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Comcast CEO Brian Roberts Opens Mouth, Inserts Foot

lpress (707742) writes "At a recent conference, Comcast CEO Brian Roberts rationalized charging Netflix to deliver content by comparing Comcast to the Post Office, saying that Netflix pays to mail DVDs to its customers but now expects to be able to deliver the same content over the internet for free. He forgot to mention that the Post Office does not charge recipients for those DVDs. The underlying issue in this debate is who will invest in the Internet infrastructure that we badly need? Comcast has a disincentive to invest because, if things bog down, people will blame content providers like Netflix and the ISP will be able to charge the content provider for adequate service. If ISPs have insufficient incentive to invest in infrastructure, who will? Google? Telephone companies? Government (at all levels)? Premises owners?"

59 of 343 comments (clear)

  1. He also forgot to mention... by Anonymous Coward · · Score: 5, Insightful

    That everyone has to pay for access to the Internet, including Netflix. They've already paid, but Comcast arbitrarily expects them to pay even more just because their own customers want to use Netflix, which makes zero fucking sense.

    1. Re:He also forgot to mention... by cbiltcliffe · · Score: 5, Insightful

      What's more, his analogy actually supports Comcast NOT charging Netflix, rather than the other way around.
      Being a Canadian resident, if I want to send a letter to someone in Canada, I pay Canada Post to deliver it.
      If, on the other hand, I want to send a letter to someone in a different country, say, the USA, or England, I pay Canada Post to deliver it. I do not have to pay the United States Postal Service or Royal Mail to deliver my letter sent from Canada.

      In this analogy, countries and regional postal services are equivalent to ISPs. If I want to send a network packet (letter) to someone on a different ISP (in a different country), I pay my local ISP (postal service) to deliver it. Any ISP (country) beyond that is not my responsibility.

      --
      "City hall" in German is "Rathaus" Kinda explains a few things......
    2. Re:He also forgot to mention... by Anonymous Coward · · Score: 5, Informative

      I think you have this wrong unless I'm not understanding correctly what you mean.

      If this was the case for you with your video game services then you already buying into some good data centers into the backbone and then later on some ISP's backbone link is congested they would then charge you extra to deliver your service to their customers even though you've already paid to be in the internet backbone in your data centers! It's ridiculous that any ISP thinks this is reasonable.
      I've paid for my bandwidth, the service (Netflix in this case/your video game service) has paid for their bandwidth now Comcast is double dipping because it knows it can since it has a monopoly.

      Have any ISP in any other country try this if there is competition I bet you they will not last long.

    3. Re:He also forgot to mention... by Anonymous Coward · · Score: 5, Informative

      The problem was that Netflix didn't give a shit about some customers because they paid the lowest bidder to be their bandwidth host.

      Concern with network issues is why Netflix has offered CDN appliances at no cost for more than two years to ISPs. Comcast chose to refuse Netflix's offer to colo within their own DCs on their own internal network, which would have reduced latency and bandwidth costs to nothing. I tend to believe that Comcast is more concerned with Netflix's effect on their own content offerings, and pushing the additional costs to Netflix has the additional benefit of making *them* take the PR hit for any price increases that result.

    4. Re:He also forgot to mention... by nurb432 · · Score: 4, Insightful

      What's more, his analogy actually supports Comcast NOT charging Netflix, rather than the other way around.

      Which in my case, i do. I pay Comcast a monthly 'delivery fee'. what is delivered is of no business to them, just like the post office.

      --
      ---- Booth was a patriot ----
    5. Re:He also forgot to mention... by Anonymous Coward · · Score: 5, Insightful

      If that were true, then Comcast wouldn't have a complaint about network congestion - it wouldn't happen.

      Any congestion would only occur at the Netflix connection point. Thus, once again, Comcast doesn't have a problem.

      If the congestion occurs at the COMCAST connection to the backbone, then COMCAST has a problem. Not Netflix. If Comcast wants to service their customers, they need to upgrade THEIR connection to the backbone - not force Netflix to pay a bribe to Comcast to NOT IMPOSE CONGESTION. This is commonly known as "extortion".

    6. Re: He also forgot to mention... by poptix · · Score: 5, Insightful

      You're missing the fact that Netflix is in all of those data centers. The problem is that Comcast is intentionally degrading their peering in those data centers meet-me rooms in an attempt to get more direct customers.

      Furthermore, if you're large enough Netflix will actually supply servers that you can plug into your network to provide the top x percentile of content -- for free.

      This is purely a Comcast wants more money and hates video competition issue.

      --
      Just because you disagree doesn't mean it's not true.
    7. Re:He also forgot to mention... by Anonymous Coward · · Score: 3, Interesting

      It's especially bad to sound elitist when you're wrong, but I'm sure that won't stop you the next time either.

