Portuguese ISP shows us what our non-neutral internet will look like
boingboing.net
boingboing.net
If you have a choice of two ISPs and one of them is net neutral, the other is not, which one are you going to choose? If you are not able to choose your provider, you have a monopoly issue - the way to deal with that might be net neutrality for now, but you really need to break the monopoly irrespective of that.
Some consumers may be ill-informed. I think if plans are explicit, that's actually going to cause pause for thought and consumers will educate themselves: there is some evidence of this younger consumers at least and the choices they're making (e.g. Facebook is dying off with < 30 year olds).
For me the really scary option is when your ISP is preferring traffic for a major incumbent and limiting traffic to a new competitor and not making that explicitly clear to you. At that point you don't get to make an informed choice of ISP, you don't get consumer education calling out there are options, and you don't get shifts in the market. That's the really dangerous one we need to be wary of, IMHO.
That's not the only scenario for zero-rating.
Not too long ago, getting international backhaul in Australia was absurdly expensive. So various smaller ISPs joined IXs, and then offered customers plans which had a certain amount of quota for your usual traffic, but traffic which was routed via an IX was zero-rated. This included game servers, FTP mirrors, usenet, and various internet radio services.
This is technically against net neutrality, but I don't see this as being a bad thing for anyone involved.
And actually, arguably, that is not necessarily against net neutrality.
Net neutrality ultimately is about whether anyone can send traffic to the ISP's customers under the same, non-monopolistic, conditions. As such, making a geographic distinction isn't really that much of a problem, if it is not used to also implement other distinctions. The question is: Could anyone who would have wanted to send traffic to those customers bought transit on the open market at market rates in order to deliver traffic to within the reach of the zero rating?
It's a problem if you can buy special interconnects from the ISP in order to have your traffic zero-rated. It's not really a problem if the ISP says "any traffic delivered to this exchange (that is well-connected to many competing transit providers) is zero-rated".
There’s no need for an ISP to throttle, they could just charge consumers the exact cost to build out as much capacity as they need. But that cost would raise rates to one that consumers don’t want to pay.
To me this is about idealism meaning the real world. In a perfect would I’d love for ISPs to be dumb pipes, but even in your example, Electricity companies don’t charge you like a dumb pipe and offer time of use pricing, pricing based on zones, discounts or rebates based on energy efficiency. Likewise different sites generate enormously different costs on the ISPs side, and consumers are benefiting from ISPs balancing being a dumb pipe, with not charging the consumers the price of a pipe that can carry every type of load at every time at perfect speeds.
Yes, electricity companies do charge you like a dumb pipe, exactly as ISPs should (and most are).
A dumb pipe does not mean that the ISP cannot count your traffic and bill you for it, possibly even at varying rates throughout the day. It only means that the ISP doesn't get to look at the contents of your traffic, just as the electricity company doesn't get too look at what you use your electricity for.
A non-neutral electricity company would be one that didn't charge you according to load on their network and generation facilities, but based on the application you use electricity for. Now, they usually do offer various plans intended for different types of uses--but mind you that that does not mean that you only get to use them for those uses, the contract is about load profiles and energy prices.
For example, you might have a plan for storage heaters. But there is absolutely nothing that forces or requires you to use the electricity for storage heaters. The contracts is simply about different prices per kWh during different times of the day. If you run a startup that produces gadgets at night using cheap electricity from that plan, that is perfectly fine.
Fetching email from gmail's IMAP server produces exactly the same load on an ISP's network as fetching email from some local email provider's IMAP server. Net neutrality is about not distinguishing between those. There is nothing wrong with offering a "1 GB/month, 1 Mb/s" plan that is well-suited for only receiving and sending emails. The problem is when they want to prevent me from using IRC instead, or they only allow specific email providers.
Electricity companies can’t (reliably) tell what you’re using the power for so in a sense they do act as dumb pipes (except they do care if you use it for commercial vs residential), but they don’t strive to be dumb pipes. To put it in terms of your space heater analogy, they can’t give you electricity that only works with your space heater, so they’ll give you rebates for using a specific space heater.
The goal is the same, the implementation just takes the limitations of granularity in metering electricity usage.
I know what net neutrality is, and I have no problem with a non-neutral internet. It’s not the same as a lawless unregulated internet. Right now zero-rating is what ISPs have taken advantage of it for. People argue zero rating means base prices must be encompassing the cost of the “free” service, but it’s coming with strings attached like reduced bandwidth or as a way to attract new users. While I do feel certain companies might be able to use zero-rating to reinforce monopolies, I don’t feel zero-rating inherently creates an environment where companies can’t compete.
