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Level 3 Wants To Make Peering a Net Neutrality Issue

New submitter thule writes "A story at Gigaom talks about how Level 3 is trying to pull peering into the net neutrality issue. Regulating peering could hamper how the Internet is interconnected, potentially turning it into a bureaucratic mess. Should peering be regulated?" Reader raque points out that Netflix CEO Reed Hastings is banging the net neutrality drum, too: "Some major ISPs, like Cablevision, already practice strong net neutrality and for their broadband subscribers, the quality of Netflix and other streaming services is outstanding. But on other big ISPs, due to a lack of sufficient interconnectivity, Netflix performance has been constrained, subjecting consumers who pay a lot of money for high-speed Internet to high buffering rates, long wait times and poor video quality. ... Once Netflix agrees to pay the ISP interconnection fees, however, sufficient capacity is made available and high quality service for consumers is restored. If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future. Roughly the same arbitrary tax is demanded from the intermediaries such as Cogent and Level 3, who supply millions of websites with connectivity, leading to a poor consumer experience."

33 of 182 comments (clear)

  1. Users who pay for high bandwidth connections shoul by saloomy · · Score: 3, Funny

    It's not like any local government entity grants them monopo... Oh wait!

  2. Sure, but.. by bhcompy · · Score: 2

    I get it, but it's not like establishing this interconnectivity is free or cheap(I've seen articles from Anand and other technical websites indicating ~$10k per peer for the configuration and support). Who's going to pay for it? How is it not going to raise our fees we already pay as end users?

    1. Re:Sure, but.. by Anonymous Coward · · Score: 4, Insightful

      Who's going to pay for it? The people who pay for internet... maybe? What else should they be doing with $75/month that people pay for internet?

    2. Re:Sure, but.. by FuegoFuerte · · Score: 4, Interesting

      I understand you probably don't work with this type/scale of equipment/network on a regular basis, but the fact is $10k *is* extremely cheap. It's also probably a bit of a bogus number, or at least incorporates a whole lot of stuff beyond the actual connection (not just the cost of the optics, but some of the cost of the blade/chassis, and cost of power and rack space over an X year period, etc). The optics themselves are pretty cheap now - probably no more than $800/side, and with the scale of the large operators it's a good bet they're paying $500/ea for 10g SFPs. Believe me, a network operator of this size sneezes 10g optics without thinking about it - their on-site guys probably play dominoes with the spares.

      A little fun math: Let's say for the sake of easy math that the average customer pays $42/month for broadband, or $500/year. Let's say the average lifecycle of a 10g optical link and the associated routers is 3 years, and the single cross-connect costs $10k, spread across those 3 years, for a cost of approximately $3500/yr. So, ignoring the cost of the last-mile infrastructure (partly because the vast majority is in place and has probably been paid off for years), the cable company would have to add 7 customers to pay for each new cross-connect. Again using nice round decimal numbers for the sake of easy math, at a cap of 50mbps per subscriber, you could have 200 customers fully saturating their links before you would saturate the 10gbps cross-connect, assuming ALL customer traffic was being routed that way. So if your first 7 customers paid for the cross-connect, and we're talking about 3-year equipment lifecycles, that leaves just shy of $290k for the ISP to spend on their other infrastructure and overhead.

      Summary: I think they'll be just fine, and not need to raise your fees (they probably will raise them anyway, but that's an entirely different discussion).

    3. Re:Sure, but.. by Bengie · · Score: 2

      100gb/s of non-blocking full speed uncongested peering costs about $5k/month. Are you trying to argue that $0.05/mbit is expensive?

  3. Re:Fine Line by tc3driver · · Score: 3, Insightful

    "The Market" is thrown out the window when one has only two or three choices for an internet connection.

    I have the choice of high speed cable via Time Warner, DSL via ATT, or satellite via Houges net. Lets see here, fast, slow, and slower! There is no real choice for the market to make, as the city makes the choice based on what cable, and phone provider gives them the right bid to lay the lines.

    On the peering issue, network owners have a right to charge for a peering connection. However, it would be in the best interest of the companies in question to provide the best service to the customers... if there was any competition.