    8. Re: He also forgot to mention... by bill_mcgonigle · · Score: 5, Insightful

      Well it makes a bit of sense for the average ISP - their fees are based on presumed overcommit rates and it's possible to break those assumptions if everybody pumps enough traffic. Everybody is stuck on fixed-rate billing so the grandma doing webmail pays as much as the 10-meg-up-24x7 torrenter when the costs are way different. I even heard an ISP owner say that customers couldn't understand usage-based billing (these are people who pay electric bills). Insistence on fixed-rate billing will inevitably lead to bureaucrats central planning the Internet. If you put emotion before economics, you'll get exactly what you deserve. A libre Internet will eventually require per-packet billed routing (fractional shatoshi?) but if everybody insists on a gratis Internet they won't get the libre one.

      Comcast's anti-competitive bullshit is a red herring in the neutrality debate if you understand that what's really happening is that the overcommit gamble is starting to no longer pay off and they're mostly looking to soften that blow to their failing business model.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    9. Re:He also forgot to mention... by VanGarrett · · Score: 2

      That's technically true, but cbiltcliffe also makes the point that it's not his responsibility. cbiltcliffe doesn't care about the US postal service's fee. The Canadian postal service has given him a price for delivery of his letter, and he pays said price. His end of the transaction is done, and whatever agreement the Canadian postal service has with the US postal service is, that is the Canadian postal service's problem, not his. Whether or not the Canadian postal service's fee includes the US postal service's fee is not guaranteed, and any additional fee for international shipping may indeed be considerably greater than the US postal service's fee to complete the delivery.

    10. Re:He also forgot to mention... by bhcompy · · Score: 3, Informative

      Comcast is peering with Cogent, and that is the connection that is saturated. This is why people can VPN around the problem, as there are many routes into Cogent's and Comcast's networks and anyone with a rudimentary knowledge of internet routing understands that routes change depending on source.

    11. Re: He also forgot to mention... by Namarrgon · · Score: 5, Insightful

      The point is that, in both cases, the sender/content provider has already paid. If there's an additional cost to transmitting the content across a boundary (different country or different peering service), then in both cases that has already been factored into the cost of sending it, and paid to the local provider (post office or ISP).

      By Comcast's reasoning, the parcel sender should also expect a bill from any countries the parcel travels through, despite paying the full postage when sending. If Comcast wants more money for transmitting content, they need to take it up with their neighbour peering providers, not with the content producers or consumers.

      --
      Why would anyone engrave "Elbereth"?
    12. Re:He also forgot to mention... by ClickOnThis · · Score: 2

      What's more, his analogy actually supports Comcast NOT charging Netflix, rather than the other way around.
      Being a Canadian resident, if I want to send a letter to someone in Canada, I pay Canada Post to deliver it.
      If, on the other hand, I want to send a letter to someone in a different country, say, the USA, or England, I pay Canada Post to deliver it. I do not have to pay the United States Postal Service or Royal Mail to deliver my letter sent from Canada.

      In this analogy, countries and regional postal services are equivalent to ISPs. If I want to send a network packet (letter) to someone on a different ISP (in a different country), I pay my local ISP (postal service) to deliver it. Any ISP (country) beyond that is not my responsibility.

      I made the same point back in March:

      http://slashdot.org/comments.p...

      --
      If it weren't for deadlines, nothing would be late.
    13. Re: He also forgot to mention... by Kaenneth · · Score: 4, Insightful

      NBC/Universal should be separated from Comcast/Xfinity as a condition of any more mergers/acquisitions.

    14. Re:He also forgot to mention... by s.petry · · Score: 2

      I believe you, but here is the real issue. Do you think that money grubbers like the CEO of Comcast cares whether or not his plan to get even more big bonuses is based on truth, honesty, fairness, or common sense? Hell no! This is why they see no issues with buying up other providers to have a monopoly either.

      --

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

    15. Re: He also forgot to mention... by jd2112 · · Score: 4, Insightful

      NBC/Universal should be separated from Comcast/Xfinity as a condition of any more mergers/acquisitions.

      NBC/Universal is not the problem here. The problem is that Comcast's Cable TV offerings make a lot of money (probably more than the Internet business) and as people move away from cable TV to Netflix and other streaming services their ability to ream their customers will be diminished.

      --
      Any insufficiently advanced magic is indistinguishable from technology.
    16. Re:He also forgot to mention... by rtb61 · · Score: 2

      You left out an important point. All those carriers are quite capable of mirroring the bulk of that content a instead of hassling with transit deliver a legal copy from their own servers (legal as in once licence in and one licence out). Netflix content is ideal for this as the bulk of the traffic is the same thing.

      --
      Chaos - everything, everywhere, everywhen
    17. Re:He also forgot to mention... by whoever57 · · Score: 2

      The post office may not care what is in the box but its charges are based on size and weight.

      No-one is forcing Comcast to offer unlimited data contracts to consumers. That's a business decision by Comcast and they should have to live with the consequences of their own decisions.

