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Verizon's Mobile Video Won't Count Against Data Caps -- but Netflix Will (arstechnica.com)

Earthquake Retrofit writes: Ars Technica has a story about how Verizon Wireless is testing the limits of the Federal Communications Commission's net neutrality rules; Verizon has announced that it will exempt its own video service from mobile data caps—while counting data from competitors such as YouTube and Netflix against customers' caps.

20 of 106 comments (clear)

  1. Well, that's pretty much a textbook violation. by NotInfinitumLabs · · Score: 5, Insightful

    Let's hope that the FCC shows that its net neutrality enforcement has teeth.

    1. Re:Well, that's pretty much a textbook violation. by rmdingler · · Score: 5, Insightful
      The FCC has been dragging their feet before ruling on Zero-Rating, so hopefully they will get this one right.

      If Verizon is allowed to abuse this as a loophole, others will follow, and sponsored content will reign.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    2. Re:Well, that's pretty much a textbook violation. by jellomizer · · Score: 4, Interesting

      Is it?
      They are not preventing Netflix or YouTube, There isn't any sign that they are slowing down their performance. It is just they are counting the data the same as any other internet download.
      The only twist is that Verizon isn't charging for bandwidth for its own service.
      You could say the cost of Verizon mobile is being paid from the service fee, and you are actually paying more then than the data cap fees.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    3. Re: Well, that's pretty much a textbook violation. by ITRambo · · Score: 2

      That may be true if you are in an area where they offer a decent signal. Where I am, T-mobile customers, usually visitors, often can't even make a call. The other 4 top providers work well. T-Mobile needs to build out their cell towers more, in sparely populated areas, to earn new customers.

    4. Re: Well, that's pretty much a textbook violation. by ArmoredDragon · · Score: 2

      That was true maybe 3 years ago, however T-Mobile's coverage is rapidly approaching what Verizon has. In fact, in terms POP (point of presence, basically how many people they cover on average,) they're currently where Verizon was about a year ago:

      http://finance.yahoo.com/news/...

      They're also quickly catching up. If you're still seeing people in your area that don't get coverage, it's likely they have an older phone whose radio doesn't receive the newer bands T-Mobile has been using. These newer bands are lower frequency, which means they have longer range, and T-Mobile has been deploying them to towers that cover rural areas more than anywhere else, specifically to fill in those gaps you're noticing.

    5. Re:Well, that's pretty much a textbook violation. by duckintheface · · Score: 2

      I don't think that word means what you think it does. Zero rating, by definition, implies discrimination between sources of data. And it doesn't help to say it's ok to do it for Netflix because then your are discriminating against non-Netflix video or non-video applications. The whole point of net neutrality is that a bit is a bit and companies that use public easements (whether telephone poles or public airwaves) are common carriers subject to limitations on pricing.... for the public good.

      --
      "He took a duck in the face at 250 knots." -- William Gibson, Pattern Recognition
  2. Re:It's their network, they should be able to by paiute · · Score: 4, Funny

    If they get too heavy handed with it, people will bail.

    Damn straight. If Comcast pulls this shit, I will dump them for Xfinity.

    --
    If Slashdot were chemistry it would look like this:Cadaverine
  3. Re: No transit costs. by ByTor-2112 · · Score: 4, Informative

    You are wrong. Netflix will put servers physically next to Verizon's. The cost is that of a few feet of fiber and some ports. It's probably cheaper because your "general" incoming bandwidth isn't used.

  4. Re: No transit costs. by ByTor-2112 · · Score: 4, Insightful

    And it's about antitrust. Since the telcos have what us basically a government approved monopoly, they have to agree to certain rules that might seem weird in a free market. Such as net neutrality.

  5. Re: Other countries by Anonymous Coward · · Score: 2, Interesting

    I feel sorry for you Americans. In Finland I get 250/100Mbps for 29.90 EUR/m. And if there was a case of carriers favoring their own products over direct competitors like Verizon they'd find themselves in court pretty damn soon. Heck, even if they taunt their competitors using names or other similarly identifiable information they'd go to court.

  6. Just a Few Thoughts by Anonymous Coward · · Score: 5, Insightful

    Doesn't this prove by example that there is no last mile scarcity on Verizon's wireless network? The reason for limits on wireless has always been this bottleneck, transit costs over fibre are small, if not free for a tier 1 provider. These costs are easily covered by a cellphone agreement. What is the IP transit cost for a 95% average line that does 2GB a month to Verizon $.05?

    With this move, Verizon is demonstrating that caps are unnecessary. With this evidence, one might even argue that caps are an arbitrary and capricious with the sole purpose of extorting money from customers and content providers.

    1. Re:Just a Few Thoughts by rsmith-mac · · Score: 2

      Doesn't this prove by example that there is no last mile scarcity on Verizon's wireless network?

