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AT&T Exec Calls Netflix "Arrogant" For Expecting Net Neutrality

jayp00001 (267507) writes "'As we all know, there is no free lunch, and there’s also no cost-free delivery of streaming movies. Someone has to pay that cost. Mr. Hastings' arrogant proposition is that everyone else should pay but Netflix. That may be a nice deal if he can get it. But it's not how the Internet, or telecommunication for that matter, has ever worked,' writes AT&T Senior Executive Vice President of Legislative Affairs, James Cicconi. Mr. Cicconi took issue with a blog post from Netflix CEO Reed Hastings on the importance of net neutrality.

466 comments

  1. It's not arrogant, it's correct. by BronsCon · · Score: 5, Insightful

    Your customers pay you, as their provider, Netflix pays their provider, and it's between you and their provider to determine who, if anyone, pays who, based on the flow of traffic.

    --
    APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    1. Re:It's not arrogant, it's correct. by Qwerpafw · · Score: 5, Insightful

      Put another way:

      * Netflix pays for their bandwidth
      * Customers pay for their bandwidth

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      People aren't paying for "Internet except for Netflix" and Netflix isn't paying their bandwidth costs for "Internet except for consumers."

      AT&T, and other providers, should have no right to put up walls. If there are issues of peering, those should be working out at the peering level, and not at the application/service or individual business level.

      The news about Apple being willing to pay for AppleTV to have a "special line" to consumers is particularly worrisome and strikes the core of the problems with anti-net neutrality positions: they create unfair markets with barriers to competition. Netflix may complain, but they can (and do! with Comcast) pay if they have to. Apple can afford to pay the gatekeepers as well.

      But some new startup (Aereo, for example) or small business? They can't and won't be able to pay those gatekeeper tolls to reach consumers. And they'll be prevented from competing or disrupting.

      Big business will thrive in an anti-net neutrality world. Honestly, it might even help Netflix in the long run as barriers to any competing service will be high. But it's anticompetitive and small businesses and startups alike will be prevented from innovating, and maybe even be driven out of the market by an inability to pay these tolls.

    2. Re:It's not arrogant, it's correct. by Lloyd_Bryant · · Score: 4, Informative

      Your customers pay you, as their provider, Netflix pays their provider, and it's between you and their provider to determine who, if anyone, pays who, based on the flow of traffic.

      What, you mean that someone who pays his ISP for a connection to the Internet shouldn't have to pay extra if he actually wants to use that bandwidth? I'm pretty sure that'd be classified as communism, or terrorism, or whatever the 'ism of the month is.

      ISPs will fight tooth and nail to keep from becoming the "dumb pipes" that true net neutrality would make them. Because then they wouldn't be able to siphon off the profits of companies that have actually innovated themselves a business in the Internet space, rather than just continuing to make a buck off of their infrastructure semi-monopolies.

      --
      Don't tell me to get a life. I had one once. It sucked.
    3. Re:It's not arrogant, it's correct. by udachny · · Score: 2, Insightful

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

    4. Re:It's not arrogant, it's correct. by Alain+Williams · · Score: 1

      I think that everyone agrees, that. The point is who pays for the carrying of data between the providers. OK: what I pay my ISP should also pay for them to fetch/send my bytes onwards in the Internet as well. I will cost my ISP less if I choose to download something from a local mirror than if I grab it from the other side of the world. Netflix are aware of that and have the Open Connect Content Delivery Network, but that won't solve all the probelms.

      Between them Netflix and YouTube made up more than 50 percent of peak downstream Internet traffic in N America, so it is a significant issue.

    5. Re:It's not arrogant, it's correct. by killkillkill · · Score: 0

      Ultimately the customer is going to end up paying more. Most likely the raised prices will hit everyone, not just those of us who use Netflix. So, it's good to know that those who can barely afford service with basic plans will be subsidizing my leisure time activities. I sure don't want to pay for it all.

    6. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 4, Insightful

      time to take away their roads.

    7. Re:It's not arrogant, it's correct. by Shadow99_1 · · Score: 2

      Not just that, but from what I've seen in other news bits... The consumer side ISPs want to charge their customers, Netflix, and Netflix ISP... So they are being paid triple for the same bandwidth. How exactly that is supposed to be 'normal' is left up to the craziness of those saying such things.

      --
      we are all invisible unless we choose otherwise
    8. Re:It's not arrogant, it's correct. by ZombieBraintrust · · Score: 5, Insightful

      No it is like phone calls. The person who initiates the call pays. They pay because they are the one who is creating congestion. Netflix is not generating any traffic. AT&T customers generate the traffic when they open thier browsers and start downloading movies. It is not Netflix desision that AT&T charges all its customers the same thing. Netflix should not be punished because AT&T promises high speed connections with unlimited access. That is AT&T's fault.

    9. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 5, Insightful

      a movie that needs to be streamed a million times takes up much more capacity and energy

      No it doesn't. 10 GB of traffic uses up exactly the same capacity each time it's streamed regardless of whether it's a movie or cat pictures.

      If you charge more for heavy trucks you have to charge all trucks.
      You can't just charge wall-mart trucks double because you don't like them.

    10. Re:It's not arrogant, it's correct. by bluefoxlucid · · Score: 2

      Their large problems are as thus:

      Firstly, they can only charge those who peer to them. NetFlix using a Tier 3 provider would resell AT&T, who would charge the Tier 3 provider for bandwidth, which would essentially charge NetFlix for bandwidth. If NetFlix picks another Tier 1 or Tier 3 who resells a different Tier 1, AT&T can no longer charge NetFlix; they're stuck with their peering deals between Tier 1 providers.

      Secondly, not being allowed to charge NetFlix for bandwidth passing through another Tier 1 peering arrangement means they need to compete on a market with all players--they can't make a move against NetFlix due to their negotiating position (inexperience, high amounts of capital and less inclination to squeeze out a favorable deal, business criticality, etc.), rather they must deal directly with all of their Level 1 peers and all of their Level 3 resellers and direct clients. If they make up a cost schedule that NetFlix will submit to but Google will not, then Google will argue down the cost schedule and they will bill NetFlix less; if they refuse to budge, Google will move to another Tier 1; and if they try to shift the costs onto a stratified consumption model and increase the cost at the lower usage levels, their lower usage clients will move to a Tier 1 without big players who charges less.

      In the end, they don't want a level playing field. The providers want a playing field where they can extract maximum profits from the weak, particularly the rich and weak.

    11. Re:It's not arrogant, it's correct. by bluefoxlucid · · Score: 3, Insightful

      But they're only shipping packets. It's more like NetFlix is driving eighteen million motorcycles and doesn't want to be charged five times as much per motorcycle; in fact, they should pay less due to bulk rate discount.

    12. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 3, Insightful

      Okay, so should the road owner (AT&T/Comcast) be charging the owner of the eighteen-wheelers that come onto their roads (Level 3, etc.), or the company whose freight is contained within those trucks (Netflix)?

      Netflix pay Level 3 to deliver the freight. Level 3 pay AT&T to use their roads. Netflix only use AT&T's roads through Level 3's service, so why should Netflix have to pay AT&T directly?

    13. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      You Idiot, that's exactly what customers expect, that's exactly what customers are legally entitled to.

      Why you ask? Because that's the way the law is written, so ISPs don't have a choice in the matter.

      Net neutrality stands and any ISP that wants to abuse that can have their license pulled and be put out of business, and right now, I'm all for the big ones being put out of business entirely, all their assets siezed, made common carrier, all patents public domain, all copyrights public domain - nothing sold, and all execs spend time in prison for their larceny.

    14. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      You know what it's called when you charge vehicles for traveling on "your" road, a Toll, so yes his analogy is 100% correct, you just reinforced it.

    15. Re:It's not arrogant, it's correct. by oh_my_080980980 · · Score: 2

      Dude you're a freaking moron. As has been stated Netflix pays for their bandwidth and Customers pay for their bandwidth. AT&T wants to double dip. And if you think that's o.k. is AT&T going to refund the billions of tax payer dollars given to the telecommunications industries to roll out their fiber cables??? Hmmm....douche.

    16. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      But netflix is not an eighteen wheeler nor a an ordinary car. It will one of those depending on the user who is streaming a movie. Say a user with 10mbps line is an ordinary sedan and another user with 100mbps line as humongous truck. It does not matter whether they are watching netflix or updating code from github. They will be able to "congest the road" as much as ISP let's them.
      What is actually happening is that AT&T is overselling their bandwidth, since up till now most users needed short bursts of fast internet. However, with youtube, netflix, apple tv and whatever else streaming services, it becomes apparent that they have sold more bandwidth than they actually have and they want these services to pay for their lack of math skills. Alternatively, they are actually very good businessmen and they will get some random companies to pay for the upkeep of the service that AT&T is selling.

      I think it is the latter.

    17. Re:It's not arrogant, it's correct. by alen · · Score: 1

      google has done direct peering with ISP's for years now, you are way behind the times. not only that, but they own buildings where different network providers peer with each other

      google has so much internet backbone they own they are moving into the last mile ISP business just to use up the bandwidth they have

    18. Re:It's not arrogant, it's correct. by Ioldanach · · Score: 1

      Put another way:

      * Netflix pays for their bandwidth * Customers pay for their bandwidth

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      In a typical peering arrangement, both sides of the link pass roughly equal amounts of data to the other side. Netflix, however, gives Cogent so much data that the peering links are lop sided. Cogent delivers a lot of content, and receives very little. In such an unbalanced situation, the side with more data to serve typically pays a transit fee for the use of the other network.

      Cogent doesn't want to pay the transit fee. If they had to pay the transit fee, they'd have to pass that along to Netflix, and Netflix would have to raise the rates they charge their subscribers.

    19. Re:It's not arrogant, it's correct. by Burdell · · Score: 5, Insightful

      Netflix pays for their bandwidth

      Well, but they don't always, at least not as much as anybody else. Several times in recent years, Netflix has switched bandwidth providers to "wanna-be tier 1" networks; that is, networks that are not as well-connected as they'd like to be because they don't really meet anybody's requirements for settlement-free peering. These providers see Netflix as leverage against their bigger competitors and appear to have sold Netflix bandwidth at well market prices in order to strong-arm competitors to provide new network interconnects.

      Large networks don't just peer with anybody. There are costs involved in each additional turn-up, both for hardware ports and for the management side. They also don't just peer at a single or few locations (since that can allow outsider actors to cause drastic changes in internal network bandwidth utilization); they require other large networks to peer in a bunch of different places. Some of the smaller networks can't afford to do that, and want to dump large traffic hogs like Netflix at already congested peering points, and then complain that the big guys didn't bend over backwards to help them.

      I've worked for small to very-small ISPs for over 18 years, and I definately don't hold Netflix blameless in this. They do things they know will impact their customers and then blame the other networks for all problems (and they aren't the only one, just one of the biggest in recent years).

    20. Re:It's not arrogant, it's correct. by MightyMartian · · Score: 1

      A road largely paid for one way or the other by taxpayers.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    21. Re:It's not arrogant, it's correct. by alen · · Score: 2

      because direct peering with ISP's means netflix can go around level 3 and cogent and save money

      it's not like they are paying AT&T and comcast and also paying their Tier 1 providers. netflix is now connecting straight from their data centers to the ISP's on dedicated fiber links and bypassing the Tier 1 networks all together

      some idiots can't seem to understand this

    22. Re:It's not arrogant, it's correct. by zerosomething · · Score: 1

      Between them Netflix and YouTube made up more than 50 percent of peak downstream Internet traffic in N America, so it is a significant issue.

      If we had true net neutrality Netflix might be the only content you could get at a reasonable speed, it would be cached all over the net. Content form Vimeo would play second fiddle to the Netflix congestion. I might not even get the content because my 18 neighbors are all watching 18 different shows on Netflix. Net neutrality doesn't solve this nor does providers paying for access.

      --
      It all starts at 0
    23. Re:It's not arrogant, it's correct. by OneAhead · · Score: 3, Interesting

      I'm not sure this is what you and GP are alluding to, but the elephant in the room here is the "metered internet" option. You know, like you get a higher electric bill if you use more electricity, a higher water bill if you use more water, like you used to get a higher phone bill if you would make more phone calls, and like the ISPs have higher costs if their customers consume more bandwidth. Ironically, a lot of US customers are vehemently against metered Internet, even though the current system amounts to some form of "socialism", and metered internet would be fairer and would arguably allow for more competition between providers, making internet cheaper for everyone except the few % bandwidth hogs. Incidentally, metered internet would also defeat all those whiny dissonant anti-net-neutrality arguments the ISPs are making.

    24. Re:It's not arrogant, it's correct. by Monoman · · Score: 5, Insightful

      AT&T can't meet their customer's demand so they are charging the other end (Netflix) for being too popular. Yeah that sounds about right.

      --
      Keep the Classic Slashdot.
    25. Re:It's not arrogant, it's correct. by frinsore · · Score: 1

      But the connection between providers isn't the justification for the deal with Comcast. Netflix wanted to put their servers inside Comcast's network using their Open Connect Content Delivery Network that you link to. If Netflix had been able to do that then the amount of traffic carrying Netflix data coming into Comcast's network from other Providers would have dropped considerably, which should have saved Comcast money. However according to this LATimes article Comcast wanted Netflix to subsidize the cost of moving traffic through Comcast's internal network.

      Basically Comcast feels they're undercharging their customers for the amount of bandwidth that their customers are using but instead of raising the cost of internet access they want Netflix to pay for it since most people are using Netflix.

    26. Re:It's not arrogant, it's correct. by unrtst · · Score: 1

      ... Netflix are aware of that and have the Open Connect Content Delivery Network, but that won't solve all the probelms.

      That DOES solve the case in point. AT&T are just finger pointing and trying to latch on to a cash cow, while gaining an unfair advantage in customer pricing.

      True net neutrality helps the little guys everywhere. Netflix noted that on the service side, as others have here, that if big companies have to pay for connectivity to the last mile to the users, small services will be hurt. It also makes absolutely no sense (services already pay for their internet access; customers already pay for theirs; there's lots of middle men, and those guys are trying to get around each other and get profit from customers on the other side).

      The other side is that a competing ISP would also have trouble. If AT&T, for example, was charging all websites for their bandwidth to the end users, then at some point they really don't have to charge the end users anything. Where's the balance? How would a new ISP charge his customers?

      The ISP tiered pricing is simply wrong if their network can't handle their customers requests. The cheapest possible plans often get you very good download speeds (ex. 15Mbps for the first 12months at $14.99/month for time warner). That's the problem right there. Their standard fee for that is $35/month, and $15 will only get you 2Mbps... which is still plenty for most people.

      I'm all for cheaper and faster internet access, but if it's a problem for them, then they should put the squeeze on their customers, not the services their custom wants. Netflix is a selling point for the ISP; something they should, if anything, be paying MORE for to get improved quality for their customers.

      The only reason they should want to squeeze netflix is, IMO, because it competes with their other services - TV. That's anti-competitive through and through.

    27. Re:It's not arrogant, it's correct. by The+Grim+Reefer · · Score: 2

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      Except we paid for the road. They got the money to build the "information super highway" Instead we got a standard 4 lane highway that was designed for traffic from a decade ago. And it didn't even go to all the places it was supposed to.

    28. Re:It's not arrogant, it's correct. by bferrell · · Score: 4, Interesting

      This same sort of thinking is what brought about the interstate commerce commission rules for railroads.

      They though that if you made more the carrier should too.

      The government slapped the carriers once before (railroads). It's time to slap the telecom carriers too

    29. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      And they pay for that bandwidth. And the providers they pay either peer with, or purchase bandwidth from the providers between you and them. Why should that bandwidth be paid for twice? There is no problem here. Honestly, there's not. That's why it hasn't been solved yet.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    30. Re:It's not arrogant, it's correct. by phayes · · Score: 4, Interesting

      AT&T keeps saying that Netflix, which is the company that most of their clients are paying more to get faster Internet access to, has to pay more because Netflix sends more data than they receive.

      It's funny but I've never seen a single AT&T statement that they should be paying money to blackblaze, crashplan, & the other cloud backup providers. It's strangely hypocritical because AT&T is clearly sending a lopsided amount of traffic to the cloud backup providers.

      --
      Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
    31. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      If the government wasn't in the business of assigning monopolies and if the tax payer wasn't already funding the installation of the highways through subsidies THAN the 'metered internet' might have a place. But as long as I'm restricted in my choice by government fiat AND I'm subsidizing the companies to build the roads too...sorry, I will pay for unlimited bandwidth & expect to get it if its offered.

    32. Re:It's not arrogant, it's correct. by K.+S.+Kyosuke · · Score: 1

      It's simple, AT&T should increase their subscription costs to pull them more in line with actual costs for keeping the infrastructure running flawlessly, or decrease the advertised technical parameters of their end user connections, or both. Blaming it on Netflix doesn't seem fair.

      --
      Ezekiel 23:20
    33. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      google has so much internet backbone they own they are moving into the last mile ISP business just to use up the bandwidth they have

      That's not how it works. Google's own services can use up the bandwidth Google has available. Having too much capacity and not knowing what to do with it is not a problem that Google has ever faced.

      There are entirely different reasons behind Google's move into the last mile. It is about proving that large scale 1Gbit/s deployments are feasible, and showing what sort of new services can be delivered on such a network. Google hope that they can create more demand for new services by first demonstrating how well they can work, if end users have 1Gbit/s bandwidth. If other ISPs decide to create a product that can match or beat the quality of Google's offering, then I believe Google will be happy with that outcome. Other ISPs don't even need to make it entirely as cheap as Google did, if they instead focus on reaching a larger fraction of the population.

    34. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      What the hell are you talking about? If your paying for 10Mb/s & I'm paying for 10 Mb/s than we both should expect to get that, it doesn't matter 1 iota what each of us is doing with it. You can watch Netflix all day & I'll download files all day, we're both capped at 10 Mb/s, the content is immaterial to the discussion.

    35. Re:It's not arrogant, it's correct. by mellon · · Score: 4, Informative

      That would be true of the major cost of providing internet service were the per-packet cost. But in fact the major cost is in installing and maintaining the lines. Next is the cost of running packets through them. That cost breaks down into network management, energy, and infrastructure. In point of fact, there is no real additional per-packet cost. What costs is having enough capacity to carry the packets. So when I buy a network connection that promises 20mbps of capacity, presumably the ISP has 20mbps of capacity for me. At which point you have to ask yourself, what does it matter whether I use the whole capacity or only part of it? Either way, I'm paying for my 20mbps, and I should get to use it.

      Of course, the ISP doesn't actually reserve 20mbps for me, at least in the U.S. They figure that for every N customers that are paying for 20mbps, they will have to configure 20mbps of capacity. This is where your talk of socialism comes in: if I actually use my 20mbps that I paid for, and you don't, then in theory you are subsidizing my network use, because there's only 20mbps between N of us (where N could be 10, 20, or even worse).

      But even that isn't correct, because it doesn't account for profit. How much of the $80/month I spend on my 20mbps connection is cost, and how much is profit? Suppose N=20. Suppose the profit margin is 90% (which it probably is). That means that 20mbps of actual capacity costs the ISP 0.1*80*N, which is $160. So the ISP is charging the customer $1600 for $160 of bandwidth. They could deliver as much as ten times the bandwidth before their profits went to zero. Chances are that the point at which I am getting Netflix, you are getting Netflix, and all our neighbors are getting Netflix is well below that cutoff, because we typically don't all watch at once.

      But even that analysis is wrong, because in fact your ISP does already have 20mbps capacity to your home which is not shared, and is not amortized across other customers. The capacity that is amortized across other customers is core bandwidth: the bandwidth that happens at the peering point, and between that point and the ISP's network distribution center near where you live. That bandwidth is really cheap compared to the bandwidth they have already delivered to the edge of the network: to you.

      So in fact it's quite likely that they can deliver full Netflix bandwidth to everyone and still make a profit. So where's your socialism in this picture? It isn't there, unless you mean corporate socialism: government-sponsored monopolies that deliver money-printing profits to those that own them, because we have no choice—we buy Internet from the local monopoly ISP, or we don't get Internet at all. And because we have no choice, Netflix has no choice. They can't go with the ISP that offers them cheaper transit, and use that to drive customers to that ISP, because in most markets there is no that ISP. There is one ISP, zero competition, and a lot of people overpaying for internet service.

    36. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Your customers pay you, as their provider, Netflix pays their provider, and it's between you and their provider to determine who, if anyone, pays who, based on the flow of traffic.

      /thread

    37. Re:It's not arrogant, it's correct. by nine-times · · Score: 5, Insightful

      Or more to the point: You can't just charge Walmart trucks because you own Target, and you want to use your ownership of the road as leverage against your competitors.

      That's the real issue.

    38. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      So? Is Netflix or is Netflix not paying for the bandwidth? That's sort of the point, Netflix isn't just plugging into somebody elses jack and letting them pick up the bill, they're paying for the bandwidth they're using. What's more, on my end, I'm also paying for that bandwidth that I'm using.

      The point is that AT&T is being paid, they're just being whiny brats about it. If they'd upgrade their equipment like they should be, this wouldn't be an issue.

    39. Re:It's not arrogant, it's correct. by kasperd · · Score: 3, Interesting

      metered internet would be fairer

      The problem is that you do not have complete control over what amount of traffic flows over your line. Paying according to the amount of traffic which other parties could be driving up, is not an acceptable situation to most customers.

      --

      Do you care about the security of your wireless mouse?
    40. Re:It's not arrogant, it's correct. by hinchles · · Score: 2

      I wonder how AT&T would feel if Netflix, or Amazon or hell even google/youtube decided that AT&T should pay them for consuming their provided content....

    41. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      It would the the flipside of what AT&T is doing here, and it would be just as wrong. I'd be cool with it if they both agreed to pay each other, though; the amounts would zero out and we'd be right back where we started. Well, except for the higher prices we'd all have to bear to cover the cost of them invoicing and paying each other for nothing. But, then, they'd agree, behind closed doors, to forgo that whole process and keep the inflated billing rates, after the fact.

      Maybe I'm just a cynic.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    42. Re:It's not arrogant, it's correct. by suutar · · Score: 1

      They should be charging the person who ordered the sofa (me), just like they charge me for everything else that comes down that road. The only reason that truck is there is me, so just go ahead and bill me. What they're trying to do is bill UPS and make UPS bill me, which will hopefully make me mad at UPS instead of making me mad(der) at how much they're overpricing the road.

    43. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Or more to the point: You can't just charge Walmart trucks because you own Target, and you want to use your ownership of the road as leverage against your competitors.

      That's the real issue.

      No.... this is more like wanting to charge per axle instead of vehicle, and Netflix _happens_ to have a lot of big trucks on the road.

    44. Re:It's not arrogant, it's correct. by Trepidity · · Score: 4, Interesting

      On U.S. mobiles phones, interestingly, both sides pay.

      On European mobile phones, on the other hand, only the caller pays, but they pay a non-neutral rate, which varies depending on the type of device the recipient has: calling mobile phones is more expensive (in some countries, much more expensive) than calling landlines.

    45. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Mr Hastings of Netflix may make arrogant propositions, but conversely Mr. Cicconi is an asshole.

      In the end, it's the customer that's important. If someone pays for access to a service and cannot receive the service due to a failure of transport, blame lies in the transport provider, not the content provider. Whoever sees this first is going to make a bundle. Google Fiber cannot deploy fast enough.

    46. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Then charge me, the AT&T customer, more for watching movies. Netflix is a major reason I buy your crappy internet service. If my usage of that service makes it unprofitable to sell your service to me, price it for my usage.

      Netflix shouldn't have to pay you. They're not using your service, I am. If you want arrogant, how about your stance that you own me and Netflix should have to pay for the privilege of communicating with your resource? (namely, me)

    47. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      I'm not sure this is what you and GP are alluding to, but the elephant in the room here is the "metered internet" option. You know, like you get a higher electric bill if you use more electricity, a higher water bill if you use more water, like you used to get a higher phone bill if you would make more phone calls, and like the ISPs have higher costs if their customers consume more bandwidth. Ironically, a lot of US customers are vehemently against metered Internet, even though the current system amounts to some form of "socialism", and metered internet would be fairer and would arguably allow for more competition between providers, making internet cheaper for everyone except the few % bandwidth hogs. Incidentally, metered internet would also defeat all those whiny dissonant anti-net-neutrality arguments the ISPs are making.

      Except that's not how the internet works.

      There are a finite number of Kilowatt hours of electricity produced every day, and typically some form of fuel is consumed to produce it. Water is likewise a finite resource, and our water bill includes the cost of sewage treatment, something I think you'll agree is very desirable.

      The internet has effectively unlimited amounts of gigabytes to go around. The only limit is on how fast they can travel, since everybody's gigabytes share the same transfer mechanism.

      Simultaneous data transfer is the limiting factor, not total data transferred over time, yet we are billed for data moved with no consideration to if the data we requested came from within the ISP, or the state of traffic at the time we requested. If you want to play internet traffic cop it should work both ways, when traffic is low I want cheap/free access if you are going to charge me more for high traffic time.

      Speaking of Capacity, the reason so many of us feel entitled to simple access instead of a metered line is because we paid for it. ISP have gotten billions of tax dollars from the government for the express purposes of building out the infrastructure they want us to pay three times to use. That's right, they got paid to put it up, and now want to triple dip billing.

    48. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      I might not even get the content because my 18 neighbors are all watching 18 different shows on Netflix.

      I think you are confusing "net neutrality" with "first come, first served". IE, you think that if I get home and get on Netflix before you get home and get on Vimeo, I will get all the bandwidth and you'll be left with nothing.

    49. Re:It's not arrogant, it's correct. by Fieryphoenix · · Score: 2

      Doubtful AT&T can't meet their customer's demands. Congestion is not an issue.

    50. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      That's a nifty analogy, but there's no need for analogies. The _fact_ is that the way peering usually works historically is that pricing accords with where the packets originate, not the initiator of a TCP session. If you send more packets to your peer than you receive, your peers might charge you a fee; whereas if the exchange is equal, ideally neither party pays the other.

      I'm all for net neutrality in principle. But there's the thorny question of how to square net neutrality with customary pricing for peering. And there's enough obscurity there to allow AT&T, Comcast, et al lots of dark corners to be evil.

    51. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 1

      Not exactly...a 10GB download can be sent in bursts of varying from 100mbps to 1kbps. Someone streaming a movie expects a constant few mbps and will complain otherwise.

      The need for a real-time guarantee does reduce the flexibility of the service provider.

    52. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 1

      How does 1GB of HD video do more 'damage' vs 1GB of cat pictures?

    53. Re:It's not arrogant, it's correct. by thaylin · · Score: 1

      They dont pay both sides, like ATT wants.

      --
      When you cant win, ad hominem.
    54. Re:It's not arrogant, it's correct. by ZombieBraintrust · · Score: 1

      Such an arrangement would benifit content consumers over content creators. It would allow nations and ISP's that don't produce content to tax those that produce content. There are whole countries that want to use the peering setup as you described to fund their infrastructure. They want American companies to pay the whole bill.

    55. Re:It's not arrogant, it's correct. by Dogers · · Score: 1

      I'd love to see what AT&T would say if one of those companies suddenly piped up :)

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    56. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      What happens when Netflix starts giving discounts to comcrap users?

      I wonder what drama that would cause...

    57. Re:It's not arrogant, it's correct. by sjames · · Score: 0

      Balanced traffic is a valid concern only when mutual transit is involved. Otherwise, for every byte to the ISP's network, there is a corresponding request from one of the ISPs paying customers.

    58. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Metered internet billing + ISP-side customer-controlled firewall: what we need.

    59. Re:It's not arrogant, it's correct. by NormAtHome · · Score: 1

      Exactly and in the end the consumer is going to end up paying more as the various services have to raise their rates to offset the additional costs.

    60. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Appropriate? Yes. Correct? Almost. When the data is on Netflix's network, it's in a Netflix truck. When it reaches their provider's router, it gets moved into their provider's truck and they pay their provider to deliver it to the end user. When it arrives at, say AT&T's network, in the Netflix's provider's truck, it is the provider, and not Netflix, who is asking AT&T to complete the delivery; and Netflix's provider is paying AT&T to do this.

      Think of it like FedEx SmartPost. You drop the package off with FedEx, who passes it off to USPS, who then delivers to your recipient. You don't pay USPS for their leg of the delivery, FedEx does.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    61. Re:It's not arrogant, it's correct. by amiga3D · · Score: 1

      Bullshit! I pay through the nose for internet access with a bandwidth cap. I pay! I want what I paid for and that's my bandwidth. When these greedy fucking money grubbing bastards charge Netflix and whoever for delivering content to me on bandwidth that "I" PAID FOR then they basically double charged me for the same service. NO! It is NOT acceptable. I hope James Cicconi's asshole grows shut. Fuck him. I'm fed up with these bastards. They overcharge us then go back and overcharge us again. If you think that's okay you are an idiot.

    62. Re:It's not arrogant, it's correct. by schnell · · Score: 5, Interesting

      NetFlix using a Tier 3 provider would resell AT&T, who would charge the Tier 3 provider for bandwidth, which would essentially charge NetFlix for bandwidth

      Kinda sorta. Here's the problem which makes the situation a little more nuanced than it appears at first. Think of this more like one of those occasional disputes you see where "DirecTV stops carrying ESPN because ESPN jacked up their rates" or something like that. One side wants to pay less, the other side wants to charge more, and it's tough to easily pick out who the good guys and bad guys are in that kind of situation.

      Netflix buys most of their bandwidth from Cogent. Cogent has historically been the Wal-Mart of bandwidth - they sell dirt cheap but scrimp on quality to do it. The Tier 1 ISPs have said to Cogent, in effect, "you are not our peer. You will buy bandwidth from us rather than getting it for free," and Cogent doesn't want to pay. That constrains the bandwidth between Cogent and the Tier 1s (which Cogent is definitely not).

      Netflix has only gotten involved because, as Cogent's #1 customer, they are feeling the pinch of Cogent's bandwidth crunch. Remember, Cogent is no stranger to peering disputes. The Tier 1s have said to Netflix, in essence, "we aren't upgrading our bandwidth to Cogent for free, and if you want your customers to have better performance you can connect to us directly instead of going through Cogent. Oh, and by the way, you're a content provider (albeit a huge one) and not our ISP peer so don't expect to get it for free, either."

      It may sound like a Net Neutrality issue, but settlement-free peering vs. purchased transit has been a contentious issue since the mid-'90s if not before, and it has always been sorted out among the ISPs rather than being regulated by the government. Peering and its market dynamics have always been one of the most sensitive topics among ISPs, but it has almost always been dealt with inside the industry without exposing its gory details to the public - just like how you rarely hear about those "cableco vs. content network" disputes even though those negotiations are always going on... you only hear about it when the crap really hits the fan.

      It's a perpetual issue that pits the Tier 1s vs. the Tier 2/3s, and always will be: the smaller ISPs want free peering of course, and the bigger ones don't want to give it away. The Tier 1s argue that they have to pay for a much larger network infrastructure than the Tier 2/3s so they are in effect subsidizing the networks of the smaller ISPs if they peer for free; the Tier 2/3s argue that they shouldn't have to pay to connect to other networks when the end result is (theoretically) better service for everyone.

      It is a dangerous and very slippery slope to cast peering as a "Net Neutrality" issue because it invites the government to stick its nose into a topic that the world's ISPs have quietly managed among themselves for many years. "Settlement-free peering for all" sounds good at first blush but creates a dangerous precedent potentially for content providers to be considered as networks. What if CNN.com decides it doesn't want to pay for bandwidth anymore and wants all the ISPs to peer with it as a network for free? What happens when bobshardwarestoreintuscaloosa.com makes the same request? Where do you draw the line? Why should any business pay for transit bandwidth when it is providing content that users want to see? You could theoretically see the whole cost of the Internet flip onto the consumer ISPs if you follow the model to its furthest conclusion.