      --
      The real "Libtards" are the Libertarians!
    18. Re:He also forgot to mention... by Opportunist · · Score: 2

      Charging more is not the problem. The problem is that the proposed model creates a two tier internet. The internet of the big companies that can afford the fee and thrive, and the internet of "us peasants" that will suffer.

      Essentially, what it boils down to, is that they want to do to the internet what happened to other media: You will only be heard if you have the money. And last time I checked the first amendment of the US does not have a "for the rich" clause.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    19. Re:He also forgot to mention... by Opportunist · · Score: 4, Insightful

      Maybe, but the mail doesn't cost more 'cause it goes to my aunt Emma instead of the billing department of the power company next to her.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    20. Re: He also forgot to mention... by Anonymous Coward · · Score: 3, Insightful

      Is it really that unfair?

      Yes.

      It's called a PEERING arrangement, as in two PEERS talking to each other. If Comcast feel that they are not benefiting from the arrangement, they are free to terminate the peering and accept the traffic via. some other means, all of which will cost them more money.

      Comcast would have to upgrade their networks, you say? Well boo hoo: it isn't the fault of Netflix that Comcast customers want their data. Comcast customers have paid Comcast to deliver them data. If Comcast are failing to do that, it isn't the fault of Netflix.

    21. Re: He also forgot to mention... by O('_')O_Bush · · Score: 3, Interesting

      The issue is that ISPs are greedy on many, many levels.

      The main issue is that ISPs are allowed to oversell their capacity by many, many times, and they hope that nobody notices what they have done. Now that customers are using that capacity, instead of doing the ethical thing and fulfilling the promise they made to consumers, they are trying to find someone else to foot the bill for their sleezy business practices.

      I think the best analogy is like fractional reserve banking. Imagine a culture shit where suddenly people stop leaving their money in savings, and instead store lots of money in savings, but then withdraw almost all of it periodically to spend.

      Instead of changing their banking policy to remain solvent, the banks begin demanding that the most popular retailers pay them massive fees to accept the money that their customers are paying them, and if they don't, the banks will notify people that it is the stores not accepting their money. And for some reason, people believe them.

      Not making a whole lot of fucking sense? Well, neither does the tiered internet thing.

      --
      while(1) attack(People.Sandy);
    22. Re:He also forgot to mention... by drinkypoo · · Score: 4, Insightful

      The problem is, where's the upside for Comcast?

      In a sane world, the up side would be that they got to keep their customers, who would leave and go to someone else if Netflix didn't work properly. In our world, they often have a monopoly on high-speed internet access within a market, and so their customers will simply have to suckit.

      Comcast isn't treating Netflix any better or any worse than anyone else. Comcast has always been consistent in it's policy - if you want access to their network, you pay them.

      And they and all other internet service providers should be prohibited from engaging in that kind of behavior. Content should be separate from transport. It is long past time to force ISPs to behave as common carriers. We forced the telcos, we can force the ISPs.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    23. Re: He also forgot to mention... by Bengie · · Score: 3, Insightful

      The problem with the mail analogy is with ISPs, you also pay for receiving. Actually, you pay no matter what.

      Lets try to make a better analogy.

      Lets say the USPS instead of charging per parcel, instead charges each tax payer a base $30/month, but the customer is allowed 5 parcels per month. But you only get that deal if you bundle with their overpriced car insurance, otherwise you pay $60/month for 5 parcels. If you want to get more parcels, then you can get the 20 parcel per month for $100, for the first 6 months, then $150 after.

      Since you need to get mail, you put up with this, then suddenly, after a decade of this highway robbery, Amazon starts offering this wonderful service that allows you to make use of your underutilized mail system that you pay so much for. Now you can order your regular things online and have them shipped without the hassle of going to a store or forgetting.

      So lots of people start using this Amazon service. Amazon pays FedEx $2 per parcel to deliver to your city, where FedEx hands off to USPS, then USPS delivers it to you. After a while, USPS gets cranky that they're now having to deliver a lot more packages. Lots of people have upgraded to their $150/month package to get 20 parcels per month, but USPS can't handle it because they've never had this demand before.

      USPS then refuses to accept more parcel from FedEX, which causes parcels to back-up and get delivered late. Amazon asks FedEx if there is anything can be done, but FedEx says they can't because USPS refuses all negotiations.

      Eventually Amazon caves in and enters into an agreement where Amazon pays USPS $2 per parcel, but Amazon has to deliver the parcel to the city, then USPS will deliver it the rest of the way. Because Amazon was paying FedEx to deliver the package for them, Amazon now has to provide that service for themselves.