    --
    42 69 6C 6C 20 47 61 74 65 73 20 69 73 20 61 20 77 68 6F 72 65 21
  4. It's all the same thing by silas_moeckel · · Score: 2

    They have been playing the oh were not throttling were just over saturated to this peer we don't like for awhile. Sure it's not as targeted as they would like but it gets them there.

    --
    No sir I dont like it.
    1. Re:It's all the same thing by Anonymous Coward · · Score: 3, Insightful

      The way traffic is currently handled is ridiculous. As it stands a Verizon subscriber makes a request to Netflix to send data. Netflix then pays Cogent to send the data who then pays Verizon to receive the data that Verizon requested in the first place! That's like me charging the post office to deliver a package I ordered from Amazon.

  5. Re:Indeed. by interkin3tic · · Score: 4, Informative

    Lemme guess: blocking copypasta shit like this is NOT a feature in slashdot beta.

  6. Two Words by CanHasDIY · · Score: 3, Insightful

    Let's call a duck a duck, shall we? All this "Netflix throttling" and other shady dealings of the ISPs controlling what content customers can view, reasonably, on the connections those customers are paying for, is nothing more than service theft.

    Maybe we can put this whole net neutrality debate to bed with one good class action lawsuit, on behalf of all customers of ISPs who commit this type of service theft.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
    1. Re:Two Words by CanHasDIY · · Score: 2

      A class action lawsuit will get you a t-shirt, ball cap, and a bag of peanuts (airline size, which holds about three peanuts).

      It might also get a legal ruling setting the precedent that throttling certain services that your customers pay for is service theft, and get the ISPs who fail to comply with the ruling fined in a huge way.

      Which is the part I care about - nobody with a lick of sense joins a class action lawsuit for money. Well, anyone who's not a lawyer.

      The proper solution is to turn the pipes into public infrastructure, like water, lights, and sewage, and allow service managers, not providers to sell time share.

      Which probably won't happen until somebody (or rather, a large collective of somebodies) sues the holy living shit out of the service "providers."

      Because we sure as hell can't trust our "representatives" to do their jobs, that's for sure.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
  7. Peering and Bandwidth Symmetry by brtech · · Score: 4, Insightful

    Since the beginning of peering, the rules have always been that if you have roughly the same amount of traffic inbound and outbound, peering has no charge. If one direction generates more traffic than the other, the source pays for the asymmetry. If you give me 200 GB per minute average, and I give you 100 KB per minute average, you have to pay me for the traffic you are giving to me to deliver to my customers.

    Streaming video has this problem - it's all one way. Peering should cost video streaming sources. The RATE charged has to be reasonable, but they don't get free peering.

    1. Re:Peering and Bandwidth Symmetry by borcharc · · Score: 4, Insightful

      Since the beginning of peering, the rules have always been that if you have roughly the same amount of traffic inbound and outbound, peering has no charge. If one direction generates more traffic than the other, the source pays for the asymmetry.

      This model is outdated, in the good old days networks had a mix of eyeballs and content, now we have completely separate eyeball and content networks. This is mostly the result of the cable/telco monopolies. In the new normal, traffic will never be balanced. I am paying comcast for internet access, it is their responsibility to provide be high quality service. In order to accomplish that they should have an open peering policy and connect at all public exchanges. If the large providers don't get on board with more open peering policies they are going to eventually run into a consumer or small NSP brought anti-trust lawsuit.

    2. Re:Peering and Bandwidth Symmetry by brtech · · Score: 2

      You can't sweep the problem of real cost under a claim that we have lots of asymmetry. If I generate about as much traffic as I get from a peer, then our costs to deal with the traffic are roughly equal. If he sends me 10X what I send him, my costs are higher than his. If the costs are different, at some point, the price is different.

    3. Re:Peering and Bandwidth Symmetry by thule · · Score: 2

      Since the beginning of peering, the rules have always been that if you have roughly the same amount of traffic inbound and outbound, peering has no charge.

      That must have been *very* early on. I remember reading an article in the late 90's that stated that Yahoo! only payed for half of their total bandwidth requirements. Transit was costing them too much money. So they peered with large ISP's to cut their transit costs. They were connecting eyeballs to content. Both sides of the equation won because ISP's would take traffic off of their transit connection and so did Yahoo!. Yes, it does cost money to peer, but for Yahoo! it saved them money. How is this any different than Netflix? Same deal, eyeballs and content. The difference is that Netflix sends a lot more data. Even more reason that ISP's should want the traffic off of their transit connections.

