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FCC Chair: It's Ok For ISPs To Discriminate Traffic

sl4shd0rk writes "Remember when the ex-cable lobbyist Tom Wheeler was appointed to the FCC chair back in May of 2013? Turns out he's currently gunning for Internet Service Providers to be able to 'favor some traffic over other traffic.' It would set a dangerous precedent, considering the Open Internet Order in 2010 forbade such action if it fell under unreasonable discrimination. The bendy interpretation of the 2010 order is apparently aimed somewhat at Netflix, as Wheeler stated: 'Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."'"

365 comments

  1. What Internet? by Neuroelectronic · · Score: 5, Insightful

    All I see is a bunch of telecom fiefdoms expanding their influence. It was nice having an internet for a while, but TCP/IP was never built to enforce network neutrality, and you can't stop technology from breaking old protocols and extracting value from communication before that value can be delivered to the real intended recipient.

    Deep Packet Inspection is Piracy. Return the favor.

    1. Re:What Internet? by SuricouRaven · · Score: 5, Insightful

      There are technological countermeasures that can be investigated. Encryption, obstucated protocols, decentralisation. Ideally some day truely decentralised mesh networking (I personally think CAN is key to making that workable), but that depends not just upon improving technology but also having a dense enough population of activist-enthusiasts.

    2. Re:What Internet? by Anonymous Coward · · Score: 0

      This has been a cat and mouse game for a long time now... and the cat is starting to be the one winning.

      Yes, one side has encryption, oddball protocols, and decentralization, but the other side has the ability to block anything that isn't known [1], and then look at it later, perhaps with the intent to arrest and jail the source.

      [1]: There are products out there that will proxy SSL traffic using their own root CA key, and anything that they can't proxy gets blocked, so the 443 https proxy does get stopped. This is trivial to do with BlueCoat, an appliance that is a must in any enterprise IT department for legal compliance.

    3. Re:What Internet? by Anonymous Coward · · Score: 0

      With white-listing your encryption, obfuscation, etc. can be easily defeated.

    4. Re:What Internet? by Anonymous Coward · · Score: 0

      The SSL intercept simply doesn't work without the ZOMG SSL CERTIFICATE MISMATCH - DO YOU TRUST THIS SITE message

      Of course, businesses will install the Bluecoat certificate locally on all PCs within the building so no such error will surface, and ISPs could sneak their own version into their AOL style install discs.

    5. Re:What Internet? by jxander · · Score: 5, Informative

      Netflix (being called out by name in this instance) has offered a decentralization solution. They've offered to install storage nodes to hold the majority of their library within Comcast's network and minimize traffic... but comcast said NO, as it would compete with their own digital movie delivery methods.

      --
      This signature is false.
    6. Re:What Internet? by Jane+Q.+Public · · Score: 4, Insightful

      "This has been a cat and mouse game for a long time now... and the cat is starting to be the one winning."

      Gaming the political system is not "winning". It's cheating. There is a very big difference.

    7. Re:What Internet? by Ralph+Wiggam · · Score: 1, Insightful

      Where are these official rules that determine what's allowed and what's cheating?

    8. Re:What Internet? by Em+Adespoton · · Score: 1

      This has been a cat and mouse game for a long time now... and the cat is starting to be the one winning.

      Yes, one side has encryption, oddball protocols, and decentralization, but the other side has the ability to block anything that isn't known [1], and then look at it later, perhaps with the intent to arrest and jail the source.

      [1]: There are products out there that will proxy SSL traffic using their own root CA key, and anything that they can't proxy gets blocked, so the 443 https proxy does get stopped. This is trivial to do with BlueCoat, an appliance that is a must in any enterprise IT department for legal compliance.

      It's slower, but you can still set up a DNS proxy and route all your traffic over it. Wouldn't recommend it for streaming Netflix though.

    9. Re:What Internet? by rtb61 · · Score: 4, Insightful

      The oft repeated lie. The content creator creates traffic, 'LIE'. The end users creates the traffic by requesting the delivering of content, 'TRUTH'. So what they are saying is the end user should pay for band width and traffic and after they are charged for it, ISP, should be able to cripple the supply so they can charge someone else for it again.

      What is it all really about. The current Telecom incumbents all want to become digital publishers, so their intent is to put competitors out of business including those who self publish by either throttling their delivery services to the customers to the point of making them unusable or by over pricing them to make them non-competitive.

      Oh look it's yet another Uncle Tom Obama the choom gang coward corporate appointee, who would have believed it.

      --
      Chaos - everything, everywhere, everywhen
    10. Re:What Internet? by Wootery · · Score: 1

      Deep Packet Inspection is Piracy. Return the favor.

      Return the favour? ISPs aren't known for producing copyrighted music/movies/games/books...

    11. Re:What Internet? by Jane+Q.+Public · · Score: 3, Insightful

      "Where are these official rules that determine what's allowed and what's cheating?"

      An Inquiry into the Nature and Causes of the Wealth of Nations, by Dr. Adam Smith, 1776

      "Lobbying" and "monopoly" are not "capitalism". Even Smith recognized that a capitalist economy must have a reasonable body of antitrust laws to keep everybody "playing within the rules".

    12. Re:What Internet? by McGiraf · · Score: 1

      Most ISP belong to Big Media corps, at least they do here in Canada.

    13. Re:What Internet? by Ralph+Wiggam · · Score: 1

      That's true, but this topic has nothing to do with antitrust rules.

      The government is the only thing enforcing net neutrality. In a truly free market, these private companies could enact any rules they wanted. This situation is complicated by extraordinarily high barriers to entry. It's not a monopoly, but there are few enough players that there is little consumer choice between those players.

    14. Re:What Internet? by thaylin · · Score: 1

      Content creators create the traffic, or are you saying without the content that traffic would somehow magically exist. At best it is a double situation where both create the traffic.

      --
      When you cant win, ad hominem.
    15. Re:What Internet? by Anonymous Coward · · Score: 0

      Hey, how's that hopey changy working out for you?

    16. Re:What Internet? by Culture20 · · Score: 2

      Of course, businesses will install the Bluecoat certificate locally on all PCs within the building so no such error will surface, and ISPs could sneak their own version into their AOL style install discs.

      Or your latest firefox/chrome/etc http download.

    17. Re:What Internet? by MightyYar · · Score: 2

      or are you saying without the content that traffic would somehow magically exist.

      I don't know if it is "magic", but we did a pretty good job of routing around the lack of content with p2p. We'll fill up the pipes one way or another - they might want to reflect on what a wonderful thing Netflix has done: getting people to actually pay for content again.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    18. Re:What Internet? by WWJohnBrowningDo · · Score: 2

      That's what the SHA1 checksum is f... wait a minute.

    19. Re:What Internet? by VortexCortex · · Score: 1

      but that depends not just upon improving technology but also having a dense enough population of activist-enthusiasts.

      No, it will depend on a Fidonet-esque infrastructure whereby most links are local and a few links are longer distance and higher powered. We have the technology to seek to noise free channels and scale signal strength according to noise so that near link frequencies can be reused nearby. Just like wired packet switching networks we will need store and forward -- the bigger the caches the better, so your friend who told you about that youtube vid will be one of the peers pushing it to you instead of ridiculously repeating content from end to end -- Free collocation.

      We already have the technology, we've had it for decades. However, the FCC says store and forward is illegal on all our public access frequencies, and HAM licenses need to be relaxed. The airwaves belong to we the people. Cellular works. We just need the FCC to give us a section of airwaves to use and you'll have your free decentralized internet where you only pay once -- To buy the hardware and become a node -- Bigger node, faster connection. Bonus: Anonymity is inherent not only because it's routed through peers, but because the data doesn't have to come from the endpoint, it can come from next door.

    20. Re:What Internet? by emaname · · Score: 1

      Oh look it's yet another Uncle Tom Obama the choom gang coward corporate appointee, who would have believed it.

      I think they're all pretty much "corporate appointees" now, aren't they? Do you think Romney was just some regular guy without any real corporate backing?

      The two-party system as it exists today is mostly, if not all, theater. Especially since "Citizens United."

      --
      An effective "democracy" creates the illusion the people have a say in their government.
    21. Re:What Internet? by MightyYar · · Score: 1

      The largest in the US with 20% of the market, Comcast/NBC/Universal, is. Time Warner/Road Runner, #2 with 15% of the market, is. #5 is Cox, and they also are known for producing content.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    22. Re:What Internet? by Anonymous Coward · · Score: 1

      So is the purpose of your smug little diatribe to imply that Adam Smith had nothing useful to say (even though the poster was specifically putting the oft referenced "Invisible Hand" in its original context) or just a (obvious and forced) means for you to point out that talking about Smith is out of fashion in your boring little circles?

    23. Re:What Internet? by Nephandus · · Score: 1

      "The game" filth like you play is cheating, You petty-politico, norm-pretense-wielding, self-righteous sociopath.

      --
      "A soft answer turneth away wrath. Once wrath is looking the other way, shoot it in the head."
    24. Re:What Internet? by Nephandus · · Score: 0

      Considering they either keep acting shocked or downvote anything construed as "Obama-bashing" as trolling or direct counter points as flamebait, I think they'll vote for the next sleaze to say the same shit, if he's Dem sleaze. The fans of the 2 ring circus don't learn. They're here for a show like "pro-wrestling": "It's still real to me, dammit!"

      --
      "A soft answer turneth away wrath. Once wrath is looking the other way, shoot it in the head."
    25. Re:What Internet? by shentino · · Score: 1

      Written by the previous winners.

    26. Re:What Internet? by shentino · · Score: 1

      The telecoms are the owners of the tubes and want to collect as much in data tolls as they can.

      What we need is competition so that the telecoms are put under pressure to be nice to their consumers, whoever they may be.

    27. Re:What Internet? by Anonymous Coward · · Score: 0

      in a truly free market, telecom companies wouldn't have thier government backed monopolies

    28. Re:What Internet? by Anonymous Coward · · Score: 0

      There are products out there that will proxy SSL traffic using their own root CA key, and anything that they can't proxy gets blocked, so the 443 https proxy does get stopped. This is trivial to do with BlueCoat, an appliance that is a must in any enterprise IT department for legal compliance.

      BlueCoat is a joke. We appreciate the free advertisement.

      Protip: If it's recommended to what your kind refer to as "enterprise", it's [been] in our pocket.

    29. Re:What Internet? by gl4ss · · Score: 1

      if they can discriminate based on source then it should be obvious that it is not a blacklist they're going to use but a white list. so all your encrypted unknown source traffic would end up on the slow lane...

      --
      world was created 5 seconds before this post as it is.
    30. Re:What Internet? by SuricouRaven · · Score: 1

      " Just like wired packet switching networks we will need store and forward -- the bigger the caches the better, so your friend who told you about that youtube vid will be one of the peers pushing it to you instead of ridiculously repeating content from end to end -- Free collocation."

      That's the CAN to which I referred. Currently the only networks to operate in that manner are p2ps primarily used for piracy, and not made to smoothly integrate into a browser.

    31. Re:What Internet? by XcepticZP · · Score: 1

      Next time please preface your snarky comment with "Warning, smug alert. Heavy chance of douchebaggery below."

      On a side note, your type of comments have no place in any sort of meaningful discussion. If all you're going to do is dismiss someone because you and your supposedly high circles don't find their reasoning advanced enough, then you're no better than a filthy cultist that plugs his ears and goes "LalaLaLa" when someone tries to convince them of a point.

    32. Re:What Internet? by Anonymous Coward · · Score: 0

      I can make quite a bit of traffic even without any content whatsoever. Maybe I'm god.

    33. Re:What Internet? by Brett+Glass · · Score: 2

      My small ISP asked Netflix for a cache, but was refused. Apparently, unless you're a huge ISP like Comcast, Verizon, or AT&T, Netflix won't let you set up a storage node.... And they won't let you cache on your own, either. In short, if you are small enough to need a cache, you can't have one.

    34. Re:What Internet? by Jane+Q.+Public · · Score: 1

      "That's true, but this topic has nothing to do with antitrust rules."

      What is with people on Slashdot today? Do they even read the things they're replying to anymore?

      It's the part about carriers being content providers that invokes the antitrust concept. It was against FCC rules for many decades, and the rule was there for antitrust reasons.

      Only recently have carriers (cable companies) been able to lobby Congress sufficiently to get exemptions from these rules. And one of the results you see -- right now -- is the United States having slower Internet service, for more money, than other countries that regulate it better.

      That is not the only issue involved, but it sure as hell is one of them.

    35. Re:What Internet? by Jane+Q.+Public · · Score: 1

      "Adam Smith? Oh boy..... You're a first year grad student."

      100% wrong. I am a very long-time student of economics and history. YOU'RE the tyro.

      (I give you the benefit of the doubt: this could be just satire. It's hard to tell. You could have been serious, but trying to put a funny spin on it. Either way, you got it backward.)

      This might be funny, and I'd be mortified, if it had any basis in truth.

      Do you like apples? Because I'm the one walking away with it.

    36. Re:What Internet? by Anonymous Coward · · Score: 0

      His diatribe was a reference to the movie Good Will Hunting. Your response is classic.

    37. Re:What Internet? by Anonymous Coward · · Score: 0

      "Adam Smith? Oh boy..... You're a first year grad student."

      100% wrong. ...

      I usually disagree with you, but he was 100% wrong.

      A first year grad student would have a bachelor's degree.

    38. Re:What Internet? by Jane+Q.+Public · · Score: 1

      "A first year grad student would have a bachelor's degree."

      Haha. Well, YOU might think I'm serving fries (you'd be wrong), but aside from all the movie referneces, I've studied more U.S. history than most people with a bachelor's degree in that subject. I won't tell you what my degree is in... it's irrelevant to this discussion.

    39. Re:What Internet? by Jane+Q.+Public · · Score: 1

      Not everybody is a movie aficionado. So he missed the movie reference. So what? His reply was actually on-topic and probably correct. Unlike the person to whom he was responding.

    40. Re:What Internet? by Anonymous Coward · · Score: 0

      And women create rape, because without women, who would get raped?

    41. Re:What Internet? by Anonymous Coward · · Score: 0

      Agreed. Your associates degree in web development is irrelevant to practically everything you babble about.

    42. Re:What Internet? by Monoman · · Score: 1

      We don't see power companies charging me more for using particular devices. Is it because they can't tell or because the service should be usage agnostic?

      In the end the customer pays so they will just pay twice. First to the ISP and then second to the content provider who's costs go up because they have to pay ISPs not to cripple their traffic. If they go through with this extortion then monthly rates for Netflix, Hulu, etc will be pushed up.

      --
      Keep the Classic Slashdot.
    43. Re:What Internet? by Anonymous Coward · · Score: 0

      But I thought that Obama and the Democrats would save us from all this evil corporate overlording of the Internet!?!

      WHAT HAPPENED TO HOPE AND CHANGE?!?!?!?

    44. Re:What Internet? by Bengie · · Score: 1

      How does BlueCoat know when an SSL cert is correct? I can get free SSL certs signed by CAs with no verification process. The cert fingerprint is a very important part of the security process. There are live security exploits that take advantage of these man-in-the-middle issues. Some systems entirely rely on cert validation, but if you install your own custom cert and over-ride the security of this, then you'd better make sure the proxy is re-implementing this application level security validation, otherwise someone could be running applications on your computer as "system".

      These security exploits are not bugs, but features working as intended. If the application is going to be doing cert validation and BlueCoat is intercepting and signing stuff, then BlueCoat is responsible for this validation.

    45. Re:What Internet? by MachineShedFred · · Score: 1

      "That's a nice streaming content service you've got there. It would be a shame if something was to happen to it..."

      --
      Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
    46. Re:What Internet? by Anonymous Coward · · Score: 0

      But I thought that Obama and the Democrats would save us from all this evil corporate overlording of the Internet!?!

      WHAT HAPPENED TO HOPE AND CHANGE?!?!?!?

      The Republicans killed it with their sad insistence on maintaining Voodoo/Trickle-Down Economics.

    47. Re:What Internet? by Bengie · · Score: 1

      Their cache site has requirements like 5gb/s of peak bandwidth. Does your ISP have about 1,000 users streaming Netflix at the same time for about 2 hours very day? If not, then Netflix doesn't care because the bandwidth costs them less than the caching device. My ISP refuses to get a Netflix caching device because bandwidth is too damn cheap. They would rather have everyone streaming 12mb/s than paying electrical costs on a cache server.

      Of course Netflix is not going to let your ISP do their own caching, Netflix does not have the authority to give them copyrighted content.

      Your ISP could always peer with Netflix at almost any IX.

    48. Re:What Internet? by Anonymous Coward · · Score: 0

      The content creator creates traffic, 'LIE'.

      Indirectly, content creators do indeed create traffic through demand for their content. Otherwise, the end user would have no reason to even be on the Internet. That's the truth.

      So what they are saying is the end user should pay for band width and traffic and after they are charged for it, ISP, should be able to cripple the supply so they can charge someone else for it again.

      No, what they are saying, which is spelled out in the terms of service, is that the ISP reserves the right to manage the traffic on their network as they see fit. It's their network and their service they are providing to the customer. If the ISP wants to provide a service that prioritizes certain content over other content, that's their prerogative because it's their network and their service to provide as they see fit.

      Having said that, ISPs are encouraged to provide a service and prioritize content that their customers desire. If they don't, customers will stop buying their service or will buy it in less quantity. The transaction doesn't take place unless both parties benefit -- this is how freedom and free markets work.

    49. Re:What Internet? by Anonymous Coward · · Score: 0

      And women create rape, because without women, who would get raped?

      Men get raped too. Regardless, your comparison is false.

      Just as content is created by those who produce it, rape is created by the rapists who perpetrate it, not by the unwilling victim. As if your completely nonsensical reasoning wasn't bad enough, then, you drag poor, defenseless rape victims into it in a pathetic attempt to prove your corrupt ideas. Let me give you a word of advice, next time you try to make your point, try doing it without invoking horrendous crimes like rape. That's about as low as it gets.

    50. Re:What Internet? by jythie · · Score: 1

      Government regulated, not backed. The telecoms had monopolies long before the government got involved and would still have them today.

    51. Re:What Internet? by jythie · · Score: 1

      It would also not help. The issue is not if individuals can find ways around the filtering, but what effect the filtering has on the companies they are targeting. Even if a person finds a 100% perfect way around, if the company looses 50% of its clients because they didn't, well, that still hurts the person who did.

      There are individual freedoms, and systemic freedoms. The later is the bigger problem in this context.