      USPS customers are now paying increased Amazon prices, while paying exorbitant USPS prices. USPS's rational is that if the customers want to make full use of the service they've purchased from USPS, then the customer should have to pay even more, but USPS didn't want to raise their bill because customers wouldn't like that, so instead they indirectly increase their bill by charging the suppliers of what the customers want

      All the while in another city, UPS(Google Fiber) is charging $50 per month for unlimited packages and even lets Amazon use their local warehouse for free, which helps reduce Amazon's and UPS's costs.

      Lets put this all into perspective. Transit is priced about $0.45 retail, and costs even less. But lets give Comcast a bit of wiggle room and assume that on average, bandwidth costs $0.50/mbit. This is bandwidth that can reach anywhere in the world. Comcast oversubscribes about 20:1, which means that bandwidth is really about $0.025/mbit per customer. Comcast then turns around and charges $100/month for 100mbit, which only costs them about $2.5 in bandwidth. Then Comcast complains that Netflix is using too much of this bandwidth, because Comcast's network can't handle providing a measly 5mbit/s to many of their customers at the same time.

      Comcast then gets this awesome idea, instead of paying for bandwidth, they should get paid for it! So not Comcast is making even more money, but making money isn't a bad thing in itself. So, what's wrong about Comcast wanting to make more money? Because Comcast is having their customers foot the bill for the infrastructure, then Comcast outright refuses to allow the customers to use the infrastructure to its fullest, then Comcast turns around and resells that same infrastructure for more profit to another company, while making no additional investments into the infrastructure.

      The customer's didn't gain anything, they were only allowed to make more use of what they already paid for.

      Imagine if you leased a 6 person van for the explicit reason to hold more of your kids and their friends, but then your car dealership tells Chucky Cheese that if they want you to be able to put 6 people into the van that you leased, Chucky Cheese will have to pay. Because... get this... 6 seat vans are expensive. No shit. Isn't that why you're paying a premium for a 6 person van over a 4 seat car?

    24. Re:He also forgot to mention... by Drakonblayde · · Score: 3, Informative

      I actually know quite a bit about routing. Enough to know that you don't call an interconnect a 'route'. A route is a destination prefix with a valid next-hop. But go right on ahead and think you know all about internet routing just because you read a blog entry or two.

      And yes, you do let interconnects get congested if there's no business case for upgrading them.

      I'm not saying I disagree with your opinion. As an operations wonk, it pains me to see capacity issues and my natural inclination is to fix it.

      However, that shit costs money, and not lunch money either. This is when the business side interfered with the tech. Unless there's a good business case for it, those links aren't getting upgraded until there is.

      In this case, there was no business case to do so. If Netflix was complaining about the quality of service because of the saturation on the Cogent interconnect, all they had to do was alter their routing policy to send the traffic for Comcast's prefixes out their Level 3 links instead. It's a trivial and often performed piece of BGP traffic engineering. Netflix decided not to do so (because Level 3 is a crapload more expensive than Cogent) and make a public stink about it.

      Even after the public stink failed, Netflix *still* decided not to send the traffic out Level 3, opting to purchase direct links into the Comcast network (and, shortly thereafter, into AT&T's network as well. Strangely enough, people don't seem to have an issue with AT&T telling Netflix to go fuck themselves, just Comcast). That decision should tell you a couple things - Bandwidth ain't cheap. It's cheaper than it was 10 years ago, on a per mbit/gbit cost, but the amount of traffic crossing has scaled up even while prices have been scaling down. And it should tell you just how expensive Level3 is to actually use.

      You're basically saying that, just because the Cogent link was saturated, Comcast should have instantly gone ahead and upgraded their links with Cogent, nevermind that the guys doing the complaining had links to another Comcast transit provider, who's links *weren't* saturated.

      When bandwidth costs are the clear majority of your OpEx, you think twice about doling out CapEx and additional OpEx if there is another option. You would make a horrible network operator.

    25. Re:He also forgot to mention... by drinkypoo · · Score: 2

      Ok, and how many customers do you think are cancelling their internet service with Comcast just because of Netflix?

      Very few, because of those who would consider it, few have any credible options, and many have no options.

      You realize this is how the internet has worked since the NSF stopped off, yes?

      Yes. And it has been a point of contention all along.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    26. Re: He also forgot to mention... by sumdumass · · Score: 2

      This really is the problem here. We pay for service and Netflix pays for service. The internet is a system of interconnected networks we each can access for whatever reasons we choose.

      If Comcast is slowing bandwidth for certain providers based on the condition of payment from third parties, they are cheating their customers who paid for certain speeds. And no, the "up to" argument doesn't hold water because at no time can the up to be above what they limited the speeds to when they are purposely limiting it. If the network gets congested and slows, they aren't purposely limiting the speeds so it could theoretically be faster up to the limit purchased. It just cannot be up to a limit when it is purposely and intentionally slowed down.