    4. Re:Peering and Bandwidth Symmetry by brtech · · Score: 2

      No different I think. Yahoo would pay for peering if it's bandwidth was asymmetric, but it would probably pay less to peer directly than through a transit network. Before peering, they would pay an ISP for access. After peering, they would pay the peering partner for the asymmetry, but that would be less than what they were paying for transit. If Yahoo users generated more traffic to a peer than they consumed, the peer would pay Yahoo. That probably didn't happen.

    5. Re:Peering and Bandwidth Symmetry by borcharc · · Score: 2

      That does not mean you can not work out effective deals where everyone wins. If I peer with you in several geographic locations, it takes load off your backbone links, lowering your cost (L3 example). If I am a small operator peering in one area, an arrangement could be worked out where my prefixes are only advertised in the region through the use of bgp communities, reducing the other providers backbone costs. This is effectively what should have been done with netflix. L3 taking this issue up is a major game changer though, a old school tier 1 who peers with no one is fighting for capacity on several eyeball networks, rules be a changing...

    6. Re:Peering and Bandwidth Symmetry by Cajun+Hell · · Score: 2

      Since the beginning of peering, the rules have always been that if you have roughly the same amount of traffic inbound and outbound, peering has no charge. If one direction generates more traffic than the other, the source pays for the asymmetry.

      And to think: I have been paying my ASDL provider, when I should have been charging them.

      --
      "Believe me!" -- Donald Trump
    7. Re:Peering and Bandwidth Symmetry by thule · · Score: 2

      No, I believe the article stated that Yahoo! was getting the bandwidth for "free". That is, Yahoo! is its own national network with POP's in all the big cities. Yahoo! is like an ISP, but unlike an ISP, Yahoo! did not sell transit. The only point of their network was to peer with large ISP's. They would drop in a router and get as many ISP's to connect their POP's to their router for free.

      The difference today is that Netflix has a lot more data. A LOT more. Gone are the days of simple web sites. Depending on the size of the ISP that router and interface port might cost a heck of a lot of money. They might even have to upgrade the routers within their network. As demand for things like Netflix grows, the cost of that equipment grows. For what? Just so their customers can get Netflix? They think to themselves, "Why upgrade that port?" Customer start complaining to Netflix. The solution? Let Netflix (or Cogent) pay for the router/port. Seems fair to me. In the mean time, customers have to complain loud enough to get something done.

      Not all content providers have this kind of network. Netflix is not Yahoo! or Google. They used Cogent to do all the work for them. In some ways that is better. If I was a small start up that was going to launch a new streaming service, I know where I would place my servers for good connectivity to Comcast. I'd place them in a Cogent colo!

    8. Re:Peering and Bandwidth Symmetry by reg · · Score: 3, Insightful

      But that's not how my peering arrangement works with my ISP! I connect my network with theirs and they charge me for all the traffic they send me! Hint: there is really no such thing as peering, only a network-of-networks that makes the Internet. Any other definition is the not the Internet. The only rational model is for the sink to pay for the asymmetry, like the power grid.

      Regards,
          -Jeremy

    9. Re:Peering and Bandwidth Symmetry by Anonymous Coward · · Score: 2, Interesting

      Traffic is not sent randomly, if something is sent it's because it was requested. It would make more sense to have the recipient pay instead of the sender, the same way the buyer of goods pay.
      It would have a few more advantages:
      - no need for ads anymore, every time you view a webpage, the content provider gets paid a little bit.
      - no more "piracy", "pirates" would pay by eating their bandwidth.

      Now the problem is shady content providers sending useless content to inflate the bill. But that would not be different from them bombarding us with ads and creating parking websites.

      Small issue here. Bandwidth isn't worth the same as the content that consumes it. Not by a long shot in the most fevered dreams of Comcast executives. In fact, this is what scares them so much. They've been exploiting this asymmetry since the end of the national cable rollout in the 80s. They know that once they've payed off the fixed costs of hardware, the prices they charge do not reflect in any way the ongoing costs of maintenance. Bits are cheap. The pipes they travel over have all already been payed for. Ironically, the very real and necessary cost of bringing the US residential infrastructure into the 21st century is one the cable executives staunchly refuse to acknowledge, as it would only further exemplify that bits are not only cheap, they're getting cheaper at an astonishing rate.