    52. Re:What Internet? by jythie · · Score: 1

      Unfortunately, competition does not just magically appear because we want it. Historically telecoms and other utility-like entities have only had brief spurts of competition followed by long periods of lock in. Since their networks are all about interoperability, the only entities that can really compete with them are others of similar size and power, so existing ones can fight each other but new ones find they are locked out of even interfacing.

    53. Re:What Internet? by Anonymous Coward · · Score: 0

      Maybe if you trolls actually stayed on topic and stopped trying to interject your political views into every single story here people would take you more seriously.

      Ohh BTW I am not a democrat, I voted for a third party. I still downvote offtopic and trollish comments, I don't care if they are blaming the mess on the idiots on the left or the idiots on the right. Offtopic is offtopic, and flamebait is still flamebait. Also judging from the fact that you have no downvoted comments in your recent history my guess is you know it to be trollish or flaimbait when you post it you just do it anonymously.

      In short grow up. Choose the time and place better and rewrite your talking points so they aren't construed as flamebait.

      Anonymous to preserve mods.

    54. Re:What Internet? by geekoid · · Score: 1

      Winning and cheating are different. You can cheat and still win.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    55. Re:What Internet? by Anonymous Coward · · Score: 0

      That's why anyone in with technological aptitude or interest should look in to local meshnets. The guys I've run in to are incredibly friendly, and very helpful. Search around online and you can find a meshnet group near you, I'm sure. The closer you are to a population center the better, of course, but even small neighbor hoods can get one going. The aim is generally to grow to a point where the meshnets meet and then connect with each other.

    56. Re:What Internet? by jythie · · Score: 1

      Thing is, getting service working in dense urban areas has always been the low bar. Expanding it out to suburban and rural ones is where it gets difficult.

    57. Re:What Internet? by Anonymous Coward · · Score: 0

      Or you just VPN to somewhere else and download another copy and compare the differences.

    58. Re:What Internet? by Anonymous Coward · · Score: 0

      Very true. Need to start somewhere, though.
      A lot of service out in the boonies is wireless anyway though. Cable companies refusing to run lines for just a couple of people, so some enterprising folks figure out ways to wireless out there and get the $$

    59. Re:What Internet? by Anonymous Coward · · Score: 0

      An Inquiry into the Nature and Causes of the Wealth of Nations, by Dr. Adam Smith, 1776

      Please refrain from using 250 year old books as a guide to today's living. You're making the internet look like an idiot.

      Thank you.

    60. Re:What Internet? by Nephandus · · Score: 1

      That wasn't trolling, Psycho. You are.

      --
      "A soft answer turneth away wrath. Once wrath is looking the other way, shoot it in the head."
    61. Re:What Internet? by rtb61 · · Score: 1

      I made it quite clear. The end user initiates the traffic, they make the request and the content creators fulfil that request. You should no full well, when it comes to computers and computer network, not just one request is made but the end users computer continually makes requests for additional data and confirms delivery until the end users request is fulfilled. It is pushed by the end users and pulled by the end user until transfer is complete. The content creators are not flooding the net with content, they are responding to specific requests.

      --
      Chaos - everything, everywhere, everywhen
    62. Re:What Internet? by rtb61 · · Score: 1

      A perfect description for what they are trying to do, run a protection racket, a crime that blatantly goes against RICO http://en.wikipedia.org/wiki/Racketeer_Influenced_and_Corrupt_Organizations_Act as racketeering http://en.wikipedia.org/wiki/Racketeering. So basically they create the problem, slowed traffic and then pretend to solve it, stop slowing the traffic and want to charge for it. Now you have a government rep publicly promoting blatant criminal activity.

      --
      Chaos - everything, everywhere, everywhen
    63. Re:What Internet? by jxander · · Score: 1

      The connection between end user and content IS the traffic. The exact same content will cause less traffic if the source is within my network, or just a few hops away. Instead, Comcast forces the content to be hosted far down the road.

      Meatspace analogy : if we only had a grocery store every 30 miles, that would increase traffic... even if people bought the exact same groceries, even if these new mega-stores had the exact same total capacity, and could handle their increased workload, freeways and side streets would get crushed.

      --
      This signature is false.
    64. Re:What Internet? by Bengie · · Score: 1

      If the ISP wants to provide a service that prioritizes certain content over other content, that's their prerogative because it's their network and their service to provide as they see fit.

      If the customer is paying for 100mb Internet and the ISP is actively limiting them to less than 5mb, that is fraud.

    65. Re:What Internet? by Zynder · · Score: 1

      Ding ding ding! We have a winner!

    66. Re:What Internet? by Zynder · · Score: 1

      I will take my troll mods and your corresponding change of realtionship to "freak" status as a badge of honor and wear it proudly. The quote is a section of Good Will Hunting that I often drop around here when people start talking about the history of Early America. The fact that it incensed you guys though really really points out you guys might be a bit too uptight about this stuff. It's meant to be a not-so-obvious joke, which I was waiting for the response so I could deliver the punchline of "How do you like dem apples?" but alas only one AC saw what was coming....so I'll ask myself: How do I like dem apples? I LOVE them! Bitter and sweet all at the same time!

    67. Re:What Internet? by Zynder · · Score: 1

      I love the apples you guys grow around here the best. Bitter and sweet all at the same time.....the hate here sustains me :D

    68. Re:What Internet? by Brett+Glass · · Score: 1

      Our ISP is in a distant rural area, and the peering point to which we connect is not one of the ones where Netflix peers. We need to cache; this is the situation that caches are for. But just as banks will only give you a loan if you don't need it, Netflix will only give you a server if you don't need it.

  2. News to me by paiute · · Score: 5, Informative

    Here I thought the outrageous check I write to Comcast every month was supposed to pay for them to pipe me the best possible signal from whatever website I choose. Silly me.

    --
    If Slashdot were chemistry it would look like this:Cadaverine
    1. Re:News to me by reve_etrange · · Score: 3, Informative

      Discrimination and double-charging are two separate issues. We know that wireless carriers (and off-and-on, wired ones) have been discriminating for years. So far they have not been double-charging.

      --
      .: Semper Absurda :.
    2. Re:News to me by Anonymous Coward · · Score: 1

      Because it's bad for everyone and especially bad for the smaller websites? It's also not like many of these guys have monopolies in certain areas.... Oh, wait.

    3. Re:News to me by ZombieBraintrust · · Score: 4, Informative

      Cable companies are goverment enforced monopolies in most of the country and consumers don't have a market to choose from. They can choose the cable monopoly or the phone monopoly for thier internet.

    4. Re:News to me by Anonymous Coward · · Score: 0

      Because in many areas you simply do not have a choice. Its ISP A on this side of the road and ISP B on the other side. even though the cable is laying 5 ft from your door, ISP B will not run to you.
      its all Greed. they took in billions of dollars a year and spent it on lining the pockets of the CEO and not the infrastructure like they should have.

    5. Re:News to me by Anonymous Coward · · Score: 0

      The reason is that communication companies enjoy a boatload of easements without which they couldn't exist. Try to run a communication line across town and see how far you get. Heck, try linking a fiber line to your neighbor on the other side of the road. Public land, public rules. That means our rules.

    6. Re:News to me by PhoenixFlare · · Score: 2

      If you actually have a real choice, then great for you, most of us don't.

      In my neck of the woods, it's either one cable company ($89.95 for 25 meg at the moment) or craptastic 1-3 meg Verizon DSL for whatever they charge.

      Even when I lived 10 miles from DC, the only choice was still Cox or DSL. Verizon never did deign to bring FIOS out, despite a neverending barrage of ads and mailers.

    7. Re:News to me by ttucker · · Score: 1

      It's all greed. FTFY

    8. Re:News to me by simtel · · Score: 1

      I'd love to have the option to choose the cable monopoly - in my area AT&T provides (shitty) internet, TV and phone, with no options for anything else.

    9. Re:News to me by crunchygranola · · Score: 4, Interesting

      Cable companies are goverment enforced monopolies in most of the country....

      In my community the local government is trying to get Verizon FIOS to lay cable and provide service to challenge Charter, but Verizon is not interested.

      Cable companies like to claim their monopolies are "enforced" by government, but really cable companies are perfectly happy with having the map carved up into highly profitable monopoly fiefdoms.

      --
      Second class citizen of the New Gilded Age
    10. Re:News to me by Anonymous Coward · · Score: 0

      As long as cities/towns/etc can equally provide fiber/etc networks with no restrictions (but there are restrictions in some places due to lobbying by incumbents). if they want the right to put the banhammer down on municipal fiber because it impacts their business, they cannot cry when netflix or someone wants their service to exist without being specifically targeted. i think we should move to more municipal broadband. 1gbps for everyone, and tor nodes all over the place =)

    11. Re:News to me by Anonymous Coward · · Score: 0

      I'd love to have any wired broadband option. For me, it's satellite, slow Sprint network 3G, or Verizon LTE, all with ridiculously low caps to go with their excitingly high prices.

    12. Re:News to me by Anonymous Coward · · Score: 0

      Except some of us have exactly one choice for "high speed" internet as we live in rural areas. I "picked" company A because there is no company B (and believe me I wish there was).

    13. Re:News to me by Anonymous Coward · · Score: 0

      At my mother's house the only options are Satellite, Cellular, and Wifi. Of the three, Wifi is the least bad solution. AT&T serves the area, but they have no interest whatsoever in selling internet service. There is just not enough profit in it, even though we are near normal DSL distances. They don't bother. They take their monopoly and use it for one purpose only, the profit of AT&T. If it doesn't support AT&T's short term profit goals, then they simply don't care that the bit of the commons they control is being vastly underserved. Last I heard they are even trying to sell that. I hope they do ASAP, since it is quite obvious that things can't get worse.

      Giving companies like AT&T the right to further distort what they sell, will simply further hurt the customers they are supposed to be in the business of serving. Well that and perhaps inflate AT&T's stock price, but that is more important of course...

    14. Re:News to me by R3d+M3rcury · · Score: 3, Funny

      I'd love to have satellite! For me, I have to send my TCP/IP packets via a carrier pigeon and have to pay to feed those pigeons and clean up after them!

      Satellite! Pfft! I dream of having satellite!

      (Sorry...I was just thinking of Four Yorkshiremen.)

    15. Re:News to me by Urza9814 · · Score: 1

      I'd rather companies didn't discriminate, but it's hard to come up with a compelling argument for why they should be legally forbidden from doing so. As long as it's out in the open, take your pick and sign up.

      How about the fact that, in much of the US, "take your pick" would mean "sign up for the only option available and deal with it"?

      Shit I still know people whose *only* option is a single, *dial-up* ISP. And if that ISP decides to start blocking shit, what's your solution? Tell them to go buy a new house somewhere else?

    16. Re:News to me by paiute · · Score: 1

      take your pick and sign up.

      My choices:
      1. Comcast
      2. Comcast
      3. Comcast
      4. Amishnet

      --
      If Slashdot were chemistry it would look like this:Cadaverine
    17. Re:News to me by shentino · · Score: 1

      pick

      I take it you're not familiar with the term "incumbent monopoly"

    18. Re: News to me by Anonymous Coward · · Score: 0

      Wow! It always stuns me how naive you supposedly intelligent people are. You whine all day long about how it costs too much and you don't have the choice where you are. You have these unfounded ideas that somehow Internet access is a right and that it should be free like the air.

      Here are some things you should think about:

      Infrastructure costs money, and lots of it. Reliable, managed infrastructure costs even more. Up to date infrastructure even more than that.

      The main pressure that providers have been under in the past is to provide services as widely as possible, giving basic access (you know, phones and stuff) everywhere. That means out to the boonies as well. The US is a huge territory, and you can't even imagine the cost of the maintenance.

      It's your choice. If you want more providers to choose from, go live in a city.

      Follow the money. Go with the cheapest, Netflix yourself to death and guess what? Pretty soon the people who did make a deal with Netflix to share the transport cost are the cheapest.

    19. Re: News to me by Anonymous Coward · · Score: 0

      Too bad that they aren't actually interested in spending money on your little sweet infrastructure thing.

    20. Re:News to me by Anonymous Coward · · Score: 0

      Not exactly, here in germany one of the biggest mobile carriers has a deal with spotify where all spotify traffic does not count to the monthly limit of the customers contract. There is no way in hell spotify is not paying for that privilege.

    21. Re:News to me by Anonymous Coward · · Score: 0

      Perhaps they are the same issue if discrimination is a tool to support/permit double charging.
      Instead of an issue of how much greed the ISP's can get away with,
            this should be an issue of how to fund the Internet we want.

      Maybe having a group of special folks pay to have reserved B/W available is good
              if it raises the B/W generally available to all because the reserved B/W is there for everybody when special folks are not using it.
      That is different than using the extra revenue for profit instead of B/W.
                But without regs that's what for profit companies are supposed to do.

      The FCC chairman said he would step in with regs if compeition fails.
              Considering the contrast between price/performance for Internet access in the US and outside,
                  it would seem that competitive feedback mechanisms in the US are broken.

      Real competition in residential Internet access would be a good thing.
      Perhaps a ruling allowing communities to put in their own fiber plants
          regardless of franchise agreements they have with the cable and phone companies.

      This would require finding an excuse to override the existing frnachise agreement,
            but this administration seems to have no problem with such trivia
              when they want to.

    22. Re:News to me by Bob+the+Super+Hamste · · Score: 1

      Personally I would go with Amishnet, high latency but never underestimate the bandwidth of a horse drawn carriage loaded with microSD cards. As an added bonus you know they lack that ability to do deep packet inspection.

      --
      Time to offend someone
  3. When will we learn? by oDDmON+oUT · · Score: 2

    The revolving door of DC squirts another lobbyist/shill into a position of public power and we're left holding the bag.

    But there again, most shee..rrr...Americans will only complain if something keeps them from watching the latest Idol.

    --
    Some days it's just not worth
    chewing through my restraints.
    1. Re:When will we learn? by Rockoon · · Score: 0, Offtopic

      Actually, it was not the idol fans that asked for this.

      The people here at slashdot were very vocal in their support for letting the FCC include the internet on its agenda, because it came in a pretty package titled "network neutrality" -- in spite of the fact that many of us old timers told you that it will end badly if you let the FCC have any sort of authority over the internet.

      The previous guy at the FCC was also a shill. He was just a slightly different shill, but working for the same business interests that the new guy is working for. The guy before that, also a shill for the very same business interests. Its shills all the way down.

      Shashdot, putting their dreams ahead of reality since 1997.

      --
      "His name was James Damore."
    2. Re:When will we learn? by Anonymous Coward · · Score: 2, Interesting

      So let's say we didn't let the FCC have any authority over the Internet. What then? ISPs would just ignore net neutrality.

    3. Re:When will we learn? by Anonymous Coward · · Score: 1

      What's your alternative? Do you seriously think deregulation is the answer? That's what's happening. Telecoms are a natural monopoly because the infrastructure is so damn expensive to negotiate. The market gives them the ability to discriminate traffic, not the FCC. The fact that the FCC managed to take away that ability, even if only for a short while, is the only good side of this.

    4. Re:When will we learn? by Rockoon · · Score: 1

      So let's say we didn't let the FCC have any authority over the Internet. What then? ISPs would just ignore net neutrality.

      I get it. You think completely ineffectual appearances of doing something is superior to doing nothing. Wrong. You could have gotten involved in your local government to address the real problem (your ISP's franchise agreement) but instead, because you fell for the appearances of doing something, you are now going to get fucked by both the local and federal government. Now its too late. Now you have no voice because you are just one voice in a hundred million on the federal level.

      You were told that the FCC wasn't the solution (and logically it is not) and you were also told what the solution was (because logically it was.) Now there is no solution thanks to your ignorance. Go fuck yourself and your "do something regardless of what it is" because "something must be done" philosophy. Its ignorant, it lessens you, and it hurts us all.

      --
      "His name was James Damore."
    5. Re:When will we learn? by Bengie · · Score: 1

      Even worse, deregulation is essentially deregulating access to public and private property. I'm not sure I want random start-ups digging up my year each time competition wants to come in. I want competition, but I don't want a torn up yard and flags everywhere all the time.

  4. Great... by Anonymous Coward · · Score: 1

    The internet is turning into cable. Pay money to see what we want you to see and nothing else.

    1. Re: Great... by peragrin · · Score: 1

      If this was expanded properly we can get the law overturned..

      Just tell teabaggers that they have to pay extra to watch Rush Limbaugh and fox news over the internet as their cable company and rush haven't come to an agreement in how much rush and fox have to pay.

      Everyone uses Netflix. Tell people they now have to pay three times for access to fox mews and see how long this lasts

      --
      i thought once I was found, but it was only a dream.
    2. Re: Great... by wispoftow · · Score: 2

      Is Barack Obama (the guy who appointed Wheeler) now a member of the Tea Party?

    3. Re: Great... by Anonymous Coward · · Score: 0

      That's the most uniformed post I've read in years.

  5. well... by buddyglass · · Score: 3, Insightful

    I might be okay with this if it came with a regulatory requirement that ISPs practice full disclosure of their preferences w.r.t. traffic type. That way at least consumers can "vote with their wallets" in markets with more than one provider.

    1. Re:well... by mrchaotica · · Score: 5, Insightful

      LOL, as if the exactly two providers (one cable, one DSL) in each market wouldn't "coincidentally" adopt exactly the same anticompetitive policies!

      --

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

    2. Re:well... by Anonymous Coward · · Score: 2, Insightful

      Why would you be OK with it? It cannot and will not provide any benefit to you, but it will drive up costs. You can only be at a disadvantage. In the example provided in the summary, Netflix would pay ISPs to provide "better" service. To offset that cost, Netflix is now going to cost you extra. If your ISP is providing a crappy service, that needs to be taken up with your ISP. No bribes need to be involved in this.

      Now, this is before it becomes accepted and abused, even. If this is allowed, then what do you think is going to happen to services that refuse to pay off ISPs? They'll get "limited" bandwidth as a punishment. That means the services you may want will essentially become unusable.

    3. Re:well... by Anonymous Coward · · Score: 0

      I might be okay with this if it came with a regulatory requirement that ISPs practice full disclosure of their preferences w.r.t. traffic type. That way at least consumers can "vote with their wallets" in markets with more than one provider.

      Oligopoly not just a fun word to say.

    4. Re:well... by buddyglass · · Score: 1

      Voila, business opportunity for a third competitor to enter the market and immediately differentiate itself.

    5. Re:well... by buddyglass · · Score: 0

      I'm not a Netflix customer. Netflix paying money to my ISP creates a new equilibrium in which the rates charged to me by my ISP may be lower. Moreover, I don't think the steady state is one where I have to choose my ISP based on which services it provides (e.g. contract with X if you use Hulu; contract with Y if you use Netflix, etc.)