      Now, if comcast needs more money in order to provide it's network speeds and maintain it, then it needs to negotiate proper payment from it's customers and peering partners. those peering partners then pass that cost off to their customers. It really is that simple. What Comcast is trying to do is make Netflix and any other successful company that used the internet their customer by default without providing any of the access on the other provider side because Comcast's existing customers might want to access those companies.

    27. Re:He also forgot to mention... by Dahamma · · Score: 2, Funny

      His analogies are all around HORRIBLE. Another statement was that "since Netflix uses 30% of our bandwidth, maybe they should pay 30% of the costs".

      When Reed Hastings (Netflix CEO) responded "if we pay 30% of your costs, we should get 30% of your revenue" Comcast had no further comment...

  2. Classify net access as a utility? by Mr0bvious · · Score: 5, Insightful

    This may be an absurd suggestion, but given that internet access is somewhat required to participate in society today, perhaps it's time to class internet access as a utility like water and electricity/gas.

    --
    Never happened. True story.
    1. Re:Classify net access as a utility? by Arker · · Score: 3, Informative

      "No, not unless you would like your Internet access technologies refreshed and upgraded about as often as your water pipes or electric lines are. Which is to say approximately never."

      Which is what all the big 'telecommunication services' plan to do anyway. FIOS and its kin will be maintained where they exist already, a pathetic fraction of the country, but not expanded. The cable companies plan to continue making their money on cable tv, hobble their internet access to prevent the internet from competing (excepting possibly those like Netflix that pay them specifically, but watch! Netflix may still get screwed despite paying) and the telephone companies plan to continue building out new *wireless* services where they can charge premium per mb rates, but no one besides google is expanding conventional unlimited hardwired internet service in the US either way. Google may only be lukewarm on network neutrality but they are _not_ one that would flee the field rather than comply. So in this case the damage of regulation could approximate zero.

      Land lines are a natural monopoly and it's not like these lines were laid out in the first place without subsidy and privilege from the government, at all levels. In fact the taxpayer has already paid for an awful lot of capacity that he never received and never will.

      Getting the government involved is almost never a good choice economically, but the 'almost' is still important, and natural monopolies are the biggest exception.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    2. Re:Classify net access as a utility? by Billly+Gates · · Score: 2

      That is not the issue.

      The issue is you do not have free speech like the mega telecoms do with a fleet of lawyers, lobbyists, and rolodexes of your supposedly representatives. Free speech is something that can buy a lot of things that you and I can not afford. Notice I did not say money or bribery.

      As long as we have a corrupt government we ARE FREAKING DOOMED.

      We have corn with pesticides from genetically engineered crops whose pollen cross contaminates everything which in high enough doses causes infertility. We have roads and bridges falling apart. We have teachers who can be fired for not teaching creationism as science in the classroom alongside evolution. This issue is just one symptom of many.

      DO we need a revolution next? I mean the Tea Party was kind of like this but the Koch brothers have their hands in that now and they are nte ones threatening any GOP politician they will lose their job if they even acknowledge global warming exists!

    3. Re:Classify net access as a utility? by Anonymous Coward · · Score: 5, Insightful

      My water pipes and electric lines have been working perfectly 24/7 for several years now. I have never been unhappy with the speed and quality of the water coming from my taps.

      Countries like Japan, S.Korea and Sweden seem to have no problem providing an internet service as high-quality as tap water.

      Meanwhile, US citizens pay $80/month for access to the village well.

    4. Re:Classify net access as a utility? by hawguy · · Score: 5, Informative

      No, not unless you would like your Internet access technologies refreshed and upgraded about as often as your water pipes or electric lines are. Which is to say approximately never.

      In the past 10 years, I have never turned on my water tap and had no water come out. In the past 5 years (which is as far back as I have log files from my UPS), I've experienced 2 power failures lasting longer than a few minutes (I recorded 7 outages lasting less than a few minutes, but some of those were when I unplugged the UPS or turned off a breaker to do some electrical work), one was a regional power outage, and one was caused when a car accident took down a utility pole.

      However, I experience regular internet outages, the last one was last week, and lasted for 3 hours, cable TV was fine, but internet (for me and a neighbor down the street) was out. It took 30 minutes to get someone at Comcast to realize that there was a problem, but they had no idea what was wrong, nor any ETA for a fix.

      So I *wish* my internet connection was managed as well as water and power.

    5. Re:Classify net access as a utility? by TClevenger · · Score: 2

      No, not unless you would like your Internet access technologies refreshed and upgraded about as often as your water pipes or electric lines are. Which is to say approximately never.

      Verizon hasn't seen fit to upgrade the maximum speed of the DSL in my old neighborhood from the 3Mbps that it installed sometime in the last century. How can it be any worse than that?

    6. Re:Classify net access as a utility? by schnell · · Score: 4, Informative

      FIOS and its kin will be maintained where they exist already, a pathetic fraction of the country, but not expanded.

