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Comcast: Destroying What Makes a Competitive Internet Possible
An anonymous reader writes "Vox has another in-depth report on the perilous state of net neutrality regulation, and how Comcast is attempting to undermine it. Quoting: 'In the bill-and-keep internet, companies at each "end" of a connection bill their own customers — whether that customer is a big web company like Google, or a an average household. Neither end pays the other for interconnection. ... ISP's typically do this by hiring a third party to provide "transit," the service of carrying data from one network to another. Transit providers often swap traffic with one another without money changing hands. ... The terminating monopoly problem occurs when a company at the end of a network not only charges its own customers for their connection, but charges companies in the middle of the network an extra premium to be able to reach its customers. In a bill-and-keep regime, the money always flows in the other direction — from customers to ISPs to transit companies. ... But when an ISP's market share gets large enough, the calculus changes. Comcast has 80 times as many subscribers as Vermont has households. So when Comcast demands payment to deliver content to its own customers, Netflix and its transit suppliers can't afford to laugh it off. The potential costs to Netflix's bottom line are too large.'"
First they came for Netflix, and I did not speak up because I did not use Netflix.
"If any question why we died, Tell them because our fathers lied."
These concepts were part of the commercial Internet circa the early 1990s
and were part of the reason CIX was so successful. Then PAIX then others.
In time, Internet exchanges were themselves bogged down and companies
did private peering. Those who connected to like-quantity produders of
content did so for free (settlement-free peering). Those who were unequal
paid for transiting the network (paid transit).
That hasn't changed in 32 years. All that's changed is the up and down of
who provides more traffic where. The dominant player in each interconnection
point ALWAYS demanded transit, and often did so with the "wherever our
two networks meet" even if elsewhere it was not the dominant player.
Comcast could be made to behave, but Netflix blinked and paid them money.
Now others will as well.
This CAN BE FIXED BY REGULATION but not the kind people are thinking
of. No, not net neutrality. Rather the elimination of the cable-company
monopolies on entire swaths of subscribers. Eliminate the government-granted
access to rights-of-way, towers, utility poles, and infrastructure. Let them not
have a "sole franchise" but rather be one of many competing in the market.
Remove Comcast and their ilk from their high post as the monopolistic "owner"
of all these households by fiat, and having to compete to keep them, and instead
of throttling their peerings to make Netflix users (THEIR OWN CUSTOMERS)
suffer... they'll get peering with netflix.
More government regulation doesn't solve a market-driven problem. Removing the
government regulation harming free competition is the key.
E
The current President lied in his campaign promises to not appoint lobbyists, but I'm sure an Internet petition signed by a bunch of geeks will change his mind.
Washington DC is useless to us.