    6. Re:well... by mrchaotica · · Score: 1

      Nope, the monopoly franchises have already been doled out. The only new entrants allowed by law are crappy wireless ones.

      --

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

    7. Re:well... by mrchaotica · · Score: 4, Insightful

      Netflix paying money to my ISP creates a new equilibrium in which the rates charged to me by my ISP may be lower.

      No. It only ever creates a new equilibrium where your ISP's profits are higher.

      --

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

    8. Re:well... by Anonymous Coward · · Score: 0

      Are you listening to yourself? The rates charged to you may be lower?

    9. Re:well... by Anonymous Coward · · Score: 1

      So you're not a Netflix customer? Well, guess what? All the things you DO use your internet connection for will be throttled back since they aren't a "premium" service. If you don't want to chose ISP based on the services they do provide, then why would you support a system that does exactly that?

      In my example that I provided, the ISP would NOT limit your ability to access Netflix content if they weren't paid off. That is the system that you are for some reason supporting. What I was saying is that Netflix was perfectly capable of installing more servers so that their customers would get better service. Google already does exactly this with Youtube; content can be cached at ISPs so that frequently accessed stuff doesn't need to be constantly resent from across the country.

    10. Re:well... by Anonymous Coward · · Score: 0

      In what for-profit industry are profits deliberately left on the table? I'd like one admission to whatever planet you live on, please!

    11. Re:well... by Teun · · Score: 1

      Don't worry about missing out on paying for your content, Porntube is already in negotiation.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    12. Re:well... by crunchygranola · · Score: 2

      Ah, the imaginary "third competitor" capitalized at the necessary tens of billions of dollars (to set up a meaningful competitive network) that does not already have highly profitable monopoly turf to defend in an unspoken "gentleman's agreement" with other cable providers. Who would that be, now?

      --
      Second class citizen of the New Gilded Age
    13. Re:well... by crunchygranola · · Score: 1

      Oligopoly not just a fun word to say.

      Yes indeed. Locally they are monopolies. Nationwide it is an oligopoly, and all cable providers pitch in to maintain it. Owning a money machine beats having to compete. That requires innovation and efficiency, and cuts profit margins. Corporate America hates that.

      --
      Second class citizen of the New Gilded Age
    14. Re:well... by buddyglass · · Score: 1

      There's a small competitor where I live that (afaik) runs on top of the major carrier's existing cable. Not wireless.

    15. Re:well... by OrangeTide · · Score: 1

      expect to pay the same rate, but get less for your money.

      --
      “Common sense is not so common.” — Voltaire
    16. Re:well... by buddyglass · · Score: 1

      Additional revenue streams change the equation. Maybe with a huge influx of cash from somewhere other than its traditional customers an ISP might be able maximize profitability by lowering the rates it charges to end-users and stealing share from its competitors. Obviously its competitors will try to do the same thing. Hence the notion of equilibrium. The steady state may be for the providers to charge their end-users lower rates and instead gouge the big providers.

      Consider this hypothetical: Foo and Bar each sell widgets. Their profit margins are approximately 10%. There's a new technological advancement that cuts their costs in half and takes their margin from 10% to about 50%. What you seem to be arguing is that such a development would have no impact on the price at which widgets are sold. I contend that it would almost certainly result in a decrease in the cost of widgets.

    17. Re:well... by buddyglass · · Score: 1

      My contention is that if the law came with a disclosure requirement the end result would not differ significantly from the current status quo.

    18. Re:well... by Anonymous Coward · · Score: 1

      I've heard of this company before; they intervene in a lot of monopoly/duopoly/cartel type of situations. I think their name is Somebody?

    19. Re:well... by Ralph+Wiggam · · Score: 2

      Google.

    20. Re:well... by Anonymous Coward · · Score: 0

      Additional revenue is just that; additional revenue. What incentive does a CableCo have to lower its prices now that it is making an increased profit in another segment of the industry? Most Americans have the choice of CableCo or DSLCorp for their internet access. While both are in the same industry, they don't complete with one another in the same fashion as your widget companies do, since they aren't selling the same product.

      Sure, they both give you access to the same resource, but they aren't apples to apples like your widget scenario is. You're on cable because DSL is too slow, or you're on DSL because you're sick of that crappy cable company. In a world where CableCo gets to decide that I have to pay for "premium" access to whatever arbitrary content they see fit, I am left with no choice but to flee and head to DSLCorp. However, DSLCorp is still an inferior product from a technological perspective, so now I have what I consider to be sub-standard service. What if DSLCorp decides it needs a chunk of this new lucrative market? What is the consumer to do in this eventuality? Go buy more widgets, I suspect.

    21. Re:well... by Anonymous Coward · · Score: 0

      What part of "major carrier's cable" do you not understand?

    22. Re:well... by Ichijo · · Score: 1

      No. It only ever creates a new equilibrium where your ISP's profits are higher.

      That's only true in a monopoly or oligopoly. In a competitive market, the ISP would be forced to return the money to its customers if it wants to compete with other ISPs.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    23. Re:well... by Anonymous Coward · · Score: 0

      The internet provider markets have never been competitive. In most places your choice is cable or satellite. And they do their best to not poach each other's customers.

    24. Re:well... by Anonymous Coward · · Score: 1

      Yep;

      BTW the american internet landscape is a monopoly or oligopoly.

      Therefore; only the ISPs get bigger margins.

      Thanks for helping us prove it.

    25. Re:well... by Anonymous Coward · · Score: 0

      It would! Except..

      Foo and Bar have invested 10's of billions of dollars and been granted monopolies over 2 areas.

      Area A, is served by Foo
      Area B is served by Bar

      There is some cross over between Area A and Area B; but it is only small.

      Now increase their profit margin from 10% to 50% and tell me how big the price drop will be.

    26. Re:well... by Anonymous Coward · · Score: 0

      Why even allow it in the first place?

      I mean, it's kind of like saying they should make theft legal and then once people steal enough from each other they will decide on a truce of not stealing from each other, making it all OK. No good can come of it.

    27. Re:well... by Anonymous Coward · · Score: 1

      here is how that works. The backbone is the major carrier, and you just have a different IP address and set of dns servers for the most part. The new company is just leasing the space from the old company. This would mean that all of the rules of the old company would apply to the new company.

      Source: I worked for both a cable and dsl ISP for 5 years.

    28. Re:well... by Anonymous Coward · · Score: 0

      No. It only ever creates a new equilibrium where your ISP's profits are higher.

      That's only true in a monopoly or oligopoly. In a competitive market, the ISP would be forced to return the money to its customers if it wants to compete with other ISPs.

      WHAT other ISPs????

      In the previous city I lived in, you had Time Warner or Verizon DSL.
      Where I'm at now, you have Time Warner.

      There are no other ISPs to apply competitive pressure on the incumbent monopoly to reduce pricing.

      If an ISP wants to cut costs, how about they stop with the ever increase "DSL Speed" fallacy. I really don't care if I can get 100Mb/s from my house to the ISPs test server, when I only get 10MB/s to anything out on "the Internet". And 100Mb/s is useless if you fill some imaginary quota within two days, then have throttled speed or higher costs for the remainder of the month.

    29. Re:well... by buddyglass · · Score: 1

      afaik each company is free to preference packets however they choose. Who owns the cable and who leases it is immaterial.

    30. Re:well... by buddyglass · · Score: 1

      Where I am there's AT&T UVerse and Time Warner. And, soon, Google Fiber. UVerse and Time Warner's cable offering are comparable in quality. There's also a small third company (Grande Communications) but they only serve certain parts of town. The competition between TW and AT&T seems, from an outside perspective, to be pretty fierce. Certainly if you judge by the amount of junk mail I get from both of them.

    31. Re:well... by Bengie · · Score: 1

      Except the backbone doesn't have congestion issues and won't QoS your data.

    32. Re:well... by buddyglass · · Score: 1

      Ah, but a monopoly scenario is a special case, and not something the person to whom I was replying specified. He wrote, "In what for-profit industry are profits deliberately left on the table? I'd like one admission to whatever planet you live on, please!" This seems to imply that a reduction in cost will never translate to a reduction in price because for-profit companies never "leave profits on the table". While that may be true in the case of a monopoly, it's not true in the general case.

    33. Re:well... by Anonymous Coward · · Score: 0

      Are you suggesting that ISPs are not an oligopoly? Most people in the US only have 1 or 2 choices. It's hard to make the case that's a competitive market. Especially with the high entry barriers.

    34. Re:well... by Anonymous Coward · · Score: 0

      In a competitive market...

      Pity such a thing doesn't exist in the west.

    35. Re:well... by Anonymous Coward · · Score: 0

      Please show me this mythical "competitive market".

      If someone can explain how eroding wages, eradication of competition, and skyrocketing company profits are a sign of our glorious "competitive market" I'll eat my hat.

      I totally understand that you want to see informed and intelligent and argue the "PRINCIPLE" and "THEORY" (all caps because of the GRAVITAS that is associated here. Got to have that GRAVITAS), but the fact is we need decent human beings to agree to treat each other with respect before a fair "competive market" could ever be created and left unregulated.

      I want that uptopia. I want a world with no laws, where people are free to do what they want and what they want to do is work together and create a better world... but until then? Until education, technology, humanity reaches a point where we can handle the magical libertarian utopia in your dreams? Well until then we use law and order to regulate the companies working against the good of the people into the ground. Those that wish to destroy our way of life through noncompetitive practices and anti-consumer policies should be brought low before they do any more damage than they already have.

      My biggest fear is that it's too late. We're already at the inverted totalitarian state. The only way to go is down, I just hope that when we go, they fall too and someone is there to see it.

      Sorry for getting off topic. But your magical companies providing fair services in the free market fantasy land makes me so angry my head starts to spin.

    36. Re:well... by Bengie · · Score: 1

      No line sharing over here and copper networks are expensive. Even Verizon came out recently and said converting 4% of their customer base to FIOS is now saving them $100m/year in support and increased their revenue. Sounds like some good return.

    37. Re:well... by N0Man74 · · Score: 1

      Where I live, in the metro area of a major U.S. city, I still only had 1 internet provider available to me until just over a year ago. I could get Comcast, or not have home internet. Now, AT&T is available, but their strategy appears to be offering slow internet bundled with TV and phone, for prices that seem fairly close to Comcast.

      I keep seeing promotions for great deals on internet, but they only are offered by companies that don't service my area. I would love to ditch AT&T and Comcast both.

  6. The Fox is guarding the hen house and who is surpr by Anonymous Coward · · Score: 1

    The Fox is guarding the hen house and who is surprised?

  7. They're already paying by wiredlogic · · Score: 5, Insightful

    Netflix already pays for their connections to the internet. Consumers already pay in kind for their connections. The middlemen are already making money hand over fist. They would just like to avoid playing in a free market so they can make even more money.

    --
    I am becoming gerund, destroyer of verbs.
    1. Re:They're already paying by Anonymous Coward · · Score: 0

      In a free market they would be allowed to discriminate traffic. Just like you'd be able to vote with your wallet and choose between the two providers available, who happen to have the exact same discrimination list.

    2. Re:They're already paying by bob_super · · Score: 1

      s/would/will

    3. Re:They're already paying by RobertinXinyang · · Score: 0

      Do you really think Netflix is paying for the proportion of the internet that it uses?

      "The report from Sandvine, a company that sells Internet traffic-management systems, finds that Netflix use accounts for 33 percent of all downstream traffic in North America during the peak hours between 9 p.m. and 12 a.m. By contrast, Amazon and Hulu only account for 1.8 percent and 1.4 percent of downstream traffic, respectively." http://news.cnet.com/8301-1023_3-57546405-93/netflix-gobbles-a-third-of-peak-internet-traffic-in-north-america/

      Very simply, netflix's business strategy is to shift the cost of business to other users. They are creating a negative externality. Not surprisingly, what results is exactly what economic theory says will happen; more of the good is produced than would be produced if the producer were paying the full costs of production. This effectively limits the potential for competitors to develop and it discourages netflix from pursuing more efficient means of production (more efficient transmission algorithms).

      One might make th e"public good" argument about the internet; however, the marginal cost of adding another 'netflix' (a full competitor) would not be 'effectively zero.' thus, large consumers, like netflix can not treat the internet as a public good. Even though a smaller user, whose marginal cost IS effectively zero, can.

    4. Re:They're already paying by Anonymous Coward · · Score: 0

      In a free market they would be allowed to discriminate traffic.

      You seem to think that this would be a good thing.

    5. Re:They're already paying by TechyImmigrant · · Score: 3, Insightful

      So what? I pay my ISP for 20Mbits/s so that I can watch Netflix.

      This is good for Netflix, the ISP and the consumer. The bandwidth is paid for on both ends.

      The alternative is cable or dish, which is way more expensive.

      The "percentage of traffic" argument is meaningless when most of that Netflix traffic is cached on Netflix provided boxes at the ISP. The last mile wires are not shared. The incremental cost to use them vs. not use them is 0. The incremental cost for the ethernet in the plant is also 0.

      If it wasn't Netflix, it would be someone else. Or spread across multiple someone elses. The streaming is pulled by the viewers and the viewers are going to stream.

       

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    6. Re:They're already paying by Anonymous Coward · · Score: 5, Insightful

      No, Netflix is paying a service provider for every bit of bandwith they use. If this isn't enough, their service provider should raise their fees.

    7. Re:They're already paying by Impy+the+Impiuos+Imp · · Score: 1

      Force them to say loud and up front, "We, Comcast (or Time-Warner or Whoever) intend to slow down Netflix so it is crappy unless they pay us some of what you pay them."

      If they are proud and this isn't scurrilous behavior, let them put it in blinking lights in their ads and on the first page of their contract.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    8. Re:They're already paying by Anonymous Coward · · Score: 2

      Do you really think Netflix is paying for the proportion of the internet that it uses?

      Netflix pays for their end of the connection, and the users pay for the other end.
      Now the ISPs (and you, apparently) want Netflix to pay for both ends of the connection while also collecting from the users.

      Very simply, netflix's business strategy is to shift the cost of business to other users [...] This effectively limits the potential for competitors to develop

      Wouldn't a lower cost of entry encourage competition?

      pursuing more efficient means of production (more efficient transmission algorithms).

      You can only compress video so much.
      And none of the ISPs will let you use multicast.
      So instead, netflix will put local streaming servers at ISPs to reduce their overhead.

    9. Re:They're already paying by Dunbal · · Score: 1

      It's only a negative externality when you have cable companies charging for bandwidths they have no intention of providing (ie lying or committing fraud), other than in short "bursts". Otherwise it's calling "getting the most for your money" because you paid for it. If you paid for 5Mb/s I promise you that you will never accidentally get 10Mb/s from your ISP, whether you watch Netflix or check your e-mail.

      --
      Seven puppies were harmed during the making of this post.
    10. Re:They're already paying by Anonymous Coward · · Score: 0

      Huh?

    11. Re: They're already paying by JonBoy47 · · Score: 4, Insightful

      I have every confidence that Netflix is paying for all the bandwidth they're using, as are Netflix's subscribers. If there's congestion In-between then it's the backbone providers to upgrade, and build that into their cost structure.

    12. Re:They're already paying by bob_super · · Score: 2

      I am reinforcing the previous statement with my firm belief that it describes the future.
      They will get their way. We will pay for it.

      It might take 1, 2 or 3 administrations, but the power of money says that the big corps will kill net neutrality and abuse their duo/monopolies to kill all competition as they see fit, allowing the occasional little guy to pay them for the privilege of letting them point out that his existence proves that it's still a "market".
      The difference with the soviets is that the profits won't go to the state but to the Bahamas.

    13. Re:They're already paying by runeghost · · Score: 1

      Could you please explain how Netflix and its customers aren't paying?

    14. Re:They're already paying by Anonymous Coward · · Score: 0

      That is an interesting way to look at it. ( I mean that in a good way, though I dont agree that this method for handling it is good ).

      One question, are you sure they are not paying in proportion to their usage? Honest question, I don't know.
      And consider that those who use the other end of the connection are part of that, they are paying.
      Netflix is one of the many services that make it attractive for end users to pay their fees and get on board.

      But making it so that ISP's can discriminate against competition, or act as modern day highway men is what this *will* lead to.
      They will rent seek a bit at a time, till the internet is balkanized , useless and way too expensive.
      ( if you don't think they will, then why are they pushing for this? )

      What is the good of an "internet" where I am lucky if I have access to 2 providers and they decide what I can access?

    15. Re:They're already paying by Anonymous Coward · · Score: 0

      Could you please explain how Netflix and its customers aren't paying?

      Let's walk through it. Let's say you're a DSL provider. You compete against one other company that provides cable internet and operates with a similar cost structure and profit margin.

      Let's say 80% of your customers are non-Netflix subscribers and 20% are Netflix subscribers. Let's say Netflix subscribers average 5Mbps for the peak usage time and non-Netflix subscribers average 0.25Mbps. That means the 20% Netflix subscribers are generating 95% of your bandwidth demand during peak hours.

      Meanwhile, in terms of marketing, you have a prisoner's dilemma situation. Customers overwhelmingly prefer flat rate pricing to the point where even light users prefer a flat rate to avoid having to micromanage usage. Because of this, if you move away from flat rate pricing, your users will jump ship to your competitor (unless your competitor makes the same move at the same time).

      This isn't a situation that's necessarily unsustainable, but if you think about it, you start to see that it creates a situation where providers have highly constrained options. Investing in being able to provide more bandwidth can help you please your heaviest users (which is likely to be a growing group and something you should have an eye toward building up), but you're stuck in a pricing model where you'll have trouble not passing on that cost to your lower end customers (or driving them away to your competitor).

      However, if you have some revenue that's outside of your end user pricing, but still tied to the heavier usage, then you start to have more options for courting the heavier usage population without having to move in lock step with your competitor. I can't say for sure that it will result in better results for the end user or if it will just result in larger profit margins, but there's some wiggle room for a bit of both.

    16. Re:They're already paying by wiredlogic · · Score: 1

      Yes. Netflix pays for its end of the pipe. It doesn't matter what proportion of traffic is sourced by any single entity. If you replaced Netflix with 100 clones all with equal popularity they would each have 0.33% of the pie but an ISP would be serving the same amount of traffic. Who do you single out then?

      It doesn't affect an ISP where their customers are demanding traffic from. The ISPs have been contracted to provide a service and then want to balk when their customers try to use the bandwidth they've paid for. The business costs of delivering to the consumer are supposed to be carried by the ISP. That's what internet service is, not a sneaky way for content providers to shift expenses on someone else.

