (b) optional, with a zero-cost option to disable the QoS-prioritization of a given customer's in- or out- bound traffic.

    1. Re:Why just video? by x181 · · Score: 3, Insightful

      Additionally, any violations of these laws will result in life imprisonment for the board of directors and all executives.

    2. Re:Why just video? by Scowler · · Score: 2

      Netflix and Youtube alone is over 50% of traffic. Non-video-service, non-torrents, is peanuts, and there is no reason why ISPs would want to discriminate against it, given existing US regulations. (VOIP might have been a concern a few years ago, but I think the idea of the major USA ISPs discriminating against those services is already waning.) So it seems focusing new legislation on streaming video services is probably wise.

  4. Re:Whose networks are those? by jythie · · Score: 2

    Well, private ownership is a construct of government, and government is a construct of a citizenry, so both.

  5. Re:Whose networks are those? by Qzukk · · Score: 4, Insightful

    Do they belong to The People[TM], or to the Internet Service Providers competing with each other?

    False dichotomy. They belong to internet service providers who don't compete with anyone, and who openly argue that they shouldn't allow other companies' services (eg Hulu, Netflix, and Vonage) to compete with their services (Cable TV and/or Telephone).

    Of course, the bill won't do a thing for Vonage, but it's a start, and maybe when I stream a 1 minute 1080p video from youtube without having it take 5 minutes to buffer on UVerse and the world doesn't end? People might think "hey maybe there's something to this".

    --
    If I have been able to see further than others, it is because I bought a pair of binoculars.
  6. Re:Wait.. by Scowler · · Score: 2, Insightful

    Torrents are typically downloads, so throttles only affect download time, not video quality. And given how many copyright violations occur via torrents (percentage-wise), not sure the protocol deserves very many legal protections at this point in time.

  7. Alright... by Jawnn · · Score: 3, Funny

    Who missed the payment to that prick Rockefeller? Come on guys. You had one job - buy off enough Congressmen and Senators so we don't have to worry about this net neutrality crap. Now we're going to have to double his fee and go through all the political theater so he can save face.

  8. No such thing by Anonymous Coward · · Score: 2, Interesting

    How about managing bandwidth by setting throughput and/or total transfer limits, and then letting me use it on whatever kind of data I want to? It's nobody's business what kind of data I'm sending through the pipe I paid for.

    1. Re:No such thing by Agent.Nihilist · · Score: 2

      You are advocating not overselling line capacity. While noble, this would result in large decreases in top speeds, a large increase in pricing or both.
      If the throttling was limited to bitrate +20%, as long as the video source has available bandwidth you can hit play and watch till the end, or skip to any point in the video and continue watching without pause.
      The only users that would be affected would be those using steam capturing software, something generally against the ToS of whatever service they are using.

      This would allow far more bandwidth to be available for other users, meaning generally faster speeds in other services. Ideally, the ISP would just build more infrastructure, but we all know they won't do that until they have to. Unfortunately we can't force them to do that, so allowing for throttling without effecting the user experience is the better solution.

  9. Re:Reasonable throttling by gstoddart · · Score: 3, Insightful

    I'm against throttling as much as the next guy, but I do see the need to manage bandwidth on a large scale.

    That's what usage based billing is for. If some users download huge amounts and that costs them money, charge the individual users for that bandwidth.

    I thought the 'common carrier' status meant they were required to send everything without preference. Because since if they lost their common carrier status, they'd be responsible for things like child porn.

    As usual, these companies are asking for all of the protections of being a common carrier without any of the responsibilities and obligations.

    However, throttling the service of someone else (like Netflix) because your customers are using that service (and so they can push you to using their competing service) is a pretty one-sided outcome for the ISPs.

    --
    Lost at C:>. Found at C.
  10. Re:Whose networks are those? by Holi · · Score: 4, Insightful

    Are you talking about the parts that are run on public and private property (not owned by the isp), Because if that's the way you want to play. I am ripping every cable down that is not on THEIR property.

    You see they were granted easements in return for providing us a service. When they start limiting that service they should lose their right of way and then they won't have a network anymore.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  11. Re:Reasonable throttling by rickb928 · · Score: 2

    "f you are streaming an hour long 10GB video, does it matter if it buffers in 10 minutes or 48 minutes?"