      Well, frankly, yes. Verizon has said for several years that the cost of rolling out FTTH for FiOS was so high, and the adoption rate low enough, that they are done with expanding it for the foreseeable future. Verizon is a business, and FiOS just isn't making much profit. And that is with Verizon having no obligation to share its fiber with other providers, unlike the copper TDM network sharing requirements for UNE-P and DSL. If Verizon had to treat FiOS like a utility and/or line share, it would have been deployed in even fewer places or not at all. It sucks, but it's true.

      To be treated as a utility generally means to be compensated in a "cost-plus" environment. You are allowed to charge consumers what it costs you, plus a little margin. Fair enough for water and electric, say, but those are industries where the infrastructure was built a long time ago and a need to upgrade customer-facing physical plant is not really an issue. Bu if you want to build a new power plant, or a sewage treatment plant, you have to go to a state/local Public Utilities Commission and ask permission to raise your rates to cover it, which can take a long time for review and approval. Imagine doing this every time you want to buy a new OC-3, refresh your CPE/modems, or install new wireless towers! Network upgrades will slow to a crawl. Being a regulated utility is good for steady state maintenance and uptime but bad for capital-heavy upgrades and investment.

      People forget that even though the old "Ma Bell" phone network was regularly upgraded, that wasn't because of regulation. Ma Bell was actually a business with a regulated/utility portion (local phone service) and an unregulated portion (long distance and other services). For decades, the unregulated part of their business made enough money that it effectively subsidized the regulated local phone service infrastructure and upgrades. When Ma Bell was broken up, local phone service rates actually went up because the ILECs no longer had the unregulated, profit-making businesses to subsidize them. And it is entirely possible that the same thing would happen if ISPs were treated as utilities and were not using TV, phone or other high-profit services to subsidize Internet access.

      --
      "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
    7. Re:Classify net access as a utility? by laird · · Score: 3, Informative

      Actually, if internet service were a regulated monopoly it could be much more efficient than it is now. Compare to water and power, which as regulated monopolies were required by law to continuously invest in infrastructure to provide service with good reliability and safety margins, in return for which they made a guaranteed profit. Then it was deregulated in many areas, but since the companies were still effectively monopolies, there was minimal competitive pressure so the companies slashed their investment in infrastructure, while jacking up rates, in order to maximize short-term profits. The result is worse service with higher prices because there's neither competition nor oversight. And high return for company officers and short-term investors.

      For natural monopolies, competition doesn't force efficiency, so you have to have regulatory oversight. If you have neither competition nor oversight, you get screwed.

    8. Re:Classify net access as a utility? by Maxwell · · Score: 4, Informative

      You assume that in order for the internet to be a 'utility' it has to somehow be made available (instantly) throughout the entire United States. That's not how utilities are rolled out. municipal water is still missing in many, many areas of the country that use wells and septic tanks. The west coast of Florida comes to mind. Most of Montana. Heck, lots of farms w/o indoor plumbing well into the 1950's even if they had a well. Electricity - same way. Telephone same way - I was using party lines in the 1980's which was huge improvement over having to walk to the store on the main road to get make a call.

      The OP isn't asking for 10Mbp country wide, tomorrow.. The ask is to start setting standards, start setting prices that include a capital improvement component and start rolling it out. Maybe it will even catch up and pass water!

      And BTW Sweden has far less population density than USA, and more inhospitable terrain to cover...

    9. Re:Classify net access as a utility? by NotSanguine · · Score: 4, Insightful

      This may be an absurd suggestion, but given that internet access is somewhat required to participate in society today, perhaps it's time to class internet access as a utility like water and electricity/gas.

      I doubt you would find anything that would lead to the destruction of Net Neutrality faster.

      Please. Enlighten us. How exactly would reclassifying ISPs as common carriers destroy net neutrality?

      In fact:

      A common carrier holds itself out to provide service to the general public without discrimination (to meet the needs of the regulator's quasi judicial role of impartiality toward the public's interest) for the "public convenience and necessity". A common carrier must further demonstrate to the regulator that it is "fit, willing, and able" to provide those services for which it is granted authority.[Emphasis added]

      What was that you were saying? Oh, that's right. Nothing.

      --
      No, no, you're not thinking; you're just being logical. --Niels Bohr
    10. Re:Classify net access as a utility? by mrvan · · Score: 2

      Interesting observation. Have you ever been to Sweden?

      From the CIA World Factbook:
      Land area: 410,335 km^2
      Population: 9,723,809

      So, population density of 23.7 people per km^2

      Unites States has 318,892,103 people on 9,161,966 km^2 of land, or 34.8 people per km^2.

      (PS try http://simple.wikipedia.org/wi... if this is too difficult too follow ;-))

  3. Govermental oversight by philmarcracken · · Score: 2

    Just like water and power, internet needs regulation on a governmental level; a service utility provided at a fixed wholesale cost which the government
    takes its share to maintain a standard contention ratio that ISPs can retail their services on top of.

