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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.'"

18 of 227 comments (clear)

  1. Sigh... by koan · · Score: 5, Insightful

    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."
    1. Re:Sigh... by s.petry · · Score: 4, Insightful

      Pretty much this, but not exactly. How many of the average consumers getting Comcast "Hot Deals!®" realize the penalty for the deal? Not many. Just like with so many other things the only way to fight is by consumer knowledge. Since the same people (I'm tempted to use an ad hominem for them, but won't distract) that own Comcast own all of the Mass Media, consumers are once again either ignorant or lied to.

      EFF and others have been warning about this for years, hell we have debated this topic over and over on Slashdot. How do you wake consumers when you don't own any media? I guess we can hope that more of the SOPA type blackouts will occur, but I have doubts. It was effective once, but corporations hated it. Keep mailing those US House and Senate members, but also start tapping people on the shoulder. It's not like NBC is going to warn consumers of the dangers of monopolization.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    2. Re:Sigh... by mrchaotica · · Score: 4, Informative

      How many of the average consumers getting Comcast "Hot Deals!®" realize the penalty for the deal? Not many.

      I firmly believe Comcast's "average" customer has only the choice between Comcast or no adequate Internet service at all. Other than Stockholm syndrome, it's the only explanation that makes sense.

      --

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

  2. That's why Atlanta (and other cities) ... by loony · · Score: 4, Informative

    ... need google fibre. Its the opposite extreme when it comes to performance and openness...

    Peter.

  3. Settlement-free peering and transit by gavron · · Score: 5, Insightful

    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

  4. Re:Comcast doesn't care by supersat · · Score: 3, Informative

    It doesn't really matter where you are; there is no real competition in the US broadband market. Sure, DSL exists, but old copper lines can't handle nearly the bandwidth that coax can. I live only a few blocks away from the CO, but due to the age of the wires, I could barely get 1.5 mbps.

  5. Re:Comcast doesn't care by NemoinSpace · · Score: 5, Funny

    Comcast wasn't your only choice. You could have voted NO. Even a commie Russian gets to vote NO.
    But Americans? Nope. Bend over and take it.
    I've had dial up instead of Comcast. I've had nothing, for short periods of time. I've thrown Comcast out of every property I've ever owned.
    Hell I even ordered Comcast just so I could return the equipment the next day and keep the batteries.
    Comcast is the Edith Keeler of the internet.

  6. comcast is charging less than Cogent and L3 by alen · · Score: 3, Interesting

    Netflix even said Comcast is charging them very little for the connections and its not material to earnings.
    i've seen estimates of $.30 to $.50 per megabit per second which is A LOT less than standard transit prices and an estimate that the netflix will pay $18 million per year for this. out of almost $5 billion in revenues this year and a current tech budget which includes transit of over $100 million

    this is another blogger crisis. they scream for better internet speeds and when a deal to enable this finally happens they scream fraud and extortion

  7. Get OFF your freaking duffs! by stox · · Score: 5, Informative

    You can still change this!

    Start with filing your comment NOW at the FCC:

    https://www.fcc.gov/comments

    Click on 14-28 Protecting and Promoting the Open Internet

    Here is a sample to give you some inspiration:

    "It has become time to classify Internet Service Providers as Title II Common Carriers. The possibilities for abuse are just too great otherwise. Failure to do so will cripple the future economic well being of the United States, stifle innovation, and limit the freedom of consumers to choose the content they desire."

    --
    "To those who are overly cautious, everything is impossible. "
  8. Re:Netflix is a terrible test case by Jane+Q.+Public · · Score: 5, Interesting

    Comcast must be thrilled Netflix has emerged as the proxy case for Net Neutrality.

    It doesn't matter though... as a user, YOU are "requesting" date from Netflix... and you have already paid Comcast for that bandwidth.

    Another article today noted that carriers like Comcast deliberately let their nodes get congested so they can scream "bandwidth hogs!"

    Shoot 'em down. Title II Common Carrier status for the lot of 'em. They've abused for far too long, and gotten rich in the process. Time to cut them down a notch, before they manage to throw their weight around so much they break everything in the room.

  9. Re:Netflix is a terrible test case by CheshireDragon · · Score: 3, Insightful

    As soon as that spineless fuck Tom Wheeler stops threatening to knock them all down to Title II and actually does it, we can only expect this to escalate.

    --
    "That's right...I said it."
  10. Re:Netflix is a terrible test case by Jane+Q.+Public · · Score: 5, Interesting

    baby bells were common carriers and you had to pay them to terminate your phone calls on their networks

    Yes, but...

    Our Common Carrier telephone system, at least until the breakup, was the envy of the world. Rates were reasonable and closely regulated, they couldn't snoop, they couldn't pull bullshit tricks on their networks to get you to pay more, and local calls were a flat rate even if you talked all day.

    In countries where competing companies were allowed to operate (instead of the U.S. "natural monopoly" setup), you had telephone systems that were fundamentally incompatible, mazes of wires, and sometimes you couldn't even call your own neighbor, because he was on a different system that was electrically incompatible with the one you used.