      Eh, yes and no. If Go90 can truly clog up Verizon's bandwidth, they'll be making so much money that network expansion costs are little to be concerned about.

      The physical issues with congestion are real, and while Verizon can solve them, they want to be paid more (i.e. profit more) if they're going to have to spend more.

    2. Re:Just a Few Thoughts by MightyYar · · Score: 2

      No question. The issue is that - under the current Verizon scheme at issue - only Verizon can pursue this business model. Anti-net-neutrality proponents would argue that Netflix should be able to pay Verizon more money for access, and Verizon could then use that money to upgrade. Net neutrality proponents would argue that Verizon should just directly charge their customers to use more bandwidth, and then use that money to upgrade.

      Verizon wants a little of both to give themselves something of a monopoly (1). That doesn't benefit anyone except Verizon.

      (1) Not really a monopoly, as cell phone service is fairly competitive. Verizon does have the best rural network, though, and they have something of a monopoly outside of metro areas.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    3. Re:Just a Few Thoughts by nine-times · · Score: 4, Insightful

      Still, it's an indication that carriers and ISPs are not being completely honest. They basically keep claiming that they need special protections, they need the ability to throttle and limit service, and that services like Netflix can't perform because it's simply not possible to deliver the bandwidth people are demanding. They imply (I'm not sure they've said it outright) that it's not a problem of their unwillingness to upgrade their network, but that people's expectations are just out of whack-- that people using more than a few gigabytes per month are bad actors, using up all the bandwidth, and that there is not any possible way for them to fulfill the demands on their network.

      But now they're saying that everything is fine, so long as they can cut Netflix out of the market and take those profits for themselves. If they're allowed to have a monopoly, then suddenly all the technical problems go away.

    4. Re:Just a Few Thoughts by radarskiy · · Score: 3, Funny

      Alternative theory: Verizon's home growth mobile video is crap that no one wants, thus the usage is so low that they can afford to give the bandwidth away from free.

  7. Re: No transit costs. by Opportunist · · Score: 3, Insightful

    The free market is a nice idea but fails at the entrance fee.

    If I have an established system, I can operate at much lower cost than someone who would have to establish the system first. If I already have a factory pumping out a product (which has redeemed its cost already by me being able to set the price due to having a de facto monopoly due to a lack of competitors), I can easily squish any and all competition that may arise by lowering the price to the point where it is not feasible for someone who still has to redeem his investment. By fixing the price at a level where he cannot redeem his costs, I can ensure the continuation of my de facto monopoly. This is crucial in markets where the initial cost of doing business is magnitudes higher than the operational cost. Like, say, ISPs.

    There are a few ways to crack open such a monopoly. But that first and foremost needs the will of the law makers to actually do something against it.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  8. Re: No transit costs. by JackieBrown · · Score: 3, Interesting

    they have to agree to certain rules that might seem weird in a free market

    There's no such fucking thing as a fucking free fucking market ... a free market is a lie, because companies will always lie, cheat, steal, collude, and otherwise game the system.

    There never has been, and never will be, a free fucking market.

    You can pretty much replace corporations with anything run by people (including the government).

    Difference is, it's easier (not easy, just easier) to get out of the way of a corporation than it is to get out of the way of government.

    Example, I hated sprints customer service so I switched to t mobile. I have my city's electrical company but the cost of switching away from that is much higher (have to move, find a new job, etc.)

  9. Re:No transit costs. by Lunix+Nutcase · · Score: 3, Insightful

    Verizon has peering agreements to cover costs the wider Internet. Secondly, the ISPs have always argued that the last mile (in fiber or spectrum) is the bottleneck and why they need data caps. So it's amusing watching you try to flip the argument now that we see that Verizon has no real bandwidth bottleneck for its wireless service if it can zero-rate streaming as long as you pay the piper.

  10. Re: No transit costs. by zoober · · Score: 2, Informative

    The last mile for towers and cell sites are very restricted technically. The bottle neck is NOT the backhaul. it is the number of people that can connect to a sector. It is something like 40 concurrent connections.. and they all have to share the bandwidth for that sector. Wireless just doesn't scale for high bandwidth usage.

  11. Re:Cash versus Credit by Rockoon · · Score: 2

    charge only for data leaving their network, instead of charging for data traversing their wireless networks.

    This is exactly how the backbone is organized and settled. When people mention "settlement free" peering agreements, these are normally just when the data going both ways is about balanced. Every once in awhile one of these agreements gets stressed due to a growing imbalance, several times now due specifically to netflix's at-the-time provider (first when they were with Cogent, second when they were with Level 3, and interestingly that first time the dispute was between Cogent and Level 3) discovering that one of their settlement-free agreements isnt going to be settlement-free in the future.

    In any event, ultimately its the sender of the packets that must secure its delivery. In some cases this requires paying someone else to complete the task.

    --
    "His name was James Damore."