    That is the whole point of neutrality. If they make me wait 48 minutes for my online video, but theirs starts playing in 10 seconds, am I steered towards their solution? And why, because it;s cheaper, better, or just because they messed with the packets?

    Fairness, monopoly practices, and the concept of Internet service as a utility and not a service in and of itself are at stake here. If you let your ISP dictate what you can and can't reach without interference, you will see them interfere with everything. And you will not have Internet access, you will have Comcast or Time-Warner or Cox or Verizon. And whatever they wish to let you have. For whatever extra fee they can get away with.

    Whether they disclose it or not. You'll never know.

    --
    deleting the extra space after periods so i can stay relevant, yeah.
  12. Re:Whose networks are those? by Holi · · Score: 2

    >Sorry, but ISPs are common carriers

    Unfortunately they are not. Nor do they want to be
    But really in no uncertain terms, and we have gone over this time and time again on this site, ISP's are not Common Carriers.

    They are considered ESP's (Enhanced Service Providers) by the FCC>.
    So lets please not start this nonsense up again.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  13. Re:Reasonable throttling by mrchaotica · · Score: 2

    How is the ISP supposed to know the difference between "streaming" and "downloading to a mobile device to watch later (as fast as possible because I'm trying to get out the door)?" Moreover, why would we want the ISP to know the difference?

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  14. Re: Whose networks are those? by StikyPad · · Score: 2

    Doesn't matter. I own my car, my house, and my gun, and there are plenty of restrictions on what I can do with any of those things, because they affect other people. There are even more restrictions on what I can do with the one thing I own unquestionably: my body. Ownership is not the question here.

  15. Re:Whose networks are those? by Jason+Levine · · Score: 4, Informative

    In addition, many of these networks were built thanks to an infusion of taxpayer dollars to the companies in question in exchange for some promises that the ISPs then "forgot" about when it came time to deliver (and used their lobbying muscle to prevent anyone holding them to their promises).

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  16. Open Secrets - Jay Rockefeller by Tenebrousedge · · Score: 4, Informative

    His profile doesn't seem to have Netflix, Hulu, or Amazon listed as major contributors, so I'd guess this man is honestly trying to do something for his constituents. It's also worth noting that he is doing this in spite of Verizon being a major source of funding. Also related and notable, he is retiring at the end of the current Congress -- he came out in favor of gay marriage this year too, and in West Virginia that probably means something. I get the impression he's trying to leave a good legacy, and it's nice to see that.

    --
    Those who advocate genocide deserve every protection afforded by law, and none afforded by common human decency.
    1. Re:Open Secrets - Jay Rockefeller by slserpent · · Score: 2

      If only all of congress was leaving at the end of their term. Something other than naming buildings might actually get done.

  17. Re:Reasonable throttling by Agent.Nihilist · · Score: 3, Interesting

    I think you misread that a bit.
    Both the 10 minute buffer and the 48 minute buffer can hit play and start watching immediately. The example is an hour long video, the difference being the 10 minute download used 5 times the bandwidth for the same end effect, meaning in a bandwidth limited scenario that user prevent 5 other users from being able to do the same thing.

    That's the basis of the idea, allowing throttling that doesn't effect playback, but prevents spikes in usage from preventing others the same access.

  18. So it has come to this. by mrchaotica · · Score: 2

    There's a huge opportunity for improvement by applying programming ideas to the legislative process (version control, "parsing" the laws to find duplicate code, conflicts, etc. -- legalese seems a lot more like a programming language than regular English, by the way)... The hard part would be getting the lawyers to care.

    Also, you're doing it wrong.

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  19. Re:Wait.. by fustakrakich · · Score: 4, Insightful

    And given how many copyright violations occur via torrents (percentage-wise), not sure the protocol deserves very many legal protections at this point in time.

    Now there's an attitude that deserves no respect... like copyright itself. I don't want anybody deciding what protocols I can transmit/receive. I only want a pipe. That's what the ISPs should provide. Throttling is a form of censorship.