      Another side note - it's not entirely true that "subscribers pay for their Internet, and content providers pay for their hosting." Larger ISPs factor in the revenue of paid transit to their business model - and they *always* have, since the earliest days of the commercial Internet - so that is in effect

      --
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    63. Re:It's not arrogant, it's correct. by suutar · · Score: 1

      I don't think it's really a peering issue, much as they want folks to think it is.

      • In normal peering operations, traffic flows both ways in approximately equal amounts. Netflix goes to residential accounts; residential accounts can't run servers. Given a lack of servers, anyone expecting a residential account individually or a collection of residential accounts in aggregate to have anything resembling equal upload and download is being stupid.
      • In (most) normal peering operations, traffic can be on the network whose endpoints are not on the network. Virtually all Netflix traffic on ATTs network has an endpoint in ATTs network - the subscriber.
      • In (most) normal peering operations, traffic can be initiated from either side. Netflix isn't going to send me video streams without me requesting it.

      No, this isn't a typical peering situation. They shouldn't be trying to ding Netflix for sending more than they receive, they should be trying to ding me for requesting more data. But they don't want to do that because they want to keep pretending they charge less for data than the other guy. So instead they try to charge me _through_ Netflix (they know durn well that the only person Netflix can charge to pay this fee is me, so it's coming out of my wallet either way) in the hopes that I'll get mad at Netflix instead.

    64. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Right and that peering would be between AT&T and Netflix's provider, not AT&T and Netflix. Netflix pays their provider already; if, as a result of the peering imbalance, Netflix ends up costing their provider more, then it is up to that provider to negotiate a better contract with Netflix to compensate for that. AT&T should never collect a penny from Netflix unless Netflix is connecting directly to AT&T's network.

      To put it another way, peering only considers one level when determining where a packet originates. That is to say, it doesn't matter of Bob passed the packet off to Joe to pass along to Mary, as far as Mary is concerned, the packet came from Joe; as far as Joe is concerned, yes, the packet did come from Bob, but Mary didn't accept the packet from Bob, Joe did, so Joe gets to charge Bob for the delivery and Mary gets to charge Joe for the acceptance. Bob and Mary don't even need to be aware of each other.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    65. Re: It's not arrogant, it's correct. by amiga3D · · Score: 2

      They can't find a way to double fuck you over cat pictures but when you want a movie they have another source of revenue they can hit. If they charge you for bandwidth and then charge Netflix for the same bandwidth you already paid for it's win-win for them. Free money for AT&T! At the expense of their customers who they could give a flying fuck about. You exist to line James Cicconi's pockets with money and have no other reason for existence. I remember back in the 70's how AT&T fucked over their customers until finally they got torn down by an Anti-Trust suit. 40 years later it's time for a repeat.

    66. Re:It's not arrogant, it's correct. by Xipher · · Score: 1

      What about when there isn't a provider between Netflix and AT&T? This is the case when Netflix wants to peer directly with an ISP and offers caching appliances that the ISP can host inside their network. This removes the "provider" from Netflix.

      --
      I don't know everything.
    67. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 1

      Except the costs are relatively tiny (like in the thousands for companies that routinely drop millions on infrastructure).

      Also you cant honestly expect us to believe that Cogent thinks it can strong arm Verizon, ATT, and Comcast... for what.... some extra peering connections?. Cogent market cap is like $2B vs Verizon's $200B. And The ISPs are the ones demanding extra money.

      Not to mention Netflix provides their OpenConnect CDN box for free.
      https://signup.netflix.com/ope...

      So yeah. I have heard it the other way around. That large providers wont open ports as a way of dragging their feet and putting the blame on others. Notice also they aren't complaining that Netflix is not following peering guidelines by peering at the appropriate places, they are just straight up asking for money. If this was purely some kind of bad network management on the part of Netflix/Cogent, why is that not the complaint? The complaint we hear from ISPs is they "have to pay their share" which is saying they think double dipping is appropriate.

    68. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Cogent doesn't want to pay the transit fee. If they had to pay the transit fee, they'd have to pass that along to Netflix, and Netflix would have to raise the rates they charge their subscribers.

      And that would be fine, honestly. AT&T wants Netflix to foot the bill for this, when in reality, as far as AT&T's peering is concerned, the data is coming from Cogent and Netflix may or may not even exist. That's what the problem is.

      It's inconsequential that Netflix will ultimately pay for the bandwidth; the point is that Cogent should pay AT&T and Netflix should pay Cogent; Netflix should not ay AT&T, nor should AT&T expect them to.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    69. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 4, Interesting

      Netflix has vast peering arrangements. My company peers with them for our residential customers. It's the only way you can get "SuperHD" content.
      I suspect what's going on here, is that ATT's customers are pressuring them for SuperHD (peering-only) content, and NetFlix is saying to ATT: "Sure, just peer with us, and they can have it!"
      I suspect that ATT is pissed that they would be forced to peer freely with a mere content provider (as well as perhaps lost revenue for any other lopsided peering arrangements the traffic may transit to get to ATT), and are telling Netflix that if they want to enable the chunk of their customers on ATT to have the higher-bandwidth content, the Netflix can pay ATT for the peering link.

    70. Re:It's not arrogant, it's correct. by maccodemonkey · · Score: 1

      The news about Apple being willing to pay for AppleTV to have a "special line" to consumers is particularly worrisome and strikes the core of the problems with anti-net neutrality positions: they create unfair markets with barriers to competition. Netflix may complain, but they can (and do! with Comcast) pay if they have to. Apple can afford to pay the gatekeepers as well.

      It's worth noting that the Apple/Comcast rumor is quickly being debunked, but let's peel this onion anyway, because this is a tricky one, even for Net Neutrality people.

      The rumor was Apple was negotiating for TV channel streams from Comcast, much in the same way a cable box get's a steam of Comcast's content. Is this something new and alarming? Of course not. Comcast has been doing this for years. Companies such as NBC, ABC, HBO, Fox, Time Warner, etc etc have been paying to get a prioritized pipe of years. It's the pipe all your normal cable channels come through. It's entirely independent of your internet pipe, and prioritized.

      Would you accuse HBO of violating Net Neutrality because they have a higher priority than YouTube on Comcast's wires? Well, probably not, because HBO's traffic is not internet traffic. Apple getting access to their own feed of Comcast's live channel content would probably be related to Net Neutrality in a very similar way.

      Eventually once cable tv traffic looks more like IP traffic and H.264 streams, this may get more of a examination. But it's generally accepted, even with Net Neutrality, that Comcast's internal non-web traffic doesn't fall under Net Neutrality. It's like saying cars and trains should follow the same laws just because a set of tracks runs next to a road.

    71. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      No, this is more like charging Netflix for their own non-congested vendor entry into the ATT Super-Mart (customer-base).

    72. Re:It's not arrogant, it's correct. by future+assassin · · Score: 1

      If an ISP advertises a package and I pay $50 for 25mbit down and 500GB of traffic pert month I'm paying to transfer and send any data I want (as long as its not breaking any local laws) not just the approved by the ISP Data.

      Therefore when I connect to Netlifx I dl data with the bandwidth and traffic I paid for. If ATT infrastructure can't handle the evolution of internet technology they need to take some of those profits and instead of dividends keep up with the technologies.

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    73. Re:It's not arrogant, it's correct. by GameMaster · · Score: 5, Insightful

      AT&T can't meet their customer's demands while making the dramatically increased profits that they desire. There, fixed that for him.

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    74. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      That would make AT&T the provider, would it not? Nice try, though.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    75. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Yeah, there's more at stake than the double-dipping issue you're raising.

      There's also the fact that

      (1) these companies essentially rely on public right-of-way for their business, and
      (2) if they can give preferential treatment to one packet, why not others?

      These aren't trivial, because both of these basically relate to why they have common carrier status.

      The first thing is important because it reveals that their operations are based on a form of "payment" from the public (i.e., the government and citizens in general), which obligates them to operate as a public utility.

      The second thing is important, because it reveals that they can't pick and choose about their responsibility for packets. ATT saying they want to privlege Netflix over video service B but not do anything about child porn on their network basically amounts to them approving of child porn, and more importantly, means they are assisting in child porn distribution.

      I'm fine with doing away with net neutrality as long as ISPs (1) can be charged by landowners and municipalities for land use, with no restrictions under free market conditions, and (2) are responsible for *every* packet on their network.

      I'm tired of ISPs arguing that they want freedom and free markets, when what they really want is preferential treatment. If they really wanted free markets, I'd be charging them for use of my land, and they'd be criminal defendants as accomplices in child porn distribution.

      It's time to reclassify ISPs as common carriers. Why this hasn't been done already is beyond me. (Alternatively, I'm surprised someone hasn't followed through with the implications of 1 and 2 above--maybe it's time for me to start demanding payment for use of my land?)

    76. Re: It's not arrogant, it's correct. by alen · · Score: 1

      Its who they pay

      Apparently its ok for netflix to pay cogent or level 3 to send data to comcast or AT&T

      But if they connect directly to comcast or AT&T, INSTEAD of the traditional transit networks its somehow bad

    77. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      No. ATT is not double-dipping.
      Netflix is pressuring ISPs to facilitate free-peering with them by offering a tier of service that is only available to customers of theirs who have ISPs that peer with Netflix. It's called SuperHD. I setup my company's link with them.
      It is "free" for both sides (interconnect costs excluded, of course).
      ATT doesn't believe they should provide a wide-open highway into their network to Netflix for free.
      Personally, I don't even see this as a case of net neutrality. If net neutrality is forcing ISPs to accept peering arrangements with anyone, then take me off the list of supporters.

    78. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      Those companies aren't pressuring ATT for a free-peering cross-connect.

      Freedom is a well-informed sheep ignoring the banshee calls of well-armed, yet ignorant ones.

    79. Re:It's not arrogant, it's correct. by BronsCon · · Score: 3, Informative

      That's all fine and dandy; then AT&T customers who want access to that content can move to another provider. My ISP was literally the first on board for SuperHD peering; Netflix provides the equipment, the uplink (bandwidth), and the content, at no cost to their peer, why should they be paying to provide this?

      But, that's not actually the issue here. AT&T wants Netflix to pay them for their data that hits the AT&T network via their peering agreement with Cogent. Figure that one out... Netflix pays Cogent, AT&T users pat AT&T, AT&T peers with Cogent; if there's an imbalance in that peering agreement, that's between AT&T and Cogent, not AT&T and Cogent's customer.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    80. Re:It's not arrogant, it's correct. by postbigbang · · Score: 5, Interesting

      This isn't telephony. It's a data communications issue, upon which rides both time-sensitive data (audio, video) and non-time sensitive data. AT&T's arrogance is that of Southwestern Bell's (remember, this is not the AT&T of old) vision for profits.

      It's a monopolistic view. It's the old "we own the highway" versus "we gave you rights of way because you were a municipal and regional utility". I say we reclaim the rights of way, and meter AT&T for their belligerence. That'll fix it for everyone.

      --
      ---- Teach Peace. It's Cheaper Than War.
    81. Re:It's not arrogant, it's correct. by ScentCone · · Score: 1

      It's simple, AT&T should increase their subscription costs to pull them more in line with actual costs for keeping the infrastructure running flawlessly, or decrease the advertised technical parameters of their end user connections, or both. Blaming it on Netflix doesn't seem fair.

      How is that not fair? External networks like Netflix are hugely disproportionate users of ISP's infrastructure. Who should be "blamed" for that flood of traffic if not hte ? If those specific sources of traffic, on the other side of a peering relationship, weren't there, this wouldn't be an issue. A handful of traffic sources are burning up the lion's share of the bandwidth, and making money off of their customers while doing so. Why should an AT&T customer who doesn't drink from the Netflix firehose have to subsidize the people that do? Let Netflix and AT&T work out those costs, and let the people who actually consume the traffic pay the tab in the form of slightly higher prices for the entertainment they want from Netflix. Expecting their neighbors pay for it, instead, is pretty jerky.

      --
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    82. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Cogent doesn't want to pay the transit fee.

      Of course not, and they really shouldn't have to. If AT&T's customers didn't have such demand for Netflix content, that traffic wouldn't exist. AT&Ts side of the peer is already being paid for by me and millions of others. Peering agreements as originally designed don't make sense anymore.

    83. Re:It's not arrogant, it's correct. by rsborg · · Score: 1

      You know, like you get a higher electric bill if you use more electricity, a higher water bill if you use more water, like you used to get a higher phone bill if you would make more phone calls, and like the ISPs have higher costs if their customers consume more bandwidth.

      Let's see the equivalent of the public utility commissions, or FERC, and then we calk talk about metering. I don't trust AT&T to play straight with metered billing.

      AT&T is the same company that was alleged to have randomly pushed data usage on iPhones that were off [1]. My wife who was until recently on AT&T had several months where her account would get slapped with a data charge late due to unexplained usage late in the cycle. After a year or so of this abuse and a couple of hundred dollars later we finally all switched to TMobile non-contract, and strangely (hmm) have never seen the data usage with the same pattern (not that it would matter now - at worst she'd be bumped to 2G speeds, not billed for an extra allotment of data). Couldn't be happier since the switch. TMobile is great, and compared either ATT or VZ, has much better service and aren't jerks. If you get decent TMO signal where you are, I highly recommend the switch.

      To this day, AT&T still won't explain to you the data specifics - it's hard to correlate what's on the bill detail vs. what's on the phone log.

      [1] http://arstechnica.com/apple/2...

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    84. Re:It's not arrogant, it's correct. by sjames · · Score: 1

      Electricity and gas are metered based on what causes costs. That would be 95th percentile of the RATE, not the transferred bytes.

      They already have tiered plans based on the (largely unattainable in practice) peak rate.

    85. Re: It's not arrogant, it's correct. by BronsCon · · Score: 1

      Replace "Comcast users" with "customers of ISPs who have partnered with Netflix to provide content" and I'm on board. As it is, those of us with non-asshole providers already get more bang for our buck, because we can access SuperHD content and typically don't deal with the dropped connections users of other ISPs have to face, as a result of the content being served locally.

      AT&T doesn't want this, though, because they don't want to reduce incoming traffic (which they could do by letting Netflix put their equipment in AT&T's facilities, which they'll do free of charge), they just want to charge more for it.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    86. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      They would null route them before they'd pay up.

    87. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 5, Interesting

      I'm the senior network engineer at an ISP. Your assertion of no-cost is utterly incorrect.
      Here in the Seattle area, cross-connects typically happen at the Westin building. I assure you it's plenty expensive for cross-connects before you even factor in equipment (multiple 10Gbit optics and line-card ports).

      The issue is actually that ATT wants Netflix to go chew cud in response to Netflix saying "You should peer with us for free."
      http://www.reuters.com/article...

      "“Netflix believes strong net neutrality is critical, but in the near term we will in cases pay the toll to the powerful ISPs to protect our consumer experience. When we do so, we don’t pay for priority access against competitors, just for interconnection,” he wrote, in relation to the ongoing debate over the future of net neutrality and paid agreements between Netflix and Comcast."

      You're being caught up as sheep in a war between capitalist organizations. This isn't even an issue of net neutrality.
      ATT isn't asking Netflix to pay for traffic transited into their network.

      "In his original post, Hastings said internet service providers should give content companies adequate network connections for free, and singled out Comcast for supporting "weak" internet traffic rules."

      Regardless of your *opinion* on costs, forcing an ISP to interconnect with someone else is *not* net neutrality. Net neutrality is simply the buzz-word being used by the combatants to rally their supporters.

    88. Re:It's not arrogant, it's correct. by Dcnjoe60 · · Score: 1

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      Except this isn't about cars and eighteen wheelers. A bit is a bit is a bit and it costs just as much to send 1GB of data as it does 1GB of movie. AT&T wants to charge more to popular services instead of charging more to the consumer of those services. Their thinking is that Netflix can pass on the higher fee whereas if they raise their fee to the consumer for the added bandwidth, the concern is that the consumer will go to a different provider and they don't want that.

      We wouldn't need net neutrality if there were true competition. But there is not. The only real consumer choices are DSL through your phone company, a regulated monopoly or cable modem through your cable company, another regulated monopoly. Have mediacom and want comcast, too bad, not an option. Don't like your DSL provider, too bad, there, too.

      Maybe it is time to look at the information highway like any other highway. Highways are built and operated by the government for the benefits of all citizens and businesses. Maybe it's time to get private interests out of providing public infrastructure.

    89. Re:It's not arrogant, it's correct. by Adriax · · Score: 1

      Plus, no ISP would want to drop their revenue. So expect a static "line maintenance" fee pretty close to what you already pay and a per gig rate that brings a normal user up the rest of the way.
      Of course "normal" usage would be calculated by cutting out the extreme data users (as defined by people who use 100x or more the data as the lowest user, which would probably be an inactive connection or a restaurant that logs maybe 100meg a month running credit cards). Sure that would account for 90% of their customer base and make any statistician vomit, but that's irrelevant and should not be discussed by right of trade secret laws and DMCA takedown prenotices and you will be sued and thrown into liars prison so be scared and be quiet before you get labeled a terrorist for interfering with god given right to profit.

      Yeah that last bit kinda ran away from me.

      --
      I don't suffer from insanity, I enjoy every minute of it!
    90. Re:It's not arrogant, it's correct. by sjames · · Score: 1

      The ISPs will be paying less than $4/Mbps committed rate with 5 nines uptime. However, what they sell you has no commit and little or no uptime guarantee.

      They do have infrastructure costs, but that costs the same whether you use it or not.

    91. Re:It's not arrogant, it's correct. by sjames · · Score: 2

      Not overselling 100:1 is what fixes that problem. Failing that, fair queueing can make it work.

    92. Re:It's not arrogant, it's correct. by BronsCon · · Score: 3, Informative

      I never said there was no cost, I said there was no cost to the peer, the party who is not Netflix, that Netflix foots the bill for it, or, to put it another way, that Netflix pays and AT&T (or whichever peer) does not. My ISP peers with Netflix in this manner; I've had many a conversation with the CEO of my ISP, who, of course, was directly involved in setting up this peering. In fact, my ISP was literally the first ISP to jump on board for this. According to my, in my opinion very reliable, source, Netflix pays for the rack space, the power, the backhaul, and the interconnect between their equipment and ISP equipment, including paying for rack space and power for ISP equipment and, in cases where the ISP does not have appropriate equipment in place already, is willing to pay for part of that, as well. In the case of my ISP, they've been growing rapidly for the past few years, so they actually had equipment in place already, but if they did not, Netflix would have covered it.

      Seems pretty reasonable to me. Also seems like that article is putting a spin on what Hastings said.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    93. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      ... should be paying money to blackblaze, crashplan, & the other ...

      Just to save anyone looking up your cloud providers some trouble, t's "BackBlaze", not "BlackBlaze". BlackBlaze is a completely different type of site, I typoed it once in the office and one of my coworkers watching over my shoulder nearly fainted...

    94. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Put another way:

      * Netflix pays for their bandwidth
      * Customers pay for their bandwidth

      Wrong.

      Netflix pays their upstream providers for bandwidth to "the internet".
      Customers pay for access to their ISP's network.
      Their ISP pays their upstream providers for bandwidth to "the internet".

      What people don't understand about this whole debate is that Netflix is moving traffic on the scale of a large ISP. But instead of buying more bandwidth, or purchasing from additional upstream providers, they yell about other people's networks not having enough bandwidth. Then they go to large ISP's and try to setup a direct peering relationship, but expect the ISP to foot the entire bill, which is just stupid- if they want to act like a Peer then they need to expect to share in the costs just like in any other Peering/Transit relationship. They don't use CDN's, such as Akamai, because they don't want to pay Akamai like everyone else who uses such services.

      Frankly speaking, nobody is fully in the right or wrong in this particular debate. Sometimes you have problems streaming because your ISP doesn't have enough core or edge bandwidth, sometimes it's because Netflix doesn't have enough bandwidth.

      The only place where net neutrality enters the debate is:
      a) If an ISP is specifically throttling netflix traffic
      b) If an ISP wants excessive fees for setting up a peering agreement.

    95. Re:It's not arrogant, it's correct. by kasperd · · Score: 1

      Metered internet billing + ISP-side customer-controlled firewall: what we need.

      Sounds like a good idea. But I don't expect to ever see it happen.

      --

      Do you care about the security of your wireless mouse?
    96. Re:It's not arrogant, it's correct. by wyattstorch516 · · Score: 1

      Why should they charge the user more? If I download an equivalent amount of data from various sources around the Internet that don't overload the ISP am I going to get charged more? The ISP last mile network is what end users pay for, that is not where the congestion is here. If Netflix is having problems they should be complaining to their ISP not mine. If they can't get the QOS they need then they need to find a new provider.

    97. Re:It's not arrogant, it's correct. by JASegler · · Score: 1

      Okay let's say it is a road.

      Netflix paid company A to move X trucks across the road.
      Consumers paid company B to receive Y trucks to their house.

      It is between company A and B to sort out what they will pay between each other.
      If the cost is too high for company A they are free to pass the increased cost onto Netflix.

      Just like NetFlix is free to go to company C to get a better deal.

      To put this into a more concrete absurdity.. Let's say you have a gated community with an HOA. Guard shack, the whole works.
      The HOA could pass a rule that in order for any packages from Amazon to be delivered Amazon must pay $10 per package to the HOA.
      It is their road they are using. They can't get it unless they go by the guardshack, etc.
      Just as absurd as Netflix paying the consumers ISP to get their internet traffic delivered.

    98. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      External networks like Netflix are hugely disproportionate users of ISP's infrastructure.

      No they're not. Netflix doesn't use your ISP's network, Netflix sends traffic to their upstream providers, who then send that traffic to your ISP, often via one or more transit providers. The ISP's customers are the ones who are using the ISP's network, and in most cases the ISP's simply don't purchase enough bandwidth from their upstream providers to sustain the demand THEIR subscribers are placing on the network.

      Why should an AT&T customer who doesn't drink from the Netflix firehose have to subsidize the people that do?

      Because internet traffic is internet traffic is internet traffic. It doesn't matter if that traffic is Netflix, Bittorrent, email, youtube, World of Warcraft, etc. The reason you have to "subsidize other users" is because you didn't buy a dedicated internet pipe, you purchased shared access. If you don't want to keep paying for other people's bandwidth, then call up your ISP and get pricing for a dedicated bandwidth connection, which they DO offer. But you'll discover that it costs a whole lot more, especially if you want that bandwidth to be dedicated all the way to their peers/providers as opposed to just reserved within the ISP's network.

    99. Re: It's not arrogant, it's correct. by thaylin · · Score: 1

      Yes it is bad. It is like us having to pay ATT, Sprint, TWC, Comcast, and every other network just so I can transfer data from my computer. In other words it is counter to everything the internet has been since we did away with pay per minute connections.

      --
      When you cant win, ad hominem.
    100. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 3

      I see our disconnect.
      Again, I am a senior network engineer at an ISP who does have Open Connect connectivity.
      They do not pay for a rack, they do not pay for a backhaul. They do not pay for anything in fact. All connectivity is our responsibility.
      There are 3 tiers of Open Connect, simple free peering, peering + caching hardware, and just caching-hardware filled via transit.

      We connect via BGP to the caching hardware, and we connect via BGP to Netflix over the peering link.
      I wouldn't call anything in the arrangement high-cost (in fact, it's a benefit to us, we save transit bandwidth, and we're small enough for that to matter)

      I'm not going to call you a liar regarding what you say about CEOs, but in my position, I've sat at conference tables with every large ISP operating in the Seattle area. I also setup our Open Connect system with my bare hands, every single aspect of it (Yes, that is all the ISPs responsibility).

      I'm not making this up. I also don't consider it a bad deal. But I refuse to call the refusal to play an aspect of Net Neutrality.
      The article isn't spinning Hastings words- those *are* his words. He believes every ISP out there should peer with him for free. From a logical perspective, I'd say he's pretty much right, and the deal is more than resonable. I simply refuse to acknowledge he has the right to force me into the arrangement.

    101. Re:It's not arrogant, it's correct. by wyattstorch516 · · Score: 1

      Its 10 Mb/s to the ISP, not 10 Mb/s to every single server on the face of the Earth. If Netflix can't get the traffic to your ISP fast enough then they need to find a provider who can.

    102. Re:It's not arrogant, it's correct. by thaylin · · Score: 1

      And in the real world I dont pay on my end for them to access roads, if we wanna compare it to the real world, the suppliers pay for all of that.. So is ATT going to give us the internet access for free to measure up with this analogy?

      --
      When you cant win, ad hominem.
    103. Re:It's not arrogant, it's correct. by phoenix_rizzen · · Score: 1

      Since when does Netflix have their own datacentres? Everything Netflix does is hosted in the Amazon cloud.

    104. Re:It's not arrogant, it's correct. by ScentCone · · Score: 1

      Because internet traffic is internet traffic is internet traffic. It doesn't matter if that traffic is Netflix, Bittorrent, email, youtube, World of Warcraft, etc.

      But this particular kind of use of it absolutely dwarfs everything else. Streaming media is a huge payload.

      And, come on now, tell the whole story. For AT&T to be able to deliver Netflix's data all the way to the home routers of their customers, they also have to maintain arrangements with other carriers to handle that data as it comes in from Netflix. Those peering arrangements are not free, just like maintaining that last mile to their end user customers isn't free.

      Meanwhile, the guy who buys bandwidth and uses it for a less Netflix/YouTube-centric array of connections absolutely is going to be asked to contribute to his neighbor's entertainment costs if the GP has his way and AT&T raises their rates across the board to deal with the behavior of a subset of users and remote content sources.

      --
      Don't disappoint your bird dog. Go to the range.
    105. Re: It's not arrogant, it's correct. by VTBlue · · Score: 1

      It's actually not their road. Each step of the way, local state and federal government has allowed them to build, often times with significant subsidy and tax breaks. We have sanctioned their monopoly/oligopoly, and now it's time to break it up.

    106. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      If net neutrality is forcing ISPs to accept peering arrangements with anyone, then take me off the list of supporters.

      Net neutrality does not force ISPs to accept peering arrangements of any kind, nor is Netflix demanding ISPs be forced to do so. Netflix wants traffic that goes through an in-between ISP to be treated the same as all other such traffic. They don't want to pay a premium to not have their traffic artificially crippled by AT&T once it enters their network.

      But, of course, you already knew that. Next time, try your weak arguments on a less educated crowd.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    107. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      THIS IS NOT ISDN.

      There is no practical way to do what you are suggesting. Aside from some kind of invasive surveillance, there is no way to differentiate between solicited and unsolicited traffic in IP networks. In ISDN sure, there is the dialed party and the dialing party, and the dialing party always pays. This is not ISDN. But not-withstanding that, even if it was ISDN, and not IP, the dialed party still has to pay for the required number of lines (D-channels) to support their incoming call volume, even if they don't have to pay for the calls.

      What you and the other Netflix siding idiots are saying, is that I should have to pay for Pizza Hut's telephone lines, because as a residential telephone subscriber I potentially get the benefit of being able to order pizza from Pizza Hut. Sorry I prefer Domino's (Youtube), so why should I have to pay Pizza Hut's (Netflix) telephone (internet) bill?

      Netflix is not "being punished", they are being told, flatly, that if they want more capacity, they will have to pay for it, like everybody else.

    108. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 0

      You're just making shit up. ATT has not demanded that Netflix pay them for traffic that has transited in their network, nor has anyone provided any conclusive evidence that Netflix traffic going into ATT via transit is discriminated against.

      http://www.reuters.com/article...

      "(Reuters) - AT&T on Friday dismissed Netflix's recent call for free interconnection as an arrogant and unfair attempt to force others to pay for the content provider to gain access to faster broadband speeds and better services."

      FTFA (you read that, right? ;) :
      "Netflix believes strong net neutrality is critical, but in the near term we will in cases pay the toll to the powerful ISPs to protect our consumer experience. When we do so, we don’t pay for priority access against competitors, just for interconnection"

      As a tech-savvy netizen, i expect better from you. Be informed before you speak. This is what I do for a living.

    109. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      In a typical peering arrangement, both sides of the link pass roughly equal amounts of data to the other side. Netflix, however, gives Cogent so much data that the peering links are lop sided.

      That's something for the peers to negotiate between themselves. AT&T can negotiate a better peering arrangement with Cogent, which would then be free to raise prices on Netflix. That's the way to do it without violating neutrality.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    110. Re: It's not arrogant, it's correct. by alen · · Score: 1

      you do have to pay, you pay your ISP to upload data to the cloud or someone else
      used to be that every business had an ISP or paid a tier 1 network directly. with netflix and youtube doing over 50% of the internet traffic it only makes sense to send data directly to ISP's

    111. Re:It's not arrogant, it's correct. by BronsCon · · Score: 2

      Very interesting. I might just have to call him on that next time I talk to him, then. It's also possible that this was the case for this ISP, given that they were the first on board; it may have been stipulated that Netflix would foot the bill in exchange for being allowed to use my ISP as a testbed for the platform. It may also no longer be the case, I haven't spoken with him in nearly 6 months at this point.

      It does appear, now, that they only provide the equipment.

      That said, what Netflix is actually offering is a way to offer your customers a feature which they do not charge more for, which may not be available through competing ISPs (e.g. I pay Netflix $7.99/mo whether or not I have access to this feature; and if I was with AT&T or Comcast, my other two ISP options where I live, I would not have that feature, SuperHD), as well as a way to greatly reduce the amount of data you have to serve to your customers from external sources, by providing free hardware and access to their CDN, from which you can serve Netflix data to your customers. So, then, even if they don't pay for backhaul, rack space, or power, I'm not sure why any ISP serving any significant number of Netflix subscribers would *not* want to participate; surely, the upkeep on the Netflix equipment costs less than the equipment and transfer required to serve the same data from an external source?

      Clearly, I don't know all of the details, so if I've left anything out or gotten anything wrong here, please correct me. I don't see where they're forcing anyone to do anything, here; it's not cost-effective for them to serve SuperHD content over Cogent, so they cam up with another way to do that, for ISPs who wish to make the feature available for their customers.

      The net neutrality issues effectively have nothing to to with Open connect or SuperHD, though; AT&T is bitching about the amount of traffic coming over Cogent's links and trying to get Netflix to foot the bill for some of it, since most of it is theirs anyway and Cogent isn't playing ball. That is, plain and simple, not to right way to go about it. Cogent, not Netflix, is AT&T's customer, and Cogent is who should be paying AT if that's not happening, that's between Cogent and AT&T, not AT&T and Netflix. If Cogent needs more money from Netflix in order to pay the higher rates AT&T is seeking, then that is between Cogent and Netflix, not Netflix and AT&T.

      There are two separate issues at play here, and it is important to keep them separate.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    112. Re:It's not arrogant, it's correct. by Enigma2175 · · Score: 2

      This isn't telephony. It's a data communications issue, upon which rides both time-sensitive data (audio, video) and non-time sensitive data. AT&T's arrogance is that of Southwestern Bell's (remember, this is not the AT&T of old) vision for profits.

      It's a monopolistic view. It's the old "we own the highway" versus "we gave you rights of way because you were a municipal and regional utility". I say we reclaim the rights of way, and meter AT&T for their belligerence. That'll fix it for everyone.

      Who is "we"? The people? The people have no power, how are they going to reclaim these rights of way? The government? The government won't do anything because of the way campaigns are financed and the corrupting influence of power. The government gave the telcos BILLIONS of the people's dollars to build out high-speed networks - which they have obviously failed to do.

      The problem is that nobody (outside of the narrow /. demographic) gives a shit about this. Heck, we can't even make them care about the NSA listening to their fucking phone calls, do you really think you can make enough people care about this issue to exert political pressure?