    Now that many other countries have adopted more of a regulated "natural monopoly" system (even if not completely so), and the U.S. has gone almost all private, the tables are turned... we have among the worst service of Western nations while at the same time some of the highest rates.

  11. Re:Netflix is a terrible test case by Jane+Q.+Public · · Score: 3, Insightful

    I should add that I'm not promoting Communism or anything. In many industries private competition is the only rational way to go. But communication is one of those things that has seemed to work best under the "natural monopoly" scheme. Which basically means Title II Common Carrier.

  12. Re:Netflix is a terrible test case by Arker · · Score: 3, Insightful

    "you're insane. the rates were $100 in today's dollars for an average bill"

    I believe you exaggerate, though the point that rates were higher is good.

    "you paid extra for caller ID and lots of other services"

    I actually miss that part. Because the corollary was that you could decline unwanted 'services.' Now any phone service you get has a dozen "services" that I do not want, must pay for anyway, and to add both insult and additional injury it's often impossible to even turn them off.

    "you paid per minute for local calling. higher rates for regional calls and crazy rates for long distance calls"

    It was possible to pay per minute for local calling, if you got the super-cheap phone service designed for those who would otherwise have no phone at all. With that lowest level of service you still got a number you could receive calls on all day every day, you only paid extra when you called out.

    The normal mode was to pay slightly more per month and get unlimited local calls. Rates for long distance were certainly higher.

    "there wasn't enough capacity for everyone and getting all circuits busy was normal, especially on long distance calls"

    Not true, it happened but it was certainly not normal. Unless, say, you were trying to call Mexico City right after the news reported a natural disaster there - yeah, in that case, circuits would be busy.

    So those are the down sides, and they are significant. What was the upside? If you were designing the system from scratch, why would you consider using a circuit switched network instead of a packet switched network?

    In a word, reliability. Once you established a call, there was literally an unbroken strip of copper reaching from your handset right into the hand of the person you were talking to. There was NO packet loss, latency was very little above what the speed of light demands, bandwidth was constant and predictable.

    With modern telephony being VOIP based, these things are no longer true, and telephone service is much less reliable.

    With the old circuit switched network, when too many people tried to call Mexico City at the same time, a certain number actually got through. Each one of them got a good connection. All the other people whose request when through a moment too late got the message about all circuits being busy and try again later.

    With the current packet switched network, when too many people try to call Mexico City at the same time, what will happen instead is that far more connections will be made, but they will not be reliable. If it's only a few too many, then maybe the audio quality goes down, a little delay creeps in, some audio artifacts... but you can all still keep talking. That's probably good. But when it's waaay too many, then no one will get a usable connection at all.

    A packet-switched network is great for lots of applications but one can certainly argue that telephone service is not one of them.

    --
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Friends don't let friends enable ecmascript.
  13. Lobbyists are a HUGE part of the problem by fightinfilipino · · Score: 3, Informative

    having lobbyists in government regulatory bodies HAS to stop

    sign this and share it: http://wh.gov/lwhr8

    Tom Wheeler and his ilk have empowered too much Telco/Cableco monopoly control and done nothing to help regular people

    1. Re:Lobbyists are a HUGE part of the problem by OhPlz · · Score: 5, Insightful

      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.

  14. Re:movies should not go over internet backbone by Duhavid · · Score: 4, Informative

    My recollection is that NetFlix has such caching equipment, and that they have offered it to Comcast and Verizon.
    CC and VZ did not take them up on that offer.

    --
    emt 377 emt 4
  15. Re:Netflix is a terrible test case by mrchaotica · · Score: 3, Informative

    Actually, packet switched networks work just fine for this IF they have a "reserved bandwidth" connection-emulation feature. In return for being limited in the number and size of the packets, and having asked first, the packets of the call get to "go to the front of the line", which means they aren't dropped and have little variation in transit time (jitter). The high-bandwidth services that speed up until they hit a bottleneck and back off, dividing all available bandwidth among themselves, then find that "all available bandwidth" is just a little smaller. That way both types of service play together JUST FINE.

    But that means treating some packets different than others, which in turn means that "net neutrality" mandates, in a naive form, ban them, leaving the phone calls running in the "best effort" manner you describe.

    Repeat after me: NET NEUTRALITY IS NOT FUCKING QOS!.

    It's really simple: QOS ("Quality Of Service") is about discriminating between different types of traffic based on its characteristics and needs (e.g. low-latency-required stuff like VoIP vs. latency-not-important "bulk data" transfers like BitTorrent). That kind of discrimination is just fine. In contrast, Net Neutrality seeks only to prohibit discrimination based on the origin or destination of the packets; i.e., who sent or requested them. That kind of discrimination is very much not "just fine."

    For example, Comcast wanting to prioritize Comcast's video-streaming service above Bittorrent is fine; that's QOS. Comcast wanting to prioritize Comcast's video-streaming service above Netflix is wrong; that violates net neutrality.

    In my experience, the only people who disagree with this after having it explained to them are those who are paid to believe otherwise.

    --

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