      --
      I am becoming gerund, destroyer of verbs.
    17. Re:They're already paying by surmak · · Score: 1

      In a free market they would be allowed to discriminate traffic. Just like you'd be able to vote with your wallet and choose between the two providers available, who happen to have the exact same discrimination list.

      That sounds like a fair trade. Once there is a free competitive market of at least 5 independent ISPs in a market, then we can talk about eliminating new neutrality.

    18. Re:They're already paying by NormalVisual · · Score: 3, Insightful

      But exactly how is this Netflix's problem? It's still a problem with the ISP being unhappy that people are actually using the service they paid for.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    19. Re:They're already paying by Anonymous Coward · · Score: 0

      But exactly how is this Netflix's problem? It's still a problem with the ISP being unhappy that people are actually using the service they paid for.

      I never said it was Netflix's problem. There just one of several parties who is exchanging payments and services with other parties. One of those parties wants to refactor some of the payment relationships. Essentially since the ISP is having trouble collecting more money from heavier users, they're angling for Netflix to charge these users more then collecting that money from Netflix.

      I can't honestly say that anyone in that state of affairs has a moral right to have their prices set in a particular way and so to me, each party jockeying for what it is most comfortable with seems natural and understandable.

    20. Re:They're already paying by NormalVisual · · Score: 3, Insightful

      Essentially since the ISP is having trouble collecting more money from heavier users, they're angling for Netflix to charge these users more then collecting that money from Netflix

      Meaning the ISPs are too cowardly to actually charge the *users* of said bandwidth, i.e., their customers. They would rather try to foist that charge off on another party with whom they have no business relationship and to whom are not providing any service, and have that other party deal with the bad PR. That's bullshit - Netflix is already paying for the bandwidth they use and has already spent a lot of money attempting to mitigate everyone's costs (via colo'd cache boxes), and if the ISP is not happy with the amount of bandwidth their customers are using, they need to charge *them* more, not Netflix. In the process they can also explain to their customers how oversubscription works, and that the new charges are a result of their own poorly-thought-out business model. Bonus points if they include information about how much they're already subsidized by the government in the form of rights-of-way, municipal franchise agreements, etc.

      Given that half of all internet traffic comes from Netflix and YouTube, it's going to be a hoot when they start obtaining metrics proving their traffic is being throttled by the ISP, and providing said proof to customers that complain about the resulting sub-par video experience, and it will be trivial for them to do so. The ISPs may find their bargaining position isn't as strong as they thought if customers start cancelling or downgrading their cable/DSL subscriptions as a result.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    21. Re:They're already paying by Anonymous Coward · · Score: 0

      Netflix is already paying the ISPs for direct connections. We lost the network neutrality battle. It's only going to get worse from here.

      Compare your netflix speed to your youtube speed. No comparison. Google does not pay ISPs for a fat pipe directly to youtube. Netflix does.

    22. Re:They're already paying by Jason+Levine · · Score: 1

      Meaning the ISPs are too cowardly to actually charge the *users* of said bandwidth, i.e., their customers. They would rather try to foist that charge off on another party with whom they have no business relationship and to whom are not providing any service, and have that other party deal with the bad PR.

      That's part of it. The other part is that ISPs are greedy and see companies making lots of money online. What's worse: Some of these companies are competing against the ISPs' own video solutions which - until now - have had monopoly or near-monopoly control of the area. Even worse: These companies aren't providing payments to these ISPs at all. So the ISPs think: If these companies are making money across our "pipes", why don't we get paid for it? Then they demand the ability to charge companies for making money on "their pipes."

      Of course, those of us who don't have our brains tainted by greed realize that consumers are paying for their connections and the companies are paying for theirs. The ISPs don't have a right to get paid by a company solely on the basis of "they're making money off of our users" any more than a phone company can charge a pizza place for making money by that phone company's users calling in pizza orders.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    23. Re:They're already paying by NormalVisual · · Score: 1

      The ISPs don't have a right to get paid by a company solely on the basis of "they're making money off of our users" any more than a phone company can charge a pizza place for making money by that phone company's users calling in pizza orders.

      That's a really apt comparison, particularly given that a lot of the ISPs in question are themselves phone companies.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    24. Re:They're already paying by Bengie · · Score: 1

      Comcast advertises 105mb for $115/month, but requires bundling, so one you include taxes, fees, rentals, etc, it's closer to $150. You can purchase world wide transit for $0.45/mbit at retail, so lets assume Comcast gets it closer to $0.4/mbit because they own a lot of their network and get closer to whole-sale prices. That 105mb connection will cost them about $42/month if it was running 24/7 and transferred 33.5TB. They are complaining when someone attempts to use 5mbit/s. That's a pretty good margin of profit if I have ever seen one. Buy bandwidth for $0.4 and resell it for $1.4, but then warn users not to use more than 1/100th of their connection on average.

      The amount of over-subscription of bandwidth is insane. Once you include the data cap, customers are paying closer to $104/mbit, while Comcast is buying it up at $0.4. 99.7% profit margin. Might as well just hand them money, that's almost pure profit.

    25. Re:They're already paying by Anonymous Coward · · Score: 0

      I get 30mb/s from both and my ISP doesn't have deal with either.

  8. Even trying to make it sound good? by interkin3tic · · Score: 1

    Jesus, it's like he's testing the public to see if they can be convinced to care at all about net neutrality. NETFLIX is the example you choose? What were some examples you decided wouldn't be good to mention?

    Wheeler: "Say a hospital doesn't want children to die unnecessarily because they couldn't get information, maybe their ISP will charge them highway robbery to prevent your son or daughter from dying. Oh, my secretary is shaking her head at that, okay, maybe a bad example. Porn? If you don't pay the monthly fee, you won't be able to see boobies unless you stop me? Hmm still no... Oh, I know! NETFLIX will pay more because AT&T will demand it. Yes? Okay, sounds like that's the best example I could come up with. Oh, and your ISP will also charge you an arm and a leg, on top of the arm and leg you're already charged, so they'll be getting double the money for less service if I'm allowed to make the rules, which I am. Oops, I think I'm back over the line. I'm also having second thoughts about strangling this puppy to demonstrate what this will do for the economy."

    1. Re:Even trying to make it sound good? by bagboy · · Score: 2

      He likely chose Netflix due to the fact that it now accounts for 50 percent of all North American Fixed Network Data, per Sandvine report Nov 11, 2013. Those are big numbers and indicate that Netflix is big enough to use in examples.

    2. Re:Even trying to make it sound good? by Anonymous Coward · · Score: 0

      you mean netflix + youtube is near 50%

    3. Re:Even trying to make it sound good? by TechyImmigrant · · Score: 2

      He is deliberately muddling net neutrality with QoS. They are not the same thing. It is to the benefit of the telcos that he does this. They can try to kill net neutrality by arguing that QoS is fine (which it is), rather than arguing that blocking based on traffic type is fine (which it isn't).

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    4. Re:Even trying to make it sound good? by zippthorne · · Score: 1

      Which brings to mind an important question.

      What makes the ISPs think that the money will flow from Netflix to them?

      I can envision a scenario where some ISPs start charging, netflix doesn't pay, and people start dropping to very basic plans because netflix was most of what they used. Plus, if netflix really does account for that much of the data, I can't imagine they're not considering branching out into being an ISP themselves...

      --
      Can you be Even More Awesome?!
    5. Re:Even trying to make it sound good? by CrimsonAvenger · · Score: 1

      I can envision a scenario where some ISPs start charging, netflix doesn't pay, and people start dropping to very basic plans because netflix was most of what they used.

      I'd be in that group of people.

      Netflix is the only thing that really requires high bandwidth that I do. Downloading files, even large ones, can run overnight for all I care, so absent the realtime requirements of Netflix, I'd drop back to the cheapest plan my ISP provides, or switch to the cheapest plan the other half of the duopoly offers, whichever is cheaper....

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    6. Re:Even trying to make it sound good? by Jason+Levine · · Score: 1

      Exactly. Managing packets to make sure that your customers get the best possible service is one thing. (Slowing e-mail packets slightly since that won't be noticed as much as a video slowdown, for example.) Turning around and saying "That's a nice video service you have there. Too bad it's going to slow to a crawl unless you pay us some protection money." just stinks of extortion. (Even if the X makes it sound cool.)

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    7. Re:Even trying to make it sound good? by geekoid · · Score: 1

      Netflix becoming an ISP won't solve this. This could apply to every connect on the internet. For example an increased cost from Level 3.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    8. Re:Even trying to make it sound good? by Anonymous Coward · · Score: 0

      More like 33% of peak used bandwidth and closer to 10% of available bandwidth of in-use fiber. The bulk of the Internet backbone is still dark fiber, something like 80%. Purchased ahead of time to be ready for an exaflood that never happened. Now it just sits there unused as technology advances allow us to keep packing more bandwidth in the fiber that is already lit.

      Some time ago, Level 3 had a funny saying. Something like, "If you need 2 strands of fiber, you need to lay a conduit. Pack it full of fiber. Since you're already laying conduit, might as well lay 7 more". The fiber was the cheap part, the expensive part was man hours of planning, management, and trenching. They were left with a backbone of fiber that could handle hundreds of time more than what they could think of using, just in case, and it didn't cost much more because the fiber part is cheap.

      They have a hugely over-built network with no worries of running out of bandwidth.

  9. Startups? Go abroad by bob_super · · Score: 1

    Between the patent wars and the ISPs soon racketing you if you want to reach customers, the US is quickly becoming a very hostile place for tech and internet startups. The big guys will buy the few who somehow make it.

    Innovation, being risky, won't be favored by the remaining huge consortiums living off virtual monopolies, so any progress will have to come from abroad.

    1. Re:Startups? Go abroad by geekoid · · Score: 1

      "will buy the few who somehow make it."
      and those will make it by creating new innovation.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  10. Devil's Advocate by ScottCooperDotNet · · Score: 1

    Is it OK for streaming communication (YouTube, Netflix) or online gaming (StarCraft 2, FPS) to take precedence over email?

    1. Re:Devil's Advocate by bigfinger76 · · Score: 1

      Sure. You set QoS on your router.

    2. Re:Devil's Advocate by silas_moeckel · · Score: 2

      Sure, but it's not OK for Email provider A to take precedence over provider B.

      --
      No sir I dont like it.
    3. Re:Devil's Advocate by TechyImmigrant · · Score: 1

      Right. But it isn't QoS which is the problem. It is the ISP blocking based on vendor or traffic type or device. So they block your video provider in preference to their own. Or they block your choice of device in preference to their own set top box.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    4. Re:Devil's Advocate by spire3661 · · Score: 1

      Yes, why not? All are INCREDIBLY rich ways of transmitting thought. There is nothing special about email to give it precedence over other comms, even ubiquity.

      --
      Good-bye
    5. Re:Devil's Advocate by Anonymous Coward · · Score: 0

      So a packet inspection determines streaming video is less priority, now the doctor using the remote surgical device over streaming video has his bandwidth throttled leading to him accidentally killing the patient due to a lack of resolution. All so that someone could get a spam email about how to make money from home on their computer. Unless you're watching every video how do you determine what's worth more than another? This is a real life, real world example happening right now.

    6. Re:Devil's Advocate by Entropius · · Score: 1

      Yes.

      I would like the ability to say to my ISP "I have a little traffic that I would really like to be delivered on time every time. It's not much, and I'll pay you a little bit extra for the extra effort." (Gaming/skype traffic).

      On the other hand, someone downloading large files or streaming netflix (with its deep buffers) would like the ability to say "I'm going to be transferring lots of data, but I really don't need 100ms latency for it; long latency on my netflix stream is fine, so long as the time-averaged bandwidth is enough. Since you can give me what I want with less effort per megabyte than the guy who wants 50ms latency, I'd like to pay less."

  11. There's Your Hope and Change by Anonymous Coward · · Score: 0

    You got what you voted for.

  12. Re:Why are ISPs bad for wanting this? by Anonymous Coward · · Score: 0

    I think it's fair. If Netflix (or any other content provider) doesn't like it - they are free to create their own network and do as they wish.

    Only if the incumbent ISP will get there wires and fiber out of my paid for public right of way first. Then it would be fair. I am sure Comcast would work really well with all of that coax and fiber rolled up in their own repair yard. At that point Netflix could then go about buying up right of way for a new network.

  13. The other side of the coin by EmagGeek · · Score: 2

    'Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."

    Verizon might also say, "We're not going to allow Netflix traffic to a subscriber in excess of 1mbit/sec, PERIOD."

    1. Re:The other side of the coin by reve_etrange · · Score: 1

      Most likely, it would be Comast saying that. Or does Verizon have a television service (AFAIK they don't in the West)?

      --
      .: Semper Absurda :.
    2. Re:The other side of the coin by bob_super · · Score: 1

      Verizon will just point out that HD (or 4k) Pay per view is a lot more reliable when they do it.

      It doesn't take many "inadverterent" breaks in a movie to make people believe Netflix is garbage. Hey, look, the internet is fine, ok? Just see how good your speedtest numbers are.

    3. Re:The other side of the coin by R3d+M3rcury · · Score: 1

      They do on their FiOS service.

  14. Re:Why are ISPs bad for wanting this? by Anonymous Coward · · Score: 0

    Because it is nothing short of bribery. We have anti-trust and anti-competition laws in place for a reason.

    There is, however, nothing stopping Netflix from doing something within their power to improve their service without resorting to paying off ISPs. For example, they can pay for caching servers to be in place at those same ISPs so that content can be provided to its customers quicker and cheaper.

  15. It's teh Free Marketz!!!! by Anonymous Coward · · Score: 0

    Come on, government nut suckers... show me the power of your heavy handed regulation now. Show me how the government is going to have me from an assfucking in this case.

  16. Let's not just give in by Traze · · Score: 4, Informative

    Whitehouse.gov Sign the petition, and at least get your voice out there.

    Who know's? It might not fall on deaf ears.

    1. Re:Let's not just give in by bmo · · Score: 4, Funny

      They have a special printer that prints out those petitions on toilet paper.

      --
      BMO

    2. Re:Let's not just give in by Anonymous Coward · · Score: 0

      They have a special printer that prints out those petitions on toilet paper.

      And here we thought they were being printed under the First Amendment,,,,oh wait,,,NVM,,,forgot what they were already using for TP these days...

    3. Re:Let's not just give in by Anonymous Coward · · Score: 0

      So they ensure more people read them and have time to think about the petitions. Excellent!

    4. Re:Let's not just give in by Anonymous Coward · · Score: 0

      The only way this will end is with a class-action lawsuit suing one or more ISPs for distribution of child pornography, or something similar.

      The fundamental issue is that they can't pick and choose what traffic they prefer. They either discriminate between packets or they don't. If it matters to them that some packets are coming from Netflix, shouldn't it matter that some of them are transmitting child porn? Is the ISP who charges more for Netflix saying that it's more important to them that a packet is from Netflix than that it carries child porn?

      They can't have it both ways. If they want to be responsible for regulating their packet content, let them be responsible.

    5. Re:Let's not just give in by Anonymous Coward · · Score: 0

      You know, in the age before smart phones, this may have actually worked.
      Not that I think of it, I wonder why there was never advertising subsidized toilet paper at public restrooms.

  17. As I say whenever this topic comes up... by HaeMaker · · Score: 5, Interesting

    If I am Netflix, Google/YouTube, Amazon, etc. and an ISP comes to me asking for money for preferential treatment, I would just say: "Pay me $1/subscriber, or I will block your users from my site--you know, just like how you pay ESPN for their content..." I find it hard to believe these sites need ISPs more than ISPs need these sites.

    1. Re:As I say whenever this topic comes up... by Bob9113 · · Score: 1

      If I am Netflix, Google/YouTube, Amazon, etc. and an ISP comes to me asking for money for preferential treatment, I would just say: "Pay me $1/subscriber, or I will block your users from my site--you know, just like how you pay ESPN for their content..." I find it hard to believe these sites need ISPs more than ISPs need these sites.

      That is precisely what will happen next. Of course, only the big players will have the guns to show down the ISPs; presto -- the big players will get best QoS and the indies will all have to pay or be put in the slow lane. One more hobble on small businesses and independent media; a bit less oxygen for disruptive competition.

    2. Re:As I say whenever this topic comes up... by Anonymous Coward · · Score: 5, Interesting

      The BBC's iPlayer in the UK has threatened any ISP who tries this with being put on a name and shame list.

      http://www.ispreview.co.uk/story/2010/11/18/bbc-system-to-name-and-shame-uk-isps-that-throttle-iplayer-broadband-traffic.html

      How long before this happens in the USA forcing the ISPs to back pedal and pretend nothing happened?

    3. Re:As I say whenever this topic comes up... by Anubis+IV · · Score: 1

      Can't happen for one simple reason: lack of consumer choice. For many Americans, if their ISP decides not to play nice with Netflix or YouTube or whoever, they can't leave for the other ISP in their town because there isn't another ISP in their town.

    4. Re:As I say whenever this topic comes up... by fulldecent · · Score: 1

      How many websites have you seen that say "Sorry, your Internet Service Provider provides substandard service, please call OTHERPROVIDER at 1-800-XXX-XXXX to upgrade and access our website correctly / EOL"?

      None.

      --

      -- I was raised on the command line, bitch

    5. Re:As I say whenever this topic comes up... by Jason+Levine · · Score: 1

      There are just two problems with this.

      1) Netflix is competing against the cable ISPs' own video services. The Cable ISPs would like nothing more than to cut off service to Netflix or slow it down to such a point that it becomes unusable. This would mean (in their minds) more people going to their services and more profit. They have a financial incentive and the technological capability to sabotage Netflix. The FCC, for all it's pro-business stance, has been about the only thing holding them back from doing this blatantly. If the FCC says "go ahead, this is fine" then Internet Video is as good as dead.

      2) But won't people just run to other services, you ask. I'd answer: What other services? In my area, I have a choice of Time Warner Cable and that's about it. There is still Verizon DSL, but they've shown that they want to get rid of that as quickly as possible. My only other real option is a mobile connection, but that's hideously expensive for the types of uses I pay Time Warner Cable for. (You do NOT want to stream 4 Netflix shows every day over your 4G connection!!!) Many other people are in similar situations.

      So if an ISP blocks or slows down Netflix, our options (as consumers) is pretty much grumble and continue to send checks to the ISPs or have no Internet access at all. No competition = no incentive to actually focus on the customers. Meanwhile, Netflix has a decent amount of competition. If Amazon pays the protection money to ISPs and Netflix doesn't, Amazon wins and Netflix loses. Netflix is in a dominant position now, but we all know (as do they) that this can change quickly.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    6. Re:As I say whenever this topic comes up... by Bengie · · Score: 1

      You have the choice to call their customer service every day to complain about your Internet being slow. Just put your cell phone on speaker while waiting on hold.