  8. Re:Fine Line by Obfuscant · · Score: 4, Interesting

    as the city makes the choice based on what cable, and phone provider gives them the right bid to lay the lines.

    Franchise fees are not a "bid", they are a contractually negotiated fee for using city rights of way. Once a fee is negotiated, it would be hard for a city to say "your fee will be higher" to a second company, since they've set the price for access.

    What prevents a second cable system from overbuilding the first is not the franchise fee, it is the lower return on investment from having to compete with the existing system. No business would want to invest heavily in physical plant when there would be little profit in doing so. Their fixed costs would not be recouped by the sales, much less the incremental costs.

    It's not like a grocery store where the fixed costs are relatively low to find and outfit a building and have the customer come to you. Cable requires the "grocery store" to go to the customer where he is, and simply lowering prices until the customers stop going to the competitor and start coming to you won't work. It is not economically viable to build the system as you get customers. The turn-on time would be long.

  9. Re:The Slippery Slope by thule · · Score: 2

    The scenario with Netflix and ISP's is exactly what I've been describing for years. That is, use congestion on links to beat net neutrality. I would point this out and people would still focus on filtering and shaping. Who needs to filter when an ISP can just peer with a preferred VoIP provider? The link would have plenty of extra capacity and get very good quality of service. No neutrality rules have been broken because the ISP isn't shaping or filtering. They are using the inherit capability of the Internet to route traffic. So did the net neutrality people always see this issue or do they just not understand? Was the goal, all along, to control peering and they just hid their motives?

    I've been skeptical of net neutrality because as soon as it was implemented, it wouldn't be "good enough" and they'd move on to more and more control. We all should be very skeptical of the government stepping in to regulate peering.

  10. The issue is... by PortHaven · · Score: 3, Insightful

    I THE !@#$ COMCAST CUSTOMER AM PAYING FOR THAT DELIVERY

    So !@#$ give it to me, or let me have the fun of bashing the Comcast CEO's head repeatedly with a nerf baseball bat.

    And yes, I am yelling slashdot, because I'm pissed and sick and tired of it. And my congressmen are dickheads.

    1. Re:The issue is... by brtech · · Score: 5, Insightful

      Yeah, you are paying for it, and they should deliver it to you.

      But both ends pay. Netflix, or whomever, pays their ISP, you pay your ISP. Netflix doesn't get a free ride.

      When people talk about net neutrality, they worry that Neflix has to pay twice, once to their ISP, and once to your ISP. We don't want that.

      But Level(3), one of Netflix's ISPs, may have to pay Comcast if Level(3) sends more traffic to Comcast than Comcast sends to Level(3).

      Then again, Comcast better handle that traffic equally well, and better have the capacity to exchange the traffic fairly.

    2. Re:The issue is... by rk · · Score: 2

      You're hitting it pretty close to the mark here. It comes down to the line between good traffic engineering and violating net neutrality is not a clear one. While I think Something Should Be Done(tm), I sometimes worry the cure may be worse than the disease. I work for a CDN and I can kind of see everyone's side simultaneously.

      I think the difference here is in this case, it is Comcast's own customers that are requesting the traffic. Calling Comcast a "peer" like LVLT in this situation is a little bit murky, IMO. If it were purely about network performance, the "right" thing to do would be to charge their customers extra for Netflix streaming. But if they did that, they'd have open rebellion on their hands. And rightfully so, because all the consumer broadband providers hype "stream movies over the internet" in their marketing. So Comcast hits up Netflix for money instead. Somebody does have to pay for the packets, sure. But Netflix has in-demand content, and the cable companies are no stranger to paying for in-demand content, and they've made tidy sums off the consumer while doing it.

      Purely from idle curiosity, I wonder what would've happened if instead of paying Comcast, they put up a message to every Comcast subscriber the first time they have a buffering event saying "We're apologize, but your internet service provider (Comcast) doesn't have sufficient network capacity to play Netflix movies at this time. Please contact Comcast technical support number at 1-8xx-xxx-xxxx for help." I think Netflix's reputation with the public is stronger than any cable company. They might have been able to get away with the bully pulpit.

