Why Free Services From Telecoms Can Be a Problem On the Internet
HughPickens.com writes: T-Mobile said last week that it would let customers watch as many movies as they wanted on services like Netflix and HBO as well as all other kinds of video, without having it count against their monthly data plans. But the NYT editorializes that there are real concerns about whether such promotions could give telecommunications companies the ability to influence what services people use on the Internet, benefiting some businesses and hurting others. Earlier this year, the FCC adopted net neutrality rules to make sure that companies like T-Mobile, Verizon and Comcast did not seek to push users toward some types of Internet services or content — like video — and not others. The rules, which telecom companies are trying to overturn in court, forbid phone and cable companies to accept money from Internet businesses like Amazon to deliver their videos to customers ahead of data from other companies. The rules, however, do not explicitly prevent telecom companies from coming up with "zero rating" plans like the one T-Mobile announced that use them treat, or rate, some content as free.
"Everybody likes free stuff, but the problem with such plans is that they allow phone and cable companies to steer their users to certain types of content. As a result, customers are less likely to visit websites that are not part of the free package." T-Mobile has said that its zero-rating plan, called Binge On, is good for consumers and for Internet businesses because it does not charge companies to be part of its free service. "Binge On is certainly better than plans in which websites pay telecom companies to be included," concludes The Times. "But it is not yet clear whether these free plans will inappropriately distort how consumers use the Internet."
"Everybody likes free stuff, but the problem with such plans is that they allow phone and cable companies to steer their users to certain types of content. As a result, customers are less likely to visit websites that are not part of the free package." T-Mobile has said that its zero-rating plan, called Binge On, is good for consumers and for Internet businesses because it does not charge companies to be part of its free service. "Binge On is certainly better than plans in which websites pay telecom companies to be included," concludes The Times. "But it is not yet clear whether these free plans will inappropriately distort how consumers use the Internet."
Kind of similar concept and could really hurt providers not large enough or able to jump through the hurdles. If there was some kind of multi party agreed upon open platform offering for this very thing it could work out.
In all honestly this service seems completely reasonable, delivering data through this service will cost tmobile less (since it will be originating inside their network and they have complete control over the colocation and whatnot) so why not let them offer their service without billing you. In my opinion it is no different than the video-over-ip that is offered by time warner or verizon, except instead of calling it a separate service they are just not billing you for it.
While they are at it they should go and bring back usenet and let you use their usenet mirrors for free too
By the one of the few newspapers trying to charge for printed content on the Internet: free is bad for you. No self-serving there. I am appalled (appalled!) that there is gambling going on in here.
Any guest worker system is indistinguishable from indentured servitude.
The problem I had with charging services like Netflix and Hulu for special treatment is that it incentivizes ISPs (especially cellular ISPs) to provide a worse service to their end-users than is needed to fully enjoy streamed video content so they can effectively turn around and charge high bandwidth services a toll to access users on their cellular network.
This system from T-Mobile has a different incentive structure behind it though based on what I heard. Netflix and Hulu are NOT paying T-Mobile, they are just cooperating to make sure their data is not counted against T-Mobile's customer's data usage caps, which increases the value of all three companies services. T-Mobile has an incentive to offer this deal to any web-service that is well known and desirable enough to their end-users that offering access without a data cap improves the apparent value of T-Mobiles service.
This is just like the method some businesses used to subvert the provisions credit/debit card companies had in place forbidding the charging of fees for using the cards.
"Can't charge a fee? Fine-- nothing to stop us from offering a discount for cash."
Net effect is (was?) the same. Consumer gets screwed...
Aren't these likely the same telcoms that regularly sue upstart telcoms out of existence on the grounds that (insert upstart telcom) had some unfair advantage and they couldn't compete with the upstarts even tho they had demonstrated time and time again they had no interest in servicing said area until someone else got tired of waiting and started their own service?
Sooo how is it not an unfair advantage if they simply don't meter their own services? How are other services supposed to compete when they get metered and the services held by or hold the telcoms do not get metered?
Just remove the low usage caps for all web sites! Stop being dicks!
As A T-Mobile customer who would potentially benefit from this service: It should be illegal and I do not want it. Its perfectly clear what this kind of perverse bias is going to do, and I don't want my ISP charging me more to watch video if its through my VPN, or from some source they want to censor, or from my home server. They can jack up the data prices and offer free services like this as an easy way to deploy a walled garden for high bandwidth content. Its absolutely unacceptable for my ISP to have both legal immunity for what they enable me to do over the connection, and control over it. They either need to give up their legal protections from being a common carrier, or give up their control.
Once again a dead-tree newspaper demonstrates total lack of technical awareness.
Though they do mention how Binge On actually works (implement the technical requirements, fill out a form, and it works) they try to imply that T-Mobile will choose to exclude services based on their own non-technical criteria.
T-Mobile so far has shown they're not going to exclude competitor's services, and said that they won't exclude services based on content. Of course, NYT's editorial staff probably can't understand the technical aspects of the service, and what they know of the business doesn't fit their narrative. While the NYT might think so, "Binge On" does not appear to be designed to steer user's content choices.