      --

      Enigma

    113. Re:It's not arrogant, it's correct. by postbigbang · · Score: 2

      It's my belief that there are many, many more than just the slashdotters that are of the belief that the communications shenanigans are tough. If you don't speak up, you give tacit silent approval. So, speak up. Educate the populace regarding the history of utilities, monopolies, and how this affects them. Then do it again. That's why I posted. That's why you posted. Don't give up.

      --
      ---- Teach Peace. It's Cheaper Than War.
    114. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      But instead of buying more bandwidth, or purchasing from additional upstream providers, they yell about other people's networks not having enough andwidth.

      Wrong. Netflix is "yelling" about being charged extra for bandwidth that Netflix's own provider has already negotiated with AT&T.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    115. Re:It's not arrogant, it's correct. by BitZtream · · Score: 2

      You'd be wise to just ignore Mr 'I'm a senior network engineer' because I'm a former network admin for an east coast telco and he's pretty much described it exactly as greedy assholes want it described rather than reality. He's twisting reality and words. He probably works for AT&T or Comcast by the sound of it.

      --
      Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
    116. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      In using your example: "DirecTV stops carrying ESPN because ESPN jacked up their rates", why can't providers like Netflix do the same and appeal to the customers directly, show them other options for bandwidth elsewhere (if available), provide numbers of the ISP, etc.?

      It seems to me that Netflix and other providers like them have something ISP's tend not to have as directly: Their eyes.

    117. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      You've got the gist of it. And yes, it is a beneficial deal (at least for ISPs our size- this is why we did it)
      I could however see ATT believing it's in their monetary interest not to provide a competitor with a free superhighway into their network,
      and I support their right to make that decision as long as it means they're not discriminating.

      I have looked for evidence that ATT is trying to gouge money from Netflix for the Cogent bill. I can't find any. Link?
      I have seen plenty of places that make that claim, but when the links are really followed, they invariably end up at [ISP] saying: If you want off a congested link, you can pay for a direct connection.
      I deal with congested links to ATT and Comcast every night I'm on call. I reroute through different providers and adjust my announcements to make them take different paths to my customers. It sucks, but It's pretty apparent it isn't deliberate (the congestion isn't consistent, and we're no Netflix), other than a deliberate decision not to fix their congestion problem- probably because their customers don't have real choice)

      The real problem here, until I read of actual violations in the spirit of net neutrality, is simple ISP monopoly. It's what needs to be fixed. Verizon, Comcast, ATT are maintained congested links because they don't *have* to upgrade them. Why should they? where are their customers going to go?

    118. Re:It's not arrogant, it's correct. by BitZtream · · Score: 1

      No, they are being told that they will suffer because the ISP isn't going to bother to fix their congested backbone links.

      If the ISP does its job and has adequate bandwidth for its customers, there is no reason for Netflix to peer with them directly, they just transit the Internet as normal.

      The ONLY reason Netflix should co-lo CDN boxes or Peer with an ISP is to BENEFIT THE ISP BY NOT HAVING TO PAY FOR AS MUCH INTERNET BANDWIDTH.

      As a customer, I paid for full speed to the Internet, I did not pay to use their over subscribed service which they refuse to upgrade because its far more profitable to exploit others.

      I already paid for ALL THE BANDWIDTH MY ISP USES. Thats what I'm paying for, bandwidth to the Internet. If they provide the bandwidth they sold me, they don't need to peer with Netflix or any one else. They'd be fucking morons, but they don't have to.

      --
      Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
    119. Re:It's not arrogant, it's correct. by Enigma2175 · · Score: 1

      AT&T & Comcast don't own the road, they only own part of the road. They have a deal with another road system (Cogent) that cars from their systems can drive on Cogent's roads and cars from Cogent's system can drive on their roads. Netflix already pays Cogent for their road access and the end-user already pays AT&T for road access. If AT&T has a beef, it is either with their customer or Cogent, not with Netflix.

      --

      Enigma

    120. Re:It's not arrogant, it's correct. by beltsbear · · Score: 1

      except that this is an issue where AT&T wants a payment from a Tmobile customer calling an AT&T customer. So there are THREE payments. The AT&T customer, the Tmobile customer and an extra fee that AT&T wants to charge the tmobile customer other than their regular service charge from tmobile.

    121. Re:It's not arrogant, it's correct. by jxander · · Score: 2

      The solution seems simple. Separate the bandwidth providers and content providers. Neither CNN nor Bob in Tuscaloosa provide any connectivity, so they wouldn't be a part of network peering agreements and would have to pay some ISP for that connectivity. If they wanted to get into the ISP business and start providing connectivity, it would have to be an entirely separate entity from their current offerings.

      Of course, this would mean splitting up a lot of the current ISPs that are having their cake and eating it too (selling you bandwidth, and then selling you content along that bandwidth) but it's the best option in the long run.

      Or even simpler, just kill the geographical monopolies. Where I live, there is exactly 1 (one) option for High Speed Internet. They've been adding fees and charges by the boatload for the last several years, while happily pointing out their monopoly when I call. Most recently they added a modem rental to my bill, for absolutely no reason. I have only ever used my own modem. Even better, the addition of a modem rental negated the automatic payment that I'd setup, so I stumbled into a bevvy of late fees which were never refunded, despite the ISPs admission that the original rental fee was in error. I also incurred a fee for speaking with a person, and another for not using their automated phone system to pay the bill (which only accepts check routing numbers as payment method, no credit cards, debit cards, etc.) There was a fee to reestablish the automated payments, and to "reactivate" the account, even though service hadn't been interrupted... The best part though, I was charged a "restocking fee" on the modem.

      So you'll forgive me if I don't see the need for a deeper view quite yet. The ISPs are enjoying their status as de facto monopolies, and are more than willing to piss off (or piss on) their customers to squeeze out a few bucks. I can only imagine the lengths to which they'd go, if they thought they could shake down Reed Hastings near 1,000,000,000 net worth.

      --
      This signature is false.
    122. Re: It's not arrogant, it's correct. by BitZtream · · Score: 1

      Yes, it makes sense ... for the ISPs ... no one else gives a shit because traffic is traffic.

      The issue is that the ISPs want to sell me the ability to use said bandwidth ... but not have a pipe thats fast enough to actually provide it ... so if I want to use netflix ... they have to have a special ... not overloaded because the ISP is a bunch of cheating assholes standard lines to the Internet where they QoS video to all hell and back.

      --
      Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
    123. Re:It's not arrogant, it's correct. by NeutronCowboy · · Score: 2

      The problem is that ATT uses its position as both a Tier 1 provider and as a consumer ISP to play both sides of the argument: on the one hand, they're arguing that Netflix sends too much traffic their way to get peering agreements hashed out, and on the other hand, they artificially constrain their upstream data by restricting how much and what customers can upload.

      Because of this, there is no way for anyone to peer properly with ATT: they can always create traffic conditions that will suit whatever argument they want.

      --
      Those who can, do. Those who can't, sue.
    124. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      You and AT&T are employing what is known as a "straw man argument". Netflix doesn't want free peering arrangements. Stop intentionally misrepresenting their position.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    125. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      "so that is in effect subsidizing your home Internet connection." Are you fucking high? Compare the cost of broadband for the average US customer to those in other countries. Even allowing for geographic/population density differences to say that paid transit is subsidizing individuals is insane. What it is subsidizing is high profit margins and crazy executive pay.

    126. Re:It's not arrogant, it's correct. by BitZtream · · Score: 1

      AT&T isn't the road owner. I am. They built those roads with government handouts from my tax dollars. Same for comcast.

      --
      Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
    127. Re:It's not arrogant, it's correct. by JMJimmy · · Score: 3, Insightful

      And game traffic which is even more time sensitive is somehow different?

      The fact is that Netflix drives demand for AT&T's services - especially the higher capacity ones. They're bitching about having to invest in more capacity even though they're able to oversell what capacity they do build. Someone has to pay for this investment, that is true, and it's the customers who are paying $65/mo for 45Mbps connections and the $10/50GB beyond the cap. Interesting fact though, according to AT&T themselves:

      "In fact, less than 2% of AT&T High Speed Internet users utilize more than 150GB per month." - AT&T Broadband FAQ

      So, if the vast majority of users are using less than 150GB/month that means, on average, it's less than 5GB/day of traffic - by their own advertising that means that they are serving 98% of their customers at full capacity for 16 to 232 minutes a day (16mins@45Mbps, 232mins@3Mbps).

    128. Re:It's not arrogant, it's correct. by jxander · · Score: 4, Insightful

      The very existence of Netflix has revealed the truth of the Emperor's new Clothes : ISPs have been promising bandwidth MASSIVELY above their actual capacity. Now that ISPs are feeling the pinch of customers demanding what was promised to them, they're lashing out at the perceived cause of this pain

      It would be as though a city metro system sold million and millions of tickets MORE than what they could actually handle, but it was never a big deal because no one really used the metro all that often. But when a reason to use the metro comes up, the whole system is clogged, not functioning properly and basically ceases to function at all. Would you expect the Metro to take the blame? "Yep, our fault, we'll fix it" ... or blame whatever sparked sudden interest. Even if that impetus, whatever it was, only existed to aggravate the metro's over-sold lines, the metro is still ultimately at fault for overselling.

      ISPs have been massively overselling their lines for years. Making billions of dollars on the promise of speed and throughput that they KNEW was nonexistent and completely untenable if anyone actually tried to use it. And now people are using it. So who do you blame: Netflix for being popular? Or the ISPs for selling you empty promises and lies, with full knowledge.

      --
      This signature is false.
    129. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Yeah, I'm lucky enough to have my choice of ISPs where I live now, but I've also lived in places where I had to fight tooth and nail to to any better than dial-up; when DSL finally did become available, the service was crap. Through AT&T, the same provider who had given me rock-solid performance in two other locations before then. What a lovely, fun position we've worked the market into, eh?

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    130. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Actually, what he's saying isn't too far off from my understanding of reality. I see him playing devil's advocate a lot, but in the end saying that it is beneficial for ISPs. And I can see both sides of it for hybrids (ISP and content provider) like AT&T and Comcast, in that they don't want to make things easier on a competing content provider, even if not doing so damages them more in the long run. On one hand, the ISP side wants it, because it means a better experience for their customers and lower operating costs (less off-network bandwidth, just for starters); on the other hand, the content side will never allow it, because it means fewer TV subscribers. In reality, the ISP side is right and the content side is missing the point, which is that people who don't want to pay them for TV service simply aren't going to, no matter how badly they hamstring their company's ISP wing.

      When you look at it form the perspective of the internal struggle within one of these media hybrids, it actually becomes a comical story about David taking a break while Goliath strangles himself to death.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    131. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 0

      You are again full of shit. And you're apparently confused about what a straw-man is, and to further top it all off, you simply cannot read.

      http://blog.netflix.com/2014/0...

      Yes, what Netflix wants is federally-mandated free-peering arrangements that will scale with usage by mandate.
      Don't take my word for it- read it and weep. It's right there, in their own words. Sure, they use all kinds of misleading words like "tolls" and "leverage", but the fact of the matter is, they want to force ISPs to care about Netflix's customers as much as Netflix does. They don't, nor should they have to.
      That is what they call "strong net neutrality", they call it this because "weak net neutrality" (their verbiage) - or simple non-interference, "isn't good enough".
      The actual problem here, for people with enough brain-cells rubbing together to notice it, is monopolization of the US ISP market. This shit happens because customers can't actually leave their ISP that is maintaing congested links (congested for everyone, mind you- net neutrally.)
      Your turn, cowboy.

    132. Re:It's not arrogant, it's correct. by Enigma2175 · · Score: 1

      And, come on now, tell the whole story. For AT&T to be able to deliver Netflix's data all the way to the home routers of their customers, they also have to maintain arrangements with other carriers to handle that data as it comes in from Netflix. Those peering arrangements are not free, just like maintaining that last mile to their end user customers isn't free.

      Nope, those peering arrangements are not free, generally AT&T gets paid since it is a tier 1 network. They are also already getting paid by their customer (and also by the government) for maintaining the last mile infrastructure.

      Meanwhile, the guy who buys bandwidth and uses it for a less Netflix/YouTube-centric array of connections absolutely is going to be asked to contribute to his neighbor's entertainment costs if the GP has his way and AT&T raises their rates across the board to deal with the behavior of a subset of users and remote content sources.

      Companies and people have been screaming about this for years, well before Netflix was a company. Unless the industry switches (back) to a usage model it will always be this way. AT&T is free to bill their customers (and their network peers) whatever and however they like, but they shouldn't be able to charge their customer's customer.

      I think the reason many people have a problem with this is because they are already getting gouged by these companies for internet, cable TV and phone service. The cablecos provide terrible customer service, little network maintenance and a product where you are forced to buy a bundle of crap you don't want to get a few things you want (A la carte pricing, anyone?) and in exchange for this they have been granted monopolies and a captive customer base. They are making money hand-over-fist with enviable margins and the greedy fuckers want MORE? Fuck them.

      --

      Enigma

    133. Re:It's not arrogant, it's correct. by budgenator · · Score: 1

      Their choke point is the last mile, those poor old twisted pair copper DSL just can't handle what's expected of modern broadband. AT&T has plenty of fiber in the ground and on the poles but from the DSLAM to the house it's twisted copper.

      --
      Apocalypse Cancelled, Sorry, No Ticket Refunds
    134. Re:It's not arrogant, it's correct. by K.+S.+Kyosuke · · Score: 1

      Expecting their neighbors pay for it, instead, is pretty jerky.

      If you read carefully, you'll notice that I've never argued that people not using the bandwidth should be paying for those who do. Meaning that your rant, while valid, is completely misplaced as a response to my comment.

      --
      Ezekiel 23:20
    135. Re:It's not arrogant, it's correct. by ClickOnThis · · Score: 3, Interesting

      It seems the postal analogy is better than the car analogy.

      At one time (19th century?) when you mailed an international letter, you might have to affix postage for all the countries the letter went through. Not any more.

      In effect, AT&T is trying to make Netflix pay for "stamps" to send "letters" into their system, even though most other "letter-senders" don't have to. (Of course, AT&T already charges its customers to receive the "letters" so whatup.)

      But really I think AT&T is trying to set up its own cyber-fiefdom, and charge "import duties" to competing content-providers like Netflix.

      --
      If it weren't for deadlines, nothing would be late.
    136. Re:It's not arrogant, it's correct. by kimvette · · Score: 1

      > On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      It's flawed though. Semipermanent tractor-trailers and other large heavy vehicles destroy the roads while passenger cars introduce near-zero wear. However, a router or switch is worn out solely based on how long the capacitors have been powered up - it doesn't matter if it is at 100% of potential throughput or at .00000001% it is going to die in just about the same timeframe - especially since many switches over around 97% to 99% CPU utilization whether under heavy traffic with QoS, VLan tagging and other traffic shaping features enabled, or near-idle with no advanced features enabled.

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    137. Re:It's not arrogant, it's correct. by budgenator · · Score: 1

      If Netflix is directly connected to AT&T's network, it should be relatively easy to throw up a banner that says "AT&T U-verse may not be capable of providing a complete user experience" to AT&T customers. Netflix would SOL without customers and AT&T would be SOL without content.

      --
      Apocalypse Cancelled, Sorry, No Ticket Refunds
    138. Re: It's not arrogant, it's correct. by R3d+M3rcury · · Score: 1

      Arguably 1GB of cat pictures don't need to be delivered immediate, whereas 1GB of video does.

      If each cat picture takes an extra half-second to load, it's annoying. If each video frame takes an extra half-second to load, it's unwatchable.

    139. Re:It's not arrogant, it's correct. by ObsessiveMathsFreak · · Score: 1

      * Netflix pays for their bandwidth
      * Customers pay for their bandwidth

      Not quite. Netflix pays for their bandwidth and usage. Customers only pay for their bandwidth, not their usage.

      The ISPs who promised to ship these customers unlimited volume of data at fixed costs are now blaming Netflix for actually developing a service popular enough to force them to make good on that promise. The big ISPs have written cheques their networks can't cash and are now extorting Netflix to make up the difference.

      --
      May the Maths Be with you!
    140. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      Nope. Go peddle your bullshit somewhere else. I ain't buying.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    141. Re:It's not arrogant, it's correct. by tlambert · · Score: 2

      You pay for access to the network of your provider and this has nothing to do with the provider - supplier communications.

      Can I have another provider, then, please?

      What do you mean "There's an infrastructure monopoly due to rights of way, and they won't let Google hang fiber optic cables on their telephone ples" ?

    142. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      ^-- +1

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    143. Re:It's not arrogant, it's correct. by schnell · · Score: 1

      why can't providers like Netflix do the same and appeal to the customers directly, show them other options for bandwidth elsewhere (if available), provide numbers of the ISP, etc.?

      They certainly could and that's an interesting idea for a model. If ISPs could differentiate themselves on the quality of their Netflix connection, then it would be economically smart for them to do so.

      Unfortunately, for the most part in the US "real" competition among broadband ISPs only exists in technologies covered under the 1996 Telecom Act. Under that Act, the incumbent telco is required to provide CLECs fair access for DSL or other copper-based technologies but not for fiber.

      That makes some sense given that the telco is incurring a very high cost to build out the infrastructure, dig and put that fiber in, probably $5K+ per household given my somewhat wild guesses. (I recall that figure coming from a Verizon 10K filing a while back detailing why they were cutting back on FiOS rollouts, but I'm too lazy to look it up.) That means it takes an unacceptably long time to pay back at $50/month for Internet access, and far far longer if you are reselling fiber access to other ISPs and only collecting $10/month or so). Cable access is franchised at the city/county level so you only have one option. Satellite Internet provides choice among multiple providers but it's still satellite Internet, so the laws of physics guarantee you crappy latency and the economics of satellite guarantee you a low upload speed.

      So I think your idea is great and ISPs differentiating themselves by the quality of content access would be a good market driver. Unfortunately, in the US at least, most consumers can only choose between one cable Internet provider, one fiber provider (if they have that) and multiple DSL over copper providers (which offer far smaller data rates than fiber or cable) - not enough to make the competition meaningful. Google Fiber et. al. may show up to make things more interesting, but honestly any new fiber/broadband run to the home with all-new physical plant is such an expensive proposition that I wouldn't expect to see much penetration anytime soon. Google itself is slow-rolling its Fiber To The Home buildout to select areas where the municipal government is in effect willing to subsidize it (their cross-country dark fiber buildouts do nothing to help the last mile) so that should tell you something about the hard economic realities of the situation.

      --
      "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
    144. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      If the ISP does its job and has adequate bandwidth for its customers, there is no reason for Netflix to peer with them directly, they just transit the Internet as normal.

      And what is "as normal"? It sounds like they are providing as much capacity into Cogent as Cogent is willing to pay for. The fact that Cogent is not willing to pay for more capacity, and Netflix is blaming AT&T, rather than their own poor choice of ISP doesn't seem to be in any way AT&T's fault.

      I already paid for ALL THE BANDWIDTH MY ISP USES. Thats what I'm paying for, bandwidth to the Internet. If they provide the bandwidth they sold me, they don't need to peer with Netflix or any one else. They'd be fucking morons, but they don't have to.

      If they "don't peer with Netflix or anyone else" then they have no internet connectivity and you can't reach Netflix at all. Dumbass.

      You really don't understand how the internet works, do you? It's not all unicorns and fairies. If I setup a VOD service like Netflix, and run it off the DSL in my basement, I can't turn around and blame AT&T for not providing enough 'teh internets' to their customers, because I bargain hunted the worst DSL connection I could find. Or to make it a more realistic example: say I buy a GigE fiber connection, which is enough for my 20 hypothetical customers, but I buy it from some bargain basement ISP with insufficient transit, like Cogent, so I can only actually push 50Mb/s over it to anyone not on Cogent, how is this AT&T's fault?

      The problem here is not that AT&T don't have enough backbone capacity, it's that Netflix use a shitty ISP, Cogent, and that shitty ISP, which is downstream of AT&T, by any reasonable metric (routing prefixes, size of network, connected AS), refuses to pay for transit or peering with AT&T.

      Tell me, at what size does an organisation have to be to get free internet from AT&T so that you can have 'teh internetz'? What about other countries? If I decide to setup my VOD servers in Zaire, should AT&T install more marine fiber at their (and your) expense so that you can have 'teh internetz'? What if I put my VOD servers on the Moon?

      Let's say maybe 10% of AT&T customers use Netflix (being generous here), what you're saying is that the other 90% of AT&T customers should subsidise Netflix because of their poor choice of ISP.

      Let's be clear here: AT&T are following industry standard interconnect policy, it is Netflix and Cogent that are asking for extra-special-treatment because Netflix is 'so totally way cooler than other things on the internet', that they shouldn't have to pay for transit like everyone else.

    145. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      From Netflix's blog:

      "This weak net neutrality isn't enough to protect an open, competitive Internet; a stronger form of net neutrality is required. Strong net neutrality additionally prevents ISPs from charging a toll for interconnection to services like Netflix, YouTube, or Skype, or intermediaries such as Cogent, Akamai or Level 3, to deliver the services and data requested by ISP residential subscribers. Instead, they must provide sufficient access to their network without charge. "

      ATT *does* provide sufficient access to their customers, from their perspective- the only perspective that matters between them and Netflix. What ATT does *not* provide is a link that is large enough for their customers. This is not a matter of net neutrality.
      What ATT does *not* provide is a special link to Netflix for free to circumvent ATT's shitty connection to Cogent.
      So, to summarize this brilliance, ATT should be *forced* to provide adequate pipe to their customers, where adequate is defined by third-party people with no stake in the company, or even relationship? Wrong answer. I'm sure even you can figure out why that will not work.
      ATT's customers should be able to leave, because ATT sucks. Netflix should not be able to force crony regulatory rules down any company's throat demanding specialized relationship, or even any kind of treatment of their customers.

      Your willful ignorance hurts to see. I am goddamn glad people who think like you don't actually run the Internet. Or anything important. You'd legislate my local TV station into being forced to broadcast any kind of signal that any kind of device within range of it could pick up.

    146. Re:It's not arrogant, it's correct. by Bengie · · Score: 1

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      Different tpyes of traffic cause different types of damage? WTF are you talking about? Explain to me how 3mb/s of video streaming is different than 3mb/s of P2P or 3mb/s of any other type of traffic.

      People don't pay for types of traffic, they pay of bandwidth and expect to get it.

    147. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      My ISP refuses to peer with Netflix because that would favor one company over another, so they instead just proudly eat the transit cost and brag about how strong their trunk is while having the cheapest prices and fastest speeds. Screw peering, let the Tier1's worry about it.

    148. Re:It's not arrogant, it's correct. by Bengie · · Score: 1

      because direct peering with ISP's means netflix can go around level 3 and cogent and save money

      it's not like they are paying AT&T and comcast and also paying their Tier 1 providers. netflix is now connecting straight from their data centers to the ISP's on dedicated fiber links and bypassing the Tier 1 networks all together

      some idiots can't seem to understand this

      At least in the case of Verizon, Netflix said Verizon wants to charge more for peering than Level 3 charges for transit. How does that fit into direct peering saving money?

    149. Re:It's not arrogant, it's correct. by kqs · · Score: 1

      Okay, so should the road owner (AT&T/Comcast) be charging the owner of the eighteen-wheelers that come onto their roads (Level 3, etc.), or the company whose freight is contained within those trucks (Netflix)?

      Using this analogy, *I* am the one paying AT&T to allow freight to be delivered to my house on their roads. Neither the provider of the trucks, nor the providers of the cargo, should have to pay AT&T because I already did. Doesn't matter if the trucks contain the latest Bond flick, or lots of pictures of cats.

    150. Re:It's not arrogant, it's correct. by dgatwood · · Score: 1

      ATT's customers should be able to leave, because ATT sucks.

      AT&T's customers would need a viable alternative first.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

    151. Re:It's not arrogant, it's correct. by gwstuff · · Score: 1

      Exactly. But now could you phrase this in a way that blames someone, rubbishes something someone else says, and most importantly appeals to the vested interests of someone influential. Then you might have chance of being heard.

    152. Re:It's not arrogant, it's correct. by Adrian+Lopez · · Score: 1

      Netflix wants "sufficient access to [ISP networks] without charge", but that doesn't have to mean peering. Netflix doesn't want ISPs neglecting indirect routes to content in order to push services like Netflix into connecting directly to their networks.

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    153. Re:It's not arrogant, it's correct. by gwstuff · · Score: 1

      If it's their 'road' then Netflix is a bright, shiny city in the distance. It (and others like it) ARE THE REASON that people are on the road in the first place. Asking them to pay is like charging a city to pay for road usage just because it is a source of traffic. It is inevitable for companies that thrive at one time to decline and give way to others at another. For the system to continue to function, small, new destinations (startups, duh) that are detours from the main road need to be given a fair chance to succeed in an environment in which they can compete with the big players.

      Without this process of constant replenishment, when the bright cities become old, dilapidated and defunct, people no longer have the reason to use the road. Everyone loses, except for selfish executive ass-holes who screwed everyone, all but knowing what was going to happen and sailed away with the money on their yachts laughing.

    154. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      No. That is the BGP peers of Netflix, tell me where in that list is AT&T (AS7018) or Verizon (AS701)? There are very few US ISPs on that list, most are research networks like National Lambda Rail.

      The US ISPs on that list (excluding transit providers like Layer3 and Cogent):

      * NTT America
      * QWest
      * Hurricane Electric
      * Teljet (Firstlight)
      * TDS Telecom
      * RCN
      * Carolina Internet Ltd.
      * LiveAir Networks
      * City of Thomasville Utilities

      There are quite a few Cloud providers I didn't list, I assume because people outside the US use US cloud VPNs to access Netflix, and Netflix wants their experience to be good without officially acknowledging that people outside the US are accessing Netflix. Interesting the vast majority of research networks peer with Netflix.

      Perhaps it's possible more ISPs provide direct peering without any BGP visibility (static routes, OSPF filtering, or CDNs on the ISP's IP addresses), but if you look at the BGP peers for Verizon and AT&T, you will see Google, Facebook, Akamai, and other CDNs listed as peers, so it seems more likely that Netflix is simply not peering to AT&T or Verizon.

    155. Re:It's not arrogant, it's correct. by frozentier · · Score: 1

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      OK, so this is AT&T's road. HOWEVER, it's customers are paying to drive whatever vehicle they want on that road. Sure, you've got millions of request from Netflix to stream a movie, but you have millions of end users paying AT&T to be able to do that. I'm on Time Warner's Roadrunner. I pay them every month to use their networks however I see fit, and there is no exemption in that agreement regarding what that content is. So why should Netflix have to pay, too? TW has already been paid once for that bandwidth.

    156. Re:It's not arrogant, it's correct. by rtb61 · · Score: 0

      Liar. A movie in point of fact takes up less traffic than a high quality video phone call, which is expected to become the norm of future communications (two way traffic). It is all down to the monopolists attempting to become publishers, by pricing out access. Either publish your content through them or go bankrupt or insanely enough airfreight hard copy as the cheaper alternate.

      By the way the car analogy is more accurately, a highway bandit employed by the toll road operator stands in the middle of the road and forces over every driver at gunpoint, the vehicle is then searched, the highway bandit then demands a percentage of profit of the cargo else the vehicle might have an accident and the cargo be lost, if the driver does not pull over the vehicle is destroyed, if the driver refused to pay a percentage the cargo is delayed, broken, lost until they do. The Highway bandit pays off politicians with bribes 'er' donations to their political campaigns out of the protection money collected. All this after the customer and supplier have already paid a toll to use the road, when the number of roads was purposefully limited by those politicians receiving a payoff.

      --
      Chaos - everything, everywhere, everywhen
    157. Re:It's not arrogant, it's correct. by whois · · Score: 2

      The dynamics have changed somewhat. Mainly because ISPs became monopolies when dialup died. Remember Earthlink or Mindspring, Speakeasy? Or Netzero? Big old ISPs that nobody uses now because they were merged into global conglomerates or went out of business.

      In the old days Netflix could say "hmm, we're an outbound only company with lots of cash and nobody will peer with us.. why don't we buy an eyeball company and balance our traffic so peering is fair"

      Now there is nobody to buy, unless you want to buy some giant companies.. or get bought by one of them.

      Also, ratio based peering was a model that made sense in the old days because it was the easiest way to determine fairness amongst multiple providers. Even in/out means you aren't stealing my eyeball customers and I'm not stealing your server customers right? Or at least we're stealing both in equal amounts?

      Now that argument doesn't hold true when you're talking about Amazon or Google or Netflix, or Rackspace or anyone else doing cloud business. They aren't eyeballs and don't want your eyeball customers. Most of the time if you talk to them directly they'll peer based on your inbound traffic from them. The same applies to CDNs like Akamai or Cloudflare. Again, they aren't getting in the residential market and aren't your competitor so why not peer to ease congestion?

      Ok, so big monopoly telcos that do both content and customers don't understand this, their arguments are pretty feeble.. "it costs big $$ to peer!" Well, run a dark fiber down the street and peer out of joes basement peering for $10/xconnect .. "but optic costs!!".. are cheap if you're doing 10gig MM or SM with no fancy wavelengths. "Port costs?" Same.. buy cheaper gear.

      The only question is if netflix and friends end up flinching and paying to connect to AT&T and Comcast, then nothing will change.

    158. Re:It's not arrogant, it's correct. by alexborges · · Score: 1

      Its not appropriate: bytes arent cars. Bytes are bytes, 8 bits the last time I checked, and they dont 'damage' anything. For example, ISP's promise to the customer 1mbit on delivery, and they charge for it. Netflix's ISPs (they are probably many and/or all of them) promises, for example, 1tbits/s and charges for it. If there is enough infrastructure to comply with the promise, then why would you need to charge any of your good customers anything?

      Thats the thing: its called oversuscription. They NEVER have the infrastructure to actually give all that bandwidth to everyone that pays them. It used to be you only had 30% of the absolute full use of your network. I dont know now, but that used to be the number back in the day (it worked fine with phonelines for example). That model, now that demand of bandwidth is growing much faster than they expected, needs to change. Simply, they didnt expect that people would actually demand, en masse, what they bought. And now they want us to pay for it and we will, because somebody has to and it sure as fuck isnt going to be them.

      --
      NO SIG
    159. Re:It's not arrogant, it's correct. by alexborges · · Score: 3, Funny

      Your low ID attests to your wisdom, oh elder of the internet. It cannot be said any better (or in a shorter sentence for that matter).

      --
      NO SIG
    160. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Why are you people downloading 10 gigs of cat pictures? What is wrong with you?

    161. Re:It's not arrogant, it's correct. by alexborges · · Score: 1

      How about you guys actually plan for your infrastructure to meet demand and charge accordingly. What needs to go, or be aggressively and intelligently modified is the oversubscription model.

      --
      NO SIG
    162. Re:It's not arrogant, it's correct. by BronsCon · · Score: 1

      Well, that would certainly be ideal.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    163. Re:It's not arrogant, it's correct. by Pinhedd · · Score: 2

      >AT&T, and other providers, should have no right to put up walls. If there are issues of peering, those should be working out at the peering level, and not at the application/service or individual business level.

      It is strictly a peering issue and it is being worked out at the peering level.

      In order to keep their operating costs low, Netflix decided to go with the lowest cost bandwidth around, Cogent. Cogent is great for getting data between datacenters on the cheap, but not-so-great for getting huge volumes of data to end consumers. As a result of Netflix growth and the rollout of higher bandwidth video streams, Cogent began dumping tons of traffic onto other ISPs with which they have peering agreements. Peering agreements are mostly informal and involve exchanging X quantity of traffic for Y quantity of traffic where X and Y are reasonably close to each other. As long as the peering agreement is fair, there's typically no money involved, so the sender of the traffic keeps all the revenue. The amount of traffic originating from Cogent has smashed into the limit of the peering agreements that Cogent has with various consumer ISPs. The bulk of this traffic just happens to originate from Netflix.