    --
    “He’s not deformed, he’s just drunk!”
  20. Re:Whose networks are those? by DaHat · · Score: 2

    private ownership is a construct of government

    Just like murder & arson are constructs of government... codifications in law of what was/is a long standing convention.

  21. Re: Whose networks are those? by mi · · Score: 2

    I own my car, my house, and my gun, and there are plenty of restrictions on what I can do with any of those things, because they affect other people

    If those people are simply your customers, then the best way to help them is by creating competition to your business.

    Speaking about your car, house, and gun — do you honestly accept all restrictions imposed as just? I doubt it...

    --
    In Soviet Washington the swamp drains you.
  22. Throttle piracy! Yay! by sabt-pestnu · · Score: 2

    The bill being discussed is a very limited form of the Network Neutrality concept.

    > given how many copyright violations ...

    By that metric, http and https do not deserve protection either. Consider the many many sites that have "pirated" movies, images, lyrics, term papers, basic research available through those protocols.

    I find your ragging on the torrent protocol based on the content moved by it disturbing. But you've hit the inference on the head, though: netflix and youtube have a lot of money riding on "neutrality" for their content. Bittorrent does not.

  23. Wights and measures by Charliemopps · · Score: 2

    The answer to this problem is simple. Get Weights and Measures involved. Have them randomly test internet connections over a variety of ports to a variety of destinations. If the ISP is found lacking force them to refund the different to the customer. Just like if they were selling gas and the gas pump were over reporting.

    The alternative would be to have the ISPs charge per MB delivered. We'd see them beefing up the trunks to their remotes pretty damned quickly then. Suddenly file shares and Netflix users would be their best friends instead of what they are today... annoying, unprofitable problems.

  24. Re:Whose networks are those? by Jason+Levine · · Score: 4, Informative

    Here's one result from a quick Google search: http://www.techdirt.com/articles/20131012/02124724852/decades-failed-promises-verizon-it-promises-fiber-to-get-tax-breaks-then-never-delivers.shtml

    Basically, Verizon asked for massive tax breaks ($2.1 billion) in 1994. In exchange, they said they would wire all homes up with fiber by 2015. By 2004, they were supposed to have 50% of homes wired, but didn't have any. Now they have halted all FIOS expansion and are basically reneging on the promise entirely. Of course, they're claiming that wording in the contract allows them to do some of this. (Stuff like lines "passing" homes which they claim means they can run a line near a home and that home counts even if that home isn't hooked up to the fiber.)

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  25. One has to wonder... by ApplePy · · Score: 2

    Considering that everything government does is the opposite of what it says:

    "Affordable Care Act" = Unaffordable Higher Premiums for Everyone Who didn't Already Qualify for Medicaid Act
    "Patriot Act" = UnAmerican Orwellian Surveillance, Torture, and Secret Tribunal Act
    "No Child Left Behind" = No Child Gets Ahead
    "War on Drugs" = well, you get the point...

    So. What hides behind the cute title "Consumer Choice in Online Video Act?"

    --
    That I'm right, and you don't like it, doesn't mean I'm a troll.
  26. Competition takes three. by Ungrounded+Lightning · · Score: 4, Interesting

    Now a 3rd option is in my area. Haven't noticed any throtteling on Netflix or Youtube. Even a test torrent worked just fine.

    Part of the problem is that the government defines "competition" (especially in communication regulation, ever since the initial rollout of analog cellphone service) as starting with two competitors. It writes regulations that stop pushing for competition at two.

    As I understand it, with two "competitors", rational pricing optmization algorithms actually drive them to splitting the customer base about equally with a high profit margin. No collusion is necessary - the price and market share transmit enough information to drive the effect.

    With four or more you're virtually certain to get somebody squeezed into a small market share but still able to survive. His best strategy, near term, is to compete with a low price or better price:performance ratio and grab market share. This starts a price or price:performance war that drives the market price toward cost plus a livable profit margin and/or makes the better service necessary for market survival. By the time this settles out the little guy is usually a big enough guy that he doesn't get squeezed out.

    With three competitors the high profit / low service level equilibrium is somewhat unstable, so it might go any of several ways (three gougers, squeeze out the little guy, or {usually} the price/service war).

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way