  18. Hopey Changey by EmagGeek · · Score: 5, Informative

            "I am in this race to tell the corporate lobbyists that their days of setting the agenda in Washington are over. I have done more than any other candidate in this race to take on lobbyists â" and won. They have not funded my campaign, they will not run my White House, and they will not drown out the voices of the American people when I am president."

            -- Barack Obama, Speech in Des Moines, IA
            November 10, 2007

    1. Re:Hopey Changey by Anonymous Coward · · Score: 1

      Oh boy, you found an example of a politician saying one thing and do another.

      Quick, call the media as clearly this is very rare.

    2. Re:Hopey Changey by onyxruby · · Score: 1

      Every once in a while a post comes along that needs attached to the story instead of the comment section. Editors, this is just such a post.

    3. Re:Hopey Changey by Anonymous Coward · · Score: 0

      Every once in a while a post comes along that needs attached to the story instead of the comment section. Editors, this is just such a post.

      Seriously.

    4. Re:Hopey Changey by Anonymous Coward · · Score: 0

      Seriously.

      Well of course! Did you think he was joking?

    5. Re:Hopey Changey by Anonymous Coward · · Score: 0

      It must be tough to breath inside that sock.

    6. Re:Hopey Changey by Anonymous Coward · · Score: 0

      Oh boy, you found an example of a politician saying one thing and do another.

      Quick, call the media as clearly this is very rare.

      Except the clown in question has a documented history of downright fabrication that can't be interpreted/spun away.

      "If you like your plan, you can keep it."

    7. Re:Hopey Changey by Anonymous Coward · · Score: 0

      Oh you're right! Now things are SURE to change! *smh*

    8. Re:Hopey Changey by Anonymous Coward · · Score: 0

      BHO is the biggest fucking liar in the world!!! And fuck all of you who voted for this piece of shit! May you all suffer for the rest of your pathetic lives. Hope an change? Hang yourselves and get it over with already.

    9. Re:Hopey Changey by Anonymous Coward · · Score: 0

      Unlike his predecessor, who never EVER lied. Like about Iraqi WMDs, to get us into a war.

      "Mission Accomplished."

      I prefer Hopey to Dopey, thankyouverymuch.

    10. Re:Hopey Changey by EmagGeek · · Score: 1

      They could just link to it. It's still up there on this page:

      http://change.gov/agenda/ethics_agenda/

    11. Re:Hopey Changey by LoRdTAW · · Score: 2

      Im sure once he was seated in the oval office he was politely told "This is how the game works Mr. President." and promptly shut the fuck up.

    12. Re:Hopey Changey by geekoid · · Score: 1

      And he has taken many steps towards that, sadly those step get stopped in the House.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  19. What the hell? by HeckRuler · · Score: 5, Insightful

    Wheeler: "Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."

    Huh, that's funny. I though I ALREADY PAID the ISP to get the best possible transmission.

    Oh, I'm sorry, you wanted to buy access to ALL of the Internet? You only bought basic Internet. That simply doesn't include Netflix. But it includes Youtube now that Google ponied up some cash. You need to pay the premium rate to get Netflixs. Plus an extra surcharge for Wikipedia because they said something nasty about us once.

    1. Re:What the hell? by Anonymous Coward · · Score: 0

      That is exactly what you'll start seeing.

      First it will start off with priority traffic for certain websites, if they pay, that will be followed by plans like:

      Get the 100 best websites* at the fastest speed possible for just $65.00 a month. Sign up now and receive the rest of the Internet at no additional charge.**

      * Best 100 websites as determined by who pays us the most money.
      ** Best 100 websites at speeds up to 100mbps, rest of the internet at 256kbps.

      Once that starts to happen, no small start-up is going to be able to afford to get off the ground. How many people would have continued to use facebook, twitter, and other sites if the pages took 3 minutes to load.

    2. Re:What the hell? by jjeffries · · Score: 1

      >Huh, that's funny. I though I ALREADY PAID the ISP to get the best possible transmission.

      You *want* video streams to have priority over non-realtime traffic across the ISP network and your last-mile though, don't you? It's generally a good thing.

      How this gets worked out, and who, if anyone, makes money from doing so is another issue.

      Is prioritizing one kind of traffic logically the same as de-prioritizing all other traffic?

    3. Re:What the hell? by jafac · · Score: 1

      Oh, I'm sorry, you wanted to buy access to ALL of the Internet? You only bought basic Internet.

      . . . not unlike Cable's approach to selling channel packages.

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
    4. Re:What the hell? by Anonymous Coward · · Score: 0

      You *want* video streams to have priority over non-realtime traffic across the ISP network and your last-mile though, don't you?

      They don't need a different pricing structure to do that.

    5. Re:What the hell? by Anonymous Coward · · Score: 0

      We dont care about latency
      We care about bandwidth.

      If we get our 20 megabits/second delayed by 300ms because someone QoS'ed a phonecall higher than us; we wont mind.

      If we get 2 megabits/second because someone QoS'ed every other piece of traffic higher than us, and they oversold their link so badly we only get 2 megabits/second for the "non-paying" content providers, then you can rot in hell.

    6. Re:What the hell? by Metabolife · · Score: 1

      This is exactly why we should continue to support AOL. They would never pull something like this.

    7. Re:What the hell? by Anonymous Coward · · Score: 0

      Exactly. Another thing, who exactly would netflix pay to? All of the thousands of ISPs in between you and their servers.The wheeler must be tripping.

    8. Re:What the hell? by mjwx · · Score: 1

      Wheeler: "Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."

      Huh, that's funny. I though I ALREADY PAID the ISP to get the best possible transmission.

      Oh, I'm sorry, you wanted to buy access to ALL of the Internet? You only bought basic Internet. That simply doesn't include Netflix. But it includes Youtube now that Google ponied up some cash. You need to pay the premium rate to get Netflixs. Plus an extra surcharge for Wikipedia because they said something nasty about us once.

      Dont forget the DLC, where you can get the parts of Wikipedia that we're holding back until you cough up $20.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    9. Re:What the hell? by Anonymous Coward · · Score: 1

      WTF?! NO I DO NOT! My non-videostream traffic is just as important as my neighbors netflix. They should not even know what kind of traffic it is. It should all be just traffic for them. What if the mailman opened every letter to see if it was love letter or a bill, and then delivered the other while leaving the other waiting for later.

    10. Re:What the hell? by Anonymous Coward · · Score: 0

      Is prioritizing one kind of traffic logically the same as de-prioritizing all other traffic?

      You can't move one thing to the front of the line without moving everything else back.

    11. Re:What the hell? by HeckRuler · · Score: 1

      Just so someone that isn't a coward responds to this: BULLSHIT if you think it boils down to something as simple as "priority". Because there are a lot of ways to do QoS. You're right that, in theory, QoS is a good idea. The problem is that it can be abused. Unless they do it in a fair way. And "fair" is a tough one. But I sure as shit know that if they start charging for priority then it's all going to go to hell. How is it any different than bribing the TV station to make your competitors shows staticy?

      It's BLATANTLY breaking network neutrality. This guy is promoting the idea of a non-neutral Internet. Where it's no longer an open field where anyone and everyone can play ball, but a series of closed locked gates with a myriad of gatekeepers demanding their fees and having the power to decide what does and doesn't go through. I'm not some crazy idealist that believes the Internet is perfectly neutral. TCP is simply different than UDP. But it's certainly something we can strive for. And things like QoS have to have a very careful eye kept on them least some asshole thinks that all torrents are illegal, bitcoin is treason, porn doesn't belong on the Internet, Arkansas is stupid, or Starcraft is less important than Netflix because Netflix shelled out some cash.

      Is prioritizing one kind of traffic logically the same as de-prioritizing all other traffic?

      Yes, it pretty much is. Did you think it was otherwise? By definition, if something has priority over something else, that "something else" has lower priority.

      And some REALLY valid points from my cowardly brothers here:
      1) They don't have to charge extra to perform QoS. Which you sort of acknowledge.
      2) While some applications don't mind latency and what they really care about is bandwidth, if the ISP have oversold their lines (of course they do), giving streaming priority can affect bandwidth.
      3) It'd be nice if the ISPs were dumb pipes and no more than common carriers who can't inspect all of our packets.

    12. Re:What the hell? by Jason+Levine · · Score: 1

      In addition, Netflix already paid THEIR ISP to get the best possible transmission. Their ISP negotiated with their upstream provider and so on to the top. Peering agreements between the top level providers ensure the data flows between them properly. Then the data flows back down the system on the other side with ISPs paying upstream providers and finally subscribers paying their ISPs. Everyone is getting paid by the people servicing them. What these greedy ISPs want is a slice of the profits that Netflix is making while at the same time seeking a reason to kill off Netflix in favor of their own video services.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    13. Re:What the hell? by Jason+Levine · · Score: 1

      Actually Quality of Service prioritizing is important. As long as letting Video Packet A ahead of E-mail Packet B doesn't result in someone noticing that their e-mail is running too slow, it shouldn't be a problem. (It's a lot easier to notice that your video is buffering too much than that your e-mail is too slow.)

      The problem comes into play when the ISPs say "video packets from Company A will be slow unless they pay us for Speedy Delivery... oh, and our own video packets get to use the Super Speedy Delivery service."

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    14. Re:What the hell? by geekoid · · Score: 1

      "You *want* video streams to have priority over non-realtime traffic across the ISP network and your last-mile though, don't you? It's generally a good thing."
      no. I want:

      "Video streams from any source to have priority over non-realtime traffic across the ISP network and your last-mile though, don't you? It's generally a good thing."

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    15. Re:What the hell? by Bengie · · Score: 1

      You may want to understand how packet switching networks work. There isn't an actual stream of data, like water. Data is sent one packet at a time. In order for a packet to have priority over another packet, there needs to be more than one packet at the same time. But network devices send data one packet at a time. How do you get more than one packet at the same time? In order for this to happen, data must first start backing up, which means there is more data trying to move through the system than there is available bandwidth. Simple solution, add more bandwidth or stop selling something you don't have.

      It's actually the cheapest solution also. QoS is expensive compared to bandwidth. Have you seen the prices on these DPI devices? They are not cheap, and they are very slow.

      This is called artificial scarcity. Some ISPs would rather pay $100 for 1mb of DPI'd QoS bandwidth, than $100 for 100mb of raw bandwidth. Why? Control. And because they have no competition, they can pass the inflated price of slower bandwidth to the customer.

    16. Re:What the hell? by Bengie · · Score: 1

      Except in this case, the delivery system is light. Are you paying for faster light? I am paying for x bandwidth, I should always get it when needed based on statistical averages. If I do not, then I am not getting what I paid for, also known as fraud.

    17. Re:What the hell? by Bengie · · Score: 1

      If we get our 20 megabits/second delayed by 300ms because someone QoS'ed a phonecall higher than us; we wont mind.

      Only two things cause latency, distance or congestion. Distance is limited by the speed of light and has nothing to do with your ISP. The other thing that affect latency is congestion. If you have high latency, you also have low bandwidth, because it means your route is "full". You can't have high latency high bandwidth unless the high latency is caused by physical limitations.

      Enjoy your 1mb delayed by 300ms.

  20. The Almighty Monopoly by Thruen · · Score: 3, Insightful

    Three cheers for letting cable companies abuse their government-assisted monopolies! At this point, most of us get our internet from the same people who offer on-demand video services on top of regular television for a much higher price than Netflix. Options in most areas are limited to one sometimes two sources for broadband (Sources that also provide TV) or dialup, if you can still find that. Now, they're going to take advantage of their near complete control of the internet to shut out any possible competition to the outdated and undesirable cable TV overpriced bundle business model, full of stuff nobody will watch. If only there were some system of rules that was already in place meant to prevent businesses from leveraging a monopoly in one market to take control of another... If only...

  21. Information please by Alain+Williams · · Score: 1

    Can someone tell me how the cost of an Internet connection breaks down. As I see it there are 3 components:

    • 1) consumer residence to ISP point of presence (PoP) ''the last mile''
    • 2) PoP to ISP core infrastucture
    • 3) ISP links to elsewhere

    I do realise that my breakdown is somewhat simplistic; net neutrality is all about the cost of (3) compared to the cost of (1)+(2). If (3) really is much greater than there might be an argument for not streaming lots of data (eg video) round the globe. If (3) is not the lion's share of the cost then attempts to prevent net neutrality are more about controlling access to the consumer for the ISP's commercial gain.

    I assume that any cost in paying for a free consumer broadband modem, installation costs, and similar, have been amortised (ie not part of the above calculation)

    1. Re:Information please by Todd+Knarr · · Score: 2

      That's the problem: for residential ISPs #3 is a huge cost. Since they forbid users from running servers, almost all traffic is from the rest of the world (where the servers are) to their users. That means a big imbalance of traffic at their connections to the backbones, more traffic inbound to the ISP than outbound from it. Since payment and rates are based on balance of traffic, the ISPs end up paying a lot. The ISPs aren't in a good negotiating position. Individually they're each an overwhelming chunk of the backbone provider's revenue, the backbone can afford to lose a residential ISP and not take a killer hit. The ISP, though, needs the backbone connection because in the end that's what all of their customers are paying for. If as a Comcast Internet subscriber you can't browse the Web, can't play your on-line games, can't stream video from Netflix, then what use is that Comcast Internet service to you? You'd just cancel it and save yourself the money. And the alternative, allowing users to run servers to even out the traffic balance, can't be done. The ISPs have oversubscribed their networks and otherwise taken advantage of traffic asymmetry to cut costs, and their networks now can't handle heavy upstream traffic loads.

      The ISPs could, of course, adjust their prices to reflect the actual cost of connections. They don't want to do that, though, because the first one to do that would lose all their customers to the rest. Plus in many cases those ISPs enjoy a local monopoly or duopoly thanks to public-right-of-way access agreements, and if they start raising prices their customers are going to push local and state governments to either regulate the ISPs or void those agreements and remove the monopoly/duopoly. The desire to keep that's at the heart of ISP opposition to municipal Internet service, you can see how much they want to keep it. They could absorb the costs, but that cuts into their profit margins and they don't want that either. So they're kind of stuck. The only thing they can do is try and wring money out of parties that don't have any direct connection to them who can't really do anything to them.

    2. Re:Information please by Bengie · · Score: 1

      "Since payment and rates are based on balance of traffic, the ISPs end up paying a lot."

      Unless you're attempt to peer for free, cost is not based on direction, just based on your max bandwidth used. If you download 10gb/s but only upload 1gb/s, you pay for 10gb. If upload 10gb/s but only download 1gb, then you still pay for 10gb. If you upload and download 10gb/s, you still pay for 10gb.

      You would think ISPs would rather allow users to upload to help balance their bandwidth usages for a better argument to becoming a peer, but free peering is nearly impossible to break into for Tier 1 ISPs. They are much larger than you, so good luck. The only real benefit ISPs get from limiting uploads for their users is they can charge a premium for business users. How do you get business users to cough up 2x more money for more upload? Artificially restrict uploads to people who not only can afford it, but need it.

  22. Must be wrong date by mi · · Score: 1

    Remember when the ex-cable lobbyist Tom Wheeler was appointed to the FCC chair back in May of 2013?

    No way, no how! Such a thing could only have happened during a RethugliKKKan Presidency. You must've gotten the date wrong.

    --
    In Soviet Washington the swamp drains you.
    1. Re:Must be wrong date by crunchygranola · · Score: 1

      A bit trollish, yes?

      Progressives are under no illusion about the Democrats in general and Obama in particular being corporatist sell-outs. The complete lack of prosecutions of Wall Street by the Obama Administration says all that needs to be said to make that case.

      Winning our democracy, our economy, our society back from corporate control is a daunting project, not even begun yet. I know some elements of the Tea Party agree, but are they willing to make common cause on this?

      --
      Second class citizen of the New Gilded Age
    2. Re:Must be wrong date by mi · · Score: 1

      Progressives are under no illusion about the Democrats in general and Obama in particular being corporatist sell-outs.

      Your use of the word "corporation" and its derivations as a dirty one reveals naiveté at best. There is nothing wrong with corporations — they are merely a way to organize large number of people into doing useful things. There is nothing inherently wrong with them — they certainly are more efficient than collective farms or kibbutzes, for example.

      The complete lack of prosecutions of Wall Street by the Obama Administration says all that needs to be said to make that case.

      Well, your "case" falls apart, once you learn facts: people, who've committed actual financial crimes (like insider trading or running a Ponzi-scheme) really do get prosecuted. Bush's Justice Department has done it (Bernard Madoff and Martha Stuart being the most publicized cases), and so did Obama's.

      What you and yours may be lamenting is absence of prosecution for some vaguely-specified misdeeds, like "the massive Wall Street crime wave that devastated the economy". Huh? We are not a banana republic, where the Dear Leader would organize a show-trial every once in a while to channel popular anger away from his own incompetence. Not yet...

      Winning our democracy, our economy, our society back from corporate control

      There you go again with the "evil corporations". Corporations want nothing else but maximize shareholder value. This is best achieved in a healthy, well-run country — they are not your enemy. (Except for those corporations, who profit from government spending — which requires higher taxes. But, somehow, I'm afraid, lowering taxes is not on your list of priorities...)

      --
      In Soviet Washington the swamp drains you.
  23. Figures this guy is a cable shill by JonBoy47 · · Score: 4, Insightful

    The internet already provides the viable infrastructure for on-demand video delivery, as demonstrated by the litany of devices that support Netflix playback.

    The Great Recession already saw many people belt-tighten by canceling their cable TV. Subscriber numbers are in slow decline. Netflix, YouTube and Hulu are just a few content deals away from completely destroying the value proposition of cable TV for remaining subscribers. Cable companies believe their only hope of keeping that revenue from disappearing is to make sure their internet service isn't viable for video delivery. Net neutrality means they can't manage their network traffic and make netflix et al unusable for their subscribers.

    Cue the new FCC chief.

    1. Re:Figures this guy is a cable shill by Anonymous Coward · · Score: 0

      Sue the new FCC chief.

      FTFY.

      Seriously. Make his life hell if he screws with the internet. Don't kill him, that won't fix a thing. Just make him wish he was dead. Make him regret being born. Make him regret his mother was born. Make it that bad, and he'll serve as a warning to the rest.