      The cost of expanding the interconnects to handle all the added cogent traffic would fall entirely on the consumer ISPs, but the revenue for doing so would end up entirely in Cogent's hands. The consumer ISPs perceive this as being rather one sided and unfair (a matter of debate and opinion), so they're dragging their feet and refusing to bolster the exchanges or expand the peering agreements with Cogent unless Cogent foots some of the bill.

      This is not a net neutrality issue at all. Netflix is not being treated any differently than any other traffic source. The dispute is between Netflix's upstream ISP and consumer ISPs. Netflix only got involved directly because Netflix is Cogent's biggest consumer, and is indeed the largest source of internet traffic by volume in the world right now.

      I'm certain that many consumer ISPs would love to create "Internet + Netflix" packages, but doing so would be a flagrant violation of network neutrality. Instead, they have to bite the bullet and treat it the same as all other traffic which means downloading all of the costs of delivering it onto all of their customers equally regardless of whether or not they actually use it. The workaround is to shift some of those costs onto the source of the traffic (Cogent) who in turn would shift those costs onto the source (Netflix).

    164. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      People aren't paying for "Internet except for Netflix" and Netflix isn't paying their bandwidth costs for "Internet except for consumers."

      Why the hell not? If it gave me a discount, I'd select that plan.

    165. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      I'll leave the math behind why that's completely impossible to you.
      But for whatever it's worth- I wish we could.
      I don't think you personally would settle for 40kbit/sec internet.
      We have ~10k residential customers, from dialup to gigabit fiber, and 5 datacenters of colocated customers.
      I expect that if I were to tally the max-throughput of every customer connection we have, split it into 10G links to our cheapest transit provider, the aggregate MRC for the lowest commit we could get would be around our net yearly income.
      And really, our network doesn't suffer from congestion. We *lose* customers if it does, so we keep up with actual use of the links. I'd argue that's a far smarter design than the one you suggest.

      I suspect you think we make a lot more money than we do- or you'd like small ISPs to no longer be in business.
      (Though realistically, a large one would suffer this problem as well.)

    166. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      If his asshole grows shut, how will you fuck him?

    167. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      > Liar. A movie in point of fact takes up less traffic than a high quality video phone call,

      That doesn't contradict what he stated. You made a non sequitor and call it what? Your hook for a poorly reasoned insane rant?

    168. Re:It's not arrogant, it's correct. by amiga3D · · Score: 1

      I pay for access AND bandwidth. Bits are bits whether they form a movie or pictures of birds or powerpoint presentations. I bought bandwidth to move bits no matter what they form when they arrive on my system. Where in your foolish head do you get the idea that they have the right to say some bits are different from other bits? "We sold you X gigabits of transfer but you can't use it for things we don't want you to." This idea is wrong! You are wrong! You and Cicconi can go to hell. I paid my money, I want my service. You act like they are doing me a favor, fool.

    169. Re:It's not arrogant, it's correct. by amiga3D · · Score: 1

      They mean they bought up your Congress and you're fucked. Bend over and spread 'em. Some fucking idiots think this is Capitalism. I call it graft and corruption.

    170. Re:It's not arrogant, it's correct. by amiga3D · · Score: 1

      He's fucking me. Don't you get it. Me and all his other customer.....uh, consumers. I think his asshole already grew shut and that is why he's so full of shit.

    171. Re:It's not arrogant, it's correct. by laird · · Score: 1

      "AT&T can't meet their customer's demand so they are charging the other end (Netflix) for being too popular. Yeah that sounds about right."

      OK so you don't understand how the internet works. AT&T has plenty of capacity. And as an ISP, they're in the business of getting paid to deliver bandwidth. Netflix buys cheap, low-quality bandwidth from Cogent, and now they're trying to force ISPs to give them direct transit (i.e. better performance than Cogent can provide) for free. If Netflix wants better performance, they can buy it like everyone else. Trying to use their market muscle to get better terms than anyone else isn't Net Neutrality, it's the OPPOSITE.

    172. Re:It's not arrogant, it's correct. by laird · · Score: 1

      Wrong. Netflix is trying to get direct transit to AT&T customers FOR FREE FROM AT&T. Every other content company has to pay for transit to deliver their content, but Netflix thinks that they can use their market muscle to get preferential treatment, which is the opposite of Net Neutrality. Sleazy.

    173. Re:It's not arrogant, it's correct. by alexborges · · Score: 1

      I believe you, but i think youd agree that arround that, lies the problem. Its not an easy problem, but I dont think liberally charging whomever is to blame for extra demand than planned is a good solution either. Thats why I say '*or* be agressively and intelligently modified is the oversubscription model'. Hey, if we all have to pay for the extra demand, then we should: be transparent and fair about it and maybe it can be handled.

      And yeah, maybe some small ISP's can't handle the increase in demand and yeah I feel shitty for thiking this, but hey, the market is obviously different than what the current model can handle.

      --
      NO SIG
    174. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Okay, so should the road owner (AT&T/Comcast) be charging the owner of the eighteen-wheelers that come onto their roads (Level 3, etc.), or the company whose freight is contained within those trucks (Netflix)?

      Yes! Both! Also, the person requesting the content from Netflix should pay extra too!

      Netflix pay Level 3 to deliver the freight. Level 3 pay AT&T to use their roads. Netflix only use AT&T's roads through Level 3's service, so why should Netflix have to pay AT&T directly?

      Duh, more profit? Rentier society didn't establish monopolies to benefit the consumer.

    175. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      At some point it has to be time to stop politely pretending corporate mouthpieces are actually ignorant rather than personally dishonest.

    176. Re:It's not arrogant, it's correct. by laird · · Score: 1

      You can buy dedicated bandwidth - that's what businesses buy, and it costs far more. What consumers buy is peak bandwidth.

      The difference is:

      Dedicated bandwidth is expensive, business-class service (i.e. what you buy if you run a real content site). If you buy 20 Mbps, you own the 20 Mbps and nothing can interfere with it. And you pay 100% of the cost for that capacity, whether you use it or not, because that's the cost of reserving the capacity on the ISP's network. And if you go over 20 Mbps you pay for the overage.

      Shared bandwidht is cheap, consumer-grade service (i.e. what you get for $29/month). If you buy 20 Mbps, that's peak bandwidth, so you can get *up to* 20 Mbps, but you're not guaranteed anything (i.e. no SLA, no penalty for outages, no guarantees at all). The reason that it's cheap is that it's shared bandwidth, meaning that if lots of people are using their bandwidth at the same time, their traffic can interfere with yours, so you get less performance.

      If you want dedicated bandwidth, be prepared to pay for it, just like real businesses do. If you want cheap bandwidth, live with the trade-offs that keep prices low.

    177. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      AT&T keeps saying that Netflix, which is the company that most of their clients are paying more to get faster Internet access to, has to pay more because Netflix sends more data than they receive.

      It's funny but I've never seen a single AT&T statement that they should be paying money to blackblaze, crashplan, & the other cloud backup providers. It's strangely hypocritical because AT&T is clearly sending a lopsided amount of traffic to the cloud backup providers.

      That's f-ing brilliant! Netflix should establish an online backup division for people's media! Let people "upload" their DVD/Blu rays! And Netflix doesn't even need to pay for the storage or IO, they can drop the packets once they get them! Set the SLA to "not a guarantee" and they're gold.
      ATT: blah blah blah asymmetric
      Netflix: OK, well change our protocol to request 128kbyte/sec ACKs from your customers and/or advertise a $1/mo off app that just uses idle bandwidth on the user's system.
      Cogent to ATT: We'll start billing you for your excess bandwidth consumption on our network in about 4 hours. We'll give you a 10% bulk discount off your mobile rates for the same.

    178. Re:It's not arrogant, it's correct. by jthill · · Score: 1

      Except it's not appropriate. None of the traffic characteristics you mention have _any_ analogy in network traffic.

      --
      As always, all IMO. Insert "I think" everywhere grammatically possible.
    179. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      I hate that imbalance. Here in Australia, it's cheaper to call from mobile to mobile, than to call from land-line to mobile. So if you aren't their customer, you pay more for the privilege of calling their customers. IMHO that should be considered extortion.

    180. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      At the ISP end of the Australian NBN, it costs the ISP $20 per megabit per month for all aggregate bandwidth to their customers in a given area. In other words it would cost the ISP (and they'd pass the cost onto you) $400 per month to allocate dedicated bandwidth of 20mbps for a single customer.

      Of course they are pricing this bandwidth by assuming something like a 1000:1 over subscription ratio.

    181. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 1

      It's a monopolistic view. It's the old "we own the highway" versus "we gave you rights of way because you were a municipal and regional utility". I say we reclaim the rights of way, and meter AT&T for their belligerence. That'll fix it for everyone.

      You need to separate AT&T and Comcast from the physical infrastructure, break them apart into AT&T Service and AT&T Cabling. The Cabling company owns the physical wires but has no service, no phone, cable, or Internet, they just wholesale to someone else who will provide that stuff over their wires.

      There, you now have a competitive marketplace where new startup ISPs can spring up constantly without being buried by the last mile installation cost, and consumers can easily switch between multiple providers within 5 business days.

    182. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 1

      In the US, you can.

      Tesla, Uber, and AirBNB are all learning that in America you are allowed to lobby against innovation. If you have the biggest bank account--and a few politicians in your pocket--you get to make the laws. http://time.com/31828/the-government-is-a-hitman-uber-tesla-and-airbnb-are-in-its-crosshairs/

      This isn't just an AT&T vs Netflix problem. It's more deeply rooted in how we're allowing companies to selectively knock over each other. The real scary part about this is how often it occurs without any kind of query or interest from the general public.

      Lastly, AT&T sells 'minutes on the wire'--that's all they do. They have an MPAA/RIAA mentality for their business model--they don't want to change at all, and anyone who tries to leave the business model gets punished. These folks may need a swift kick in the ass--selling bandwidth isn't a stable model unless... it's a shared-monopoly ... enforced... by the government. Oh wait... Well, at least the first part is true, eh?

    183. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      well if Netflix is using cogent and they cant get the band with then they have to pay another provider what they want ... end of story.

      No ISPs should have to pay to peer lets be honest most of the networks of the big providers have been subsidized to some degree and they need to quit whining.

      Big providers also should not be allowed to charge any subscriber any higher than any other for the same service.

      ISPs should be in the business of providing unfettered access to the Internet and NOTHING ELSE.

      ISPs should not be in the business of providing content because that creates a conflict of interest where the provider wants to provide selective service.

      I know this seems anti capitalistic but Big Business have proven time and time again that they cannot be trusted.

    184. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      you are right this is not telephony but the Telcos blurred that line and now they don't want to be held to the rules that they abused to build these networks.

    185. Re:It's not arrogant, it's correct. by bickerdyke · · Score: 1

      Right. But that's exactly what we have right now. A 16MB/sec DSL line is more expensive than a 6MB/sec line. So the consumers are already paying more if he wants to be connected to the road by a driveway tha's wide enough for an 18-wheeler.

      Same on the provider side.

      --
      bickerdyke
    186. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      I agree that netflix should not be provided "Free" because they are content providers

      BUT

      Forced interconnection is pretty much the definition of net neutrality no provider has the right to deny, limit, or charge for the interconnection between another provider for any reason. Obviously there are hardware costs that are not necessarily negligible but also not outrageously expensive either.

      This is one of the reasons that the ISPs buying content providers and content providers becoming ISPs scared me so much and why the pending Comcast/Time Warner merger scares the shit out of me.

    187. Re:It's not arrogant, it's correct. by bickerdyke · · Score: 1

      But that traditionally has been handled between the peering networks and not by anyone connected to those carriers. And if they want to have direct access, they can pay that carrier for multihoming their datacenter. That's also nothing unusual.

      --
      bickerdyke
    188. Re:It's not arrogant, it's correct. by docwatson223 · · Score: 1

      As a Network Architect, I can tell you that the CAPEX for that 'road' - and all of the equipment for it - was paid by the Telco/Cable consumer years ago so any objections that AT&T/Comcast may have is just flat-out greed at this point.

    189. Re:It's not arrogant, it's correct. by docwatson223 · · Score: 1

      When your cross-connect is a $30.00 piece of fiber jumper cable into a switch that is replaced once every 7 years, the cost should be minimal. Even the CAPEX to replace those switches was paid for years ago by the Telco customer.

    190. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Excellent write up.

      Your reasoning of content providers wanting to be ISP's is a good example why content providers and bandwidth providers should be explicitly separated. Which is I think an important point of a net neutrality law. Bandwidth providers can do their free market work on just a numbers basis (and service basis among each other). And content providers and consumers can be guaranteed equality of treatment by the inbetween bandwidth brokers.
      This will leave the current Tier-x ISP setup intact.

    191. Re:It's not arrogant, it's correct. by hhw · · Score: 2

      I call BS. We're at the Westin as well, and x-connects in the 19th floor meet-me room are free, while x-connects between floors are a one-time build cost. even if you don't have your own space and are leasing lines from a data centre, they're only $50-$200/mo. Powered equipment may not be permitted in the meet-me room, but there is nothing that would stop you from putting some passive DWDM muxes in there so you could even run 40-80x 10Gb-100Gb links over the same fiber. The only way I see x-connects being expensive is you're using Equinix, but that would be your own business decision, and not inherent costs to peering.

      Also, 10Gb optics sourced directly from China where they're manufactured can be purchased for less than $100 for LR optics, or less than $1000 for DWDM optics, which is peanuts for a one-time cost. Sure, line cards and therefore physical interfaces are expensive, but that's why public peering exchanges like the SIX (Seattle Internet Exchange) exist so you can peer with many different networks over the same interface. If you are doing enough traffic over a link to justify private peering however, your equipment costs should be built-in to your business model, and whether it's peering or other traffic shouldn't matter.

      Although I do agree with your assessment that this isn't a net neutrality issue, it most certainly is a case of large eyeball networks trying to double-dip on charging for bandwidth, and criticism of them is well deserved.

      --
      http://astutehosting.com/
    192. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      Incorrect.
      We don't own buildings, we don't own meet-me-rooms. ISPs are renters, like anyone else. xconns cost money. We rent connectivity up to the meet-me-room and we pay through the nose for it. Fiber runs between floors are surprisingly not cheap. We pay for power to switches, we require new switches when capacities are reached. The cascade of cost that is incurred, the trickle of network upgrades required for capacity increases is not free. Network engineering is not cheap.
      I also take exception with you trying to tell me what our money has paid for, and what it hasn't.
      Do you have *any* idea how much bandwidth even small ISPs are passing these days? Nothing we purchased years ago is even relevant post-netflix.
      Our traffic grew 100% last year without an appreciable increase in customer-base. And no, we do not make enough money to replace out all of our network gear every few years. Not remotely close. I think you greatly overestimate margins.
      Sure, you try to make do where you can, moving to bonding solutions, then intelligent traffic-steering, multi-path, etc, but in the end, it comes down to more and newer hardware with more exotic optics and switching fabrics. Network hardware isn't cheap, and I can't just brush off some juniper I bought 7 years ago for my new 20gbit xconn over to Netflix.
      Why exactly did you make that comment?

    193. Re:It's not arrogant, it's correct. by hhw · · Score: 2

      Netflix does most of its heavy lifting through its own CDN boxes running FreeBSD + nginx, which it will place on ISPs' networks for free, although the ISP would be responsible for the space and power. They most certainly do have their own data centres though, with infrastructure that goes well beyond Amazon.

      --
      http://astutehosting.com/
    194. Re:It's not arrogant, it's correct. by Monoman · · Score: 1

      "OK so you don't understand how the internet works...."

      I've been around a while so I'm pretty sure I have a good enough understanding of how the Internet and companies like AT&T work. This whole thing is a money grab by AT&T (and others). Once they set a precedent there is little to stop them from shaking down others like Netflix and anyone that offers a service that competes with them.

      "Hey uhhh, how ya doin? That's a really really nice Internet biznesss you got going there. I would really hate for something to happen to your traffic. I tell ya wut. Today is your lucky day. We just happen to offer insurance for people like you to make sure nuttin happens to those pretty little packets of yours."

      Now multiply that times every decent sized ISP and peering provider.

      --
      Keep the Classic Slashdot.
    195. Re: It's not arrogant, it's correct. by Electricity+Likes+Me · · Score: 1

      Except this isn't the case: you're paying for bandwidth. Which implies, ok, maybe an average over time - but they don't have the ability to drive an ADSL connection to be suddenly faster. No-one would care if downloading a whole movie did nothing and then came down in 1-second - that's easy to work around.

      The reality is they're not supplying you with the bandwidth you paid for, and trying to double-bill you for it.

    196. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      The vast majority of AS presences within the Westin sublease space. But you know that, right? I suspect you also know that none of them (that I'm aware of) offer use of their patch-panels at one-time cost.
      You've fallen into the same hole as the previous person. You don't get to dictate what costs are reasonable for other people. You also don't get to prioritize where my money goes.
      We peer privately, publicly via the SIX, as well as multiple transit providers. Our hardware is limited, and our budget far more so. Capacity increase at an edge begs capacity increase network-wide. Our business model is to take care of our customers in a way that is profitable to us. We have succeeded thus far. Being forced to offer free peering with people we don't want to peer with at the rates they want to peer at could definitely REALLY cause a hiccup in the current formula.
      Of course ATT's budget isn't limited like ours is, but how is that relevant? how is that your business? How does forcing them to accede to the demands of Netflix not fuck me as well?
      It is not double dipping to tell someone if they want prioritized connectivity into your network, they can pay for it.
      It's a matter of large eyeball networks maintaining shitty links because they know their customers won't bolt.
      I'm not justifying their practice, I'm arguing *vehemently* against thinking this is net neutrality, or that rules under the banner of "net neutrality" to solve *this* problem are anything but devastating for smaller people, who are satisfying their customer bases perfectly adequately.

    197. Re:It's not arrogant, it's correct. by msauve · · Score: 2

      BS. ATT wants to charge both ways. It's a matter of whether to charge for the data received (requested) or sent. That's already been decided, in both Internet and traditional telecom. To have a phone, one pays a small access fee. When you originate a call, that's when usage charges kick in. Similarly, it's ATT's Internet users who are originating requests for service from Netflix, and it behooves ATT to service their customers, not try to double-dip by asking Netflix to also pay for transport of that data.

      No, Netflix is not using ATT as a transit network, they're just delivering the data ATT's customers have requested.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    198. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      The real issue is giving critical infrastructure away to private entities. What did you expect? Efficiency?

    199. Re:It's not arrogant, it's correct. by Bengie · · Score: 1

      "Direct Transit" is an oxymoron. Use the word "peering". Peering is a fraction the cost of transit.

    200. Re:It's not arrogant, it's correct. by nhat11 · · Score: 1

      Well if it was under government control will it be better like public roads?

    201. Re:It's not arrogant, it's correct. by docwatson223 · · Score: 1

      I'm sorry, I was thinking Co-lo since my experience has been 'zero-distance' between ourselves and various carriers. My frustration has been being charged insane CAPEX and recurring charges for a 20' section of fiber to a carrier-class switch. Given the number of customers, it's obvious that the number of folks at the location have paid for the equipment, engineering, etc.

    202. Re:It's not arrogant, it's correct. by Gr8Apes · · Score: 1

      But this is where they are wrong - AT&T doesn't "own the highway". In fact, we the taxpayers own said highway as we paid the telecoms huge sums of money in the 90s in the form of tax incentives for said highways that were never delivered as required. Perhaps we should repatriate the highways back to the municipalities, and the services that AT&T and other provide would be the only thing we pay for.

      --
      The cesspool just got a check and balance.
    203. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Except that in the US, both ends pay. AT&T is used to charging both ends, so they see nothing wrong with applying their existing business model to the internet.

    204. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      "Ironically, a lot of US customers are vehemently against metered Internet, "
      Because they were SOLD "unlimited internet"

      If those same customers were offered "unlimited water", "unlimited electricity", they might buy them too.

      Americans love their "all you can eat" buffets.

    205. Re:It's not arrogant, it's correct. by sociocapitalist · · Score: 1

      On U.S. mobiles phones, interestingly, both sides pay.

      On European mobile phones, on the other hand, only the caller pays, but they pay a non-neutral rate, which varies depending on the type of device the recipient has: calling mobile phones is more expensive (in some countries, much more expensive) than calling landlines.

      Here in France it's normal to not pay anything beyond a fixed monthly fee to call fixed or mobile lines.

      There is a provider here called 'Free' (http://mobile.free.fr/) who sells mobile service (no subscription required) for 20 euros a month that includes unlimited mobile calls to France, the US, Canada, China and a few other countries - and in the same 20 euros unlimited fixed line calls to 100 countries (no doubt including those already listed). Ah, and 20 gigs of 4G data as well, still in the same 20 euros.

      --
      blindly antisocialist = antisocial
    206. Re:It's not arrogant, it's correct. by hhw · · Score: 1

      The issue is not about ISP's being forced to peer with content providers like Netflix whether they like it or not. It's the major eyeball networks like Comcast and AT&T deliberately avoiding upgrading peering capacity, so that they can strong-arm Netflix into paid peering agreements instead. Let's not forget that Comcast is also trying to pressure Tier 1 transit providers like Level3 to pay for access to their eyeballs now, even though the miles of fiber in the ground that they operate, and thus their share of transport costs, pale in comparison. As a smaller provider, you should most certainly want to peer with any content network with a significant amount of traffic to your network, as you would have to pay for transit otherwise. There is no way you'd be paying more for cross-connects than you would for transit, and the equipment costs are irrelevant because you're doing that same traffic regardless, whether it comes through a transit or a peer. Your traffic levels aren't going to magically increase when you start peering, unless your existing transit is congested, which is something you should most definitely want to avoid.

      --
      http://astutehosting.com/
    207. Re:It's not arrogant, it's correct. by suutar · · Score: 1

      The end users (collectively) pay for more than just the last mile; they pay for the whole thing. Yes, if everyone stopped downloading from netflix at primetime and downloaded the equivalent amount of data from 500 different sources, it's still the same amount of data and it's still going to overload ATT's unmaintained pipes. But ATT wouldn't have a single target to try to gouge, so they'd pretty much have to recover improvement costs from their usual sources - their customers.

      I don't really think they should charge the user more. I think they should man up and make the network improvements they've been collecting money for for the past decade or more. But I think if they do need to charge more, they should just do it and not try a pr-spin end run that winds up not saving their customers anything.

    208. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      That was one of the stupidest posts I've ever read. By your logic, ALL webhosting should be absolutely FREE because it's the browser that "creates" the traffic when it initiates the connection to port 80/443.

      Good luck with that.

    209. Re:It's not arrogant, it's correct. by iamhassi · · Score: 1

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      Ok, but if you charge the 18 wheeler more, how long before you decide to charge the pickup truck more? or sedan? or maybe make a special license so only 18 wheelers with your license can use the road and no one else? How long before they go after Youtube? Or Amazon Video? Or Facebook? Or Google? Or XBox Live? Anyone can make an argument that some service or website is "using more than others so you should pay more" but we're already paying for the service, we pay for the internet, what we decide to do with it is our business, whether we have unlimited or a 5gb cap or metered, if we want to use all of it for netflix instead of youtube why does that matter? Customers of these ISPs are paying for the net-neutrality already, they don't need to charge more. There will always be some website or service or something that uses a bit more than everyone else. If they start charging Netflix then they'll need to start charging Youtube, and then etc, before long they're charging every website or service that uses the internet that we're already paying for.

      No other utility functions like this. The electric company doesn't say "oh you're using electricity for a air conditioner? We charge extra for air conditioners". No, they say "here is your electricity, use it as you see fit, whether it's a A/C or a dozen bitcoin servers or an electric car, we don't care how it's used, you are paying for that electricity." Internet should work the same way, they should charge us whatever they want to charge us and let us use the internet anyway we want, whether it's netflix or youtube or amazon prime.

      --
      my karma will be here long after I'm gone
    210. Re: It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Let's look at the one place where the government and private industry actually compete. Medicaid is far more efficient then private insurance.

    211. Re:It's not arrogant, it's correct. by Bengie · · Score: 1

      I live in a small city with a population below 20k and surrounded by miles and miles of farms and trees and our small privately owned local ISP is able to source all of their bandwidth as transit from Level 3 and Global Crossing(Level 3 owned). They do no peering of any kind and can afford to sell dedicated 10/10 for $40/month and 30/30 for $60/month. They do not complain about transit costs for Netflix because it's cheap. If you, as an ISP, cannot get your peering prices below that of transit, you shouldn't be peering. Buy more transit and leave it to the big guys to handle peering.

      And before you say anything about small ISPs are subsidied, my ISP has proudly proclaimed that they have turned down all government broadband grants/loans and are building out their fiber network on their own dime, which includes miles past the city limits into the country side.

      I live in a poor city with lots of unemployment, and yet our small ISP can easily make money selling dedicated bandwidth from Level 3 to residential users and not doing any peering to reduce costs, while still being cheaper than Charter Communications in many cases.

    212. Re: It's not arrogant, it's correct. by martyn1807 · · Score: 1

      Netflix are evil themselves. Sounds like epic justice to me. This is the same Netflix that wants DRM to be part of HTML5. Forcing open source of web standards....

    213. Re:It's not arrogant, it's correct. by DamnOregonian · · Score: 1

      No, no. I'm not complaining about our transit or peering costs.
      Never was.
      I'm complaining about a third-party lobbying for control over my upstream and peering connections, when that is a decision between me and my aggregate customer base.

      Giving those third-parties that control could easily make my peering and/or transit costs untenable and out of my control.
      Today, maybe Netflix wants 20gbit of bandwidth into my customer-base, maybe tomorrow Akamai does (We peer with both).
      The decision on the size of my links with them and my upstreams should be mine, not theirs. Only my customers should be able to influence that, and that's all up to how good I am to my customers- though my customers are free to leave if I suck.

      And before you say Netflix isn't doing that, you're wrong. They are. Links are available above.

      You may also be the perfect example of what I said was actually the problem- monopolized customer base.
      You have a local ISP successfully competing against Charter- how? Wireless? You're certainly not putting your own lines in the ground.

    214. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Your road analogy is a bit off. What is happening here is a double toll to use the same analogy as you have. Netflix is a provider who pays for bandwidth to stream to its customers. Then Netflix's customers then pay for bandwidth to stream the Netflix content. So charging a corporate rate for those who wish to drive a car on the road vs those individuals who wish to drive a car on the road may be more common but the fact of the matter is that they are both (customer & consumer) asking to drive a car on the road not a truck vs a car. The difference is a corporation (Netflix) drives a fleet of cars and pays for each one everytime. So I am failing to see how all of these providers want to charge a company like Netflix extra just because their customers use the Netflix service ALOT and thus use the road more. Afterall they are already pay a monthly fee to use that road for a set/ certain period of time.

    215. Re: It's not arrogant, it's correct. by RatherBeAnonymous · · Score: 1

      No, not really. Most customer facing ISPs are really there for one thing - they connect customers to tier 1 and tier 2 backbone providers. This costs a fair amount of money and creates choke points for their customer's traffic. Along comes Netflix and says "Lets peer!". They connect their networks and neither party charges the other for data transfer. The ISP pays less to the backbone providers and saves money, and Netflix pays less to the backbone providers and saves money. It is a win-win.

      But, AT&T doesn't like this arrangement. AT&T is a major ISP AND a tier 1 backbone provider. Netflix is potentially taking money out of AT&T's pocket by peering with ISP's that use AT&T's backbone. When Netflix asks to peer directly with AT&T's using Netflix's usual ISP agreement, from AT&T's perspective, they would be giving away backbone transit services for free.

    216. Re:It's not arrogant, it's correct. by Cederic · · Score: 1

      It's easier to just hack the ISP's QoS rules and prioritise my own bandwidth. No need to rush home from work that way.

    217. Re:It's not arrogant, it's correct. by lsatenstein · · Score: 1

      Put another way:

      * Netflix pays for their bandwidth
      * Customers pay for their bandwidth

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      People aren't paying for "Internet except for Netflix" and Netflix isn't paying their bandwidth costs for "Internet except for consumers."

      AT&T, and other providers, should have no right to put up walls. If there are issues of peering, those should be working out at the peering level, and not at the application/service or individual business level.

      The news about Apple being willing to pay for AppleTV to have a "special line" to consumers is particularly worrisome and strikes the core of the problems with anti-net neutrality positions: they create unfair markets with barriers to competition. Netflix may complain, but they can (and do! with Comcast) pay if they have to. Apple can afford to pay the gatekeepers as well.

      But some new startup (Aereo, for example) or small business? They can't and won't be able to pay those gatekeeper tolls to reach consumers. And they'll be prevented from competing or disrupting.

      Big business will thrive in an anti-net neutrality world. Honestly, it might even help Netflix in the long run as barriers to any competing service will be high. But it's anticompetitive and small businesses and startups alike will be prevented from innovating, and maybe even be driven out of the market by an inability to pay these tolls.

      Are we going to need to build a second internet? We have highways and backroads, so why not have an alternative internet. Let the big boys get off the one we have and go to their own for that kind of traffic between major cities.

      --
      Leslie Satenstein Montreal Quebec Canada
    218. Re: It's not arrogant, it's correct. by ToPAz3in6 · · Score: 1

      No, an 18-wheeler pays more because they are more cargo, wheels, surface contact, emission, etc.... But they also are paying closer to the same rate as cars on a Per-Wheel basis. Same as net-neutral laws. Netflix pays their ISP's per GB of bandwidth, so do users and every other connection. There might be some bulk-rate discount applied, as I'm sure 18-wheelers don't always pay exactly 4.5x a 4-wheel car, but to charge Netflix more per GB (which is what AT&T is going for) absolutely IS unfair. Also, if users are using Netflix and "hogging" all their bandwidth for video streaming and don't have any bandwidth left to use on another service or, gasp, torrents... Then they aren't using any more bandwidth than they were when they were downloading torrents.

      --
      Just drop acid, already, and invent something better... or quit your whining.
    219. Re:It's not arrogant, it's correct. by Hentai · · Score: 1

      And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

      - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

      See, I even used an appropriate car analogy.

      Wait, the internet is back to being like a truck? I thought it was a series of tubes.

      --
      -Hentai [in vita non pacem est]
    220. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Netflix has proven more than willing to work with ISP's to provide more local caches of content because it's cheaper than peering. And it's the customer's roads. Traffic only comes in at their invitation and their expense. ISP's shouldn't be charging the drivers and those served by the road. By charging big data providers they are trying to offset those costs without the consumer seeing incremental pricing or bandwidth caps.

    221. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      Based on my bill I would say its a collect call. They need to pick who they are going to charge. If its Netflix then stop raping me over the bandwidth. If its me, shut up and be happy, your the highest paid non essential in my household.

    222. Re:It's not arrogant, it's correct. by mellon · · Score: 1

      Nope, my 20mbps commercial service from Comcast was _exactly_ the same as my 20mbps home service is, except that I got a static IP address and had to deal with their horrible CPE router instead of using my own very nice CPE router. If you think about it, what you said doesn't even make sense, unless Comcast Business has a completely separate infrastructure to Comcast home, which would be much more expensive, and which I saw no evidence of. We are talking about peering here, and they are charging Netflix for peering, not me, so that's the same whether it's a business connection or a home connection. And the business connection, which did certainly come with a better SLA, cost about 20% more.

      You may be talking about a dedicated peering arrangement, but that's not in any way analogous to my home connection—indeed, it's what Netflix is being double-charged for, according to TFA.