  11. UPS Mail Innovations by tepples · · Score: 2

    It's more like Phil's Hobby Shop paying UPS Mail Innovations to deliver a package. The seller pays UPS, and UPS comes and picks up packages. UPS then sorts them by region and delivers them to local post offices. Then UPS pays each post office to deliver the packages to the buyers.

  12. Not network neutrality problem, a business problem by markzip · · Score: 3, Insightful

    (Sorry, a properly grammatical title would not fit in the space allotted)

    Netflix & Level 3 Only Telling Half The Story, Won’t Detail What Changes They Want To Net Neutrality

    In a fairly deep and interesting article over at StreamingMedia.com, Dan Rayburn argues that there is more to the story here and that neither Netflix nor Level 3 are giving us their proposed solutions. He goes through both the Netflix and the Level3 blog posts, taking them apart very carefully.

    It is not a network neutrality problem, but rather a business problem. Worthwhile read.

  13. Re:The Slippery Slope by organgtool · · Score: 5, Insightful

    Remember how many people tried to tell you Network Neutrality was the road to a heavily regulated internet... Well here you go. If you regulate any aspect, eventually all aspects will fall under a web of regulations.

    WTF are you talking about? Level 3 is complaining because they are now being extorted by ISPs who are trying to double-dip and charge them hefty fees for peering agreements. This was not a problem when net neutrality regulations were in place, but after Verizon won their case over net neutrality, it took Comcast only five weeks to go on a rampage and start extorting fees from other providers. So this is exactly what you get when you DON'T have net neutrality and you DON'T have regulation.

    It's great for companies like Level 3

    It's not great for companies like Level 3 because they are the ones being extorted. The current lack of regulation is great for companies like Comcast who are threatening to throttle connections of their own users if content providers don't pay Comcast an extortion fee. Again, it only took five weeks of the regulations being removed before Comcast started pulling this shit. It may be time for you to admit that moderate and sensible regulation is not a bad thing.

  14. Long haul vs. last mile by tepples · · Score: 2

    There are two different markets here. In the long haul market, the sender pays. In the last mile market, the endpoint pays.

  15. No by sycodon · · Score: 2

    Internet providers should be classified as Utilities.

    If they want to get in on content generation/distribution, create another company that pays and plays like all the rest.

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
  16. Re:The Slippery Slope by suutar · · Score: 4, Insightful

    I'll freely agree that too much regulation is a problem. But too little is also a problem in a non-free market, and telecom in general is almost as non-free as it gets (bettered only by electric, water, sewer, etc.) Since there's not enough competition to force a given broadband provider to not gouge their customers and partners, we (as a society) either have to use regulation or settle for getting gouged.

    I say as a society because an individual does have the option (however unpalatable it is) to simply do without internet; "take it or leave it". But that's becoming less and less of a viable solution as more and more of our day to day interactions with each other, with companies, and with government move to the internet. If improvement only happens after substantial numbers quit and quitting is infeasible, then nothing will ever improve.

    Of course, I believe it is possible to have an amount of regulation which is neither too much nor too little, though it's harder to maintain that balance as the bureaucratic empires grow and harden. If you don't feel that such a sweet spot is possible, then I can see how less regulation would be preferable to more. But in that case we need to drop this districted monopoly system too, so we can actually hope for some competitors.

  17. Re:The Slippery Slope by Anonymous Coward · · Score: 2, Interesting

    Level 3 and Cogent try to "peer" with Tier 1 carriers when they are really just middlemen taking tier 1 carrier potential customers and offering them a cheaper deal because they "peer" with tier 1 carriers. They are not peers. They are customers and should pay like anyone else. The top carriers have invested in equipment, fiber, facilities, and personnel to manage a much more robust network than either carrier and should be compensated accordingly.

    I work for a tier 1 and I can tell you every time we bring up a peering connection with them it is saturated. Just as ISPs can cap bandwidth for home users, we have to cap the peering points with these carriers until they pay for it. Should we just set up racks and racks of routers for them for free (with no revenue) while they siphon customers from us and get paid?