If ISPs do take further moves to absurd it, those moves can still be regulated/blocked, but my experience in many other countries has been that it doesn’t progress further than that, certainly not to the 2 mock images shown in the article (the one real one has a subtle, but important difference, access isn’t blocked if you don’t choose one of those packages, you just pay the normal base rate)
That being said, I’ll refrain from talking about net neutrality on HN. This is the crowd that would have the most reasons to support it. After all, zero rating on Netflix doesn’t help a unicorn become the next Netflix, and there are plenty of people here who feel like all of this goes against the very spirit of the internet.
But it’s impossible to have a meaningful discussion when everything you say is immediately downvoted to ghost status. I mean I made that were barely more than a single fact got downvoted until they couldn’t easily be read anymore, and people are still mass downvoting my statements hours later.
No, actually, they don't. That is what the plans are labeled as, but they really don't care about whether you are commercial or residential, that is the point that I was trying to make. What they care about is your load profile. Residential vs. commercial users on average have a very distinct load profiles (throughout the day and throughout the week), and that leads to different costs, which is why they want to bill you according to your load profile. Ultimately, if you happen to run a business that has the load profile of a typical residential user, they would often rather want to have you as a residential customer because that matches their costs. It's just that billing using load-dependent prices throughout the day has traditionally not been technically feasible, which is why the simplified distinction of residential vs. commercial plans was developed, because that matches reality well enough in most cases.
> People argue zero rating means base prices must be encompassing the cost of the “free” service, but it’s coming with strings attached like reduced bandwidth or as a way to attract new users.
How is that a contradiction? Yes, it comes with reduced bandwidth ... which still is being paid for with the income from the base prices, isn't it? And yes, it is being used as a way to attract new users ... while also hurting the existing customers, the new users, and their competition!? I really don't see how this in any way reduces the negative impact of it all, and thus why you even bring it up?!
> While I do feel certain companies might be able to use zero-rating to reinforce monopolies, I don’t feel zero-rating inherently creates an environment where companies can’t compete.
Well, what do you mean by "can't compete"? Do you mean "are unavoidably destined for failure", or "have an increased risk of failure"?
The former probably isn't the case, but also is not a useful standard. Almost nothing that is generally agreed to be bad directly guarantees total failure. Does putting carcinogens into food mean that everyone will die of cancer? No, it doesn't. Do we still consider putting carcinogens into food a bad thing? Yes, we do. Why? Because it increases the risk of dying of cancer.
Now, if you do agree that increased risk of failure is a good enough reason to consider something bad ... isn't it obvious that having higher costs than your competition increases the risk of failure for a business?
> (the one real one has a subtle, but important difference, access isn’t blocked if you don’t choose one of those packages, you just pay the normal base rate)
What practical difference does it make whether access is blocked or prohibitively expensive?
Suppose we introduced a new law that requires you to pay a million bucks, not refundable, in order to leave the country (for travel or otherwise), except if you purchased the travel package for 100 bucks that allows unlimited travel to Australia? Would you also say that it's a subtle but important difference that traveling abroad was not forbidden and relations to other countries would not suffer, you would just have to pay the base rate?
> After all, zero rating on Netflix doesn’t help a unicorn become the next Netflix, and there are plenty of people here who feel like all of this goes against the very spirit of the internet.
I guess there are. But isn't that much more importantly against the spirit of a competetive market economy, and thus in particular against the interests of the customers?
> But it’s impossible to have a meaningful discussion when everything you say is immediately downvoted to ghost status. I mean I made that were barely more than a single fact got downvoted until they couldn’t easily be read anymore, and people are still mass downvoting my statements hours later.
Really, looking through which of your comments got downvoted, my impression is that's mostly for glaringly obvious errors in logic, primarily a failure to consider solutions to problems that are possible without a violation of network neutrality. The mere fact that there is a problem and an ISP that is not bound by network neutrality can solve that problem by violating network neutrality just doesn't say anything about whether net neutrality is a good idea, if you don't ever consider how the same problem might be solved with network neutrality.
Then what you're talking about is not a market at all. You're directly saying several times over that the problem is the lack of any semblance of a market, that the government is the specific problem.
Besides that, reasonably speaking, there are not only so many cables you can lay in the ground. That infrastructure non-problem has had an extraordinarily simple fix for decades:
https://arstechnica.com/information-technology/2017/03/natio...
I strongly favor net neutrality, but personally my decision depends on price and other factors too. For example, I always can pay for a $400/month for a net-neutral private T1 line with 1.4 Mbps, but probably I won't.