    2. Re:Figures this guy is a cable shill by JonBoy47 · · Score: 1

      Corollary to my previous comment:

      The back-haul internet backbone connections that connect "last mile" ISP's to the greater Internet are massively oversubscribed. The bandwidth they've deployed to their subscribers is similarly oversubscribed. Their entire business model is predicated on customers using only a tiny fraction of their advertised bandwidth, when averaged over time. Worked fine when people just used the Internet for email and web browsing; these apps consumed bandwidth only in brief, infrequent bursts. Netflix, Hulu et al blows a gaping hole in the ISP's cost structure, as customers are now using a much greater percentage of their advertised bandwidth.

      The TELCO's went through a similar phase in the 90's. Prior to dial-up Internet, the average residential phone was in use for perhaps 20 minutes per day, spread across multiple calls, a decent percentage of which were of the extra-cost, long-distance variety. AOL came along, and all of a sudden people were making local phone calls that lasted 2 or 3 hours at a stretch, and they weren't making any lucrative long distance calls because the PC was tying up the phone line.

    3. Re:Figures this guy is a cable shill by Jason+Levine · · Score: 1

      In other words, the horse is halfway out of the barn so they're trying to shoot it dead. Or at least cripple it by taking out a few legs.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    4. Re:Figures this guy is a cable shill by Anonymous Coward · · Score: 0

      excellent post. Which I had mod points....!

    5. Re:Figures this guy is a cable shill by Bengie · · Score: 1

      The Internet backbone is no where near capacity. They have 100x more dark fiber to light up if they needed and tech in the recent 3 years has allowed 1000x more bandwidth over the same fiber. Yes, the backbone is over subscribed, but not because it has to be, but because of the way users use the Internet. No matter what kind of data services you throw at the Internet, you get a fairly common 20:1 usage during peak hours. All that has changed is the average data usage, but not the ratio of actual users. The last mile can easily be 1:1 and the trunks 20:1, and you will not have bandwidth issues.

      There is no shortage of bandwidth. Let the end users pay for what they want. It's cheap and affordable.

  24. Wheeler just using what he learned on K Street by JoeyRox · · Score: 2

    On K Street whoever funnels the most money to a politician gets the most sympathetic ear. Wheeler is proposing the same corrupt concept for ISP traffic. It likely comes natural to him as a lobbyist and I doubt he even realizes there's anything wrong with it.

  25. Time Warner throttled me by IDreamInCode · · Score: 1

    I just posted a thread over on reddit about Time Warner throttling my server. A 200mb download file download from them at 100kiB/s even though many TWC clients had 50mbit connections. That same 200mb file could be downloaded at 10mbit (2,000 kiB/s) when a proxy server was used.

    1. Re:Time Warner throttled me by TheloniousToady · · Score: 1

      Maybe you should call Time Warner's help line. By the time you get to talk to someone, your download will be done. They're very helpful that way.

      (sorry, couldn't resist. :-)

    2. Re:Time Warner throttled me by IDreamInCode · · Score: 1

      I did that. Talked with tier 3 support at TWC. She said she saw the problem but could not do anything about it.

    3. Re:Time Warner throttled me by TheloniousToady · · Score: 1

      Did you start the download before you called? If not, I don't see how calling them could be of any use. You see, the main benefit of the call is that instead of being annoyed by your long download time, you get a little entertainment playing an old-fashioned adventure game we call "voice jail" (that is, navigating a maze of twisty little non-applicable phone menus), followed by listening to some tasteful light classic music, soothingly band-limited between 300 Hz and 3 kHz for your musical pleasure. (I particularly remember one such experience where I got to hear several Mozart pieces - ausgezeichnet!)

      The key to success with this technique, of course, is to hang up as soon as your download is over. In your case, I calculate the download time to be well under an hour, which should allow plenty of time between when you call TWC and when you are allowed to talk to A Real Live Human Being.

      Of course, it you wait on the phone long enough to actually talk to the Human (rookie mistake), you will experience the inevitable disappointment that the Human they've routed you to in Costa Rica doesn't actually know anything, and can't actually do anything to solve your problem anyway. Then, frustration about that will counteract all that relaxation you got playing voice jail and listening to Mozart.

      Anyway, you'll know better next time.

      (sorry again, couldn't resist. :-)

  26. OTOH... by msauve · · Score: 1

    there is a place for QoS, which is useful for things like VoIP and streaming video. The question is who pays, and how do you insure it's fair?

    The solution may be to allow a source to pay for a better QoS classification (since that's where the marking is done), but also force ISPs to be charge all comers equally. That means separating existing companies which provide both content and transport into separate legal entities. Alternately, they remain combined but are not allowed to provide QoS treatment to their own services, so they can't do cost shifting.

    But it's all pretty pointless unless the various backbone providers agree to honor the markings coming into their networks - QoS simply doesn't work unless it's end-to-end. Good luck with that. How does a service on ISP A get better service guaranteed for traffic going to a customer on ISP B? I think that's the real problem, QoS is only guaranteed within a provider's network, which naturally favors their own services (and other services contained within their network).

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
    1. Re:OTOH... by Anonymous Coward · · Score: 0

      "The question is who pays"
      As always the consumer pays. If netflix has to pay more they will pass it on.

    2. Re:OTOH... by brainboyz · · Score: 4, Insightful

      Yes, but that works to the ISP/Cable/Phone companies' advantage. Driving up the price of Netflix reduces the competition force.

    3. Re:OTOH... by Anonymous Coward · · Score: 2, Insightful

      there is a place for QoS,

      Yes, and it's not in this discussion.

      But it's all pretty pointless unless the various backbone providers agree to honor the markings coming into their network

      QoS is not and never was meant to be preserved or honored after it leaves your network. If you want your markings preserved, you need to set up some type of tunnel to your remote endpoint.

      How does a service on ISP A get better service guaranteed for traffic going to a customer on ISP B?

      Both customers pay their respective ISP's for a dedicated bandwidth internet connection. Or if both endpoints are yours, you purchase a point to point circuit instead of an internet service.

    4. Re:OTOH... by byornski · · Score: 1

      Interestingly, currently from the UK it is cheaper to pay for a vpn and US netflix than than the UK netflix version which has less content.... If it they were truly separate comparies, they would compete for this market, but they will never.

    5. Re:OTOH... by Bengie · · Score: 1

      QoS is pointless on a trunk because of limitations of trying to implement QoS at full line rate of bleeding edge speeds. You can get a 400gb port that does about 380gb/s in actual use. You might think, "I could resell that same 400gb port to 4 100gb users, then QoS one user higher than another and charge a premium". Not quite. Enabling QoS effectively drops the port speed down to 110gb/s.

      If you had to choose between 400gb/s of bandwidth with no QoS or 100gb of bandwidth with QoS, which would you rather have? It gets worse at higher speeds.

      Where else could you do QoS as an ISP? The last mile? I would have to ask, why do you have congestion in the last mile? Modern fiber gets rid of this issue. QoS is more of a bandaid for old bandwidth limited copper last-mile designs.

      Where QoS could be useful is the end user, but you should probably leave that up to their router. QoS is not something an ISP should be doing at least not an ISP that has access to the capital required to lay out a modern fiber network and large bandwidth commits to get bandwidth for under $1/mbit.

    6. Re:OTOH... by msauve · · Score: 1

      There is no (standardized) 400 Gb interface. Who's proprietary one are you referring to? Beyond which, you're arguing based on a limitation of a specific implementation, not a technical limitation.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    7. Re:OTOH... by Bengie · · Score: 1

      When wanting the absolute fastest tech can provide, adding overhead like QoS will always slow things down. 400gb is on the high end of what we can do right now for normal silicon. I hear all the time that QoS can not be done at the rates that large trunks operate at and the issue just keeps getting worse with time. As for "which", I was reading a column that claimed to have tested all brands that had 400gb ports, and while they had a slight variation in actual throughput on the 400gb port, all did horribly when QoS was enabled.

      I'm not saying that we will never get 400gb to QoS at line rate, I'm saying that by the time we get 400gb to QoS at line rate, we will have 1tb ports that effectively run at 500gb when QoS is enabled. QoS will probably always be behind the speed curve.

    8. Re:OTOH... by msauve · · Score: 1

      So, you don't understand how parallel data planes can be architected to increase throughput, and you can't name any switches which support 400 Gb.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    9. Re:OTOH... by Anonymous Coward · · Score: 0

      Honestly, I think it's completely fair for a telco to prioritise some traffic over other, on their own network. They are, in fact, doing so already. What is not fair, however, is to subdivide 'internet traffic' further than that. In other words: all *internet* traffic should be treated equally. If they want to boost their own service of the internet at large, fine.

    10. Re:OTOH... by Bengie · · Score: 1

      Let me know how your "parallel data planes" work on that serial connection. Some of these high end devices are pushing data faster than L1 cache on a 4ghz Intel CPU. There are limits. At the nanometer level, those extra paths cause delays, and those delays slow things down.

    11. Re:OTOH... by msauve · · Score: 1

      You're confusing latency with throughput.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    12. Re:OTOH... by Bengie · · Score: 1

      In this case, latency is correlated with throughput because of physics. The parallel lines must be in sync, and in order to remain in sync, they must have low latency. This is how parallel buses work.

    13. Re:OTOH... by msauve · · Score: 1

      I was referring to parallel data paths, not serdes. I will say no more.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
  27. Re:Why are ISPs bad for wanting this? by OrangeTide · · Score: 1

    caches installed at Comcast locations would be a great idea, and honestly big ISPs ought to pay Netflix for hosting such things because it reduces the amount of traffic that comcast must switch outside of their network (which is part of their costs). The "pay" might be a discount for co-location that helps cover the rack space and electricity, but seems like a useful idea.

    --
    “Common sense is not so common.” — Voltaire
  28. Re:Another corporate schill? Thanks Obama. by Anonymous Coward · · Score: 0

    Got to keep the money supply happy you know. What did you expect? A free, open, level playing field? This is playing the politics game for keeps man.

  29. I like my connection to discriminate by raymorris · · Score: 3, Interesting

    While I tend to agree with most people posting and I'm generally in favor of net neutrality, I also like playing devil's advocate, looking at both sides.

    My SSH connection uses about 0.001 Mbps. Latency on SSH is really annoying, because it means each time you type on key you have to wait for that letter or number to show up on the screen. So for SSH you use very, very little bandwidth, but it needs to be low latency.

    Netflix is opposite - it uses up 1,000 times more bandwidth, and latency doesn't matter at all (though jitter does). During peak hours, when the ISP is 1 Mbps short of perfect performance in a certain area, does it make more sense to annoy the shit out of 500 customers using SSH and other interactive low bandwidth applications, or should the one customer's Netflix packets get queued, which he won't even notice. (The Netflix movie will just begin one second later).

    Given the very real choice of annoying 500 customers who aren't asking for much bandwidth vs. an imperceptible difference in one customer's movie, I think the choice is obvious. Better to not annoy any customers by giving the interactive packets priority.

    That's what I'd want my ISP to do even if both connections are mine. I'd much rather have an unnoticeable 1% quality reduction in the YouTube video I'm watching than have lost or slow packets in my SSH. I WANT my ISP to discriminate between low priority, high bandwidth sites (video) versus high priority interactive.

    It might also be useful to get real and talk about what this actually means in practice. YouTube and Netflix are HALF of the traffic load. Without those two, the existing infrastructure would deliver everything else TWICE as fast. Philosophical discussions are interesting, but at the end of the day, would you rather get stuff done much, much faster and allow the cat video to buffer for 1.5 seconds?

    1. Re:I like my connection to discriminate by zlives · · Score: 1

      "YouTube and Netflix are HALF of the traffic load"
      playing the advocate... if i only watch youtube or netflix... its ok for your latency of ssh to be 1.5 seconds and not mine.
      really the monopolies need to upgrade the BW infrastructure but they won't

    2. Re:I like my connection to discriminate by jjeffries · · Score: 1

      Hey wow, someone else here actually "gets it"!

    3. Re:I like my connection to discriminate by Anonymous Coward · · Score: 1

      I'd be fine with this.

      As long as they don't get to "restrict" my access based on it being Netflix; and not Hulu.

      Or Youtube but leave Bing-Video alone.

      QoS by type of traffic all you fucking want, since bandwidth is a limited thing that you as an ISP (or whoever) haven't bought enough of. But as soon as you let your ISP offer protection money for bandwidth, its wrong.

      QoS by user all you fucking want. If I pay 20 dollars for "some internet, some of the time" and someone else pays 1000 dollars for "all the internet I'm supposed to get" THATS AWESOME.

      But as soon as "Netflix hasn't paid us bandwidth protection, so unfortunately that internet access you bought only gets 1 megabit to netflix". Where is the customer-side control of this situation? There isn't one. Now, the customer has to go somewhere else to get HD video. Oh look, Comcast is offering a deal on their new Video on Demand subscription... tempting since Netflix's windows are all broken and there are unsavory looking people hanging outside the shop; I'll go to the place across the road that looks safer.

    4. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      I don't think the isp should regulate latency of services though. It should be built into the protocol, negotiated by the server and client, and those parameters passed to the isp.

    5. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      ... That's what I'd want my ISP to do even if both connections are mine ...

      Why can't you just pay more? Or maybe the ISP could upgrade their equipment to handle load.

      Philosophical discussions are interesting ...

      I didn't realize your wallet contained philosophy. No other slash-dotters seem to open their wallets for the benefit of doling-out meta-physical insight. Yes, allowing the ISP to prioritize traffic for your benefit is a good thing. But once they're doing it for your benefit, it is a small step to doing it for their benefit: That is; demanding bribes so you can use high bandwidth services.

      When dealing with a faceless business it's important to use "power corrupts" and "Give them an inch ..." as pearls of wisdom.

    6. Re:I like my connection to discriminate by raymorris · · Score: 1

      > When dealing with a faceless business it's important to use "power corrupts" and "Give them an inch ..." as pearls of wisdom.

      Agreed. Therefore, even though some prioritization would be good, I'd rather have none that have whatever monopoly ISPs think is good for their bottom line.

      > Why can't you just pay more? Or maybe the ISP could upgrade their equipment to handle load.

      This comment explains why that doesn't work:
      http://slashdot.org/comments.pl?sid=4518955&cid=45603799

      Basically, to avoid any slowness, 2% of the time you need five times as much capacity as the other 98% of the time.

    7. Re:I like my connection to discriminate by Shatrat · · Score: 3, Informative

      The fix for that is peering and QOS, not double billing. Double billing is just a money grab.

      --
      09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
    8. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      I have no clue why slashdot readers modded this up of all people. It's not playing devil's advocate, it's being stupid. QoS exists for a reason and you're describing the use case for it. It's so goddamned easy to prioritize one port over the other and you would rather have your ISP do it for you via packet inspection? Really?

    9. Re:I like my connection to discriminate by Jason+Levine · · Score: 1

      What they're talking about isn't "we'll put packets of this type ahead of packets of that type in our priority listings." It's "we'll slow down packets from video providers unless they pay us for faster packet delivery... while selling our own video services which aren't slowed down at all ever."

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    10. Re:I like my connection to discriminate by mdielmann · · Score: 1

      but at the end of the day, would you rather get stuff done much, much faster and allow the cat video to buffer for 1.5 seconds?

      Okay, there are two issues here. As you said, HALF of the network load is Youtube and Hulu. Clearly, a significant proportion of users think their entertainment is important. No, 1.5 seconds isn't important, but 15 or 30 seconds, over and over again, is. Second, QoS and traffic shaping to provide the best service to your customers is all well and good, and I support it. But let's be realistic. Given all the previous behaviour of the ISPs, I think it's much more likely they will use QoS to reduce the effectiveness of VOIP and video streaming in order to drive their ISP customers to their VOIP and video on demand offerings.

      --
      Sure I'm paranoid, but am I paranoid enough?
    11. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      Well, the net neutrality mandates that ISP don't QoS traffic to _their_ will. It doesn't stop them from offering the ability to the customers to set _their_ QoS class ; it's even already technical reality in every equipment !

      Let the users set their QoS on their traffic, of course limiting abuse by e.g. setting a maximum bandwidth for the âoeinteractiveâ class, and everybody will be happy.

    12. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      Except the reality is the reverse, there will be 500 Netflix subscribers trying to watch their movies versus 1 Linux zealot trying to use SSH for some mundane task that is not time sensitive.

    13. Re:I like my connection to discriminate by Anonymous Coward · · Score: 0

      Or ask your ISP for the bandwidth you pay for. I can get 200/200 of dedicated fiber bandwidth to my home for $300/month, or if you don't need that much 5/5 for $30/month, naked and unbundled. Still fiber, still dedicated. Want to talk about Jitter? I get less than 1ms to anywhere in the USA. I can't even get sub 1ms jitter to my node on cable.

      Blame your ISP, not the users.

  30. Those were the good old days! by OrangeTide · · Score: 1

    Netflix should encourage every customer to call Comcast tech support. which ought to cost the company more money than it's worth. But it would still result in Netflix going out of business, Amazon shutting down their video on demand services, and Comcast finally being the only option available. We can go back to cable company monopolies like in the good old days!

    --
    “Common sense is not so common.” — Voltaire
    1. Re:Those were the good old days! by Qzukk · · Score: 1

      every customer to call Comcast tech support

      Who will lie to them and tell them it's not Comcast's fault. See also: Sandvine.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    2. Re:Those were the good old days! by OrangeTide · · Score: 1

      that's fine. I don't really care about the content of the call. i just want the big bad business to pay a tech support worker 80 cents an hour to answer the calls.

      --
      “Common sense is not so common.” — Voltaire
    3. Re:Those were the good old days! by bingoUV · · Score: 1

      But Netflix and Amazon will gladly pay since it it means no small company can ever compete them in such a market.

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
  31. Technical issue? Not likely, by iiiears · · Score: 1

    Agency functionaries wait impatiently for their chance to try the revolving door.

        There is no technical solution for regulatory capture. We (voters) don't pay as much as lobbyists. Our wallets don't support campaigns. Few of us after a long day at work care to read the congressional record.
         

    --
    15TW = 15,000 Nuclear Reactors. (Approx. one accident a month.)
    1. Re:Technical issue? Not likely, by crunchygranola · · Score: 1

      15TW = 15,000 Nuclear Reactors. (Approx. one accident a month.)

      Just a comment about your curious sig: what does it mean?

      World electrical production averages 2.3TW, 1/7 of the strange number you cite.

      Your accident rate is apparently one per 1250 reactor-years. Given that "accident" is undefined your rate could be anything at all, counting worker injury incidents I am sure the rate is far higher than you propose.

      If you mean a major accident with serious consequences, the current rate for the 436 power reactors currently in operation appears to be about 12 times less frequent than you cite (around one per 15,000 reactor years), all such accidents that have ever occurred were with old designs that are (or in the case of Fukushima, should have been) retired or upgraded. Restricted to modern reactors (nearly all now in operation), the serious accident rate is unknown, there never having been one.

