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Author Topic:   Net Neutrality --- For Once, Everyone Wins
AZPaul3
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Posts: 8513
From: Phoenix
Joined: 11-06-2006
Member Rating: 5.3


Message 24 of 73 (751160)
02-28-2015 8:12 AM


The other side
The ISPs already have a tiered throughput network for data to/from their customers. Some of us have basic bandwidth services while some of us have higher speed services for which we pay extra. Services like Netflix have built their own ISP systems (Tier 1 networks) directly connected into the net through peering agreements to service the needs of their customers.
The routers that are the Internet interconnect the ISPs (including Netflix, Amazon, other providers, several Universities and government ISPs, etc.) and dynamically exchange lists of routing addresses so the data packets are able to flow through the network, around choke points, to the their destination most efficiently regardless of who owns or operates any specific router.
Internet service is a demand service, meaning the end users, not the content providers, determine the use, when and where. The net continues to grow because we end-users continue to demand greater access to providers’ services. What is missing from the ISPs’ business model is being able to charge the content provider extra for faster throughput services. They want an additional tiered system by which the large telecom ISPs, which are the direct connections to the end-user homes and businesses, can charge the content provider (even if that is a fellow tier 1 peer) to provide greater or lesser throughput thus opening up additional revenue streams and leverage (extortion) against content providers. Content providers unwilling to pay the upper scale would have their throughput throttled, regardless of the ISP’s actual capabilities, thus injuring the provider’s end-user customer, us. Those that will pay the extortion will need to raise the pricing of their content to us end-users.
The telecom ISPs are under demand of their end-user customers, us, to provide faster more reliable services. That requires ongoing infrastructure investment, investments the telecoms are going to have to make anyway if they want to stay competitive. If they can extort revenues from the content providers then they can make the infrastructure investments and have more profit left for shareholder equity and executive bonuses. If they cannot, then the pressure to increase pricing on their end-user customers is greater, which they cannot do in those major areas (the majority of their customer base) where they face considerable competition. They would still have to make the infrastructure investment but would have to settle for less of an increase in shareholder equity and executive bonuses.
Net Neutrality goes a long way toward allowing the richness of web content to continue to flourish unimpeded by the greed of the giant telecom ISPs while helping to keep end-user costs subject to competition among ISPs as well as competition among content providers. Allowing the extortion of content providers by the telecom ISPs forces additional costs onto the end user that are not necessary for either the ISPs or the provider's operations.
Edited by AZPaul3, : No reason given.

  
AZPaul3
Member
Posts: 8513
From: Phoenix
Joined: 11-06-2006
Member Rating: 5.3


Message 26 of 73 (751163)
02-28-2015 9:47 AM
Reply to: Message 25 by Tangle
02-28-2015 8:46 AM


I doubt anyone knows how that will work yet, but it's a big technical issue as all ISPs do some form of traffic management to ensure the smooth running of their networks.
I'm not sure the regulatory agencies will cite ISPs for taking steps to ensure smooth functioning of their networks and services to their commercial base so long as those steps are not shown to be concerted malicious attempts to restrain service to/from providers and users. However, as we have seen so often, the telecoms can be very creative in their technical/marketing schemes to just barely skim by regulatory requirements.

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 Message 25 by Tangle, posted 02-28-2015 8:46 AM Tangle has not replied

  
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