    Connectivity should not be left in the hands of corporations with shareholders to please.

    1. Re: Govermental oversight by Anonymous Coward · · Score: 5, Insightful

      It doesn't need regulation, it needs competition. Can't wait for an alternative to ditch fucking Comcast.

    2. Re: Govermental oversight by nurb432 · · Score: 2

      Done right, regulation can increase competition.

      And while we all hate Comcast and want them to be gone, what about who takes their place? Who says they wont be any less abusive of their customers, and perhaps even worse? Don't blindly wish for 'change', as you might just get what you are asking for, and regret it.

      --
      ---- Booth was a patriot ----
  4. Re:treat Netflix like a television network by Anonymous Coward · · Score: 5, Insightful

    Yeah, that's fucking brilliant. Let's package Netflix along with 105 other online services we'll never use, all for only $125 a month.

    Moron.

  5. Backbone.... by niftymitch · · Score: 3, Interesting

    We need backbone resources or other tricks...
    Mostly we need legal legislative backbone.

    The last mile is owned by local monopolies.
    That is the sad reality. These local monopolies are
    also content service providers and do what they to
    do feather their own nest.

    The congestion is the backbone owners and providers.
    Multiple issues dominate the congestion problems.
    Access, distance, hops and hubs.

    The likes of Netflix need to embrace one or more
    flavors of p2p networking. A local neighborhood
    can cache and redeliver most video frames from a
    modest cache with modern crypto tools to contain
    theft of service.

    I think the likes of Netflix would do well do develop
    an enhanced DOCSIS 3.x modem that also contains
    a p2p client/service that can recast content to other
    like service devices a hop or two away. It can also
    begin caching the top two products on a wish list.

    Proxy and p2p services are underused or vastly abused.

    --
    Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn't. Mark Twain.
  6. Comment removed by account_deleted · · Score: 5, Interesting

    Comment removed based on user account deletion

  7. Re:Shipping Pre-paid by Shados · · Score: 2

    Yup. The customers pay for downloading from their ISP to their home. Netflix pays for streaming from their CDNs to their provider(s). What happens in between is the problem of the ISPs.

    Comcast wants BOTH the customer AND netflix to pay for the download part. Thats where it gets messed up.

  8. The Universal Postal Union by westlake · · Score: 5, Informative

    I want to send a letter to someone in a different country, say, the USA, or England, I pay Canada Post to deliver it. I do not have to pay the United States Postal Service or Royal Mail to deliver my letter sent from Canada.

    Postal settlements for delivery abroad are made peer-to-peer.

    The Universal Postal Union (UPU, French: Union postale universelle) is a specialized agency of the United Nations that coordinates postal policies among member nations.

    In 1969, the UPU introduced a new system of payment where fees were payable between countries according to the difference in the total weight of mail between them. These fees were called terminal dues. Ultimately, this new system was fairer when traffic was heavier in one direction than the other. As a matter of example, in 2012, terminal dues for transit from China to the USA was 0.635 SDR/kg, or about 1 USD/kg.

    As this affected the cost of the delivery of periodicals, the UPU devised a new ''threshold'' system, which it later implemented in 1991. The system sets separate letter and periodical rates for countries which receive at least 150 tonnes of mail annually. For countries with less mail, the original flat rate is still maintained. The United States has negotiated a separate terminal dues formula with thirteen European countries that includes a rate per piece plus a rate per kilogram; it has a similar arrangement with Canada.

    Universal Postal Union

  9. Invest with all the money I pay you scumbags by wiredlogic · · Score: 5, Insightful

    My Comcast bill is $57.99 for 10Mbps internet only. I just got a couple of "threat" letters saying that my "promotional" pricing is about to expire and I will pay even more for their lovely service. Never mind that my promotional pricing actually ended six months ago.

    They are already making money hand over fist off their customers. They should use that money to invest in their own infrastructure improvements.

    --
    I am becoming gerund, destroyer of verbs.
    1. Re:Invest with all the money I pay you scumbags by Lumpy · · Score: 2

      You really missed the real cost. I worked for comcast and know what that cost is.

      IF he rents the cable modem from them, that is a $3.00 profit on top of the $2.50 that the 10Meg tier costs the company after factoring in costs of even maintaining the drop to his house.

      Yes $2.50 is what the TOTAL cost for each customer no matter what the bandwidth they use. Any tier above the lowest is nothing but pure profit.

      Granted these numbers are for a larger area like Detroit Metro and are from 2009. The profit margins that Comcast has on the internet are utterly obscene.

      --
      Do not look at laser with remaining good eye.
  10. Re: Google is Nashville's only hope by Anonymous Coward · · Score: 3, Interesting

    The ability to run a server is an overlooked part of net neutrality. The debate now is motivated by content providers who only care about downstream parity with other providers â" but real neutrality would also allow consumers to run their own servers including mail and web servers. That would open up markets for plug servers and turn the privacy debate on its ear. In the long run, it might even prove more important than content provider equality.