    223. Re:It's not arrogant, it's correct. by Anonymous Coward · · Score: 0

      No it doesn't. 10 GB of traffic uses up exactly the same capacity each time it's streamed regardless of whether it's a movie or cat pictures.

      I'm not sure of the exact design of the networks, but something like netflix is just begging to have caching nodes installed at at least the ISP level. That way for popular things you don't have to fetch it each time from netflix's servers. Of course, sooner or later a netflix type service is liable to require storage at the user's residence. That way they could use a certain portion of the users bandwidth to cache frequent content and serve it to others. I could see some people accepting that if it reduced their cost... In fact, with very clever coding you might almost be able to decentralize the whole thing, at least with respect to actual media streaming. For instance, when watching popular show #1, you could get chunks 0,3,5 from one source and 1,2,6 from the next source and so on..

    224. Re: It's not arrogant, it's correct. by spectrumlogic · · Score: 1

      Funny...just when none of us believed Mr. Ciccone's arrogance could be surpassed...AT&T attempts to pull off a "righteous" argument? This from one of the very few companies to have ever been "broken up" in a federal anti-trust action. Should we wait for the 'ol "sheer magnitude and frequency" allegations in an attempt to whip up support...or simply expect it to begin raining cats. I would feel sorry for them (and their installed base of imperfect, but profitable contracts) ... but I'm gonna go with finding it amusing (mixed with a little sweet "turn-about, fair play"). This appears to be jealousy that they are no longer in the cat-bird seat of arbitrary and capricious rate setting...with a side of determination to get back in the position they pay their lobbyists/attorneys/politicians to keep them in. So...YES INDEED...I agree we need to level the playing field, sir...just not how you envision it. Any service, profession or industry that enjoys past or present public protection/incentive must submit to rate and profitabilty regulation...since you hold righteousness so dear. We should also consider re-setting the return-on-investment (ROI) calculation for lobbyists, and political contributions...that such a calculation exists...is a symbol of pervasive abuse, a sad reminder of how far from our core values we have strayed and a bold, taunting statement of your regard. Since we are talking equity, Mr. Ciccone...yours is the arrogance that offends...you are not as safe (or insulated) as you want to believe...your carefully laid plans could easily become illusions as well.

    225. Re:It's not arrogant, it's correct. by Maritz · · Score: 1

      Netflix buys cheap, low-quality bandwidth from Cogent, and now they're trying to force ISPs to give them direct transit (i.e. better performance than Cogent can provide) for free.

      The guy who knows how the Internet works thinks AT&T is a transit AS in this scenario. It's their customers who requested the traffic from Netflix. Their PAYING customers.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
  2. Not how it works? by sqorbit · · Score: 3, Interesting

    "But it's not how the Internet, or telecommunication for that matter, has ever worked,' Hasn't that how the internet has been? If someone calls me to play a song they wrote over the phone should they pay a fee to provide me that entertainment over the phone?

    --
    Sent from my TARDIS
    1. Re:Not how it works? by Ioldanach · · Score: 1

      "But it's not how the Internet, or telecommunication for that matter, has ever worked,' Hasn't that how the internet has been? If someone calls me to play a song they wrote over the phone should they pay a fee to provide me that entertainment over the phone?

      They had to pay for their phone connection and you had to pay for yours. (We'll ignore the possibility of long distance charges.) If they went with a cut rate provider, though, their end might be choppy and not provide you with quality entertainment.

    2. Re:Not how it works? by Anonymous Coward · · Score: 0

      Ask TMBG with Dial-A-Song. They've been doing that for 20 years?

    3. Re:Not how it works? by mevets · · Score: 1

      AT&T (nee Bell) played a pivotal role in the development of packet switched networks. The combination of excessive long distance rates and circuit congestion spurred the development of least cost packet routing.

      Maybe they are trying to help spur technology that will take them out of the picture completely.

    4. Re:Not how it works? by Anonymous Coward · · Score: 1

      No, it's not how the internet has always worked.

      Traditionally, the internet worked on tiers of providers. Tier-1 backbones were the top dogs, they had the most connectivity - and had both content producing and content consuming customers. As a result, they had roughly equal distribution of traffic patterns.

      Then you got these low cost Tier-1's. Specifically, Cogent. These guys obtained Tier-1 status, but their traffic patterns have been historically tilted towards content production. That is, they push more data out of their network than comes in. Additionally, because of the way routing protocols work, they tend to transport that data to the shortest AS-Path, and then to the shortest hops within their network. This is efficient, but when it comes to providers like cogent (and fuck it, even level-3 and xo) the result is that these guys transport relatively little amounts of the traffic on their network, and instead just tend to dump it on other, real backbones.

      So in essence, what they've managed to do is act like a re-seller, without having to pay for it. Well, not exactly... Because their traffic distribution is so incredibly lopsided, they tend to have to pay settlement for that traffic. Real Tier-1 backbones have connections that are virtually settlement free.

      However, these parasitic backbones don't want to pay settlement, that eats into their profits. So what they do is they let their vocal customers, Netflix, bitch for them. Netflix goes out and complains about performance, to try to get the real Tier-1's to augment capacity with the parasites for little or free. Why would they do this on behalf of these other companies? Simple, to keep rates down. They have had for a long time a name and shame approach. But the reality is, there's no shame in it: parasitic tier-1's work just like internap, they have POPs, and customers who mostly push data out, and then they drop it off the closest network to their POP. There are two differences:

      1) Internap POPs *paid* for access to the tier1's
      2) These guys have a faux network to pretend like their real tier-1's.

      Of course, Netflix doesn't stop at just the help the parasitic tier-1's get lower costs, thereby they themselves get lower costs route. They have their power play: you don't have to give the parasitic tier-1's free transport anymore. The way past this is you host Netflix's CDN in your network, for free. So instead of just giving free transport away to the parasitic tier-1's Netflix wants you to give them transport, power, hosting, cooling, the works for free! What a great deal right? Oh and also they might offer commercial hosting solutions for others content on that same CDN. So you know, you pay for the transport of the data not just for their costs, but for their profits off of others transport.

      So folks, here how it is and how it's always been. When you had two entities on the internet exchanging data, both end-points typically paid for that transport. Unless, of course they were backbones, in which case peering agreements based on even traffic distribution took care of that.

      Netflix, and providers like cogent have found a way to get around paying their fair share of the transport costs.

      This is *not* a matter of net neutrality. This is a matter of backbones, distribution of traffic, and peering agreements. Agreements that have been the way they are since the beginning of the internet when backbones peered with backbones who carried similar amounts and distribution of traffic.

      Finally, netflix and/or their backbones can take steps to even out traffic flows. Mostly, though, that would involve the backbones having a much more even distribution of traffic which requires that they get more enterprise and home customers. Possibly by lighting up fiber to the neighborhoods... But they're not willing to do that, and why? Because that costs money. A lot of money. A metric shit ton of money. You know who is investing in money for that? AT&T, Verizon, Comcast, etc.

    5. Re:Not how it works? by laird · · Score: 1

      Exactly. The deal here is that Netflix is paying for very low quality bandwidth (Cogent) and now they want AT&T to give them higher quality bandwidth for free.

  3. Pretty Sure Netflix is Paying by Anonymous Coward · · Score: 0

    I suspect they're cutting a check every month to someone for their internet connections.

  4. WE pay by btpier · · Score: 5, Insightful

    Doesn't my monthly ISP bill pay for that delivery already?

    1. Re:WE pay by jwhitener · · Score: 1

      Playing devil's advocate here: your monthly ISP-A bill pays for packets you request and send on that ISP-A's network. ISPs cannot control what happens outside their network. If Netflix was down, you wouldn't call Comcast and say "you guaranteed me access to the internet, netflix is on the internet, fix it!!". Likewise, if tomorrow Netflix suddenly required 200Mb to even work in standard def, it would be unreasonable to ask Comcast to suddenly meet that demand. It would take time to build up the network.

      Now Netflix happens to host their service on another ISP-B. Say ISP-A's network is able to handle X units of traffic. But in the last year, ISP-B has been trying to push 2X units of traffic into ISP-A. Who's responsibility is it to pay for the new infrastructure required to handle 2X? Historically, most ISPs have had pretty equal traffic sharing. So peering arrangements were made that said "since are in/out traffic is equal with you, we both agree not to charge each other".

  5. So what am I paying for? by asmkm22 · · Score: 3, Insightful

    What exactly does my cable bill give me then, if not access to services on the web?

    1. Re:So what am I paying for? by geek · · Score: 3, Insightful

      What exactly does my cable bill give me then, if not access to services on the web?

      I'll give you a simple example of what the Telcos want this to be like:

      My wife and I went to a new wine tasting place here in town. They touted the fact they have more wine tasting machines than anywhere else in the world. You walk up to it, insert your payment and choose the oz you want and the type and you get it in a little tasting cup. Sounds simple right? It should be except that you can't use your debit or credit card and the machines don't take cash. You have to purchase a card from them to use the machines. Just the card, you have to then put money on the card after you've purchased it.

      AT&T want you to think of the connection they give you as that card. They then want to charge you per site or service beyond that. You pay for the priviledge of being their customer. It's the same racket gym's have been doing for decades with their "initiation" fees they claim they need to process your paperwork and somehow cost 100$+.

      Want to be their customer? You have to pay for it. Then you get to pay for it some more.

    2. Re:So what am I paying for? by Ioldanach · · Score: 4, Informative

      What exactly does my cable bill give me then, if not access to services on the web?

      It gives you access to services on the web, but they have to pay their connectivity bill, too. If the company they chose doesn't have a good connection to your company, though, then your experience with that company will suffer.

      In Netflix's case, they chose Cogent, and Cogent wants to take advantage of peering arrangements that presume data will cross their links to other providers in both directions equally, but they want to send far more data than they receive. But they don't want to pay the transit fees that would normally incur.

    3. Re:So what am I paying for? by Just+Some+Guy · · Score: 1

      Presumably Cogent knew this when courting Netflix as a customer. How is Cogent's arrangement with AT&T (and every other individual ISP on the planet) any of Netflix's concern?

      For various reasons, I'm stuck with Comcast. I don't know and don't care what agreement they have with Telstra when I'm emailing stuff to my friends.

      --
      Dewey, what part of this looks like authorities should be involved?
    4. Re:So what am I paying for? by Anonymous Coward · · Score: 0

      Peering agreements are not usually about the amount of data going in each direction, but rather the size of the route table aggregate on each side of the link. If one side advertises the equivalent of a /15 (130k IPv4s) and the other side advertises a single /24 (>254 IPv4s), then it stands to reason that the /24 guy can be considered downstream and the /15 guy is upstream, therefore the /24 guy should be paying the /15 guy.

      In this case Cogent are trying to call a chicken a duck, by calling Netflix's upstream connection a peering arrangement when it is quite clearly a transit arrangement (Only Netflix AS on Cogent's side, everyone on AT&T on AT&T's side).

    5. Re:So what am I paying for? by jwhitener · · Score: 1

      I've posted on both sides of this issue... out of curiosity.

      Why wouldn't a system work where the only money involved be the customer giving money to an ISP? Netflix pays Cogent, Cogent is under obligation to be able to output as many packets as Netflix is willing to pay for. I pay Comcast, Comcast is under obligation to deliver to me as many packets as I pay for.

      Is a large part of my ISP bill being subsidized by transit fees?

  6. Movies, and all Internet traffic is paid for. by rujasu · · Score: 1

    The consumer is paying for it. That's why we pay the bill, and that's how ISP's make billions. That's how it has always worked. AT&T apparently is cheesed off about not getting two bites of the apple.

  7. How DARE you suggest... by Anonymous Coward · · Score: 1

    that we DON'T double or triple charge for the same bits being transported. I laid these wires with my bare hands! Signing papers is hard work! My yacht won't pay for itself!

    1. Re:How DARE you suggest... by Anonymous Coward · · Score: 0

      You nailed it. The Republicans love this crap because it makes even more money for them. They love to fuck over the public by refusing to offer Internet access. That's why here in Seattle we have no competition. For most people, they only have the choice of one provider since CenturyLink and Comcast that have the Republican-granted monopolies don't offer service in the entire city. I'm paying almost $70 per month for less than 1 Mbps, and I consider myself lucky since several of my neighbors are still on dial-up. That is the world the Republicans have created.

    2. Re:How DARE you suggest... by Anonymous Coward · · Score: 0

      An incentive to start your own ISP

    3. Re:How DARE you suggest... by Anonymous Coward · · Score: 0

      I'm paying almost $70 per month for less than 1 Mbps, and I consider myself lucky

      That sounds like you're part of the problem. I pay less than that for over 30x the speed. At some point, depending on your use case, it becomes cheaper (and faster) to pay for a satellite connection. Or a mobile connection. As for myself, an internet connection at a decent price is one of my prerequisites for moving somewhere. Regardless, I wouldn't pay usurous rates; I'd either move or go without. That means that certain places and lifestyles aren't options for me, but (IMO) the upsides outweigh the downs.

    4. Re:How DARE you suggest... by Anonymous Coward · · Score: 0

      Satellite, seriously? Right now Hughes net offers service for $50 a month that's 5/1, but the data cap on that is 10gb, and you have to be able to put up a dish. For $80 a month you can have 10/2 service with 30gb of downloads.

      The problem here is that the mythical freemarket doesn't exist and the conservatives will fight tooth and nail to prevent it from ever taking hold. You need regulation and oversight in order for a freemarket to exist.

      It looked like we were going to be getting a new entry into the market, but it looks like Gigabit Squared is vapor ware. We would have done it ourselves years ago, but comcast refused to comment and Qwest claimed that they were already going to do it. Since then the situation basically hasn't changed. I'm up to 5mbps down now versus 4 14 years ago.

    5. Re:How DARE you suggest... by Anonymous Coward · · Score: 0

      As if the CONservatives that rule this city would allow that. Even though we have the only true politician that supports the people in the entire US (an actual Socialist party member!) even she as admitted that she is powerless to stop the CONservative power machine's rule of this city. They hate the people of Seattle, and that is why they do not allow us decent Internet access.

  8. Hastings is arrogant... by Anonymous Coward · · Score: 0

    for thinking the general public is so stupid as he.

  9. Netflix pays for bandwidth and so do users.. by Anonymous Coward · · Score: 0

    I'm pretty sure I don't get free internet. And I'm also pretty sure that Netflix pays for it's internet service. The networks just want everyone to pay more, after using up free money from the government to build their infrastructure.

    1. Re:Netflix pays for bandwidth and so do users.. by PortHaven · · Score: 1

      Wait...when did they use ANY of that money to build thier infrastructure?

  10. I already pay you AT&T by gurps_npc · · Score: 2
    When I pay you to provide me internet service I am paying you to do a service.

    I don't pay you to provide me only the cheap internet, I pay you to provide me the entire internet. I don't pay Netflix to do that, I pay YOU to do that.

    So YOU are the one that has to build the internet to provide me the service that YOU pro missed to supply me. No, you can't blackmail other people I do business with to help out. I have already paid you, you can't charge them for services I already paid for.

    --
    excitingthingstodo.blogspot.com
  11. I'm already paying AT&T to deliver Netflix by kaplong! · · Score: 3, Insightful

    I'm already paying AT&T to deliver Netflix. Seems to me the carriers expect to be paid twice for the same service, once by the source (Netflix) and once by the destination (me).

    1. Re:I'm already paying AT&T to deliver Netflix by alen · · Score: 1

      you're paying for internet
      if netflix's network provider is having problems it's not AT&T's problem

    2. Re:I'm already paying AT&T to deliver Netflix by pr0fessor · · Score: 2

      Netflix already pays for service at their data centers and you pay for service at home. AT&T want to charge Netflix for traffic that passes through their network to non-AT&T customers in addition to getting paid by Netflix's service provider for handling the same traffic.

    3. Re:I'm already paying AT&T to deliver Netflix by TubeSteak · · Score: 5, Informative

      FTFA

      Interestingly, there is one special case where no-fee interconnection is embraced by the big ISPs -- when they are connecting among themselves. They argue this is because roughly the same amount of data comes and goes between their networks. But when we ask them if we too would qualify for no-fee interconnect if we changed our service to upload as much data as we download** -- thus filling their upstream networks and nearly doubling our total traffic -- there is an uncomfortable silence. That's because the ISP argument isn't sensible. Big ISPs aren't paying money to services like online backup that generate more upstream than downstream traffic. Data direction, in other words, has nothing to do with costs.

      **in other words, moving to peer-to-peer content delivery

      AT&T + friends just don't like provisioning more bandwidth for companies that don't directly make them money.

      --
      [Fuck Beta]
      o0t!
  12. Nonsense by fredprado · · Score: 4, Insightful

    The user already pays for it, both to AT&T and Netflix.

    1. Re:Nonsense by GodfatherofSoul · · Score: 2

      This is the *entire* point of the net neutrality debate. Businesses want to reserve the right to gobble up subsidizes to build out our internet infrastructure, but want reject the responsibilities of being a common carrier and turn around and double charge both the content consumers *AND* producers.

      --
      I swear to God...I swear to God! That is NOT how you treat your human!
    2. Re:Nonsense by Anonymous Coward · · Score: 0

      You mean charge the content producers *AND* the content consumers *AND* charge again when certain consumers talk to certain producers!

      That's three times not two!

  13. Data is free by Anonymous Coward · · Score: 0

    Bandwidth isn't

    1. Re:Data is free by PortHaven · · Score: 1

      Damn straight, at $68/month it sure ain't free.

      So you best be giving me the fucking content I want, lest I take a baseball bat to your fat executive head.

  14. Well, *someone* here sound arrogant, anyway... by pla · · Score: 5, Insightful

    there is no free lunch, and there’s also no cost-free delivery of streaming movies. Someone has to pay that cost.

    So the $80 a month I pay my ISP goes to what exactly? Oh, riiight... All those rural infrastructure improvements you've fought tooth and nail against. Got it.

    Guess what, Jimmy? Without the likes of Netflix, we have no use for your "internet" that goes nowhere. Perhaps you could go read up on this idea on your Compuserve account.

    1. Re:Well, *someone* here sound arrogant, anyway... by ObsessiveMathsFreak · · Score: 2

      So the $80 a month I pay my ISP goes to what exactly?

      Your free lunch.

      The deep, deep irony --actual classical irony -- here is that Cicconi does believe in cost free delivery and free costs. We know that because that is exactly what they promise to their customers.

      Netflix is not the cause of recent video traffic volumes on the web. The cause is "all you can eat" unlimited monthly usage rates which have become the industry standard. It was agreed in the 1980s that ISPs would operate on an "end user pays" model, but at some point in the 2000s, ISPs move towards an "All you can eat" model where the end user pays only for the connection, and not the volume of traffic they actually upload/download.

      So when customers actually do start downloading all they can eat, where does the blame lie here? At Netflix, who have already paid cogent handsomely to upload every single byte of every single video they stream? With the customers, who paid up front for a connection which said "unlimited, all you can eat downloads", and then proceeded to do so? Or does the blame lie with the ISPs and telcos, who wrote millions of unlimited download cheques that their networks now cannot cash.

      So Mr. Cicconi , If your customers are downloading too much data, charge them for the cost. If you can't do that without losing customers, then you can't compete, and its time to step aside for ISPs who can. Netflix does not enter into this equation. The internet is based on an end-user pays principle and if you AT&T want to have end users using without paying, that's your problem and nothing to do with Netflix, Youtube, the Pirate Bay, Facebook or anyone else. Don't extort others when you've bitten off more bytes than you can chew.

      --
      May the Maths Be with you!
  15. Classify 'em as Common Carriers under Title II by QuietLagoon · · Score: 5, Insightful
    Cogent: Reclassify ISPs As Common Carriers Under Title II

    In a bit of a clever public relations dance, Cogent has issued a press release stating that while the company refuses to pay companies like AT&T, Verizon and Comcast new peering tolls, they will pay the costs incurred by those companies to ensure there's adequate capacity at interconnection points. Cogent has been at the heart of more than a few debates over settlement-free peering, usually when the levels of traffic exchanged aren't equal. ...

  16. Both ends get paid for already by msobkow · · Score: 1

    The customer pays for the client end. Netflix and other companies pay for the server end.

    But the greedy pigs at AT&T, Comcast, Verizon, etc. want to gouge people by triple-dipping with fees for the middle.

    --
    I do not fail; I succeed at finding out what does not work.
    1. Re:Both ends get paid for already by Anonymous Coward · · Score: 0

      It is an incentive to support Capitalism and start your own ISP

    2. Re:Both ends get paid for already by geminidomino · · Score: 1

      A comment which shows you understand the realities of neither capitalism, nor starting an ISP.

    3. Re:Both ends get paid for already by Anonymous Coward · · Score: 0

      This is what I was looking for. The download fees you pay are half the picture and by no means cover all the traffic.

      Here's what should happen:
      1. You pay ATT/Comcast/TW/Charter/whoever for download bandwith "up to X bps"
      2. Netflix pays their pipe (again, ATT/Comcast/Charter/whoever I don't know what they use for corporate stuff). They should have some sort of Service Level Agreement (SLA) with their provider of "at least X bps" maybe with variable pricing depending on overages and time of day.
      3. Providers make whatever contracts with each other concerning interconnects between regional networks (this is where the equal up/down no-pay argument should come in).

      At this point, the providers have an idea of
      (a) total download maximums they need to service.
      (b) total upload minimum they need to service.
      (c) traffic levels they should be able to expect from adjacent networks.

      I know they will "oversell" their bandwidth. That's OK to an extent. It's alright for them to make some money as long as they still hold up their SLAs. From this information though, they should be able to run the numbers to figure out if they can support their current contracts on the hardware they have (Hopefully they have a group of people dedicated to measuring/predicting how much infrastructure they have vs what they can sell).

      If the last mile providers have a problem with too much incoming traffic (doubtful) they should take it up with the backbone network they get it from. Up prices with the most recent source of data and the price turtles go all the way back to Netflix. NOT taking the bill directly to Netflix when they didn't calculate their pipe size correctly.

      It's not rocket surgery. I, as a home customer, will be a net consumer of download bandwidth. Netflix, as a commercial service, will be a net consumer of upload bandwidth.

  17. Here we go... by MrSome · · Score: 5, Insightful

    His comment shows exactly where these ISPs want to take the internet.

    It's not about paying for an internet connection so you can get what you want... no no.

    They want you to pay for an internet connection to get what they want to give you.

  18. Arrogant? by Anonymous Coward · · Score: 0

    And what about the incredibly high fees the carriers and ISP's ALREADY charge the consumers while restricting our consumption of data? What's more arrogant? Netflix expecting to be able to deliver their content over pipes ALREADY PAID FOR by us consumers, or that carriers expect subsidies and fees from everyone else while providing no real value to the consumer for those highway-robbery fees charged by them and, in fact, provide less value year over year while continuing to increase rates and lower caps?

    Hmm. Guess which side I'm on?

  19. He has a point. It should be paid for. by Anonymous Coward · · Score: 0

    But isnt that what access fee to carriers like AT&T are for? Isnt that why they charge more for faster speeds and some charge more for the total data transmitted monthly?

    I am not sure that either A) he has thought his argument through from a consumer perspective, or b) he has a clue

  20. Fed Ex and Amazon by gurps_npc · · Score: 4, Insightful
    Using the same logic, Fed Ex is slowing down my Amazon purchases over $25, because while Amazon pays for the shipping, I have refused to tip them.

    Oh wait, no they are not, because Fed Ex is not run by greedy idiots trying to charge twice for one service.

    --
    excitingthingstodo.blogspot.com
    1. Re:Fed Ex and Amazon by Anonymous Coward · · Score: 0

      Try increasing the number of packages that you order by 100 times, see how they react.

    2. Re:Fed Ex and Amazon by mdielmann · · Score: 1

      And what you will see is that you pay about 100 times what you paid before and a semi truck pulls up to your house rather than a mini-van. Because you pay per piece (with possible bulk reductions) for material objects. But that's not the deal that Comcast and AT&T have made with their customers.

      --
      Sure I'm paranoid, but am I paranoid enough?
    3. Re:Fed Ex and Amazon by Mike+Buddha · · Score: 1

      Oh wait, no they are not, because Fed Ex is not run by greedy idiots trying to charge twice for one service.

      Well, actually it is, and they would if they could get away with it.

      --
      by Mike Buddha -- Someday the mountain might get him, but the law never will.
  21. FECK NO! by Anonymous Coward · · Score: 0

    I'm paying for Internet access. Not specifically WWW, FTP or any other specific service that runs on it.

  22. AT&T will likely regret this. by Last_Available_Usern · · Score: 2

    AT&T has quite the sack to go on record with this statement. I can only assume they hope other ISP's will get on board and try to somehow make this an acceptable thought process. A few points...

    1) Where the consumer goes on the internet is their own business.
    2) If the consumer is using more bandwidth then your business model allows, adjust your rates to the consumer to match.
    3) You can't build a toll road between a gambler and the city of Vegas and then charge both the gambler and Vegas for their travel.

    1. Re:AT&T will likely regret this. by Anonymous Coward · · Score: 2, Interesting

      No they won't. This government belongs to them not you. Best you remember that.

  23. Double-dipping by nctritech · · Score: 2

    This is the problem with removing net neutrality: the service providers will be double-dipping. Each endpoint pays a service provider for a certain level of connection to THE ENTIRE INTERNET, and the only speed limitations should be the lowest level of upstream/downstream bandwidth paid for by one endpoint or another.

    Without this "hands off" approach, service providers can say "pay us for a certain amount of speed accessing THE ENTIRE INTERNET" and then say to Netflix or others "pay us to be allowed to send to our customer at a certain level of speed, even though you've already paid another provider for the same thing." That means that the end customers ARE NOT receiving what they paid for unless the sender pays the tariff.

    This should absolutely be fought tooth and nail, because in the end ALL costs fall upon the end consumer. I, for one, would be more than willing to set up something at my end that helps Netflix host its streams in a distributed fashion as is done with torrent downloads.

    1. Re:Double-dipping by Gothmolly · · Score: 4, Informative

      Netflix streams from AWS, and offers ISPs a sort of staging platform where popular content can be cached within the ISP network, eliminating the peering issue. Many cable providers refuse to implement it.

      --
      I want to delete my account but Slashdot doesn't allow it.
    2. Re:Double-dipping by nctritech · · Score: 1

      I was somewhat aware of this problem as well. That's why I would have no problem running a "Netflix daemon" on my machine that would use a relatively small portion of my bandwidth to cache Netflix data. If enough people did the same it would render the platform you describe entirely obsolete.

    3. Re:Double-dipping by kaiser423 · · Score: 1

      Sign me up to act as a mini-CDN inside of the ISPs. Of course, barred by TOS but the ISP is complaining about the traffic being too asymmetric, so let's just even it out a bit....

    4. Re:Double-dipping by rkohutek · · Score: 3, Informative

      Interestingly, as a tier-2/regional operator, these cache devices are hard to get because they fill a certain role. We have worked with Netflix to try and get the caching device, and it just doesn't do any good if you have less than 3-4gbps of pure Netflix traffic. It does not work because the caches have to ... populate the cache! They do this regularly, and the do it overnight -- but it is an absurd amount of data, especially when there are multiple bitrates. I am told that the cache runs > 1.5gbps to populate, almost nightly. So if you don't push significantly more than that, it is not a cost winner.

      As a transit provider/local ISP/bandwidth buyer, 3+gbps is a lot of traffic. We found it mildly more attractive to buy a 10gbps wave to a Netflix-available peering point and peer directly with them than to buy 2+gbps of transit from Level3/Cogent/HE, especially factoring in last mile costs.

      Also of note, my own traffic engineering testing shows that Netflix *strongly* prefers Hurricane Electric (as of last fall), then Cogent, then Level3.

      There is a really horrible hole between 1gbps and 10gbps of consumption that there isn't a good solution for. Netflix knows about it, but it is a very difficult target to hit -- it may be cheaper to buy transit, or it may not be, but hardware isn't the answer. This same situation exists for all CDNs - limelight, edgecast, akamai, L3.

      As usual, peering is the answer. Our customers pay us to bring them Netflix ... so we buy a wave and backhaul it hundreds of miles to satisfy them. It'd be ridiculous for me to charge Netflix when my customers are asking for it!

    5. Re:Double-dipping by Anonymous Coward · · Score: 0

      It'd be ridiculous for me to charge Netflix when my customers are asking for it!

      Obviously, you have competition in your market. You must be a small fry loser. Time to suffocate you with "scale neutral" regulations.

    6. Re:Double-dipping by laird · · Score: 1

      Yeah, I built that network, it grew to over 150m users, and was acquired. :-)

  24. Netflix should charge fees back to customers by hawguy · · Score: 5, Interesting

    Netflix should charge back whatever fees they pay to Comcast back to their customers that view content via Comcast. This lets the customer see the true cost of their ISP.

    Why should users of Google and other ISPs that don't charge fees to Netflix subsidize Comcast subscribers?

    1. Re:Netflix should charge fees back to customers by Anonymous Coward · · Score: 0

      Netflix should charge Comcast for their customers to be able to gain access to Netflix - twice what Comcast wants to charge to carry it.

      Then when Comcast doesn't pay, Netflix can state on their website that due to Comcast's illegal antics, Comcast customers cannot have access to Netflix and that they should contact the FCC to let them know about the Net Neutrality violations that Comcast is performing.

    2. Re:Netflix should charge fees back to customers by alen · · Score: 1

      since comcast is charging them less money than cogent did, they should get a discount

    3. Re:Netflix should charge fees back to customers by Anonymous Coward · · Score: 0

      Netflix should charge back whatever fees they pay to Comcast back to their customers that view content via Comcast. This lets the customer see the true cost of their ISP.

      Why should users of Google and other ISPs that don't charge fees to Netflix subsidize Comcast subscribers?

      That wont fix the problem. Other ISP's will just realize that they can get paid this way and the fees will become ubiquitous.
      Better to just block Comcast all together.

    4. Re:Netflix should charge fees back to customers by Anonymous Coward · · Score: 0

      Maybe Comcast should charge back to their customers based on the bandwidth that their Netflix use is consuming. This lets the customer see the true cost of their Netflix subscription. Usage-based billing will be here very soon.

    5. Re:Netflix should charge fees back to customers by Anonymous Coward · · Score: 0

      Either way Google will win and beat AT&T/Verizon/TWC and maybe Comcast in the FREE MARKET. Silicon Valley type CEO's will win

    6. Re:Netflix should charge fees back to customers by NotSanguine · · Score: 1

      Either way AT&T/Verizon/TWC and maybe Comcast will win and beat Google in the crony capitalism environment we have Silicon Valley type CEO's will win

      There. FTFY.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
  25. Landlines by mepperpint · · Score: 3, Informative

    I would like to introduce Mr. Cicconi to a device called a 'Telephone', particularly a variant colloquially termed a 'landline'. Historically 'telephone' companies, such as AT&T, would sell users a 'landline' to which they could connect a 'telephone'. These services included a basic connection charge as well as usage charges. In the event that a connection was made form one 'landline' to another, the party that initiated the session was charged for the usage of the session. This is exactly the treatment that Mr. Hastings is proposing.

    In particular, I would like to note that while some providers charged users based upon usage, other providers allowed for a fixed cost plan where the subscriber paid a flat payment independent of their usage. These sorts of unlimited plans are exactly what AT&T, Comcast, etc. are selling as an ISP to their customers now, so they have no business trying to extract usage fees from Netflix and they have no business telling us that we're asking non-Netflix customers to subsidize the connections of Netflix customers. We've paid the fees that AT&T, Comcast, etc. demand for unlimited usage, so they need to provide it without whining about how they're not getting paid twice for the same service.