      But 2.3TW = 2,300 Nuclear Reactors. (Approx. one accident >7 years), being roughly 100 times less alarmist doesn't make a catchy sig does it?

      --
      Second class citizen of the New Gilded Age
  32. But that IS a government enforced monopoly by Chibi+Merrow · · Score: 5, Interesting

    Your local government has picked Charter to be the local monopolist. The solution isn't to get Verizon to lay lines, it's to allow alternative cable providers to operate. If it comes down to it, require Charter to sell access to their lines. If Charter throws a fit, see how they like running cable without government granted right-of-ways.

    --
    Maxim: People cannot follow directions.
    Increases in truth directly with the length of time spent explaining them
    1. Re:But that IS a government enforced monopoly by shentino · · Score: 1

      All they have to do is sue the government.

      See TDS v. Monticello.

    2. Re:But that IS a government enforced monopoly by Chibi+Merrow · · Score: 1

      Or my favorite example from my home town, LUSFiber.

      --
      Maxim: People cannot follow directions.
      Increases in truth directly with the length of time spent explaining them
    3. Re:But that IS a government enforced monopoly by Anonymous Coward · · Score: 0

      This is how it's done in any reasonably sane countries. Monopoly controls the physical layer, and has to offer access to service providers. ( not sure how the pricing goes, I believe they can pretty much charge what they can claim to need for the networks operation, maintenance etc. They have to offer the same price for anyone.) What this means is we can choose the service provider.

    4. Re:But that IS a government enforced monopoly by Anonymous Coward · · Score: 0

      So they do what AT&T and Verizon did when the business of laying cable got too hard (evidenced in the OP itself): they sit with the customers they've got and make no new connections. There are always new unencumbered communities to add to your customer base.

  33. Shit makes me want to shoot some me of fuckers. by Chas · · Score: 1

    "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."

    Why? They're already paying for the bandwidth from their massive content network.

    And their clients are ALREADY paying their ISPs for "best effort" delivery.

    It's the ISP's customers who are requesting the traffic in their first place. If these providers don't want to deliver best effort, their clients can (ideally) move to services that WILL.

    But nooo! That'd mean that these fucking bloodsucking middlemen would have to compete solely on price and performance. Can't have that! We'll just hold everyone hostage until they pay MORE!

    This is basically extortion. Nothing more.

    --


    Chas - The one, the only.
    THANK GOD!!!
  34. Netflix Partners by the+eric+conspiracy · · Score: 1

    Netflix is already turning this around by offering some ISPs higher quality streams for establishing partnerships.

    http://www.pcmag.com/article2/0,2817,2425696,00.asp

    "U.S. ISPs that have signed on for Open Connect include Cablevision, Frontier, Clearwire, and Google Fiber. British Telecom, TDC, GVT, Telus, Bell Canada, Virgin, Telmex, and more have also signed up overseas. Those who sign up have the option to stream Netflix content in Super HD or 3D." Other ISPs like Verizon Communications and Time Warner Cable, have declined to sign up for Open Connect.

    They are also working to get integration with set-top boxes.

  35. Let's make it a trade by gman003 · · Score: 5, Interesting

    You know what, sure, let's let ISPs discriminate traffic. Let's let them outright block any site that doesn't pay them enough. But in exchange, they lose their safe harbor protection.

    So anyone who launches a DoS or other "attack" over that ISP? They're partially liable. After all, they could have slowed or stopped that attack.

    Anyone pirates anything? Liable. If they're blocking sites for their own purpose, they can obviously block illegal downloads as well, right?

    Somebody posts a threat on Facebook? Cyber-bullying? LIABLE. Fraud? LIABLE.

    Basically, if it's illegal and done through an Internet connection provided by that ISP, that ISP is a co-defendant in any civil or criminal suit.

    Of course, the only way for an ISP to operate in such a legal environment would be to block everything by default, and only whitelist acceptable sites. Which of course cannot include anything with user-generated content - no Facebook, no Wikipedia, no Ebay. Of the 23 sites in my bookmarks bar, the only one that probably wouldn't get blocked is Wolfram Alpha.

    So sure! Let ISPs start filtering traffic - as long as they take responsibility for anything that they allow through.

    1. Re:Let's make it a trade by runeghost · · Score: 2

      You're talking like the law matters - a foreign idea in Corporate America.

    2. Re:Let's make it a trade by colinnwn · · Score: 2

      Seems like it would be easier to allow traffic discrimination, but that automatically loses that company's exclusive franchise agreement, and the jurisdiction must then allow other companies to use the right of way to run last mile connections at the same rate charged to the incumbent franchise.

    3. Re:Let's make it a trade by Anonymous Coward · · Score: 0

      Jesus god, no. They would do it, and become cable companies all over. I like my internet as it is, with stupid users and all, thank you.

  36. The free and open Internet was a temporary anomaly by wumbler · · Score: 1

    Over the last few years we have seen a concerted effort by corporations and government (even though, where's the difference these days anyway?) to bring an end to the "wild west" of a truly free and open Internet. The whole idea of normal individuals being able to say whatever they want and their message to be heard around the world...? Dangerous, let's stop that. The whole idea of small, independent companies disrupting established markets? Bad for the bottom line, let's stop that (it's been going on for too long already).

    Let's add porn filters to protect the children! Of course, the same filter infrastructure can be used for other things as well, such as ... oh, I don't know... stop free and open discussion in forums, brand and block legitimate sites as criminal, stop people from sharing information, etc. We all know that this is NOT a coincidence!

    The free and open Internet was nice as long as it lasted. I will always fondly remember living in a time when the Internet came to be and we looked at something truly unique and powerful, something capable of really making a difference in everyone's life, something that could fundamentally change society and could be used to make this world a little bit of a better.

    But of course, in the end - as always - greed wins. The masses with a vague feeling of how things should be stand no chance against the focused and deliberate efforts of a few that know exactly what they want in order to line their pockets.

  37. TV Ad by Anonymous Coward · · Score: 0

    Video: Netflix logo

    Audio: Comcast cable in [your area] expects Netflix to allow them to provide our excellent programming at no cost to them. They have refused to pay our entirely reasonalbe price of only 1/10 cent per megabyte for all our programming. Netflix is sorry to announce that as of [one week from now] we will no longer allow Comcast to freeload on our valuable property.

    Video: Local telco DSL order info

    Audio: Please consider one of the following ISPs to continue to view classic TV shows, great movies, and original programming.

    1. Re:TV Ad by maharvey · · Score: 1

      Customer: Hello Comcast? I would like to cancel my service.

      Comcast: No can do, you have ten months left on your contract. Oh and check out our new streaming video service, for the same price as Netflix but way faster!! The first three months are free.

      Customer: Yay!

  38. Re:Why are ISPs bad for wanting this? by runeghost · · Score: 1

    I think it's fair. If Netflix (or any other content provider) doesn't like it - they are free to create their own network and do as they wish.

    Only if the incumbent ISP will get there wires and fiber out of my paid for public right of way first. Then it would be fair. I am sure Comcast would work really well with all of that coax and fiber rolled up in their own repair yard. At that point Netflix could then go about buying up right of way for a new network.

    Exactly. The incumbent ISP has the benefit of privileges granted by the pubic.

  39. Re:Why are ISPs bad for wanting this? by maharvey · · Score: 1

    Exactly. The incumbent ISP has the benefit of privileges granted by the pubic.

    But sadly, the privileges often end up being no-hairs-attached.

  40. Haven't you got it by now ?? by Taco+Cowboy · · Score: 2

    An Inquiry into the Nature and Causes of the Wealth of Nations, by Dr. Adam Smith, 1776

    "Lobbying" and "monopoly" are not "capitalism". Even Smith recognized that a capitalist economy must have a reasonable body of antitrust laws to keep everybody "playing within the rules".

    Adam Smith believed in "an invisible hand", ie, the marketplace, that has the ability to regain sanity after a period of insanity, through the force of the combined participation of each and every participant (whether it be consumer / banker / manufacturer / miner / farmer).

    On the other hand, Washington D.C. (no matter it be Democrats or Republicans) believes in their own version of "invisible hand".

    The invisible hand those politiscums believe in is "BIG BROTHERHOOD", or in other words, an entity which OVERSEES everything that is happening, no matter it happened in the public sphere or otherwise.

    That is why we have all the illegal spying on the American citizens by none other than the American government.

    I am an American citizen, and have been an American citizen for almost four decades, and I am sad to say that the country which I signed up on, back then, was very different from the country which I am looking at, today.

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:Haven't you got it by now ?? by Jane+Q.+Public · · Score: 2

      Wow. Talk about WHOOSH.

      THE WHOLE POINT HERE was that monopoly, fascism, socialism, and "crony capitalism" are NOT capitalism. Government control of markets is NOT capitalism. This is NOT the stuff Adam Smith was talking about.

      If you want to talk about "capitalism", then all of this stuff is breaking the rules. It is contrary to the system that made this country great. And -- just in case you hadn't noticed -- the more they have done it, the less "great" this country has become.

    2. Re:Haven't you got it by now ?? by Jane+Q.+Public · · Score: 1

      But maybe "whoosh" was overly harsh. I'm not disagreeing with you, per se -- and you don't seem to be disagreeing with me.

      Your statements appear to be valid, but I was making more specific points.

    3. Re:Haven't you got it by now ?? by jythie · · Score: 1

      It is questionable how well anything Smith talked about can be translated into today's structure. At the time most of the arguments were in the context of countering theocratic backed states, providing an alternative system to the idea that god controls wealth and power and thus needing a philosophical framework for how non-royalty could still own property and engage in trade. The idea that non-royalty would get powerful enough to have some of the same problems was just not on the radar.

    4. Re:Haven't you got it by now ?? by geekoid · · Score: 1

      The current pop view of smiths 'the invisible hand' is a complete abuse. It's quoted either without understand or with the intent of lying.

      Smith did not trust business, warned they would conspire as well as use monopolies to keep prices high.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    5. Re:Haven't you got it by now ?? by geekoid · · Score: 1

      "Adam Smith believed in "an invisible hand", ie, the marketplace, that has the ability to regain sanity after a period of insanity, through the force of the combined participation of each and every participant (whether it be consumer / banker / manufacturer / miner / farmer)."

      NO, No. no no.

      Read his works. Oh, you will also nee to read Mandeville because that is what Smith is replying to. "Private Vices ... may be turned into Public Benefits"

      or at LEAST read the wikipedia page.

      Plus, the invisible hand idea has been shot down, completely. IT doesn't work anyplace except in an abstract version of the world that only exists in the minds of moral philosophers.

      He uses that same term to describe the orbit of Jupiter, as well. And since his note where destroyed at his(Smith's) request, for all we know he was referring to god controlling markets. granted, that's not likely, but the point remains.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    6. Re:Haven't you got it by now ?? by mcgrew · · Score: 1

      I am an American citizen, and have been an American citizen for almost four decades, and I am sad to say that the country which I signed up on, back then, was very different from the country which I am looking at, today.

      I am an American citizen, and have been an American citizen for over six decades, and I am happy to say that the country which I signed up on, back then, was very different from the country which I am looking at, today.

      Back then we had no EPA so pollution was horrible. We had no OSHA so workplaces were deadly. We were at war when I was born, and were going through McArthyism. We had duck and cover excersizes for nuclear war in grade school. We had horrible racism, terrible sexism, and homosexuals were as outlawed here as they are in Russia. We had the draft, but only for men. In fact, a lot of things were only for men.

      America only started going downhill with the 21st century and Bush and 9-11, when the sociopaths took over the corporations, which took over the government. THAT'S why we have all the illegal spying on the American citizens by none other than the American government.

      As to big brother, one's big brother is seldom someone who narcs on you to your parents, he's the one who beats up bullies for you. Too bad it's the bullies in the corner offices who have the big brother.

  41. infrastructure upgrades done, shouldn't upgrade by raymorris · · Score: 1

    > really the monopolies need to upgrade the BW infrastructure but they won't

    Upgrades are always nice. I'm glad they've upgraded from 28Kbps to 28,000Kbps in the time I've been using the internet. 100,000 Kbps would be even better.

    However, impossible virtually impossible to upgrade so much that you never exceed capacity, and it would be really stupid to try . The thing is, in the busiest five minutes, users want 5 times the bandwidth that they demand during a normal "busy" period. In order to provide 10Mbps of clean bandwidth during that 5 minute period, you need infrastructure capable of delivering 50Mbps 95% of the time. You could either provide 50 Mbps all day but only bill for 10, which would be stupid, or artificially limit it to 10Mbps, letting 80% of your capacity go to waste, which would also be stupid. The only reasonable thing to do is build enough capacity to provide the full speed 98% of the time, and allow it to be slightly congested for a few minutes per day.

    1. Re:infrastructure upgrades done, shouldn't upgrade by zlives · · Score: 1

      yes i truly feel that cable companies go out of their way to help the consumer by lowering costs and operating at a minimal profit margin there by leaving no room for upgrades. they also do not artificially limit BW when available and never over subscribe.

      flippant comment aside, trafic shaping for bw reasons vs "Discriminate Traffic" based on whatever other reasons they deem reasonable are not equal.

    2. Re:infrastructure upgrades done, shouldn't upgrade by Bengie · · Score: 1

      letting 80% of your capacity go to waste, which would also be stupid.

      Actually, this is the recommended. Your 95th percentile should not go over 50% of your link speed. 95th percentile only represents 1.5hours of the day. The ratio of 100th percentile to 95th percentile is about 50%. During those 1.5hours of the day, you link should not go past 75% usage. Look at any hosting company, they make sure they don't go past 80% peak usage. Past 80% average load micro-bursting starts to cause packet-loss or latency if you have buffer bloat.

      Speaking about latency and packet-loss. Most ISPs use artificially large buffers to hide congestion. Instead of getting packet-loss, the Internet just becomes less responsive. without packet-loss, TCP streams typically find know if a route is congested. ISPs are artificially reducing quality in an attempt in keep throughput high. This helps make speed tests look nice, while web-browsing and other interactive uses suffer.

  42. what is going to happen ... by WeeBit · · Score: 1

    The Internet will split three ways. One for the filthy rich, another for those that don't care, or too dumb to care that they can't see the whole Internet at good speeds, and the third internet will be put in place by a group of people that gives a damn for the people.

  43. Isn't this exactly the fear? by Chuckstar · · Score: 3, Insightful

    'Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."'"

    Isn't that exactly what net neutrality people are worried about? Because it's hardly a big jump from that to "pay us or your subscriber will get the worst possible transmission of a movie".

    My position has always been "I am the ISP's customer. I am not the thing they sell to Netflix." If it's more expensive for the ISP to deliver me video than emails, that should be a negotiation between my ISP and me. It shouldn't be a negotiation betwen my ISP and Netflix, that I end up paying for anyway. Or even worse, that negotiation goes bad, and Netflix just sucks for me with no way for me to improve it... and my ISP tells me "but Hulu works fine... you should just switch to Hulu... trust us."

    1. Re:Isn't this exactly the fear? by gl4ss · · Score: 1

      well yeah, that's excactly what it is about.

      ok, it's just the other side of the coin. the other one is the isp(isp's owner, the cable company) also operating a netflix competitor and not even offreing netflix that choice.

      you know, so that you would buy your internet on demand movies from them and not from netflix.

      --
      world was created 5 seconds before this post as it is.
    2. Re:Isn't this exactly the fear? by internerdj · · Score: 1

      "My position has always been 'I am the ISP's customer. I am not the thing they sell to Netflix.'" You seem to misunderstand how the economy works now. Some brilliant businessman found out that you can monetize the customers preferences and demands and you can make more money from that than actually working to please the customer.

  44. Lets see ... by PPH · · Score: 1

    ... what happens when ISPs start throttling access to Democratic fund raising sites.

    --
    Have gnu, will travel.
  45. But there is no fast lane by 3count · · Score: 3, Informative

    This fast lane/slow lane analogy makes this sound more reasonable than it is. Netflix, or anyone else, can't pay to have their traffic go faster. They can only pay to have someone else's traffic go slower. ISPs are talking about taking bids to selectively slow traffic. How, exactly, is this different from a denial of service attack?

    1. Re:But there is no fast lane by Anonymous Coward · · Score: 0

      Simple, this one is sanctioned by TPTB.

  46. The same story over and over by rabbin · · Score: 1

    While still appalled, I'm just no longer surprised. A cable lobbyist passes through the revolving door, Obama/ does his usual PR game (in addition to the usual industry bought PR), the corporate media barely makes a peep about it (or presents a misleading view of it) despite the blatant conflict of interest and despite reputable public interest advocates sounding the alarm, and then the ex-lobbyist advocates for anti-competitive practices that will hurt the vast majority of Americans and further enrich the plutocrats he formerly worked on the behalf of (just like the public interest advocates said he would). And just watch this guy's compensation skyrocket when he transitions back through the revolving door into private industry--he will be rewarded well.

    And it's the same story over and over again. The US continues to degenerate into a plutocracy as a result of rampant corruption (*legal* corruption, but still a corruption of the intent of the system itself--the intent being to serve the public good). More and more Americans seem to be arriving at this conclusion, but the vast majority still gets its "news" from the corporate media and is thus completely uninformed and misled. The corporate media is quite happy with this situation due to the vast monies being spent on political advertising, and candidates that actually have the public interest in mind do not even end up on the radar because getting coverage means competing with the wealthy-donor funded candidates (in other words, it's too expensive, e.g. a senate seat is usually around $4 million).

    So I'm probably just about as apathetic as any other American, but here's at least a start on a solution: the problem itself, a solution in the works, an online movement to accompany that solution, another related movement, and a motivational speech for these movements.

  47. cynical but technically true by globaljustin · · Score: 1

    All I see is a bunch of telecom fiefdoms expanding their influence.

    That's certainly one way to view this...I completely understand. However I think we can look at this as a challenge and not an inevitability.

    *We run our government* to the degree to which we claim that power. We can demand the FCC end this nonsense! We should all email the FCC and tell them any discrimination in traffic, even if contextualized as a "speed boost" or "preferred delivery" is just marketing language for ending Net Neutrality. Tell them "No"

    That's a starting point.

    Techies have to get out there and make our voices heard on this. We need to explain why any tiered service is a method to get us to this.

    The Net Neutrality blackout day worked...it got the conversation going in the right direction.

    I honestly believe that this FCC chairman may be just an airhead. They hire these guys to "create jobs" and "foster innovation" so they are business types usually with a law background. They aren't hired for their technical knowledge.