  11. Who owns the pipes? by manu0601 · · Score: 2

    It seems obvious to me that pipe owner has an advantage when it comes to deal with what and how can transit.

    This can be solved by (1) regulation, (2) competition, and (3) public ownership of pipes, whether as personal property (in premise), associations, municipality, state or federal level

    I see people dismissing first and third solutions because government involvement should be inefficient, but that is just ideology. Public service can be efficient and economically sound. Regulation can work. It just depends how it is done.

  12. Re:Post office recipient *do* pay... by Anonymous Coward · · Score: 2, Insightful

    That loss is completely due to the pension funding liability congress placed on them in 2006, which will expire in 2016, bringing them back into the black with pensions fully funded for the next 75 years.

  13. Re: Google is Nashville's only hope by NotSanguine · · Score: 4, Insightful

    The ability to run a server is an overlooked part of net neutrality. The debate now is motivated by content providers who only care about downstream parity with other providers â" but real neutrality would also allow consumers to run their own servers including mail and web servers. That would open up markets for plug servers and turn the privacy debate on its ear. In the long run, it might even prove more important than content provider equality.

    Just so. However, I'd go even farther than that. The last mile protocols (DOCSIS, ADSL, etc.) that have been developed mimic the Consumer (download)/Provider (upload) model.

    This is a direct assault on free speech and free collaboration across the Internet.

    Restricting servers is just another part of the process which limits the promise and potential of the Internet.

    When everyone can have reasonable upload speeds, then everyone can host content, everyone can publish their creative output, each of us can share our thoughts and ideas with the world, the big content providers (including MPAA/RIAA, major newsotainment outlets, the eBays and AmazonMarketplaces of the world) will become less relevant, and we will become freer.

    I know it's a pipe dream. But a fella can dream, can't he?

    --
    No, no, you're not thinking; you're just being logical. --Niels Bohr
  14. I call BS by Comen · · Score: 4, Insightful

    The fact they like to make it sound like they need to invest so badly in bandwidth is BS, only the last mile to the home is so expensive, and with them dropping all analog channel to the home that frees up lots of DOCIS bandwidth going forward so that should help allot. They do need to spend allot of money to drop SDV and go completely digital but they still put that off because they love to rebuild the whole network every couple years on the edge anyway.
    But all the backhaul and backbone fiber connections have been getting increasingly cheaper, most routers had a max interface speed of 10Gbit's, but with 100 Gbit interfaces becoming more common, and the fact that all DWDM optical gear are seeing jumps from 10 Gbit per lambda to 100Gbits per lambda by just swapping out some hardware that is not free but still utilize the same physical fiber but basically make it 10X more for a small upgrade cost.
    I am convinced they only cry about bandwidth costs because that is what they really sell now, and are afraid that its just going to keep getting cheaper and cheaper, which it is.

  15. Re:Google is Nashville's only hope by l0n3s0m3phr34k · · Score: 2

    If your wanting to run servers, get a "business connection". It's a bit more $, but static IPs, not much RIAA monitoring, nothing blocked...

  16. USPS is not a publisher. by Kaenneth · · Score: 5, Insightful

    The Postal Service also doesn't publish a lot of material it mails for itself.

    Comcast/Xfinity should be forced to separate from their content creation side. (NBC/Universal)

  17. Add a surcharge. by bjwest · · Score: 2

    Netflix should add a surcharge to it's subscribers on Comcast (or any other ISP that decides to put up a toll gate). $.75 - $1.00 a month should do the trick, just let the customer know why they're being charged extra, so they can take the issue up with Comcast.

    --

    --- Keep the choice with the user..
  18. Re:Shipping Pre-paid by Lumpy · · Score: 2

    If you think that Comcast is not already planning on charging an extra "streaming fee" to the end customer, then you are insane.

    Comcast is already drafting up a new shuffling of the tiers to give you a platinum tier that will "make netflix and other video services faster" that is nothing more than paying to disable the throttling.

    They will triple dip, all of the executives and board members are having to change their suits 3 times a day because of the sheer amount of drool.

    --
    Do not look at laser with remaining good eye.
  19. He's an MBA, right? by Rambo+Tribble · · Score: 2

    For some time MBA training has concentrated on offering the least while charging the most. Ethics, social responsibility, even just basic human decency have no ROI, so they've been thrown overboard. The goal is to control a market, then milk it for all it's worth. Part and parcel of that is letting QoS degrade while consistently undercutting your labor force. As the C-whatever, you make your quaterly bonuses, the shareholders are delighted, and the company gradually degrades until it is a mere shell. Of course, you've moved on and the collapsing hulk you left behind is someone else's problem. Then it's time for the government bailout. Welcome to the modern business model.