    1. Re:Landlines by Kjella · · Score: 1

      I would like to introduce Mr. Cicconi to a device called a 'Telephone', particularly a variant colloquially termed a 'landline'. Historically 'telephone' companies, such as AT&T, would sell users a 'landline' to which they could connect a 'telephone'. These services included a basic connection charge as well as usage charges. In the event that a connection was made form one 'landline' to another, the party that initiated the session was charged for the usage of the session. This is exactly the treatment that Mr. Hastings is proposing.

      That's who takes care of the bill. If you operate a call center, do you think all the phone lines are free because you only get incoming calls? If you call abroad, do you think your carrier gets to pocket all that money? No, they in turn have to pay the other side of the connection for the privilege of going through their network. Of course both sides will try to keep as much as possible of that money leading to peering disputes.

      --
      Live today, because you never know what tomorrow brings
  26. Data caps by NapalmV · · Score: 1, Informative

    I believe it's about the data caps. Netflix wants them removed, AT&T basically says that users going over 150GB/month should foot the bill for infrastructure upgrades (as opposite to *all users* including those that do just e-mail and light web browsing). Seems fair to me.

    1. Re:Data caps by the_povinator · · Score: 1

      This is not an argument about pricing mechanisms for Internet providers; I think we all agree that charging people more for more data is reasonable. The issue is extorting people like Netflix just because they can.

      --
      The .sig is dead, and I believe I had a hand in killing it.
    2. Re:Data caps by NapalmV · · Score: 1

      Mhh. If it's not about data caps then it's about QoS and netflix wants some preferential treatment over other internet data publishers:

      http://bgr.com/2014/02/25/verizon-att-netflix-streaming/

      At which moment AT&T pointed out that business class costs more than economy.

    3. Re:Data caps by fullmetal55 · · Score: 1

      How do you get that from them demanding NETFLIX pay AT&T for the right to provide AT&T customers with their service?
      It's not about AT&T customers footing the bill, it's about NETFLIX footing the bill... which is not right.

      Speaking of which there is no free streaming being requested, the customers are ALREADY PAYING FOR IT... what difference is streaming 2GB of video vs downloading a 2 GB ISO?

      yet they claim there is a difference. Even though I paid for that 2 GB ISO just as I paid Netflix for my monthly subscription. I'm not expecting Valve, Microsoft or any 3rd party to pay my ISP for the right for me to download a file. I expect them to pay THEIR ISP for the bandwidth I use to get the file from their servers to my computer.

      Netflix has never claimed to want data caps removed, they want traffic throttling removed. Specifically they want ISPs to stop throttling traffic coming from them as they are doing now. Net Neutrality has nothing to do with Caps, and everything to do with throttling.

    4. Re:Data caps by wiredlogic · · Score: 1

      It isn't about data caps. They don't even want to provide the contracted service to their customers who stay below the caps. AT&T and Comcast just want to double dip by singling out the biggest source of incoming traffic and making up special pricing rules for them. Never mind that that they would have to serve up the same amount of data if Netflix's volume was hypothetically split among 1000 equal competitors.

      --
      I am becoming gerund, destroyer of verbs.
    5. Re:Data caps by Anonymous Coward · · Score: 0

      No, Netflix wants equal treatment to other internet data publishers. Netflix is fine with being in economy class, AT&T is threatening to shunt them to the cargo bay if they don't pay up.

    6. Re:Data caps by Anonymous Coward · · Score: 0

      No, AT&T shouldn't be promising 'unlimited bandwidth' to users if AT&T can't provide it. If AT&T is selling a '150 GB/month' plan with overages paid for by the consumer I haven't heard that. What I see is AT&T customers saying they paid for 'unlimited bandwidth' & AT&T refusing to provide that, perhaps AT&T customers should put together a class-action lawsuit against AT&T for fraud.

    7. Re:Data caps by laird · · Score: 1

      It's not "extorting" Netflix. The deal is that Netflix buys low quality bandwidth from Cogent, and now they want to strong-arm AT&T into giving them direct transit (i.e. building a dedicated network for Netflix) for free instead of paying for higher quality bandwidth.

    8. Re:Data caps by laird · · Score: 1

      Valve, Microsoft, etc., all pay their internet service providers for the bandwidth to deliver their content to their customers.

      The trick here is that Netflix wants to get their upstream bandwidth for free, which is to say they're asking for preferential treatment over every other content provider because of their market muscle.

      That's the opposite of Net Neutrality.

  27. More Corporate Greedmeisters by sdinfoserv · · Score: 5, Insightful

    As an American, I really get tired of billionaires arguing with millionaires about money.... All that happens is I get screwed.
    - the US has fallen from 16th in 2012 to 31st in 2014 for broadband speed...
    - pro sports tickets are almost unaffordable to the average person
    - US healthcare is the most expensive per capita in the developed world and is ranked 33 for infant mortality

    We need to get of this 'we;re great, capitalism solves everything' fox news mantra and look at what's actually happening.
    Otherwise, at some point, there's going to be just 2 jobs left in the US. The guy who owns everything and they guy who cleans his toilet.

    1. Re:More Corporate Greedmeisters by MrSome · · Score: 1

      Cmon man... If it wasn't for capitalism, we'd all just sit around going, "I'm not going to try hard at anything, cause I can't get rich doing it."

      Isn't that the pro-capitalist-free-market-deregulate-the-world chant?

    2. Re:More Corporate Greedmeisters by Gothmolly · · Score: 1

      Your points are unrelated, and only 1 of the 3 examples you cite has anything to do with capitalism (even that is a stretch).

      --
      I want to delete my account but Slashdot doesn't allow it.
    3. Re:More Corporate Greedmeisters by Anonymous Coward · · Score: 0

      Ummm, you must have failed Econ 51? You better hit the books...

    4. Re:More Corporate Greedmeisters by geek · · Score: 0

      - the US has fallen from 16th in 2012 to 31st in 2014 for broadband speed...

      No capitalism involved in this example because the telcos are government granted monopolies.

      - pro sports tickets are almost unaffordable to the average person

      Not capitalism because the team is granted a monopoly in their area by the city. This is good and bad. Good because it keeps teams from sprouting up stadiums all over the place. Bad because they can then charge whatever they want and sports morons will pay it.

      - US healthcare is the most expensive per capita in the developed world and is ranked 33 for infant mortality

      There is zero capitalism in medicine today because the FDA controls everything from drugs to medical devices and states grant monopolies to insurance providers. I can't by out of state insurance to compete with the fuckers that are ripping me off.

      We need to get of this 'we;re great, capitalism solves everything' fox news mantra and look at what's actually happening.

      No, YOU need to take your head out of your ass and stop blaming Fox News for all of your very real liberal inadequacy.

    5. Re:More Corporate Greedmeisters by Anonymous Coward · · Score: 0

      >pro sports tickets are almost unaffordable to the average person
      if the price of the circuses gets too high, we'll have plebians rioting in the streets!

    6. Re:More Corporate Greedmeisters by geekoid · · Score: 2

      Infant mortality is a horrid example. Every country considers infant mortality a little different.
      In the US, anyone born with any signs of life, who then die counts toward that statistics. In some country's, premature babies that are born, but die within 7 days don't count. Russia being one of them.
      When you normalize the data, are IMR is actually much lower.

      IMR also doesn't take into account fetal deaths; which is a very important metric when using infant deaths as an indicator of country quality.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    7. Re:More Corporate Greedmeisters by geekoid · · Score: 2

      He didn't say capitalism was bad, he said
      "We need to get of this 'we;re great, capitalism solves everything' fox news mantra and look at what's actually happening."

      And he is correct.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    8. Re:More Corporate Greedmeisters by NIK282000 · · Score: 3, Interesting

      You mean like right now? You don't get rich by working hard. You get rich by being born rich, by fucking over other people, by being really lucky or by being REALLY fucking smart. Of all of those cases only one of them involves hard work and not many people are born smart enough to come up with a real money making idea.

      --
      Dear aunt, let's set so double the killer delete select all
    9. Re:More Corporate Greedmeisters by Kaenneth · · Score: 1

      Why not root for a minor league team instead?

    10. Re:More Corporate Greedmeisters by Anonymous Coward · · Score: 0

      You don't get rich by working hard. You get rich by ... being really lucky and by being REALLY fucking smart

      FTFY. Just being smart does not make you rich. There is always a fuckton of luck needed, though a little less than winning a lottery.

    11. Re:More Corporate Greedmeisters by Xyrus · · Score: 1

      You mean like right now? You don't get rich by working hard. You get rich by being born rich, by fucking over other people, by being really lucky or by being REALLY fucking smart. Of all of those cases only one of them involves hard work and not many people are born smart enough to come up with a real money making idea.

      Pretty much. Economic mobility in this country is primarily down. The upper 20% control pretty much everything. Income for the middle and lower classes have been stagnant and or dropping. If you aren't already well of it is extremely difficult to become well off. If your family is already in a whole you are most likely going to stay there.

      The economic statistics are depressing. And of course the upper crust fight tooth and nail to make it worse. It isn't sustainable, but then again they don't really care. It will be interesting to see how much longer this can last before the whole thing collapses.

      --
      ~X~
    12. Re:More Corporate Greedmeisters by Gothmolly · · Score: 1

      Which is why you're a foe.

      --
      I want to delete my account but Slashdot doesn't allow it.
    13. Re:More Corporate Greedmeisters by Anonymous Coward · · Score: 0

      if it wasnt for capitalism, we wouldnt be obsessed with being rich.

    14. Re:More Corporate Greedmeisters by Bengie · · Score: 1

      I don't see how making the 80th percentile is that hard, almost any two person house-hold would qualify assuming a useful college education for both.

    15. Re:More Corporate Greedmeisters by MrSome · · Score: 1

      I feel like the sarcasm in my post wasn't thick enough. I was going for the tone of people I know that say things like, "If you tax the rich, nobody will work hard anymore cause they can't make any money." or "Regulation is BAD. Always BAD."

      Which is utter BS but, when you're a capitalist you don't think that anything can ever happen without the incentive to get rich. As if people don't ever get curious and try to solve problems, simply because they want to try.

    16. Re:More Corporate Greedmeisters by Anonymous Coward · · Score: 0

      - Point 1 is that capitalism breeds a "what the market will accept as 'good enough'" attitude, leading the US to fall behind.
        -- Which country has the fastest broadband speed?
        - Point 2 is that capitalism breeds a "what the market will bear" attitude, leading many things to become needlessly expensive.
        -- Pro Sports are nothing but money farms anyway.
        - Point 3 is that capitalism breeds a "what the market will bear" attitude, leading many things to become needlessly expensive.
        -- Which country has the lowest infant mortality rate?

  28. Backwards by uvajed_ekil · · Score: 1

    Dear AT&T, Cox, Verizon, etc. You seem to be missing the point. It is YOUR CUSTOMERS who want net neutrality. I don't think I am alone in saying I want to be able to use the bandwidth you sell me, and to be able to use it as I please. And I'm not talking about running a server or doing anything illegal. You are so, so lucky that there is no viable competition to your local duopolies. I think it is time that we (the voting tax payers that make your companies possible) work on that. I don't think you will be happy with the result once we get angry enough as a group to take action. If you compare the state of home and business internet service in the US to countries like South Korea or Latvia, to name only two, our current system is clearly not working, so it is time to try something else. Go ahead, keep gouging us while you can, I guess, 'cause ya ain't gonna like what is further down the road.

    --
    This is a hacked account, for which the owner can not be held responsible.
    1. Re:Backwards by Anonymous Coward · · Score: 1

      Spot on, except for this part:

      And I'm not talking about running a server or doing anything illegal.

      Why not? Running a server is part of "[using] the bandwidth... as I please". I should be allowed to do that. If I use "too much bandwidth", then they should make it clear up front what the limits are and how they charge for an overages. The word "unlimited" is not just marketing fluff. And illegal stuff wouldn't be even a tiny part of AT&T's problem, since as a common carrier, they wouldn't be held responsible for such actions.

      It's high time they started selling a "dumb pipe" with no restrictions on what you can do, even including resale of service. Charge the base rate by the maximum speed, and charge the usage rate by the bit. For the base rate, for example, a $5/10/15 rate could set a 10/20/30 Mbit speed cap. For the usage rate, Amazon charges 3 cents per GB of transfer, and they're turning a profit. And any phrase that can be construed as equivalent to "unlimited" should be considered false advertising if used as an overall description for a product that has any limit on either speed or transfer.

  29. AT&T Exec shoots self in mouth by Anonymous Coward · · Score: 0

    Stupid arrogant fucktard, Netflix already *PAYS* for their internet connectivity, so of course they expect net neutrality. It's the law you fucking retard (fucktard).

    So, it's arrogant to expect you to conform to the law? Really? How about this, let's just have the Federal Government nationalize everything you own since you cannot follow the rules, and fines do nothing to make you conform, so let's just put you out of business, and all the *officers* of the company can spend hard time in Levenworth for their own arrogance.

    Yeah, that sounds like the proper punishment for AT&T's illegal antics.

  30. Speaking of Arrogance by Anonymous Coward · · Score: 0

    I suppose that in addition to paying for his groceries then he should pay the trucking company that delivers them to the store? I don't think anyone wants a free lunch. We want what we're already paying for without being charged twice.

  31. Unethical by hawkbat05 · · Score: 2

    Someone can correct me if I'm wrong here but the way I see it is Netflix already pays an ISP for its access to upload and download data and the end users already pay their ISP access to upload and download data. Both ends of the connection are already paid for, charging anything on top of this is basically charging for the same service twice. Netflix and the ISP's share the same customers, charging Netflix more means they'll pass the charges on to their customers this basically amounts to the ISP's increasing their prices/revenue by artificially restricting the supply.

    For example if the ISP made a deal with Netflix that they can utilize X bandwidth at a rate of $Y/GB then Netflix is already paying for the data it sends. Putting another condition on that data and saying that you have to pay $Y+Z/GB if the data is providing something to customers is just a BS way of raising the price for businesses when it's not costing the ISP a dime more than any other data.

    1. Re:Unethical by guacamole · · Score: 2

      AT&T doesn't want to charge Netflix extra for the same connectivity they get right now. What AT&T and other telecoms want to be able to do is to offer Netflix a higher priority (higher bandwidth and lower latency) service than what the rest of internet traffic gets for an additional fee. Netflix always refused this idea, and just hoped that telecoms upgrade their infrastructure which would benefit everyone at once.

      I don't see a problem with telecoms charging Netflix extra for a higher priority service, but there is one big conflict of interest here. AT&T not only provides the pipes, they also provide the TV content with the U-Verse service. So AT&T is in direct competition with Netflix. Without net neutrality, AT&T is now in prime position to make sure that Netflix doesn't hurt their TV cable business. Either they charge Netflix so much that it stays uncompetitive, or perhaps Netflix stays competitive but AT&T will skim its profits through the fees anyways. Huge conflict of interest. FTC should look into this.

    2. Re:Unethical by Chirs · · Score: 1

      I don't see a problem with telecoms charging Netflix extra for a higher priority service

      I do. It violates net neutrality. Your netflix stream shouldn't take priority over my rsync backup.

      ISPs should be allowed do traffic shaping on a per-subscriber basis regardless of traffic type. They can even be allowed to traffic-shape different types of traffic *for a particular subscriber* if that subscriber asks them to. But they should absolutely NOT be allowed to prioritize packets belonging to different subscribers based on traffic type.

  32. Yea... by anmre · · Score: 1

    Senior Executive Vice President of Legislative Affairs thinks that some other company is not playing fair.

    Apparently there is no free lunch, unless you're Ma Bell and have the resources to influence fucking Congress.

  33. Start the supplanting already by Average · · Score: 4, Interesting

    Google Fiber, meet Netflix. Netflix, Google Fiber. Amazon Web Services, you in? Apple?

    It's time to start more overbuilding. Yes, it's expensive. Yes, Comcast or whoever already has the lines and could bump up to 300Mb plans for $50 at almost no additional cost (making them hard to compete against). But, until you build (and build at a much faster rate than the current Google Fiber projects), this is only going to get worse. You're currently dependent on not just a quasi-monopolist monster, but a wounded and irrational monster (because their TV profits are hurting). You have to bypass them.

    It's ugly, I know. There will be communities with roadblocks (overbuilding is supposedly legal everywhere since the Telecom Act of 1996, but reality isn't so pretty). Sad, but true. We'll end up bypassing those communities, too. In every community that welcomes you, BUILD. Fiber is nice, but if you have to go DOCSIS/HFC (fiber to the block/neighborhood) with a better upstream split frequency because of cost, build that... coax is under-rated. But build. You can train high school students to lay coax. You can leverage massive discounts for buying 30 million identical ONUs. Build. Please. For the good of the country and the internet.

    1. Re:Start the supplanting already by Anonymous Coward · · Score: 0

      Terrible idea.

      We are on the cusp of having optical burst switching commercialised (it's already in the lab). Building out DOCSIS or Ethernet/IP switched networks is an enormous waste of CapEx, when in two years or less, we will have optical burst routers capable of routing >1Tb/s optical bursts through optical switches using >100mW power/port, where-as current Ethernet/IP and SONET/IP routers and switches use more like 100W/1Tb/s/port. Even more pertinent, is that OBXC switches can remain in service while the OBRs at the edge of the network can be upgraded to support higher data rates.

      Building passive optical networks (eg. GPON/GEPON), particularly with blow-through conduits that can be upgraded at low cost is the only good idea in your post.

      I doubt in the near-term that OB routing will be rolled out to the network edge, rather technology like GPON, XPON and WDM-PON will be used to connect end user networks to the OB edge router. The reason for this is that OB is a TDM solution, and it's aggregate capacity grows with the length of the burst, due to the guard interval required by the uncertainty of the OXC switching time, and also due to the high cost of burst generation and the low tolerances of the generated lambdas (= high quality lasers, modulators, conditioners).

      In an IP network you have to put expensive router ports or (less) expensive MPLS switch ports on every link in the backbone network, and to increase throughput, you must upgrade those ports to higherspeed ports. With some luck you can move the pulled router line cards to a less loaded router somewhere else, but often they just go up on eBay and sell for next to nothing. This means that you are paying for peak capacity on every link, and you don't get to aggregate your transmission capacity across many links. Conversely, in an OXC network, you install capacity on a per-router basis, and you can aggregate the capacity of all the links on that router. In other words, every fiber in your network (discounting degraded lightpath adjustments) can carry up to the maximum burst rate deployed in your network (bursts can only be sent from and to routers mutually supporting a burst rate). This has the effect of inverting the cost of your network in an even more profound way than MPLS and GMPLS did. Now the core is cheap.

      If you think it's a good idea to roll out billions of dollars of middle of network routers, linecards, and PHYs, when BOXCs are set to deliver 100x the capacity/$ at 10000x the capacity/power, then I guess there's nothing more to be said.

    2. Re:Start the supplanting already by Average · · Score: 1

      Great and all. Marvelous.

      The problem is, there's ALWAYS going to be "the next thing, it's in the lab now". Meanwhile, AT&T dutifully mails me a postcard each month inviting me to switch to the best thing they have to offer here. The exact same 1.5Mb ADSL they rolled out in late 1999 over JFK-era copper.

      The SOTA will always keep going up. Nature of things. By the time we overbuild the top 100 metros (with two generations of improvement in the meantime), we'll presumably have off-the-shelf quantum networking components. Que sera sera. Or, if they don't do it, AT&T will be offering me 1.5Mb over copper in 2022. And increasing the chocolate, ahem bit ration to 50GB.

    3. Re:Start the supplanting already by Anonymous Coward · · Score: 0

      I agree with your general premise.

      I was more saying that you should be smart with what sort of telco-killer technology you roll out.

      GPON is available now, and being rolled out nationwide in my country NZ. If you roll out DOCSIS, you are going to have a legacy of obsolete coax cable. If you are smart, you roll out GPON, which comes in fiber conduits, so that when the fiber you install in 2014-2015 becomes obsolete, you just pull it out, and blow new fiber down the same conduit at a cost of around 20c/meter. I also think kids straight out of high school can install GPON, as I see them out the window of my house, digging up the street and installing GPON as I write this.

      But building last mile and building core infrastructure are quite decoupled. You can build last mile infrastructure, and it adds speed, without much in the way of capacity (ie. it's fast, but when everyone uses it, it's slow), and that's still a good thing. You can build core infrastructure without last mile, and that's senseless, because it's just going to sit there unused.

      What I'm suggesting is that you do the smart thing, spend money on PON now, while BOXC develops, and then spend money on BOXC when it's commerically available. PON delivers 100Mbit/s at the CPE now, and can deliver 1Gbit/s in a year or two. The same cable infrastructure can deliver 40Gb/s or 100Gb/s, at much higher termination cost with Ethernet. Can any DOCSIS/coax system deliver 100Gb/s?

      I'm also not saying existing core networks should just sit on there hands and do nothing waiting for BOXC, but refuting your suggestion of massive overbuilding. Perhaps they should overbuild fiber optic cables, but the best thing they can be doing is building "just enough, just in time" as far as installing routing and IP capacity, especially when looking at another hysteresis point in the capacity/cost curve that stands to be as big as the hysteresis point when we switched from analog coax to digital fiber for long distance voice circuits.

    4. Re:Start the supplanting already by mgcarley · · Score: 1

      Happy to do it, but who will fund the initial build? Should I go out to every customer in town and promise them a future service in exchange for them signing up and pre-paying for it now? I don't know about you but that would smell of a scam to me.

      Personally I think Google's progress isn't half bad, all things considered - and they have pretty deep pockets compared to many budding operators which I expect offers them some advantage.

      For the record, I'd love to peer or host a Netflix box, but we're not pulling enough traffic from them yet, so for now my Netflix packets will have to come from Level3.

      --
      Founder & COO, Hayai India (hayai.in) / USA (hayaibroadband.com) // t: @mgcarley
  34. The consumer has already paid for the bandwidth by Anonymous Coward · · Score: 0

    What they use it for is their business

  35. They want to be paid three times! by wbean · · Score: 1

    They are already paid by the end user and by the distributors like Netflix, who pay for their bandwidth usage. What the carriers want is to be paid three times.

    1. Re:They want to be paid three times! by Kaenneth · · Score: 1

      Also by the taxpayers to build 'infrastructure'.

      And payoffs from the NSA for building their secret rooms.

      So between quad and quintuple dipping by my count.

    2. Re:They want to be paid three times! by Fnord666 · · Score: 1

      They are already paid by the end user and by the distributors like Netflix, who pay for their bandwidth usage. What the carriers want is to be paid three times.

      Unfortunately stories like this just highlight how little even self-declared tech people know about how the "Internet" works.

      --
      'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
  36. This *is* how telecommunications works by Anonymous Coward · · Score: 0

    Someone in the industry correct me if I am wrong, but my local POTS phone company does not charge the long-distance provider for access to their network.

    The argument that other people are paying for my Netflix is absurd. If looked at that way, I am paying for their whatever they use... unless they don't use their connection in general, in which case they are paying for my last-mile service as well (notice: the last-mile provider doesn't want to change that).

    What they are proposing is eliminating the internet and replacing it with a group of somewhat interconnected WANs operated by Verizon, TWC / Comcast, AT&T, etc)

  37. AT&T Wants everyone to pay by wolfguru · · Score: 2

    As consumers, we pay for internet access to get the content we are interested in, not the content the ISP can make the most money delivering. If AT&T wants the content providers which are what drives consumers to subscribe to pay for the bandwidth it takes to provide than content, then AT&T should not be charging the consumer for delivering the content at the same time. It is quite simple, the telecom providers want to be paid twice for delivering the content; by the consumer and by the provider. It is purely greed and until the regulatory agencies are given the power to correct it, it will get worse for both provider and consumer.

  38. I agree! by Anonymous Coward · · Score: 0

    As a Netflix customer who doesn't have to use AT&T, I strongly agree with your proposition.

    1. Re:I agree! by hawguy · · Score: 1

      As a Netflix customer who doesn't have to use AT&T, I strongly agree with your proposition.

      If these fees stick, you can count on AT&T jumping on board too.

  39. Dear Comcast/AT&T/Verizon/Et al by PortHaven · · Score: 3, Informative

    I pay you $68/month for my broadband internet.

    I don't give a damn about your whiny bitching, you deliver my content. If Netflix is the content I want, you !@#$ deliver it.

    Playing these BS games is just you being greedy !@#$s.

    The fact that my internet bill went from $35 --> $68 a month in a period of 7 years pretty much tells me you're just a bunch of greedy fucks.

    So at this point, I am of the opinion we need to file a class action lawsuit against you for not delivering what we paid for.

    And yes, your contract stating that said performance may not be available at all times, I don't think that will protect you. Because IMHO that's a good faith clause, that says hey sometimes shit happens. Sometimes bandwidth or connection will be down.

    But in no way does that give you the excuse to have 0% uptime for providing service. And that's what you've been doing with your games.

    1. Re:Dear Comcast/AT&T/Verizon/Et al by Anonymous Coward · · Score: 0

      Ya, no joke. In 1999 by cable internet was $30/mo for 30 mbps. Now it's $60/mo for 15 mbps. What's wrong with this picture?

  40. AT&T - Fed wants their money back... by Anonymous Coward · · Score: 2, Insightful

    Guess what AT&T, the Feds want their money back - you know, the millions they paid out for you to improve your infrastructure, those same millions that you gave your execs as bonuses while doing nothing to improve your infrastructure.

    Yeah, those millions. While we're at it, they're going to revoke your licenses to be in the communications business, that includes cable, internet, cellular and phone service nationwide.. Why you ask? Well, it's due to your own arrogance and incompetence. You pissed away resources to improve your status, doubled and tripled the cost for communications and now have the temerity to ask content providers to pay you to deliver data that they've already paid to have delivered, that your customers have already paid you to deliver...

    Sorry Charlie, but you can't do that. That's extortion and blackmail, that puts you (along with Comcast, Verizon, Time-Warner) up for Rico Act violations, please enjoy your time in prison and your loss of all infrastructure, patents and copyrights, you'll have nothing left.

    The good of the people will prevail.

    1. Re:AT&T - Fed wants their money back... by Bengie · · Score: 1

      Guess what AT&T, the Feds want their money back - you know, the millions they paid out for you to improve your infrastructure, those same millions that you gave your execs as bonuses while doing nothing to improve your infrastructure.

      Yeah, those millions.

      "Millions"? Try tens to hundreds of billions.

  41. It's their road by PortHaven · · Score: 1

    That I have paid $68/month to use at a given speed. And they are refusing me...and no there really isn't a capacity issue in most places. It's a bullshit greedy ass mo fo issue.

  42. business as usual by farble1670 · · Score: 1

    why is everyone so surprised and outraged? this is business doing what business does: maximizing profits. if there's no law saying they can't, they will. they are actually doing what they are supposed to be doing. if they weren't doing this, their board of directors should be fired. if you want to be mad at something, be mad at your representatives for not passing a law.

    1. Re:business as usual by Anonymous Coward · · Score: 0

      You corporate apologists would be kind of comical if things like this weren't so serious. You want us to be mad at representatives for not passing laws to cover every possible avenue of screwing people over that these corporate cretins can think up? Let's say that we did that. Then we'd be accused of "too many regulations" and "trying to punish the job creators" and all the other corporate lies that come with people actually telling them how we want our society to function. It's just more corporate two faced behavior: "we can do this because the law allows it, and don't you dare pass a law that doesn't allow it even if that's what you really want".

      Here's my new law that would fix most of these situations: now that we have accurate if coincidentally highly unpublicized tests to determine if one is a sociopath, all officers and directors of corporations must take said tests. Sociopaths are not allowed to hold high office in government or high office in corporations. Harsh? Maybe, but it would save a lot of people a lot of money, and it would eliminate the necessity of a lot of other laws and regulations by having actual humans and not these things that look like humans but aren't in charge of things. It would be a hell of a lot more effective at creating a polite society than the drug testing the sociopaths seem content to saddle the rest of us with.

  43. Bullshit by Anonymous Coward · · Score: 0

    Liar.

  44. Between Netflix and Youtube by PortHaven · · Score: 2

    They're also the reason we're willing to pay $70/month for internet.

  45. No. by apcullen · · Score: 1

    But it's not how the Internet, or telecommunication for that matter, has ever worked

    It's not how you ever wanted the internet to have worked. There. Fixed that for you.

  46. Honestly, this is the tactic they should take... by PortHaven · · Score: 4, Interesting

    Netflix announces that Comcast customer's (and only Comcast customer's) rates will go up $2/month.

  47. Someon is arrogant by franblets · · Score: 1

    And I don't think it is Netflix

  48. Who's not paying enough? by wangmaster · · Score: 4, Insightful

    I'm somewhat sympathetic to the ISPs issues.
    1) Internet connectivity at the end user level is oversold. AT&T (comcast, timewarner, google fiber, [insert your ISP here]) does not charge in such a way that every single user can have 100% unfettered access to your bandwidth all simultaneously. It's just the way it works
    2) Netflix may pay their ISP for their bandwidth usage.

    Here's the disconnect. Netflix's ISP and [insert your consumer ISP here] do not share the same network. Thus at some point, the two ISPs have to cross some barrier. Now if all of [insert your consumer ISP here]'s customers are simultaneously connecting to Netflix at the exact same time for primetime hours, who's responsibility is it to ensure that the peering arrangement is fair? Does the consumer ISP need to pay to make sure that the peering relationship is such that all their users have the ability to stream from Netflix unfettered? Considering 1) above, is this fair to the ISP? They could do so, but to maintain their existing cost structure it'd likely mean that they may have a smaller pipe to another peer. Is it fair to users using those other peers or do they also have simply make sure ALL of their peers are able to fully pass 100% of traffic unfettered at peak times?

    The simple answer is, if you expect the consumer ISP to allow full bandwidth to all of these sites, it's going to significantly raise the cost of bandwidth per end user. So we're complaining that consumer ISPs are demanding money from Netflix, but the alternative is to demand more money from the end user or eat the costs. We know eat the costs is never an option in the US market system :). So where's the money coming from? If the consumer ISP started charging people more for this, people bitch about being charged more rather than bitch about crappy Netflix.

    Perhaps Netflix's tier 1 should pay for a larger peering pipe to the consumer ISP. But where's that money coming from? They're going to increase Netflix's rates, but even then, the consumer ISP would have to have the proper equipment to handle the larger peering pipe.

    I don't really agree with the entirety of either Netflix or the consumer ISP (AT&Ts) arguments, but peering bandwidth has always been a balancing act, especially with multiple networks you have to peer with. This is why we have CDNs to begin with, and CDNs are paid for by the content producer, and they in turn either pay the consumer ISP to host their gear, or work with the consumer ISP to come up with a mutually beneficial decision. In some cases, the reduced bandwidth flowing through the peering reduces the ISPs costs that they can justify hosting the CDN equipment without asking for any money.

    I do agree that it's wrong for a consumer ISP to purposefully lopside their peering arrangements to hurt a competitor, just like I agree that there's nothing wrong with the notion of paying an ISP to host a CDN appliance. Given our lobbying system, do you really think that net neutrality legislation will even begin to address the many nuanced aspects of this issue?

    1. Re:Who's not paying enough? by Todd+Knarr · · Score: 3, Informative

      This is what peering agreements handle, and they're already in place. Netflix pays it's Internet provider. That provider in turn has an agreement with AT&T wherein they pay each other for handling each other's traffic. The problem is that AT&T's mostly an end-user network, primarily clients who receive data with very few servers who send data. That means that at the peering point it's primarily the providers AT&T peers with who handle traffic for AT&T's network, with very little traffic bound for those providers handled by AT&T's network.