This reminds me of the Washington Post claiming that technical companies could come up with a "golden key" for law enforcement to break encryption and somehow magically prevent criminals from using it (and then accusing tech companies of lying about it). It's just technical illiteracy mixed with contempt for the industry they see as "destroying journalism".
The right to protest the State is more sacred than the State.
On one hand telecoms are saying "We have to impose data caps because of the strain on our networks!" and then they turn around and make the most popular data heavy applications not count against your cap. Why are they not being called out more frequently and audibly about this blatant self-contradiction?
it's very simple to check if something is a problem if you simply take it to it's extreme.
in this case, you can pay $50 for access to a data plan but your data cap is 1MB. however, if you visit sites X, Y and Z, you can stream several gigs of data without it counting against your data cap. exceeding your data cap incurs a $10 per MB fee. so if you aren't site X, Y or Z then people wont want to use your site... but if you pay the ISP money, they will make it free for people to go to your site too.
the result is nobody will go to your site unless you pay ISPs money. this is a problem.
Anons need not reply. Questions end with a question mark.
This is like saying free bus tickets means more people will use the bus: It will, up to a point. This is trickle-down economics all-over again. One is assuming that the goods are perfectly consumable. In the case of the mega-rich, a pay-rise (tax break) didn't make them fire the hired help and eat-out every night. The same stickiness applies to other consumable goods. We all know how limited bus services are: Most bus stops are 'closed' at 2 in the morning; one can't get a 15 minute arrival resolution to the outer suburbs, cargo is limited to wearable items only (plus prams). Then there's social engineering, as the bus reaches carrying capacity, people will stop redeeming their free tickets. There will be some favouritism but we don't worry when there's a price attached: Eg Apple phones, Microsoft operating systems or Fox news. So why would a free service so troublesome?
Yes, a telecom provider allowing certain services will probably drive some users to prefer those services over others. The trick is, T-Mobile (or any other telecom) isn't likely to be offering free access to services that aren't already popular. Netflix and HBO were already services their user base wanted to use. It's extremely unlikely that a telcom will manage to push many people into using a no name or offbrand service with the promise of free data when there's already a popular alternative, event if that alternative costs money. T-Mobile isn't offering Netflix access because Netflix is some fledgeling company that T-Mobile owns and is trying to drum up business for.
But even if it was, even if T-Mobile was pushing some super new video service and people were switching to that service over Netflix or HBO or anything else, I fail to see the problem. More choices is good.
seems instead of letting consumers and companies decide what to use and what to sell at what price, some people(who?) want pricing decisions and consequent buying decisions to follow their taste.
Make a metered access, so that the price is comparable. Forbid exceptions.
I don't want a provider who makes deals where "big service a is nice to me and i am nice to big service a" is the deal, i am paying for it. And yes, i will pay for it, since big service a will have no competition, and provider will "offer" big service a colocations at places suitable for the provider. Good for the provider because the traffic across network boundaries is reduced, and they can reduce their bandwidth (which in turn means that small services will be slower).
'does not charge companies to be part of its free service'
so I can free-of-charge get my video-hosting website enlisted for not be counted into users' data plan?
great. where do I sign?
There are technical reasons why things be done for cheaper.
For example if Netflix partners with ISPs to colocate content within the ISP, then it is actually cheaper for the ISP to deliver Netflix. Netflix data isn't traveling outside their network anymore.
As long as:
1. Netflix works reasonably with all ISPs to do the same thing.
2. The ISPs work reasonably with all video streaming servics (if they offer such a thing).
This was quite common in New Zealand a few (5, maybe 10) years ago. We had pretty small data caps and not really and unlimited plans.
I think the cost of international bandwidth has come down a lot since then, so we have unlimited data plans for a reasonable price now and not really much in the way of uncapped services.
You should probably get the ISP that provides your website bandwidth to sign up, not yourself.
Some companies are bundling products and services!
Shocking!
News at 11.
some isps with data caps would post things like Linux distros and other big data hogs on there servers and if you downloaded from there would not count on your data cap.
"Chrome has thankfully started warning users who try to download it." - by andymadigan (792996) on Sunday June 14, 2015 @03:48PM (#49909947)
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&
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+
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APK
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... apk
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Inefficient: Hosts @ 3-11mb w/ current data & does things adblock variants can't & U RAN FROM IT http://apple.slashdot.org/comm... ).
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---
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&
ABP too http://finance.yahoo.com/news/...
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---
"your system blocks fewer ads" by andymadigan (792996) on Sunday June 14, 2015 @12:04AM (#49907001)
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---
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You're 'happy' being illogical & stupid?
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+
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---
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APK
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So
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... apk
Just another example of the FCC inventing new problems so that it can extend its power and justify its existence.
The FCC is mandated to control Communications only. For the Binge On and competition, you're looking at an FTC Ruling in regards to that since they're mandate involves Trade, not communications unless it's related to advertising.