    I can envision a scenario where the FCC chairman said this because he heard some damn TED talk or some kind of one-sided presentation from Verizon.

    We need to give the advisors of the FCC chairman and Obama the intellectual meat to use as bait for their bosses when they explain what's happening on a policy like Net Neutrality.

    --
    Thank you Dave Raggett
  48. yes, I too want to hear the alternative... by globaljustin · · Score: 1

    it came in a pretty package titled "network neutrality" -- in spite of the fact that many of us old timers told you that it will end badly if you let the FCC have any sort of authority over the internet.

    What's your alternative? Do you seriously think deregulation is the answer?

    Yeah I came to post the same question.

    GP may be the type that looks at this all as "inevitable" and will just keep lobbing criticisms of policies while never stating what an alterative would be...that happens alot around these parts.

    We need Net Neutrality. Eventually technology will end scarcity such that providing free secure internet will be viewed like the government providing roads.

    --
    Thank you Dave Raggett
    1. Re:yes, I too want to hear the alternative... by Rockoon · · Score: 2

      GP may be the type that looks at this all as "inevitable" and will just keep lobbing criticisms of policies while never stating what an alterative would be...that happens alot around these parts.

      ..or you could be completely mistaken.

      The problem is that there are monopolies and they collude against you, right? Well why are there monopolies? Its because your local government grants them. The solution then is to get involved in your local government, not grant powers to the federal government which will erect barriers to entry on top of what your local government has already erected.

      This is one of the problems with the current generation. They think the solution to everything is the federal government, where they are just one voice in a hundred million. You know what happens when you are one voice in a hundred million? Nobody hears you. They will pander to you and then stick it up your ass.

      --
      "His name was James Damore."
  49. The Intertet Must Go by VortexCortex · · Score: 1

    I have so much I could say about this, but instead of trying to preach to the choir or deconvert the atheists I'll just post this:

    Leaked ISP Net Neutrality market research video The Internet Must Go (No, it's not a dune reference.)

    Additionally: The First Honest Cable Company
    When we can no longer laugh about the horrible state of things, I'll know it's time to leave.

  50. fuck you, tom. by Anonymous Coward · · Score: 0

    your old clients' money still paying for favors i see. it was probably them that lobbied successfully (i.e. paid) for you to get that post, too.

  51. broadband is not a free market by Anonymous Coward · · Score: 1

    Not by a long shot. So there's little point in fawning over the free market where ot has not existed for some time.

  52. 802.11s by Anonymous Coward · · Score: 0

    Everytime I mention 802.11s, I get this reaction from people: wait, what? We don't need ad-hoc mesh networks, we have this much faster wired internet and so why would I want this...? And then you get the FCC guy yelping about 'oh its all good, net neutrality is aribtrary, just like privacy and security. 802.11s should be in before someone says 'never'.

  53. what is your idea then? by globaljustin · · Score: 1

    so are you for or against Net Neutrality?

    what is your alternative?

    --
    Thank you Dave Raggett
    1. Re:what is your idea then? by Rockoon · · Score: 1

      What does it matter?

      The FCC didnt give you net neutrality while people like you defended them on the grounds that they were. They weren't going to... and surprise they didn't.

      You were told that the FCC wasn't going to give you net neutrality, but you refused to listen. It was also obvious that they werent, because companies like AT&T supported the FCC's "net neutrality" push.

      ..and now you wonder if I am for or against network neutrality? If you mean the kind of network neutrality that YOU supported and defended, the one thats fucking us all on a whole new level, then no sir.. I do not support network neutrality. The old timers knew better. You didn't. Thanks for fucking us all.

      --
      "His name was James Damore."
  54. Discrimination could work against you by Camael · · Score: 1

    I WANT my ISP to discriminate between low priority, high bandwidth sites (video) versus high priority interactive.

    As an online gamer, I can sympathise with that position, but realistically, it is not going to happen. Given the approval to prioritise traffic, you know that the ISPs will do whatever they want that works out best for their bottom line.

    For example, assume that Netflix caves and pays the ISPs for preferential traffic, which the ISPs have tried to bill them for, and which could happen. All of a sudden, their bandwidth hogging traffic has higher priority over your SSH. I doubt the 500 SSH using customers you mentioned could or would be willing to outpay Netflix.

    On the other hand, you might take comfort in the many ads being delivered blistering fast to your screen.

    1. Re:Discrimination could work against you by Arrepiadd · · Score: 1

      the ISPs will do whatever they want that works out best for their bottom line.

      I don't even see why they won't go forward with screwing SSH and other low latency dependent applications, once this crap becomes acceptable: "Oh, you need your packets to arrive in less than 2 seconds? We have this extra-upgrade just for you."

  55. Cake by Hamsterdan · · Score: 1

    If they do this, let them lose Common Carrier status (and the legal protection it gives them).

    What they want is another way to gouge the customer and prevent competitors.

    --
    I've got better things to do tonight than die.
  56. it has to be this way by smash · · Score: 1

    ... if you want the internet to work. why? because we don't have commit rate for every use to access everything at full end user line rate. There is over-subscription as connectivity fans out to the edge. Over-subscription means that in order for things like VOIP and video to work, some traffic MUST be prioritised and other traffic MUST be dropped in order to accommodate this reliably.

    --
    I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  57. Wednesday sure was a bad day. by Anonymous Coward · · Score: 0

    At least three reminders on /. alone of how corrupt the government is within the span of an hour. And I missed breakfast, too!

  58. Controller Area Network? by luciano.moretti · · Score: 1

    I'm sorry, but what does a low speed, differential serial bus network used primarily in Automobiles and Industrial controls have to do with preventing ISPs from changing content providers to provide faster transport?

    Yes, even though I use CAN in my job, I did Google looking for a version that fit your post, but did not find one on the 1st page of results.

    1. Re:Controller Area Network? by SuricouRaven · · Score: 1

      Content-Addressible Networking.

      In much shortened form: Nodes don't have addresses. Content does, almost always in the form of a hash. You give the network a hash, and the corresponding content is retrieved. It doesn't matter where it is physically stored - the network can just grab the most conveniently accessible copy. The content associated with an address is fixed and unchanging, allowing for very good caching and decentralization. Obviously it sucks if you want to have a real-time conversation with someone, but it's ideal for the type of bulk distribution that makes up a lot of internet traffic.

      There's also CAN, a specific implementation of CAN. Confusing name, yes. That's the CAN to which the wiki page refers.

    2. Re:Controller Area Network? by SuricouRaven · · Score: 1

      I should clarify, probably. So here's how it'd work in principle:

      1. You go to Subversive Youtube, or some other site with a embedded video.
      2. The site has a reference to a video: 'Type=video/mp4 sha256=xxxxxx' - obviously the hash would be longer than that, I'm just making it readable.
      3. Your nodes checks the local cache. Does it have xxxxxx? If so, give it to the browser. If not, continue.
      4. Node broadcasts via wifi, ethernet, and whatever else it can: 'Anyone got xxxxxx?' With luck, someone else watched it earlier, and will share it. The network operator may well have a box with a few big hard drives in for just that purpose.
      5. They in turn broadcast, until the hop limit is reached or someone finds it.
      6. The file goes back to the requester, being cached by every node along the way.

      It isn't a replacement for packet-switched networking, but something that can run alongside or on top of it. It's what the earlier poster refered to as 'store and forward' - though in my experience, that term refers to a configuration for frame switching in which each frame is received in entirety for checksum validation before being forwarded.

  59. Well, it's over. by GameboyRMH · · Score: 1

    I think we had a good time with the Internet, let's hang onto those memories. The NSA and Social Media were starting to ruin it anyway...

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
  60. The price of my Netflix goes up... by Anonymous Coward · · Score: 0

    The price of my Netflix goes up, it isn't going to make me change from Netflix to them, it will just force me to dump Netflix and torrent more or just flat out do without as I already watch less than 3 hours per week to TV anyways.

    But honestly, they need to hurry up and bar them from stuff like this and FORCE them into common carrier status. Also would like to see more decentralized and encrypted systems in place to head this (and the NSA bullshit) off before it starts.

  61. Netflix money by slapout · · Score: 1

    'Netflix might say, "I'll pay in order to make sure that my subscriber might receive the best possible transmission of this movie."'"

    And where does Netflix get it's money? Oh, that's right, from it's customers.

    --
    Coder's Stone: The programming language quick ref for iPad
  62. QoS in your house doesn't fix ISP congestion by raymorris · · Score: 1

    You can do your own QoS within your home or office, but that does nothing for congestion on the ISP's network during peak periods. So yes, I'd also like the ISP do "do it for you", doing QoS on their network. Video, specifically, is bandwidth heavy and insensitive to latency, whereas VoIP, for example, is light on bandwidth and very sensitive to latency and jitter. So yes, I do want my ISP to handle my video and different from my VoIP. For my VoIP traffic, I want them to provide low latency and low throughput is fine. For video or FTP, I want high throughput and don't care about latency.

  63. You completely missed the point. Read what's writt by raymorris · · Score: 1

    > yes i truly feel that cable companies go out of their way to help the consumer by lowering costs and operating at a minimal profit margin there by leaving no room for upgrades.

    What the heck are you talking about? Did you read any of what I wrote, or did you just make up something to argue with?

    > and never over subscribe.

    That's precisely the point, that they DO over subscribe, and it would be wasteful for them not to subscribe enough that 2% of the time, it'll be oversubscribed in the sense that not everyone is getting the connection they'd like during those few minutes.
    Picture a certain neighborhood. When people are at work 8:00-5:30, there are fewer than 200 people downloading at any given instant. From 6PM-9PM, no more than 300 people. After 9PM, again no more than 200 people. Each subscriber should get 10 Mbps. How much bandwidth does that neighborhood need? 300 people X 10 Mbps = 3,000 Mbps, right?

    Right, that's what should be provisioned, 3,000 Mbps. Notice our usage pattern talks about 8:00-5:30 and 6:00-9:00. What about 5:30PM-6:00PM? As it happens, somewhere during that time period is when everyone gets home from work and checks their email, their Facebook, etc. For the busiest five minutes, maybe 5:40-5:45, there are 900 people downloading at once. Each wants 10 Mbps, so we need 9,000 Mbps, just for that five minute peak.

    So, should we build 9,000 Mbps of infrastructure and buy 9,000 Mbps of backhaul in order to provide excellent service during those five minutes? If so, that money is being wasted 99.995% of the time. Spending three times as much, only to have that equipment sitting idle 99.99% of the time seems wasteful and stupid to me. The smart thing to do is buy about 3,000-5,000 Mbps of equipment and backhaul. That provides full speed 99.995% of the time. 0.005% of the time it's noticeably oversubscribed.

    Note that it doesn't change anything if we upgrade and offer the customers higher speed. If we build 9,000 Mbps, we can provide the customer 30 Mbps ... 99.995% of the time. The only way to never have congestion is to build enough infrastructure to provide 30 Mbps, but only sell 10 Mbps, so most of the bandwidth goes to waste most of the time. That would be dumb.

    * I work on the server end of things. I don't know what the exact peak times are for residential service, but I do know it has high peaks, because I see part of those peaks hitting the web server. The web server serves multiple time zones, so it's peaks are spread, meaning the ISP sees higher peaks within each specific area.

  64. I have a potential solution to this problem. by jzatopa · · Score: 1

    There is another solution if this comes to fruition. Netflix and similar content providers horizontally integrate and start selling internet service. Another option would be for content providers to team up together (possibly with google). Include one or two content services (ie netflix, hulu) with the price of the service and get Aereo onboard and it would be a juggernaut.

  65. Plagiarism by YoureGoingToHell · · Score: 1

    If you can't come up with anything interesting to say without ripping off a movie, badly, then how about just shutting the fuck up?

    1. Re:Plagiarism by Zynder · · Score: 1

      Well looking at all these epic responses to said quote, I think it was spot on. And of course if you can't see the irony in posting a quote which itself was lambasting someone who was plagarizing I got nothing for ya. How do ya like dem apples?

  66. "What does it matter?" by globaljustin · · Score: 1

    this whole thread is about me asking for specific policy alternatives from critics...

    you're still avoiding the question...

    the fact that, after all this, you ask "What does it matter?" repeatedly instead of giving specific policies leads me to believe there isn't any valuable discussion to be had from you

    --
    Thank you Dave Raggett
    1. Re:"What does it matter?" by Rockoon · · Score: 1

      this whole thread is about me asking for specific policy alternatives from critics..

      So this whole thread is about you asking for alternative federal solutions to a local problem.

      You've been told what policy change would have worked. The change in policy was for you to switch from a policy of "the federal government must do something!" to one of "its a local problem so needs a local solution!" THAT was the policy difference, and this too has already been explained to you. It was YOUR policy that was wrong, and no amount of changes to a federal action would solve the problem with YOUR policy.

      Is it really so unnatural for you to accept that there is absolutely no federal policy that could have solved your local monopoly problems? The federal government still isnt preventing competition from moving in, but its soon going to.. and its your fault.

      --
      "His name was James Damore."
  67. Naivete by YoureGoingToHell · · Score: 1

    I honestly believe that this FCC chairman may be just an airhead. They hire these guys to "create jobs" and "foster innovation" so they are business types usually with a law background. They aren't hired for their technical knowledge. I can envision a scenario where the FCC chairman said this because he heard some damn TED talk or some kind of one-sided presentation from Verizon. We need to give the advisors of the FCC chairman and Obama the intellectual meat to use as bait for their bosses when they explain what's happening on a policy like Net Neutrality.

    Sorry bud....that's simply incorrect.

    This guy was appointed specifically to do what he's doing. That is, destroy net neutrality.

  68. Fucking dumb ass by YoureGoingToHell · · Score: 1

    The Republicans killed it with their sad insistence on maintaining Voodoo/Trickle-Down Economics.

    You are one dumb mother fucker.

    WHAT THE FUCK DO THE REPUBLICANS HAVE TO DO WITH ANYTHING? IDIOT.

    Last I checked, it isn't "the Republicans" who are in charge of the FCC, now is it?

    Pull your head out of your ASSHOLE.

  69. Wow.... by Anonymous Coward · · Score: 0

    Really? A cable lobbyist said that? Wow i'm shocked. SHOCKED I TELL YOU!.

    How on earth someone who is so biased could ever be elected to chair the FCC is beyond me.

  70. You're assuming that there's a free market for bro by Rujiel · · Score: 1

    You seem to think that people can just up and leave their ISP and choose a new one, but you're ignoring the fact that most people only have two options at the most. it's no surprise other countries have left us in the dust as far as broadband speeds are concerned.

  71. Re:You completely missed the point. Read what's wr by Bengie · · Score: 1

    No No No, you're looking at it all wrong.

    In the idea, each user gets a connection, this connection goes back to the CO. This can be done for about 3% over the cost of a shared connection, so don't spout BS about shared vs dedicated, because dedicated is nearly the same price.

    At the CO, the customer plugs into a chassis. This chassis has enough back-plane and uplink to support all users running at 100% at the same time. Then the chassis plugs into the trunk. Up to this point, there is no over-subscription, but that's because it's still relatively cheap. The trunk is where over-subscription becomes important for waste reasons.

    At the trunk level, typical user usage is 20:1. This means 19 out of 20 users, on average, are not using their connection at any given time. This is a fairly reliable metric. This means you can run dedicated bandwidth from the trunk to the customers, but the trunk only needs 1/20th of the bandwidth.

    An example of making this work would be something like this. Say you have 100 customers with 100mb connections. Each user gets a dedicated connection to the trunk. Each customer pays $100/month. Then the ISP only purchases enough bandwidth for 1/20th of those users to use their full connections at the same time, so 500mb.

    The ISP only pays $1/mbit for 500mb, so they pay $500 for 500mb. But they can sell that to 20x the users at $100/month for $10,000 of revenue. Each customer effectively gets 100mb every time they use their connection, but the ISP only needs to provide 1/20th of that on average.

    Some of that $100 goes back to supporting the connection to the customer, so carve out $30 of that $100 bill for that. This leaves $70/customer as revenue towards transit bandwidth. That is $7,000 in revenue for $500 in costs, so about $6,500 in gross profit.

    You ask, "but what if someone uses their connection 24/7, like bit torrent?"
    That's the pain of averages. In a small population, you may not get the average, but in a large population, you should. If you're a large ISP with 50,000 customers in the city, that 20:1 ratio should be quite reliable.

  72. Sounds catchy, but no, Comcast 7%-10% profit by raymorris · · Score: 1

    > Some of that $100 goes back to supporting the connection to the customer, so carve out $30 of that $100 bill for that.
    > This leaves $70/customer as revenue towards transit bandwidth. That is $7,000 in revenue for $500 in costs, so about $6,500 in gross profit.

    That sounds all evil and stuff, so I'm sure it would go over great on potheadmoronhippie.com, but it's completely divorced from reality. Take as an example the most successful ISP in the United States, Comcast. Last year, they had $63 billion in revenue and $6.2 billion profit. That's under 10% profit. In the previous year, $4 billion profit on $56 billion in revenue - 7% profit.

    The most successful ISP is making 7%-10% profit, which is slightly less than the 93% you tried to claim.

    1. Re:Sounds catchy, but no, Comcast 7%-10% profit by Bengie · · Score: 1

      "$63 billion in revenue" Of which 35bil was operational expenses, which could be reduced 20% if they went all fiber. That would save them $7bil per year, all the while being able to offer 1gb/1gb internet. They could double their net profit. Verizon claims to be saving $100m/year just by switching over 4% of their user base to fiber.

      You are also looking at Comcast's entire income. Once you exclude the huge prices content providers charge them for TV, ESPN, Football exclusives, etc, their profit margins are much higher. On the internet side of things, Comcast is making a killing, and that could increase that even more by going fiber. Better yet, drop TV, but that would reduce revenue and it works as a way to hold on to customer base. There is a huge group of older people who pay $100/month for the deluxe TV package, and that's too much to not hang on to.

      At one point there was a cable consultant who had been in the business for 20+ years and had worked with all of the biggest ISPs in the USA and around the world. He said your average cable provider is probably paying about $4/month for those $100 packages that they sell people, and that includes all costs. The infrastructure was laid many years ago and they upgrade very slowly.

      Get this, Comcast claims they recently spent $200bil upgrading their network, which passes about 60mil houses. The average cost per house for the $200bil came out to around $2,500. For $2,200 per house, they could have ran fiber, and that, assuming they have no current fiber infrastructure already in place. So they could have saved money up-front, plus an additional $7bil/year.

    2. Re:Sounds catchy, but no, Comcast 7%-10% profit by zlives · · Score: 1

      thank you, very informative