      AT&T simply doesn't like the terms. When an AT&T customer requests data from Netflix, providers like Level 3 handles that traffic as it passes from Netflix to AT&T. AT&ampT has two choices. It can peer with Level 3 at the same exchange where Netflix connects and handle delivering the traffic across the AT&T network to their customers. This is usually relatively cheap, but it means AT&T has to build a larger backbone network. Alternatively, they can peer at points closer to their customers and let Level 3 handle the cross-country transit. This way AT&T avoids having to build a cross-country network to deliver data, but they don't like having to pay Level 3 for handling the transit traffic. They'd rather have Netflix picking up the bill for it. But why should Netflix have to pay to accommodate AT&T's decisions about how to build their network? This rightly ought to be a matter for AT&T to work out, deciding what the trade-off should be between the cost of buying cross-country transit capacity from someone else vs. building their own cross-country network.

    2. Re:Who's not paying enough? by wangmaster · · Score: 1

      AT&Ts issue is that the ratio of inbound to outbound traffic between them and Netflix's ISP is significantly out of balance for AT&T to justify the costs of upgrading their network purely to accommodate Netflix (yes to be perfectly clear, it's to accommodate their own users' demand for netflix bandwidth) but once again, AT&T has not built out and priced their network to allow large unfettered access to a specific pipe all simultaneously and nor should a consumer ISP be required to do so. If you really wanted "dedicated" bandwidth, then consumers will need to be prepared to pay out their ass for it. So the question here is
      a) is AT&T/[insert your ISP] doing enough to evenly distribute their bandwidth use across their peers.
      b) if they are, who's responsibility it is to "pay" to fix the problem?

      If AT&T is not doing their part to make sure their peering is properly balanced across all their points of peering and purposefully say starving Level 3 because of netflix, well yeah, that's a problem.

      Peering agreements don't really handle this type of issue as they were traditionally built on cases where the ratio was much much closer to even. With large swaths of consumer ISPs that don't also host content, things have changed considerably.

    3. Re:Who's not paying enough? by Anonymous Coward · · Score: 0

      You are making this far too complicated. No consumer of bandwidth isn't saying they won't pay for what they are promised, but if Netflix's provider is charging them & another is charging me, than no 3rd party gets to charge either of us. AT&T is a provider of a service, unlimited from what I'm reading, if they couldn't provide that at the price they are charging then they shouldn't have promised it. It doesn't matter of the content is coming from Netflix, Youtube, Hulu, Vudu, Google, Amazon etc. the CONTENT is not in question here at all.

      The even grosser part about this is that we've been subsidizing monopolies for years. Don't let the big ISP's fool you, this is not complicated at all.

    4. Re:Who's not paying enough? by Todd+Knarr · · Score: 1

      For A above, I don't think it's relevant. If AT&ampT thinks it's a better deal for them to unevenly distribute bandwidth, it's them that's paying for the traffic so I don't see any reason to second-guess them. As for B, if AT&T thinks the imbalance is a problem then AT&T should pay for the changes to their network. If their customers are simply requesting too much data, then AT&T needs to discuss rates with their customers. AT&T doesn't want to do that because they're scared if they raise rates they'll lose customers, but my thought is that if it's really that unprofitable to offer service at those rates then driving those customers to your competition is probably a good thing. Better it be your competitors selling $100 worth of service for $30 than you. That AT&T is afraid of driving customers away should be the big hint that they aren't losing money on the deal.

      As an ISP customer I don't take flat rates for the cost savings. At eg. the rates Amazon charges for data transfer (and I'm assuming Amazon isn't losing money at those rates), I'd be getting off cheaper paying per gigabyte for bandwidth. I take flat rates to get a predictable, stable bill every month without having to worry that something weird will throw the bill out of kilter without warning.

    5. Re:Who's not paying enough? by Chirs · · Score: 1

      Does the consumer ISP need to pay to make sure that the peering relationship is such that all their users have the ability to stream from Netflix unfettered? Considering 1) above, is this fair to the ISP? They could do so, but to maintain their existing cost structure it'd likely mean that they may have a smaller pipe to another peer. Is it fair to users using those other peers or do they also have simply make sure ALL of their peers are able to fully pass 100% of traffic unfettered at peak times?

      Given that ISPs are essentially regulated monopolies, I'd suggest that they have a moral obligation to ensure that they have sufficient bandwidth to sites that are popular with their customers.

      If large numbers of people want to connect to Netflix, it means that those people are not connecting to other places and the ISPs don't need as much bandwidth to those places.

    6. Re:Who's not paying enough? by Anonymous Coward · · Score: 0

      I'm somewhat sympathetic to the ISPs issues.
      1) Internet connectivity at the end user level is oversold. AT&T (comcast, timewarner, google fiber, [insert your ISP here]) does not charge in such a way that every single user can have 100% unfettered access to your bandwidth all simultaneously. It's just the way it works

      "Its just the way it works"? Thats complete bullshit. The reason you cant have access to all the bandwidth they sell you at once is because they refuse to upgrade the lines to support their customers' needs, and are thus selling bandwidth they cant actually provide. I seem to remember hearing something about false advertising being illegal or something, but either I misunderstood what I heard, or it just wasnt true.

    7. Re:Who's not paying enough? by HeckRuler · · Score: 1

      I'm somewhat sympathetic to the ISPs issues.
      1) Internet connectivity at the end user level is oversold.

      THIS is how you start? Your sympathy derives from the fact that ISPs sold more than they could deliver? Holy shit dude, I don't think you're thinking straight.

      It's just the way it works

      That's just the way it DOESN'T WORK. Ok, look, once upon a time, people paid per minute because it was literally a phone line connection. Then the new kids came in, bypassed all that, and sold you a flat rate per month/2yearcontractwithateaserrate because the amount of data people could actually pull down was limited by technology. Bandwidth was a selling point, and people wanted their webpages to load faster, but by and far they didn't actually use all the connection they purchased. And so the ISPs oversold their lines. They marketed fat bandwidths still sold on a flat rate, and just hoped people didn't use it.
      At the start, only a few geeks had the audacity to actually use the connection they paid for. And boy oh boy did the ISPs fight those dispicable few. As time goes on though, geek is becoming the new normal. Streaming videos is old-hat. Everybody does it. And it's called Netflix.

      "It's just the way it works" is the cry of the old-busted business model. The gods of the free market shed no tears. Times change.

      [netflix exists] ...who's responsibility is it to ensure that the peering arrangement is fair?

      Some dudes at the ISPs contract division. They wheel and deel about these issues constantly. It's a contract. If there's an imbalance, pay up.

      Meanwhile, it's Netflix's ISP's responsibility to make sure that other people on the internet (all of them) can connect to and get content from Netflix. That's what they're paid for.

      It is consummer's ISP's responsibility to make sure that the consummers can connect to and get content from Netflix (and the rest of the Internet). That's what they're paid for.

      Does the consumer ISP need to pay to make sure that the peering relationship is such that all their users have the ability to stream from Netflix unfettered?

      YES. If you use more of the Internet than you supply, then you pay.
      Imagine a world without peering. Everyone pays for everything they move. Comcast has no peering and must pay for EVERYTHING their user's request that isn't on their network. Likewise, Mediacom must pay to Comcast for everything that mediacom users request from sources in Comcasts's network.

      Same damn thing happens even without a "peering relationship in such a way". But with more taxes.

      Considering 1) above, is this fair to the ISP?

      YES.

      They could do so, but to maintain their existing cost structure it'd likely mean that they may have a smaller pipe to another peer. Is it fair to users using those other peers or do they also have simply make sure ALL of their peers are able to fully pass 100% of traffic unfettered at peak times?

      I think if an ISP sells a service and it turns out that the service sucks ass because the ISP doesn't actually have the capability, then the ISP is at fault.
      Oh, are you facing more usage? BUILD MORE PIPE.

      if you expect the consumer ISP to allow full bandwidth to all of these sites,

      I do. That's what I pay for.

      it's going to significantly raise the cost of bandwidth per end user. So we're complaining that consumer ISPs are demanding money from Netflix, but the alternative is to demand more money from the end user or eat the costs

      No shit. If more people use the Internet moreso than they do now, then the Internet will cost more money to maintain.
      And if Comcast is ludicrously expensive, then that'll make a business opportunity for google fiber or another competitor to come in and eat their lunch. Comcast is trying to

    8. Re:Who's not paying enough? by Anonymous Coward · · Score: 0

      I'm somewhat sympathetic to the ISPs issues.
      1) Internet connectivity at the end user level is oversold. AT&T (comcast, timewarner, google fiber, [insert your ISP here]) does not charge in such a way that every single user can have 100% unfettered access to your bandwidth all simultaneously. It's just the way it works
      2) Netflix may pay their ISP for their bandwidth usage.

      Here's the disconnect. Netflix's ISP and [insert your consumer ISP here] do not share the same network. Thus at some point, the two ISPs have to cross some barrier. Now if all of [insert your consumer ISP here]'s customers are simultaneously connecting to Netflix at the exact same time for primetime hours, who's responsibility is it to ensure that the peering arrangement is fair? Does the consumer ISP need to pay to make sure that the peering relationship is such that all their users have the ability to stream from Netflix unfettered? Considering 1) above, is this fair to the ISP? They could do so, but to maintain their existing cost structure it'd likely mean that they may have a smaller pipe to another peer. Is it fair to users using those other peers or do they also have simply make sure ALL of their peers are able to fully pass 100% of traffic unfettered at peak times?

      The simple answer is, if you expect the consumer ISP to allow full bandwidth to all of these sites, it's going to significantly raise the cost of bandwidth per end user. So we're complaining that consumer ISPs are demanding money from Netflix, but the alternative is to demand more money from the end user or eat the costs. We know eat the costs is never an option in the US market system :). So where's the money coming from? If the consumer ISP started charging people more for this, people bitch about being charged more rather than bitch about crappy Netflix.

      Perhaps Netflix's tier 1 should pay for a larger peering pipe to the consumer ISP. But where's that money coming from? They're going to increase Netflix's rates, but even then, the consumer ISP would have to have the proper equipment to handle the larger peering pipe.

      I don't really agree with the entirety of either Netflix or the consumer ISP (AT&Ts) arguments, but peering bandwidth has always been a balancing act, especially with multiple networks you have to peer with. This is why we have CDNs to begin with, and CDNs are paid for by the content producer, and they in turn either pay the consumer ISP to host their gear, or work with the consumer ISP to come up with a mutually beneficial decision. In some cases, the reduced bandwidth flowing through the peering reduces the ISPs costs that they can justify hosting the CDN equipment without asking for any money.

      I do agree that it's wrong for a consumer ISP to purposefully lopside their peering arrangements to hurt a competitor, just like I agree that there's nothing wrong with the notion of paying an ISP to host a CDN appliance. Given our lobbying system, do you really think that net neutrality legislation will even begin to address the many nuanced aspects of this issue?

      Good post, the issue is more complex than can be shouted out at once.
      But you're perhaps overthinking the issue here. Should the consumer ISP get stuck with the bill to ensure access at prime time hours? YES, ABSOLUTELY. They are in the business of serving that content up to their customers so obviously they are responsible for the associated costs.
      Netflix is already paying their ISP for the biggest possible pipe, so the answer to *that* question is already there to see.
      Net neutrality helps ease the negotiations and this is why telcoms are having to lobby so hard, because the business community at large is not on board. Net neutrality is a net win for the economy, a net win for companies, a net win for consumers.

      But hey, given the lobbying situation I expect we'll get whatever benefits telcoms the most.

  49. We don't have capitalism by PortHaven · · Score: 1

    We have fascism, that is a close relationship between big industry and government, and a two class heirarchy.

    That is what we have, it is not capitalism. If it were capitalism, then Comcast and AT&T wouldn't have received millions in subsidies to build out their networks. If it was capitalism, then anyone could start a wireless business. We do NOT have a capitalist system.

  50. Liberals and Math by sasquatch989 · · Score: 0

    They think they know it. The truth is this....Telecoms and ISP's cannot keep up with the demand of content providers, especially when any yocal with a celly can now be a content provider. It takes years and gobs of cash to upgrade a network, and before you finish upgrading the network you have to start upgrading the network AGAIN. It never ends. The networks in many cases cannot handle the spike in capacity that we've seen in the past few years which is why now Net Neutrality is a talking point. The pressure is on the telcos to get networks on pace and they cannot do it without more money. Otherwise, everyone will have to wait There is nothing Neutral about Net Neutrality. Just like 'Climate Change' its a bunch of Orwellian garbage

  51. You Pay For What You Use by Toad-san · · Score: 1

    They're all missing the main point, the bottom line, the simple solution:

    The customer (that's you, the Internet user) pays for what he uses. Bandwidth, total gigabytes, whatever. You wanna watch Netflix? No problem, Bunky: pay for it. ALL of it, including the bandwidth you gobble while viewing.

    Your subscription to Netflix pays them for their procurement, storage and upload costs. Your subscription to AT&T (or whoever your ISP is) pays for your download bandwidth.

    Simple. I don't know why they're making this so hard.

    1. Re:You Pay For What You Use by Anonymous Coward · · Score: 0

      Well, that's fine as long as the connection plans are sold to the customer that way. Right now, the ISPs want to sell unlimited usage plans (because people don't like limits even when they will never get near them). Some customers actually using a bunch of bandwidth messes with their business plan to oversell their network on the assumption that each person will under-use their allotment. So, they try to extract money from one of the sources of that extra traffic rather than bill the customer directly because then they'd have a grumpy customer rather than Netflix. So, it's a run around having to be honest in their dealings and admit that they can't profit as much from a bunch of high traffic users.

    2. Re:You Pay For What You Use by Anonymous Coward · · Score: 0

      Simple. I don't know why they're making this so hard.

      Because if they do it your way, it will be much harder to hide how much of the price people pay is simple gouging, and their customers will get ticked off and might do something about it.

      Since it seems the only action consumers are willing to take right now is bitching (god forbid they disconnect and actually do something productive with their time), AT&T and their ilk are doing everything they can to muddy the waters so that bitching doesn't get loud or organized enough to get the attention of various elected officials.

      Given that the collective IQ of any group of Americans larger than three seems to halve with each added member, it'll probably work just fine.

    3. Re:You Pay For What You Use by Anonymous Coward · · Score: 0

      They're all missing the main point, the bottom line, the simple solution:

      The customer (that's you, the Internet user) pays for what he uses.

      I'd be fine with that, but unfortunately they're also going to make me pay for cookies, advertisements, tracking, google analytics, doubleclick, and about a hundred other bullshit advertisements and tracking that I want nothing to do with. Get rid of all that crap that I don't want forced on me, and I'll gladly pay for what I actually use.

  52. So what's that bill from AT&T for, then? by Todd+Knarr · · Score: 1

    Every month, customers get a bill from AT&T for their Internet service. So, what exactly is that bill for, then, if it's not to pay AT&T for providing Internet service? That does, as I understand it, involve transferring data packets in both directions between my computer and Web sites so I can access the Internet. So, Mr. Cicconi, if what customers are paying you isn't in fact for providing that service, which is what you're saying when you say you're not being paid to let customers access Netflix (which is a Web site), then can you please provide a detailed breakdown of exactly what that bill is for and what service you are providing to your customers for each and every item for which you're billing them. Because if it's not for providing Internet service as advertised, I think every single one of your Internet service customers is entitled to a refund of everything they've paid for a service you haven't been providing them and possibly damages for your false advertising (claiming you're providing them with Internet service when you aren't).

    And, Mr. Cicconi, if you claim you are providing your customers with Internet service and that's what that bill's for, please stop whining that you aren't being paid to provide Internet service when by your own admission you are being paid.

    1. Re:So what's that bill from AT&T for, then? by Shados · · Score: 1

      Exactly. People and companies already pay from both side. You pay for incoming and outgoing, the other side pays for incoming and outgoing, and the providers who take that money then pay for peering agreements (if any, often they don't need to pay since those go both ways).

      So paying for your outgoing pipe AND paying for the provider that delivers, when that provider is already getting money (or other benefits in lieu of money) for peering, is silly.

      When it gets confusing is with CDNs and how those need to be handled...

    2. Re:So what's that bill from AT&T for, then? by Todd+Knarr · · Score: 1

      CDNs aren't complicated, they're just another Web site. Netflix hosts it's content on a CDN. Users request data from the CDN, the CDN serves it up, just like any other Web site. The CDN pays for it's connection through it's service providers. It's between Netflix and the CDN how Netflix pays the CDN for hosting it's files and the bandwidth the CDN had to pay for for that hosting. And the CDN may offer AT&T a deal: let the CDN install servers at AT&T's interconnect points and the CDN will handle the transit traffic from Netflix so AT&T doesn't have to worry about either building it's own transit network or paying someone else for transit. But that's an offer AT&T has to evaluate, deciding whether the CDN's terms and prices are a better deal than either of the alternatives.

      I already do the same for my own personal Web site. I don't host it myself, I host it on Linode. Linode pays it's providers for bandwidth, AT&T customers request data from Linode instead of directly from me just as if it were Linode's web site, and AT&T doesn't know or care how me and Linode handle settling up for the costs Linode incurred. Linode's my CDN, but that makes no difference to AT&T and shouldn't.

    3. Re:So what's that bill from AT&T for, then? by Shados · · Score: 1

      You touched the problem. When the CDN servers are inside the ISP's facilities. And often, the owner of the CDN servers is the content provider. So you have a content provider striking a deal with an ISP -directly- to have better service. Since its within the ISP's facilities, of course they're gonna have to pay something. So its gray area.

      If CDN providers were their own, neutral, "dumb" entities in between, it wouldn't be an issue, but that's not always the case.

  53. Confused. by duke_cheetah2003 · · Score: 1

    As we all know, there is no free lunch, and there’s also no cost-free delivery of streaming movies. Someone has to pay that cost.

    Aren't two people already paying the 'cost'? I pay for my internet connection and netflix pays their provider transit fees. I use EC2 as well, and you pay transit fees on all your data xfer. Isn't Netflix paying that too? And I'm paying my ISP.. so um, what's the problem here?

  54. The first rule of PR war is be a hypocrite by interkin3tic · · Score: 2

    The first rule of PR warfare is accuse your enemy of whatever it is you are doing. If you're being greedy, accuse the other people of being greedy. If you're spending taxpayer money needlessly, accuse your political opponents of wasting tax dollars and then imply they're going to raise taxes. If you're committing a war of aggression, accuse the other side of being the aggressive instigators. If you burned down the Reichstag, say your opponents burned down the Reichstag.

    The public, who wants a reason not to care, will take both of you saying the same thing, and will side with whoever it is they want to side with. They like believing the world is a just place, so they'll assume you're both assholes and ignore it.

    Sadly, the reverse tactic does not work, we cannot accuse AT&T of only wanting what is fair.

    1. Re:The first rule of PR war is be a hypocrite by Anonymous Coward · · Score: 0

      The first rule of PR warfare is accuse your enemy of whatever it is you are doing. If you're being greedy, accuse the other people of being greedy. If you're spending taxpayer money needlessly, accuse your political opponents of wasting tax dollars and then imply they're going to raise taxes. If you're committing a war of aggression, accuse the other side of being the aggressive instigators. If you burned down the Reichstag, say your opponents burned down the Reichstag. The public, who wants a reason not to care, will take both of you saying the same thing, and will side with whoever it is they want to side with. They like believing the world is a just place, so they'll assume you're both assholes and ignore it. Sadly, the reverse tactic does not work, we cannot accuse AT&T of only wanting what is fair.

      I applaud AT&T for the following reasons:
      1 - Once you have their money, you never give it back.
      10 - Greed is eternal.
      34 - War is good for business
      76 - Every once in a while, declare peace. It confuses the hell out of your enemies.
      239 - Never be afraid to mislabel a product.

  55. Cough up at&t by Anonymous Coward · · Score: 0

    It's about time at&t starts paying back the government for all the perks it got to create the company that exists today. See how they like it.

  56. Try net neutrality at home by zerosomething · · Score: 1

    So setup your home router to not give any priority to the data coming in and going out. Assume you have 6Mbps download service. Start up a Netflix HD movie for the kids, then setup that Windows Remote Desktop connection to the office so yo can work on that Access db. Then try to make a Skype phone call. Lets say you have training material you need to also look at from iTunes or YouTube. Hope you done also have VOIP and someone picks up the phone to call the mother-in-law.

    --
    It all starts at 0
    1. Re:Try net neutrality at home by Anonymous Coward · · Score: 0

      The obvious solution is for you to charge your children more to watch movies so they watch them less often . Even better if you can charge Netflix too!

  57. Customer paying for bandwidth helps by joe_frisch · · Score: 1

    I know its unpopular but this situation is much improved if the customers paid by the GB downloaded. Then Comacst, ATT, etc would welcome new sources of bandwidth (like netflix or small startups) because they would get to sell more GB of data to the end users.

    A monthly connect fee + a $/GB fee seems to solve a lot of this. It seems to me the root cause of the problem is that if customers don't pay for bandwidth, the ISPs have a financial motivation to ship less data not more.

    1. Re:Customer paying for bandwidth helps by duke_cheetah2003 · · Score: 1

      I'm good with metered internet, as long as the connection fee drops substantially. I don't pay a connection fee to AWS, I pay for the host and transit fees for data. So yeah, metered is fine, but that connect fee needs to be like... $5. Max. Plus equipment rental if you're dumb enough to go that route.

    2. Re:Customer paying for bandwidth helps by joe_frisch · · Score: 1

      Yes, I think it only makes sense if the total company revenue is roughly constant after the change. Low data users would end up paying less, high users would pay more. It would even allow a bit more range in services offered.

      It might make sense to have different data rates at different times. Then it would make sense for torrents to run at low-use times of day.

    3. Re:Customer paying for bandwidth helps by Anonymous Coward · · Score: 0

      Think about that. That would be bad for everyone. If people had to pay per GB, they would consume less. Netflix's business would go down. In turn, all the content producers like the networks would also go down. If I had to pay per GB, do you think I would have a TV show list like 20 long, half of which are barely worth watching? No. I would be much more discriminatory. I certainly wouldn't re watch entire series. I wouldn't watch C level sitcoms. You'd be putting out of work a lot of people. What about all the TV writers, directors, actors, etc? They can't all be A level quality. What would end up happening is that I wouldn't consume enough content from Hulu/Netflix to make it worth paying for anymore. I would then pirate probably the best of my entertainment. Then find something better to do with my time than watch mediocre TV. The whole entertainment industry would collapse. No more cheap filler TV/movies to subsidize the good stuff. No more watching TV everyday. After cutting consumption 50 to 75%, could watch them all in just a day or two. People would get used to watching less TV, and ultimately reduce TV watching even further. Oh, and people wouldn't need as fast of internet if they are watching less TV on it, so they would move to a cheaper and slower plan. Everyone turns out worse in your scenario. The vast majority of content out there would not be consumed at all if people had to pay for it individually. People watch the lower TV because they are already paying fixed fees for cable/Hulu/Netflix/etc. They are like, might as well watch more to get my money's worth. But when they have to pay for that more, they will stop watching. When people's shows end, they won't be in a hurry to find new shows to replace it. They will wait until a show has been around for a while and proven the test of time. But if no one is watching season one, nothing will make it to season 4.

  58. Deep Pockets by FacePlant · · Score: 1

    It is right and proper to extort money from parties with deep pockets.
    This is just one facet of good old American Capitalism.

    --
    My Heart Is A Flower
  59. Of cousre they think that by nurb432 · · Score: 1

    Mandated neutrality would cut into the potential blackmail AT&T can dish out.

    --
    ---- Booth was a patriot ----
  60. Right. by Lendrick · · Score: 1

    it's not their 'tollbooth', it's their road

    It can be "their road" when they pay land owners for the lines through their property, and pay back the tax money that was given to them to subsidize its construction.

    An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

    Netflix is already paying a provider for bandwidth. You may or may not know this, Slashdot Libertarian, but as your bandwidth usage goes up, your bandwidth prices go up too. As such, Netflix is already paying extra money to run that 18 wheeler due to the wear and tear on that road. AT&T is trying to bill them extra because the truck is carrying a product that competes with them.

    Is that their prerogative? No. They built their network on public dollars and on peoples' private property under the conditions that they would act as a utility. If they want to not act like a public utility, then they can come to me and pay me a fair price to run lines through my property (or better yet, since I don't use AT&T at all, how about I just cut their line? It's my property after all.)

    1. Re:Right. by amiga3D · · Score: 1

      You can't do that. They bought your congress critters up so they could take and take and take but never have to give. This has nothing to with libertarian values whatsoever. AT&T are part of a cabal of corporations that rape the American public shamelessly by buying legislation to enable them to hold their market in thrall.

  61. Oh, the Copper-Squatters club. by uCallHimDrJ0NES · · Score: 1

    You know what's a nice deal if you can get it, Mr. Cicconi? Exclusive rights to use the copper wires connecting the residents in any particular district. AT&T and Comcast can start talking about nice deals when we see a free and open market for each physical media type in each region. Now go back to your copper-squatter's meetings and plot against your customers the way you do every day. Sorry Netflix beat you to the punch on the streaming licensing deal. Maybe if AT&T had believed in the future of broadband customers the way Netflix did, you wouldn't be embarassing yourself like this.

    --
    Cloudiot: A person who does not see offsite storage as a way to lose control over access to his or her own data.
    1. Re:Oh, the Copper-Squatters club. by Average · · Score: 2

      Straight letter-of-the-law, there's no exclusive right to lay copper wires anywhere in the US. No franchise agreements since the Telecommunications Act of 1996 passed are allowed to be exclusive. This theoretically supercedes state, local, and even HOA/apartment management policy.

      Now, again, the reality on the ground is very different. Cities can make it very easy for a competitor to come in. Or they can make it almost impossible (not allowing access rights similar to the incumbents, demanding almost-instant universal coverage (while AT&T offers U-Verse on some blocks and 768/128 ADSL in poorer neighborhoods and calls it 'universal coverage')). But, that's on your local and state governments to get over (but, remember, Comcast and AT&T spend a lot of money to keep those roadblocks coming). The Feds opened up the market years ago.

  62. Protection racket? by dunkindave · · Score: 1

    This sounds an awful lot like a protection racket:

    "That's an awfully nice service you have there, it would be a shame if something bad happened to it!"

  63. As I Told My Cable Provider by CanHasDIY · · Score: 1

    As I told my cable provider, "I am not paying you to spy on me, or limit what content I can access, or control how I access said conten. I am paying you for X amount of bandwidth over Y number of days, nothing more, nothing less. Let's keep this relationship professional, shall we?"

    OK, so it didn't have all that much effect on my service, but I do feel a hell of a lot better throwing it in their faces every chance I get.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  64. Insanity by ecorona · · Score: 1

    James Cicconi is a corrupt corporate elite if there ever was one. AT&T is trying to purchase T-Mobile. He's also claiming that consumers will be hurt and experience higher prices if the merge deal is blocked. This guy is head of lobbying efforts against net neutrality and for the T-Mobile merger. His points are quite easily debunked and if it weren't for the insane amounts of lobbying money being spent, even politicians would laugh at his face. Instead, politicians who agree and meet with AT&T should be voted out of office. I don't care if they're Democrats, Republicans, or any other party. It's insanity that anyone would even consider allowing AT&T to charge more for the type of content that is being served. As consumers, we need urgent protection from those that will keep the internet from progressing and fulfilling its potential. As consumers, we should pay for a gigabyte. If that gigabyte is a gigabyte of video or a gigabyte of a game download, it's none of their effing business. If I am a content provider, and I want to serve my video or games to consumers, why in the hell should I pay more because my 1s and 0s represent video? I will be the first mofo to volunteer to live on mars if net neutrality is destroyed. I firmly believe that this is the one issue that will wake the population up to kick the asses of those who, through lobbying, put the government in their pockets without giving a flying f what it will mean to society and technological progress for decades to come.

  65. What about Wikileaks and Censorship? by Anonymous Coward · · Score: 0

    There is a lot of talk about Netflix but the main threat this imposes is censorship on (decent) news and truth tellers.
    Now they are expecting Netflix to pay for their customers to get access to data, next they will block any decent news sites and ask them for money, to allow their readers to have access to data. If the government prohibits them from doing businesses with such news venues or they can't afford to pay, then there is simply no access (or 3 min for each page to load, eventually making people give up reading or reading much less content).
    I wonder if people are testing their Wikileaks connection speeds, just like they are testing their netflix speeds.

  66. Corporate Rent-Sucker Double Think by mutantSushi · · Score: 1

    [Net Neutrality is] not how the Internet, or telecommunication for that matter, has ever worked,' writes AT&T Senior Executive Vice President of Legislative Affairs, James Cicconi.

    Last I checked, Netflix has never paid such fees before, nor has anybody else. I.e. net neutrality has being how it has always worked. This latest racket targetting Netflix happened just months after an FCC Net Neutrality rule was over-turned by courts on a technicality. I.e. said rule was in force previously, and ISPs were following said rule. Fuck these rent-sucking vampires. Does this sort of thing happen in non-US jurisiction at all? Or is this just the US' latest gift to the world after software patents?

    1. Re:Corporate Rent-Sucker Double Think by Anonymous Coward · · Score: 0

      Not happening outside US (that I know) and we are about to enforce net neutrality by law here in Brazil :-)

    2. Re:Corporate Rent-Sucker Double Think by mutantSushi · · Score: 1

      Well hopefully Brazil is investing in a good air-defense SAM network as well...

  67. I would really love to know where this so-called F by Anonymous Coward · · Score: 0

    I would really love to know where this so-called FREE Lunch is being served! Consumers and businesses pay big time for Internet connections and so do ALL website and web service companies! What this is about is a double dip. If these type of services where not available, who would pay anything to the ISP?

  68. Government ties by ecorona · · Score: 1

    Games Cicconi used to work in the white house. He is the dude they send over to promise campaign funds in exchange for getting government policy that suits AT&T's agenda. The fight of Net Neutrality is going to be the ultimate showdown between the people and lobbying efforts from the ultra wealthy. Who really wields more power in this country? Does choosing representatives really make a difference? Will the allure of $$$ always corrupt those we put in charge, no matter who we choose?

  69. I can see why parent is marked insightful... by tlambert · · Score: 1

    I can see why parent is marked insightful... the more packets coming through a router, the more friction there is on the wires and other electronic components, the faster things wear out.

    AT&T probably has an entire team of people who go around measuring wear and tear on routers and wiring using calipers.

  70. Enjoy 8/month streaming while you can by shrove · · Score: 1

    Cable cutting and such is a temporary blip in the chart of increasing cable cost. You will pay for everything and "They" will know everything you watch all the time.

    Enough People don't care enough to do anything about it.

  71. Re: Customer paying for bandwidth helps roxy by Anonymous Coward · · Score: 0

    This is a good idea, but the main problem is that how do you know if the bandwidth amount they claim you used is accurate? They can make millions extra per month by fudging the numbers a little. What independent auditing would be done? What recourse would you have? What if they claimed your data usage doubled or tripled in a month? Comcast customer service is already legendary for being hostile to their customers.

  72. Blu-ray By Mail by Anonymous Coward · · Score: 0

    I subscribe to Netflix, but only to their Blu Ray by mail service. Why should I watch sub standard quality movies that are streamed in various quality when I can get proper 1080P with DTS sound on Blu Ray. And guess what! I can return one on Monday and get the next one on Wednesday. Streaming is fine for internet Porn. but to watch a proper movie, get the damn disc.

    1. Re:Blu-ray By Mail by BronsCon · · Score: 1

      SuperHD. If you're on an ISP that wishes to provide it (e.g. by peering with Netflix or installing Netflix cache hardware).

