Slashdot Mirror
Nobody's Neutral In Net Neutrality Debate
ygslash writes Michael Wolff at USA Today has a long list of the many stakeholders in the net neutrality debate, and what each has to gain or lose. The net neutrality issue has made its way into the mainstream consciousness, thanks to grassroots activism and some help from John Oliver on HBO. But it's not as simple as just net neutrality idealists versus the cable companies or versus the FCC. One important factor that has raised the stakes in net neutrality is the emergence ("unanticipated" by Wolff, but not by all of us) of the Internet as the primary medium for distribution of video content. And conversely, the emergence of video content in general and Netflix in particular as by far the most significant consumers of Internet bandwidth. So anyone involved in the distribution of video content has a lot to gain or lose by the outcome of the net neutrality struggle.
"As much as 70% of Internet-distributed data is now video, 50% of it from Netflix. This new video industry — growing exponentially and transforming the nature of entertainment — is getting a free ride on the cable and telco investment in broadband. Arguably, this is unsustainable free distribution, overtaxing networks and slowing the Internet for everyone."
I just gag on "free ride". 11M Netflix subscribers pay Verizon/Comcast/etc $50 * 12 * 11m = $6.6 billion a year for this "free" ride. Margins on Internet services at Verizon/Comcast are believe to be in the 90% profit range.
I can help the FCC solve this. Require that ISPs provide at least one settlement free peering point for each customer in their network with no peering point providing access to less that 10,000 customers. 10K because after all they are ISPs and they should do something for that $50/mth (i'm sure Verizon would immediately declare this settlement free peering point to be the customer's wifi node without this rule).