Posted by bordalix
Wed, 09 Nov 2005 14:45:00 GMT
The
discussion continues, and it reached the
Committee on Energy and Commerce in the US. I'm really interested in this issue, since I work in an ISP, being a free Internet advocate, so you can imagine the duality I'm feeling these days.
Shaw Cable, a Canadian company, is limiting P2P bandwidth using technology from
Ellacoya, so we can now say it already started. The technology is out there, and telcos are ready to start using it in large scale. This is a very important question, that goes from freedom to innovation, trough economics and technology.
I understand the economics of launching a broadband network, but I also understand (and agree) with
Vint Cerf words. I'm waiting, and listening to the
live hearing webcast.
Update: this issue has been
digged
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Posted by bordalix
Wed, 02 Nov 2005 14:39:00 GMT
Tuesday, I read on
ArsTechnica about SBC's CEO Edward Withacre interview on BusinessWeek, where he declares, and I quote:
How concerned are you about Internet upstarts like Google (GOOG ), MSN, Vonage, and others?
How do you think they're going to get to customers? Through a broadband pipe. Cable companies have them. We have them. Now what they would like to do is use my pipes free, but I ain't going to let them do that because we have spent this capital and we have to have a return on it. So there's going to have to be some mechanism for these people who use these pipes to pay for the portion they're using. Why should they be allowed to use my pipes?
The Internet can't be free in that sense, because we and the cable companies have made an investment and for a Google or Yahoo! (YHOO ) or Vonage or anybody to expect to use these pipes [for] free is nuts!
This is happening because ISP made huge investments in developing broadband networks, betting in the access business, and now are realizing that the real money is some layers above: companies like
Google and
Yahoo, are making huge profits, in advertising;
Skype has a huge hype value, 'selling' free voice instant messaging, disguissed; and
World of Warcraft(
?), with millions of players, each paying an average of 10 euros a month, must be a case study. So, ISPs want a piece of the cake.
And the thing is, in some places, ISPs have monopolies, so they can, for instance, block all your VoIP traffic, and make you use their own product. You, as a customer, having no other broadband operator in your area, have no choice. And companies like
Narus, are already making money with this: Narus product, not only allows ISPs to block almost any kind of traffic, as ISPs can decide to jitter the traffic, in order to avoid any legal constraints. From
another article from ArsTechnica, the words of Jay Thomas, Nerus marketing president:
"But there's nothing that keeps a carrier in the United States from introducing jitter, so the quality of the conversation isn't good," Thomas says. "So the user will either pay for the carrier's voice-over-Internet application, which brings revenue to the carrier, or pay the carrier for a premium service that allows Skype use to continue. You can deteriorate the service, introduce latency [audible delays in hearing the other end of the line], and also offer a premium to improve it."
Can ISPs do this? Or should they be network neutral? This issue is being debated in several places, like
ArsTechnica and
LessigBlog, and there is a very interesting
paper by Barbara van Schewick, which gives us an excellent economic framework for discussing the need for regulation on this matter.
It is an important matter for managers, regulators, and people concerned with the right to free information. In my humble opinion, this issue must be regulated: the temptation to do this kind of blocking and filtering, either in a monopoly, either in a cartel, is too strong. And with no regulation, we can be going to an ISP dictatorship.
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