As for others: Few end users understand the technical basics required to grasp net neutrality, few are aware of the net neutrality issue, and fewer still understand the principle of freedom-as-in-speech and can grasp its impact. I've had many people ask me for advice on ISPs; not one ever asked about net neutrality. To function, the market relies on educated consumers with access to information; that's not the case here, just like consumers can't choose between airline safety measures.
Regardless, few ISP markets have more than 2 vendors and no vendor offers this sort of thing - can you name one ISP of any size that offers net neutrality? The barrier to entry is too high for a newcomer to break in and sell it, even if there was demand.
Gym business is not exactly a monopoly. Yet almost all gyms have opted to make their patrons sign long-term membership contracts with auto-renewal that are almost impossible to cancel. Getting out of gym membership is only marginally easier than renouncing Scientology (OK, I am exaggerating a bit). Gyms are designed to discourage working out and necessitate payment [1]. Why don't we have ethical upfront gyms? There are some, but they are way more expensive and most people are not close enough to one to justify a membership. The market has spoken and it has spoken wrong. Same with Walmart's destruction of local businesses and the ever-shrinking legroom in airlines.
Market values price above all else. Unless net-neutral ISPs can manage to be cheaper than Facebook-subsidized ISPs, they will die rather soon.
[1] http://www.npr.org/sections/money/2014/12/17/371463435/episo...
Oh it was. Then the European court over ruled it thanks to powerful lobbying.
* http://www.telegraph.co.uk/news/12161461/Facebook-addiction-...
* http://www.salimvirani.com/facebook/
* https://www.forbes.com/sites/alicegwalton/2012/04/05/the-tru...
* https://www.wired.com/story/our-minds-have-been-hijacked-by-...
* https://www.technologyreview.com/s/609104/smartphones-are-we...
* https://journal.thriveglobal.com/how-technology-hijacks-peop...
* https://www.theatlantic.com/magazine/archive/2016/11/the-bin...
* https://www.theguardian.com/technology/2017/oct/25/facebook-...
More things are happening in real life, email/telephone, newspapers, magazines, and in books than on Facebook. I think that Facebook is bad for the human mind and bad for society.
Jesus, net neutrality makes my blood boil. Fuck Ajit Pai, that /r/punchablefaces wanker extraordinaire.
I'd argue that it would be better in most cases not to use the Internet if Facebook were the only option. Accepting Facebook as your "Internet" means that the next generations probably will not have a Free, open Internet.
I grew up before the Internet was widely used. Many aspects of life were better without the Internet. If you aren't doing something critical to your life with the Internet (and Facebook is not one of those critical things in most cases), then the Internet is not a necessity.
(The Internet is a necessity for many people these days, but Facebook is not a genuine necessity.)
TV is mostly-garbage, but it isn't as bad as Facebook.
that seems like a difficult ideology to defend.
Are you arguing against Net Neutrality?
Governments do have a duty to protect people from predatory companies. When private companies inhibit the freedom of a population, would you argue that governments shouldn't intervene to protect the freedom of the people?
Other countries have the right to develop their Internet with the same freedom that we currently have. (I'm in the US.)
People who are concerned with "freedom" should be looking at the long-term effects of those policies on consumers and smaller entrepreneurs too -- not just the effects on larger companies.
I find it is really strange to call facebook access "internet access". A walmart parking lot is not a street network and facebook is not internet.
This completely eliminates any opportunity for competition to enter the market. How likely is it that any future competitor will be able to get this same deal? How much money is Facebook paying to subsidize this internet? How about any links to information Facebook does not directly host?
This attitude is a surefire way to ensure our future is controlled by a select few. The solution IMO should be cheaper, lower bandwidth, options. No data caps, just less speed. Like ELP plans in the US.
What that Portuguese ISP is selling has nothing to do with net neutrality per se. It's just a promotion, a marketing campaign, and a very common one around the world. I'm not saying it's okay or that it does not hurt competition, user choice and neutrality to some extent: but get your facts together before spreading half truths.
So for the facts: these are add-on packages to an otherwise common 10gb/mo mobile data plan. You don't get to buy them individually and they won't otherwise affect your plan. What they do is to make the access to the particular services in the list unlimited.
So you get your 10gb for everything, but maybe you watch a lot of Netflix and are willing to pay a few extra bucks to have it not counting a giants your data plan. That's all this is.
Again, I'm not saying this is fair, ideal or neutral, but it's also not what the article is saying it is. It's also more tailored to get such services users into the carrier business than the other way around. It's more like a "join us to use Netflix for free" than "we allow you to use Netflix only" kind of thing.
It is concerning to some extent, but it isn't new, exclusive to Portugal, or hurting the core concept of Net Neutrality at all, at least not directly. One might be right in argue that making some services cheaper is essentially the same as making other services more expensive - this being a clear violation of the neutrality concept - but it does not block, censure or otherwise limit access to any particular service or domain.
