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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.'"

7 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."
  2. 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

  3. 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.

  4. 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. "
  5. 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.

  6. 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.

  7. 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.