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
  73. I'm sick of these stupid analogies... by brxndxn · · Score: 3, Informative

    There is no way to morally or technically side with the ISPs on this one. It is a revenue grab - simple as that. These fucking horrible companies - mainly AT&T and Verizon - have been double and triple charging customers for data on the cell phone side and now they are trying to bring it to the wired side. For example, they charge customers for text messages differently than voice calls. They charge customers for a metered amount of data accessed through their cellphones and then another set of metered charges for accessing via tethering. It's bullshit. It's the same fucking data. It's encapsulated data packets..
    Don't forget that the US has some pretty shitty home Internet connection speeds compared to our standing in the world as a 'technology leader.' Don't forget that the ISPs in the US have received hundreds of billions of taxpayer dollars over the years to upgrade their networks. Don't forget that these companies are 'entitled' to your own property to run their data lines. Also, don't forget that these ISPs have relatively zero competition.
    Also, do not forget that these ISPs run competing media providing entities. They would prefer to control your access to content - force you to watch commercials or pay monthly fees for channels - or force you to pay for 10 channels when you only watch one. When these companies are given an inch, they take a mile.
    I write to my lawmakers telling them we need to look at gutting these companies - breaking them up and separating their media companies from the data providing part. Also, lawmakers need to understand that all data on the Internet is broken into packets. You can always tell who paid for the packets. In this case, AT&T and Verizon are trying to say they want more than the sending and receiving entities to pay for the packets - they want to charge extra for these packets to go in and out of their networks. Once that happens, they will just create more routes and more tolls.
    I don't believe AT&T or Verizon deserve to exist as they currently do - they are putting the US at a huge disadvantage. Also, their CEOs are awful human beings.

    --
    --- We need more Ron Paul!
  74. Kill all the business people by Anonymous Coward · · Score: 0

    and nationalize the net infrastructure. Problem solved.

  75. Pot, Meet Kettle by Cantankerous+Cur · · Score: 1

    And AT&T believes we should eternally pay the same rates for their slow/overpriced/unreliable service when they're not bothering to upgrade the infrastructure.

    We're dealing with at least one delusion here.

  76. Back in MY day... by Anonymous Coward · · Score: 0

    Whatever happened to the days when net neutrality wasn't "Arrogant", it was just "The Law"?

  77. AT&T should not expect Netflix to pay... by jonwil · · Score: 1

    Netflix already pays its upstream providers. AT&T should be asking THEM to pay when they deliver all that data into AT&Ts data networks.

  78. No Free Lunch by PPH · · Score: 1

    Someone has to pay to use the public right of way to run their fiber optics.

    --
    Have gnu, will travel.
  79. but it *is* a net neutrality issue by Chirs · · Score: 4, Insightful

    Given that they're specifically asking *Netflix* to pay extra. That's not just a peering issue, that's a type of traffic issue, which makes it a Net Neutrality issue.

    It would be a straight peering/transit issue if the Tier-1 ISPs just told Cogent "your traffic isn't balanced, pay for the imbalance" without bringing up what type of traffic it was. In that case Cogent could pay the extra and then charge Netflix more for upstream. Netflix would then pass the costs on to their customers or would find a new ISP.

    1. Re:but it *is* a net neutrality issue by schnell · · Score: 2

      In the old, old days (get off my lawn!) if you were a small ISP or web host you would just factor into your cost of doing business that you would buy transit from a Tier 1 ISP (MCI, UUNet, Sprint, AGIS[!]) who would deliver all your traffic to the rest of the Internet.

      If you were cheap, you'd buy transit from a Tier 2 or Tier 3 provider who did the same thing - your customers would suffer longer latency but you'd save money. Those Tier 2/3 ISPs were paying the Tier 1s, et cetera, and factored that into their own costs.The Tier 1 ISPs recouped their network investment in part by the fees they collected from direct customers and indirect customers under those Tier 2/3 ISPs. When you moved up in the world, you bought transit from multiple Tier 1 ISPs to cut out the middlemen and get your traffic to the rest of the Internet faster.

      Cogent has been trying forever to "jump the line" and get Tier 1 free peering, and it hasn't worked out so well for them. You either peer settlement-free (truly "peer") or you don't, and pay for it. There's no option, unfortunately, for differential payment. (BGP is BGP, and it would take a lot of work to try to DiffServ or partially bill for that.)

      Netflix is suffering from the same desire Cogent and legions of Tier 2/3 ISPs have always had - to get free peering. It ain't gonna happen, but the only difference is that Netflix is trying to make this a Net Neutrality argument given their importance in the content consumption ecosystem. I'm not saying they're wrong, but it is a well worn argument that runs counter to the history of the Internet.

      --
      "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
    2. Re:but it *is* a net neutrality issue by laird · · Score: 5, Insightful

      They're not asking Netflix to pay anything for transit that Netflix is buying through Cogent - they paid Cogent for that bandwidth.

      AT&T is an ISP, who delivers bandwidth to customers. ISPs do peering arrangements with other ISPs because they exchange data with each other roughly equally, and it make more sense to exchange bi-directional traffic for free than to waste time and money billing each other for charges that would roughly cancel each other out.

      Netflix is asking for a peering arrangement with AT&T. Netflix isn't an ISP, they are a content provider. Content providers pay their ISPs for transit to push data into the internet for delivery to consumers. And in particular, Netflix doesn't exchange balanced traffic with AT&T - they push a lot of traffic into AT&T's network, and don't receive any traffic, so it's a completely one-sided traffic flow. And that you pay for.

      It's not an issue of Net Neutrality. Any content provider who wants bandwidth from an ISP pays for it. And there's no indication that AT&T is differentiating between Netflix' traffic and anyone else's, which is what Net Neutrality is about. If anything, Netflix is demanding preferential treatment over other content providers (who pay for bandwidth, and don't have peering arrangements), and they're trying to use their market power to push AT&T into giving them preferential treatment. Which is exactly the OPPOSITE of Net Neutrality.

      Netflix isn't stupid - they know all this quite well. So Netflix wanting to peer with AT&T and talking about Net Neutrality is a bunch of BS hand-waving trying to trick non-technical people into complaining about AT&T, generating some faked-up bad PR to pressure AT&T to sell bandwidth to Netflix cheaper.

    3. Re:but it *is* a net neutrality issue by Anonymous Coward · · Score: 0

      Content providers getting peering isn't unprecedented. Google peers with many ISP. That aside, I pay my ISP to access the internet, my ISP has a monopoly so I can't just change providers. In return for that monopoly status they should be required to be looser on who they peer with, particularly if there customers demand it in large enough volume.

    4. Re:but it *is* a net neutrality issue by laird · · Score: 1

      "Google" isn't a typical content company - in particular, they receive tons of incoming traffic, so their traffic is relatively balanced, not just pumping data out, which is what most content companies do, so they actually can be peers with ISPs. And they operate a high performance global network, so they can very easy connect to any major ISP via a simple connection at any major interconnect/peering point. And they also give racks of servers to ISPs to serve Youtube content (which isn't balanced) cached locally, which (1) Google pays for and (2) it saves the ISPs tons of transit costs. There's a pretty good description at http://blogs.broughturner.com/... .

      Netflix, on the other hand, doesn't accept much incoming traffic, and isn't offering to fully cover the costs of building a delivery infrastructure. They're just asking to push out traffic through asymmetric connections completely in their favor.

  80. not just balance by Chirs · · Score: 1

    Imagine if Netflix just tweaked their client software to send as much data upstream as it downloaded. Their network would then just drop the upstream packets on the floor.

    At that point the traffic would be balanced, but I'm pretty sure the ISPs wouldn't be any happier...

  81. I have no problem with metered internet by Chirs · · Score: 1

    Internet should be billed like my electricity bill--a certain fixed-cost amount per month to cover the costs of being a subscriber, and a reasonable cost-per-GB.

    This is a closer fit to the real cost model of an ISP.

    The problem is that the ISPs see metered billing as a cash cow and want to charge stupidly high amounts per GB.

  82. Right of Way by zenasprime · · Score: 1

    Remove the Right of Way all these douchebags rely on for their business and lets see just how well they get along with this "no free lunch" bullshit.

  83. not true by Chirs · · Score: 1

    There's nothing stopping ISPs from doing per-subscriber traffic shaping in a traffic-agnostic way. Thus, your neighbours could all be watching netflix and it would have ZERO impact on your Vimeo stream.

  84. ha ha by bbulkow · · Score: 1

    I think I'm paying my ISP to deliver bits to me. That's who is paying - ME. If I'm not supposed to be paying --- LET ME KNOW!

  85. so then netflix changes their client... by Chirs · · Score: 1

    So you're suggesting that if Netflix modified their client to send as much data back to Netflix as Netflix sends to them that the ISPs would be happier?

    Somehow, I don't think so given that ISPs typically have crappy upstream bandwidth to begin with.

  86. no control over speed by Chirs · · Score: 1

    I thought of this as well, but I figured it would probably be unworkable since people's home connections don't really have reliable performance, while AWS should have pretty good control over their bandwidth.

  87. AT&T is right, someone has to pay that cost. by Anonymous Coward · · Score: 0

    Customers are using more bandwidth. This is a matter between AT&T and their customers, to whom they are selling that bandwidth, and no other parties. The remedy is to charge customers according to what they use.

  88. we already do by Chirs · · Score: 1

    In the end, I pay both Netflix and my ISP. Both of them (and any transit in the middle) are making a profit from that already.

  89. Net neutrality doesn't mean no traffic shaping by Chirs · · Score: 1

    It just means that the ISPs shouldn't be doing traffic shaping by type across multiple users.

    So if you want to watch a movie on Netflix, and I want to rsync my hard drive across the country, and someone else wants to something else, our packets should be treated equally based on how much bandwidth we've paid for.

    I have no problem if you as a subscriber want to assign relative priorities to your packets. But those priorities shouldn't affect how *your* packets are treated relative to *my* packets.

  90. You missed the point. by Anonymous Coward · · Score: 0

    AT&T wants to eat the souls of your children to strengthen itself for the final court battle between AT&T and God himself.

  91. Re: Customer paying for bandwidth helps roxy by joe_frisch · · Score: 1

    This is the same sort of problem we have with gas stations - how do you know you got 10 gallons, not 9.5, in a business with very small margins. Spot checks by an independent agency and very large fines would help. Maybe some company will make a router that is certified and will keep track. If you think you are being ripped off ,you can use one and find out - again this needs to be paired with large fines.

  92. Reality by TheSync · · Score: 2

    1) In telecom [telegraph, telex, telephone] "sender pays" has been the rules on settlements. Just like a sender pays to put a stamp on a letter. Even when a customer of a CLEC 1 initiates a call to another CLEC 2 through an ILEC, CLEC 1 pays ILEC, ILEC pays CLEC 2. This is why there were many of these free teleconference systems, they are run by CLECs trying to get settlements by having more people call them long distance.

    2) There was a brief period of the Internet where "no one paid" for the Internet because of government support, and the result was a typical tragedy of the commons - horrible congestion (the 56K NSFNet). Eventually the NSFNet had to classify traffic into high-priority terminal sessions and lower priority traffic like FTP.

    3) The CIX came along to interconnect large commercial networks. These networks were generally exchanging equal amounts of traffic. Once you bought into CIX, you peered without settlements.

    No-Pay peering with others that exchange equal amount of traffic with you in both directions makes technological sense due to symmetric bandwidth capacities of interfaces.

    For example, a network service provider's 100 Mbps FDDI connection at the MAE-EAST provides 100 Mbps in both directions. It doesn't make sense to peer with someone who sending you 100 Mbps and only receiving 1 Mbps of your traffic.

    Peering and/or settlement agreements between networks have evolved over time to balance the real-world business situation. For example, you might not want to charge as much to a customer that runs a huge, dependable software archive that your other customers benefit from. Similarly, today's cable providers probably should make Netflix pay less, but Netflix should still pay something.

    I feel this is something the market should work out.

    In the meantime, we need to figure out how to enhance competition in the local ISP market. A Federal law to make local monopoly franchises granted by government illegal would be a good start...

    1. Re:Reality by Average · · Score: 2

      "A Federal law to make local monopoly franchises granted by government illegal would be a good start...".

      Congress did that. In 1996. There is no local monopoly franchise in your local community. There is, de facto, an economic monopoly/weak duopoly. And in many cases, local governments are actively hostile to competition (because they make a lot from franchise fees from the incumbents and don't want prices to fall). But, what you're asking for? Happened. Is old enough to graduate high school this year.

  93. there is a difference by Anonymous Coward · · Score: 0

    >what difference is streaming 2GB of video vs downloading a 2 GB ISO
    Although I think CableCos and TELCOs are being greedy here. This I have to answer. A big one. If your ISO download speed fluctuates who cares. If your streaming speed fluctuates below a certain level, buffering x%, it gets real annoying real quick. The providers do have a point that streaming is a different beast vs. other traffic.

  94. Dear CEO... by Anonymous Coward · · Score: 0

    I don't pay for internet so you can put up a tollbooth.
    Fuck off

    Sincerely, ....

  95. Remember the ATT announcement at ces by Anonymous Coward · · Score: 0

    ATT wants to charge certain providers a premium so that they don't count that bandwidth towards any limits. But in the face of increasing pressure to lower cost of bandwidth to customers, ATT looks elsewhere for money. No offense ATT netflix can just say no. The Internet maxim is that the net routes around damage. So, maybe see what it would be like for no ATT customers to get Netflix on their mobile devices, even though the user paid you for the bandwidth, netflix can patiently explain ATT wants them to pay twice and offer to connect them to a T-Mobile representative and note T-Mobile will pay their early termination fees. t-mobile meanwhile has similar pains and their response was to raise the cost of unlimited data for new customers. I said goodbye to Att years ago over their pricing structure. First to a MVNO then to t-mob. Don't be afraid to switch, and let their customer retention rep know why!

  96. He is right, no free lunch by chrismcb · · Score: 1

    He is correct, there is no free lunch. But I pay a LOT of money to download a bunch of stuff. I should get to choose where I download it from. If I want to use it all on netflix I should be able to, if I want to spread it around some for google, some for wiki, some for slashdot, I should be able to... But it sure ain't free.

  97. Wrong approach. by Karmashock · · Score: 2

    Netflix shouldn't even be talking to these people. Literally not even answering the phone when they call.

    Rather... Netflix should keep their customers and media informed of bandwidth throttling and then let those customers and the politicians terrify the ISPs into doing their jobs.

    Understand, I don't like using the politicians to push companies around. Its using one evil against another.

    That said, the ISPs have contrived a monopoly for themselves. There is but one phone company in most communities and one cable company.

    The reason for this is largely down to leases on poles and tunnels that the actual wires run through. The ISPs have set up a system for leasing this space that really no one else can afford or process the paper work to buy. As a result, they have no competition throughout most of the country.

    Very well... then they complain when they don't have enough bandwidth to process all the customers they forced to use their wires and no one else's wires.

    THAT is a problem.

    They either accept net neutrality OR they we reexamine all these deals they've cut with local municipalities and states and counties to find the details that ultimately sustain their monopolies.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
  98. no gigabit speed till Google shows, eh at&t? by Dan667 · · Score: 1

    reading crap like this makes more sense why at&t is not taking care of their Customers and upgrading their network. They are too worried about screwing people instead of providing their service.

  99. Peering issue with both sides spinning it by Anonymous Coward · · Score: 0

    Having worked in the network monitoring/service provisioning/policy enforcement end of things and had to be at least peripherally aware of all the peering agreements (to help make the technical parts work), I can tell you there are substantial expenses for all of the infrastructure to support inter-ISP peering (large $$$). There are also complex policy setups to allow all that of the user account policy stuff that these companies need to customize and differentiate service offerings. (Some networks I had a bit of visibility into included Verizon, Orange, AT&T, and others overseas)

    You can argue that 'I buy 20 Mbps, I should always have 20 Mbps available'. You could get closer to that with a business connection (vs. residential). Take a look at pricing. I'd say easily 3 to 5x the price if not more. Even then I'm sure they still do a 'what % do we need to actually provide' analysis to limit their hardware and roll out costs to operate as efficiently as they can. But that would be closer. If we paid 10x as much as we do today, they might be able to reserve a full 20 Mbps for all of us all the time. Their current model makes access cheaper for the average consumer than a model which was not effectively pooled as the current one is (for basic access). if that's what people want, get your wallets out and campaign for this sort of setup. The companies are responsive and if the market was there for this, they'd make it happen.

    The peering arrangements are complex and difficult to negotiate and sometimes to implement and police. Inevitably issues with connectivity, traffic or performance spanning peered companies is far more expensive to troubleshoot as well.

    I'm not saying that these companies don't make some profits and don't gouge a bit (every market that has limited competition features this and arguably any high capital-cost system is a natural oligopoly so prone to this). I am saying there is a lot more to the expenses of these setups than just simply slapping a couple of network nodes together and yelling 'bingo!'.

    This is a peering issue. Netflix is trying to get the cheapest path to its customers and doing it by seeking cut rate sub-standard ISPs who are then funneling boatloads of traffic through peered connections in an asymetric manner (which is NOT how peering is intended to work). AT&T is effectively objecting to that, but doing so in a crappy way because they have their own services that they are invested in that might compete so they are singling out Netflix rather than simply the dodgy not-quite-peers who aren't living up to peering agreements.

    Here's the rub: If AT&T made a peering agreement and it isn't being adhered to, they have two options: Cancel it or convince the other party to amend it. If they cancel it, they might face a lawsuit for breach of contract, but if they have evidence of peering abuse/non-compliance, that shouldn't be a big issue. If they don't have proof of if their peering agreement has been written in an unenforceable way, then they should suck it up and when the term is up, write a more enforceable and reasonable peering agreement that will protect themselves.

    Singling out netflix traffic is not acceptable. That's a net neutrality issue.
    Having cut-rate peers that have agreements but aren't living up to them is also not acceptable. That's a peering agreement enforcement issue.
    So, both AT&T and Netflix may have an interest here which is valid and both are engaged in some spinning and FUD for their own purposes.

    Pooled capacity planning is simply cost effective. If it means we don't all get our full bandwidth all the time, then that's how it goes. We demand better performance until our ISP changes its pooling ratios (from 1/10th to 1/5th, etc) and installs new equipment or we change providers. If the ISP does have to change pooling ratios, then expect their service offering to rise in price to pay for it. TANSTAAFL.

    All that said, natural oligopolies need strict government oversight and the government is lobbied so heavily by these large interests that this is not happening as it should. That's a matter to take up with your representative.

    1. Re:Peering issue with both sides spinning it by mellon · · Score: 1

      Yup. BTW, I found it ironic that you mentioned enforcing differentiated service for users as a cost. I agree that it's a cost, but for some reason ISPs seem to think of it as a profit center.

  100. This guy's a complete fucking asshat. by Chas · · Score: 1

    These idiots (and just about every other major provider) has taken incentives from the government to grow their broadband networks.
    What've we gotten out of it?

    Higher bills.
    Bandwidth caps.
    If we're lucky, single-digit megabit (or less) connections being defined as "broadband".
    The connectivity providers trying to shake down content providers.
    And a bunch of cock-mongering suits voting themselves massive bonuses and pay raises with the money that was supposed to be used to build/expand/improve their network infrastructure.

    And how many thousands or millions of subscribers are paying these people how many millions a year for this shoddy, ass-tastic service?
    And they can't even do it right.

    It's not as if Netflix is bombarding their network with spam or other unwanted traffic.
    ALL traffic from Netflix is at the request of the conectivity providers' customers.

    So why the hell are they willingly trying to cripple or shake down these content providers? THAT IS NOT WHAT WE ARE PAYING THEM FOR!

    --


    Chas - The one, the only.
    THANK GOD!!!
  101. not a tier 1? Who is Cogent buying from? by raymorris · · Score: 1

    > That constrains the bandwidth between Cogent and the Tier 1s (which Cogent is definitely not).

    Some sources disagree. Who is Cogent buying transit from or paying settlements to? Do you have a source for that?

    Of course many people would say that Cogent isn't top quality, but that has little or nothing to do with their tier. Tier 3 ISPs buy transit from tier 2 ISPs. Tier 2s buy transit from tier 1 ISPs. Tier 1 providers buy from nobody. As far as I know, Cogent doesn't buy transit from anyone. (Modulo the same types of location-specific deals ALL tier 1 providers have with each other.)

  102. Level3 has the right alternative - bit/miles by raymorris · · Score: 1

    A user in California wants to download a video hosted in Texas. Both the user's ISP and and the hosting company have fiber lines from Texas to California. Whose lines carry the video across the country? Alternatively, maybe only one company has spent billions building a nationwide network. Whichever company carries the bits across the country is the doing most of the work. The other company should either balance that by carrying half of the traffic cross-country on its network, or kick in a few dollars to help cover the cost. That's Level3's new approach, and it makes a lot of sense.

    Which DIRECTION the traffic is flowing really doesn't make any difference. The cost is in carrying the traffic, so Cogent should expect settlement-free peering if and only if they invest in a network that carries their share of the traffic, if the bit-miles are equal.

    o

  103. Other way around by negge · · Score: 1

    In Finland it's the other way around - it's much cheaper to call mobile phones than landlines. The fact that almost no one has a landline anymore makes it moot though.

    1. Re:Other way around by Trepidity · · Score: 1

      To complicate things more, it looks like it might depend on whether you're calling from a mobile or landline. If you call from a landline, I think calling mobiles is still (much) more expensive. You can see that in the Skype rates, for example, because Skype originates its calls from landlines: Calling Finnish landlines from Skype is 0.04 EUR/min, while calling Finnish mobiles from Skype is 0.19 EUR/min (!).

  104. Where is Comcast actually overcapacity? by swb · · Score: 1

    I believe that they're all *actually* oversold, but where exactly is Comcast's hard resource bottleneck?

    Is it in whatever my neighborhood segment is (the block of end-user connections that terminate in a neighborhood-level fiber distribution node)? How many Mhz is my entire neighborhood allocated in the coax cabling that runs down the alley? Is it within my municipality (in between nodes and their upstream "super nodes")? Between "super nodes" and the metro-area central office(s)? Upstream from that?

    I can see the physical limits of the coax -- that only has so many Mhz to allocate to TV channels, etc. Gimmicks like switched digital would indicate that this is real, that they already face allocation issues trying to deliver a hundred plus HDTV channels plus an equal number of SD channels, plus carry a lot of data traffic.

    Internode traffic seems less limited; it's all their fiber and presumably when installing it they put it in enough to move tens of GBits of data even if its deliberately not all lit. Is it just at the peering edges or where exactly are they hard-constrained?

  105. Simple explanation re metered billing by ThatsNotPudding · · Score: 1

    Ironically, a lot of US customers are vehemently against metered Internet,

    Because we US consumers know innately if such a billing method were come to pass, the 'minimum balance due' each month - even if no device was even hooked up - would be within 90-95% of our current three-figure cable bill.

  106. In America, both ends pay. by Anonymous Coward · · Score: 0

    AT&T is just being AT&T, double dipping as much as they can.

    In sensible countries, you pay the telephone company for the line rental and for the calls you make.
    In america, you pay the telephone company for the line rental, for the calls you make, AND for any calls which are made to you. Hell, even if you don't answer the call, they charge you if the other person leaves a voicemail!

    If AT&T was a postal service, they would hand you a bill with every letter they give you, even though the postage was already paid by the sender.

  107. Arrogance is in the eye of the beholder by Anonymous Coward · · Score: 0

    The situation reminds one of an 1800's railroad tycoon that has already been paid to carry freight, asking for more money because he can.

    Comcast has been paid by their subscribers to carry traffic from some magical place called 'Internet' to their customers.
          They sold their customers sufficient access bandwidth to carry the traffic in question.
          They advertised peak bandwidth with some unspecified peak to average ratio, but then showed apps working over the system like Netflix.
                  One could argue, this is selling sufficient average bandwidth even during busy hour.
          This covers access, but leaves open the transit question of where is this magical place that Comcast should freely accept traffic.

    Netflix chose a less than stellar ISP to carry their traffic to the Internet.
          Perhaps they didn't pay to get traffic to where Comcast should take it.
              But if they carry it themselves to Comcast, then Comcast shouldn't charge them to get it to Comcast customers.
                  But I think they are. This is what brings up the the railroad example above.

    What to do is an interesting question. A strawman set of guiding principals might be.
              The end user pays for full duplex access with reasonable, defined idle peak and busy average rates.
                      (With monopolies in access, common carrier regs might be needed to cover 'reasonable'?)
              The user sourcing packets pays for transit, but transit is really cheap.
                      (A bandwidth spot market might cover 'really cheap'?)
              Hard rules at the boundary between access and transit are needed to make the above two work.
                      (Picking the wrong rule set could be much worse than the imperfect Internet we enjoy today.)
                      (Perhaps game theory sims could try out some rule sets?)

    1. Re:Arrogance is in the eye of the beholder by Anonymous Coward · · Score: 0

      A possible theory to support the Netflix payments is that the service Comcast is providing is both transit to get near the customer and then the access.
      Netflix needs to pay for the transit to get the traffic to a Comcast POP near Comcast's customer.

      It seems that a fair compromise for a monopoly ISP is that if Netflix can get traffic to any Comcast POP, Comcast should be responsible for transit and access for traffic to and from their customer to the POP. This is not the same as Comcast accepting to transit traffic for to another ISP's customer.

      However these rules turn out, they must result in enough money to build both the access and transit networks plus a profit reasonable for a regulated monopoly.
      For the present, this is not a problem, but it may be eventually.
      The problem with this sort of rules in the POTS arena is that the cost basis gets distorted to justify higher service prices.
      Another way to state the problem is that regs that require the regulators to understand what is going on don't work very well.
      Which says this is a hard problem.

  108. Fighting Nonsense with Nonsense by Anonymous Coward · · Score: 0

    The internet infrastructure of private companies should absolutely not be subsidized by the taxpayer. We are already being forced, arbitrarily, to pay for a private corporation's own assets. We are already having our property rights violated. Why should we entertain the idea of violating AT&T's right to providing the service they want to provide (another violation of property rights) when the first injustice will not be resolved?

    It's time we make corporations pay for their own damn infrastructure. Then customers can make up their own minds if they wish to use AT&T's restricted internet service.

  109. Fuck AT&T by Anonymous Coward · · Score: 0

    Awwww, sounds like someone is jealous of Netflix's popular public image.

  110. "Netflix ready" conenctions by Anonymous Coward · · Score: 0

    Let's just say some internet connections aren't "netflix ready".
    in a free market people can of course get a connection that is!
    ooooh wait ...
    -
    p.s. if the interconnections are bad then ISP can cache neflix internally.

  111. (it is stupid that beta requires me to type a new by CauseBy · · Score: 1

    That analogy isn't right either. You can charge more for an 18 wheeler than a 4 wheeler, and maybe you can charge more for a 20 ton vehicle than an 18 ton vehicle, but you can't charge more for an 18-wheeler 20-ton vehicle built by Mack versus an 18-wheeler 20-ton vehicle built by a competitor.

    They're both trucks. They both carry the same thing, you should charge the same.

    Netflix and its competitors all use IP packets. They all carry the same thing, binary digits, so you should charge the same thing. If someone sends more digits, then you can charge them more, but you can't charge more based on what order the digits are in (meaning, in the order of a movie instead of the order of a web page).

  112. beta sucks by CauseBy · · Score: 1

    "Sorry Charlie, but you can't do that."

    Alas. If only.

  113. AT&T being dumb. Again. by LinuxLuver · · Score: 1

    If there was ever any doubt, we now know AT&T doesn't understand the Internet.... and spent want to. Customers pay to be connected. End of story. Apparently that's too complicated for AT&T.

    --
    Only boring people are ever bored.
  114. It ain't Netflix that is arrogant... by ibsteve2u · · Score: 1

    It is AT&T that is "arrogant".

    Comments such as this one make it plain that AT&T believes that they've bought enough members of Congress and enough of the FCC to be able to safely ignore those famous "free market" principles which would otherwise supposedly protect the American consumer from monopolistic practices - e.g., sending Netflix to the bottom of the priority stack on AT&T-controlled comm links.

    The greatest arrogance lies in the fact that AT&T believes that they can publicly reveal - even boast of - the extent of the corruption that they've fostered without repercussion.

    --
    Orwell: "In a Time of Universal Deceit, telling the Truth is a Revolutionary Act"
  115. Time for Google to push a mass movement by yenic · · Score: 1
    I thought that net neutrality was going to be the status quo but it seems the tide has turned. Companies like Google are in big danger with this and should start a 'grassroots' resistance campaign as with SOPA. This type of stuff isn't probably going to cost the consumer more cash, just webservice companies.

    We're going to get a lot less choices online. But perhaps the big boys like Google and Netflix prefer it this way, keeps competition out as well.

    --
    http://www.accountkiller.com/en/delete-slashdot-account Stop visiting Slashdot.
  116. As we all know, there is no free lunch, and there& by Anonymous Coward · · Score: 0

    NO FREE LUNCH???

    The telecommunications industry is one of the largest recipients of TAX PAYER funded government subsidies. Given their profitability, such subsidies should have been YANKED a long time ago, and for those who claim to believe in the FREE MARKET, should never have existed in the first place. So yeah Mr. Cicconi: There should be no free lunches. Let's end your industry's tax payer funded subsidies and yeah: PAY YOUR TAXES! Otherwise, give your consumers the bandwidth THEY PAY FOR! (damnnit!)

    http://thinkprogress.org/climate/2011/11/13/366988/over-half-of-all-us-tax-subsidies-go-to-four-industries-guess-which-ones/#

    (A happy Netflix customer)

  117. Re:It's not arrogant, it's correct - Maybe by wolja · · Score: 1

    And yet, AT&T wants more money because they think they have the right to charge Netflix more to pass through their tollbooth.

    - it's not their 'tollbooth', it's their road. On a road you can charge different rates for different types of vehicles, this is the same situation. An eighteen wheeler can cause more damage to the road that requires more maintenance than a motorcycle, this is the same thing: a movie that needs to be streamed a million times takes up much more capacity and energy and basically uses the system much more than millions of small individual requests do.

    See, I even used an appropriate car analogy.

    Talk about mixing your analogies.
    Every single movie streamed from Netflix is paid for twice already.
    Once to the customers IP and once by Netflix for domain availability and uploads.

    So what you're saying is that providers need to e charged twice to provide something once. Your road analogy falls down there.

    At a wild guess AT&T and the others are more analogous to Robber Barons who chrge for use of the Tollgate then steal your shit just down the road.

    --
    Wolja Future Tombstone: Shit happened then I died
  118. Keep pushing 'em by Anonymous Coward · · Score: 0

    ISPs don't have as much of an economic incentive as web based companies to provide you with quality internet service. Keep pushing AT&T, and you'll find yourself competing with companies such as Netflix for providing internet service. Google has already moved into the space, and I can see a future where others do too.

  119. AT&T wants to double and triple dip by Baker65Baker · · Score: 1

    We (the taxpayers) already paid for all their infrastructure upgrades and they are just sitting on the money not upgrading. Google fiber is showing that they are liars, it can be done and still make a profit. If they upgraded their infrastructure with the money we gave them they would have no problem with this traffic but they want to double and tripple dip.

  120. Close..... by Anonymous Coward · · Score: 0

    True an eighteen wheeler does more damage to the road than a motorcycle. but! Let's say you have 40 Giga tons of dog poo to move from point A to point B since you can only move say 300 pounds of dog poo on a motorcycle compared to 20 tons in a truck which means more travel by bike more wear on the roads. Most likely it would work the same.

    The main thing here is the ATT customer is the one that makes the "Request" for the data not Netflixs. If the ATT customer didn't ask for the data it would just sit on the server and never go accross the wire. The ATT customer is paying for access to data THEY request. Where they request it from and what data they request is decided by the ATT customer who is "comsuming" the data. Doesn't matter if it is a movie or email. After all its all just 1's and 0's.

    Maybe Netflixs needs to ask for more money for the load ATT customers and putting on their servers.

  121. Amazing? by Anonymous Coward · · Score: 0

    Amazing!
    http://de.mon.st/RyEq2/