Call it an ethical loophole if you will, but please don't spread mass hysteria with images you can't read.
So much superiority, so much tut-tutting, such a telling off, but it seems you got the "facts" wrong after all. And god knows what you mean by "this is what got Trump elected" (unless you mean lying through your teeth, then maybe you got that right).
Customers will flood to my company instead, since we would never package like this. And I'll be rich!
The reality is this isn't going to happen, because the incumbent ISPs know it will destroy them.
This was just like Google Fiber. Suddenly, ISP speeds shot through the roof wherever Google Fiber threatened. Everywhere else, they didn't budge.
First of all, can you offer service in every state, every county? But even servicing a local area could be good for your business.
However don't you fear you're going to pay higher fees for peering? I expect that if the big companies are going to pay for a fast lane then they'll want to make sure ISPs like yours can't help people to bypass those lanes.
In India, long time ago, there was 300 ml Coca Cola for Rs. 10. For years, they tried to find a way to penetrate the rural market. You see, people were poor and normally couldn't afford the Rs. 10 worth of coke. Coca Cola came up with a brilliant plan. They started selling 200ml for Rs.5 . This achieved two things -
a. opened up the market for people who "couldn't otherwise afford" coke
b. Make the soda "considerably cheaper". Now 400 ml could be have for Rs. 10
Over time things have changed, 300 ml is no longer readily available. The 200 ml variant rules the market at the price of, you guessed it, Rs. 10.
It started out about being about "affordability" and choice but it no longer was about that.
Same goes for people talking about this net neutrality being about affordability and access. That is not true. It is a simple marketing tactic which will cause the internet prices to go above and beyond inflation.
A true competitive market does not exist (not unless you consider 15mbps DSL as an alternative to 1000mbps fiber) and therefore the reality of “competition” in the ISP market is abusive monopolies or oligopolies, just like how the reality of communist regimes are abusive authoritarianism.
Regarding the abusiveness of authoritarian regimes, I'd suggest the book(s), "The Gulag Archipelago."
Why would a company that has no competition lower the rates?
But to answer your question, the regulatory environment helps ensure the desired outcome.
I mean, why have building codes? If enough buildings go up in flames or crumble down killing everyone inside, then maybe we could look into regulating the building industry.
Why have food safety standards? Nobody really dies that much these days from food-related illness, so shouldn't we get rid of all that pesky regulation?
But more to the point, just because they seem to be going where you want today, what has that got to do with where they will go tomorrow?
I used to work in electricity regulation on the side of consumers. I watched the utilities use the regulatory process to bilk customers. The regulatory process sets the stage for rent seeking. The companies out match the state over and over.
Naturally, this contrasts with an unregulated environment that would almost certainly deliver higher rates and poorer service.
Also - which cell providers are you referring to - AT&T and Verizon aren't exactly competing.
The packages are for making those services cheaper not more expensive. This is essentially partial zero-rating.
Zero-rating has its own effect on competition, but people are acting like an ISP is blocking access based on subscriptions which is an doomsday of a non-neutral internet I’ve seen trumpeted that’s I don’t believe will happen, and hasn’t happen in other countries.
Well I guess net neutrality is another one of those topics I’d better know to not go against the guard on.
My point is everyone is jumping to the worst conclusions instead of objectively considering the situation around what ISPs are doing without net neutrality laws.
Not supporting blanket pro net neutrality talk != supporting an unregulated lawless Wild West of ISPs but everyone acts like it is (see how quickly my comment was buried before anyone even responded)
You do realize that the result is the same, whether you first reduce your prices as costs decrease and then raise them again, or just don't bother reducing them in the first place, right?
> US carriers didn’t raise prices when they introduced their “soft” zero rating on video traffic.
So, are you saying that moving around the video traffic doesn't cost them anything? Or how else are they paying for that, if not by keeping the price for other traffic artificially high?
And the idea is they have a choice, raise base prices, or add packages. It’s not add packages or don’t.
If netflix and youtube don’t count towards your data cap (which seems to be how this particular example works), surely that’s going to influence how you view other streaming services? “I could use amazon prime, but my data cap will be blown after two movies”, etc.
It’s not really competition if the ISP picks the winners.
The same way a company can take multiple steps that stifle innovation, that individually to end completion, but cumulatively put it in a position where it can’t be competed with.
In the short run, until there is no competition. This is a classic tactic of monopolists; serve consumers at below cost, wait until competition dies, and then raise prices to higher than pre competition levels.
I don't think there is any major difference between that, and any other version of a non-neutral internet. Its barely a slippery slope.