Comcast Hints at Plan for Paid Fast Lanes
arstechnica.com
arstechnica.com
- They are already extracting near maximum value from monopolistic pricing
- Services like this were tried before Net Neutrality, and they failed pretty dramatically
- Bad PR could lead to future litigation
- Most Importantly This process has only shown that it could be completely reversed again with the next administration. So they don't want to rebuild future revenue models knowing that the rules can be reversed again in 4 years at the drop of a hat.
The whole thing is really about Comcast's ability to shake down other companies to pay for their infrastructure improvements. It's really expensive to sell a $5 a month plan to a million users. It's really cheap to get $500 million dollars out of Netflix to pay for your line upgrades. And for the next 4 years, they have a blank check to shake down companies in the background.
Source? If push came to shove, e.g. if I were threatened with a price rise or disconnection, I would pay up to 10x more, maybe even more, for my Internet.
Under monopoly pricing, then they could already be charging you 10x right now if they thought it would make them more money. Repealing net neutrality not required. If this is about price discrimination, there are better ways to extract extra value from richer clients.
But I do want to point out that their monopoly power actually shrinks if you include WiMax based ISP services. Their coverage in the boonies is actually pretty good and pricing is competitive. Even if Comcast is the only real physical option, I often use the threat of switching to negotiate better deals.
*Actual real 300Mbit/s that you can watch multiple 4k streams over all day like you can via HFC.
When the economy was crashing in 2008 they were neck and neck with Countrywide in a consumerist poll for worst company in America. Countrywide won, but barely, and they basically broke the global economy.
Comcast will do every single thing they can to destroy the internet and turn it into Cable TV packages once the Trump administration deregulates the industry.
In a few years when we have a new administration we can put the band aids back on.
https://www.law.cornell.edu/constitution/tenth_amendment
I think net-neut advocates who really think there's a dark star in the offing for the web should be pushing utility-style muni networks. They're wasting time and money trying to shove the FCC into their view of the marketplace here, and shedding longer-term credibility by refusing to countenance two realities:
1) Broadband is becoming a more competitive industry, not less
2) FANG have parochial business motivations too re: their pro-net neutrality, and they are no more angelic than Comcast's.
Defocusing on national rulemaking and incubating muninet successes in rising cities would do more for their desired outcome.
The internet is textbook interstate commerce, and therefore not subject to the 10th amendment. You're getting internet from an ISP who's likely headquartered in another state, who's delivering content from a provider in a third state, and routing that traffic through a half-dozen other states. It would be an absolute mess if every state could say what constitutes "network neutrality" and the ISPs had to deal with different laws at every routing hop.
I referenced it because, in the U.S., the residuary (or "police") power resides in the states. Large ISPs have tried to fight municipal broadband in the courts, but [the point I am making here] is that states and municipalities have extremely broad discretion in terms of what projects they can undertake. And building a local ISP is something they certainly can do.
Would love to see a citation for this, most people (my view is US-centric) have the choice of 1 or 2 local broadband wireline providers: the cable company and/or the local telco. This hasn't changed since... ever. Having a third provider is very, very uncommon.
I agree, that’s what the have in mind, but I doubt their greed will stop there.
This.
The consumers aren't the direct targets here, at least not for wired networks. The first targets would be the content providers. You want to push content to the millions of Comcast subscribers? Pay up. Naturally, the content providers won't get stuck with the bill and eventually roll it over to the customers. But that would be them billing you more, not the ISPs directly, which is easier for them.
There are known examples of this behavior -https://www.techdirt.com/articles/20140718/06533327927/level....
In today's networks, a LOT of the traffic is streaming video, especially from YouTube and Netflix. Ten years ago it was BitTorrent, and back then "Fast Lanes" meant "Slow lanes for BitTorrent because it's congesting our network". The story here is that as the Internet matured and connectivity became a ubiquitous, off-the-shelf product, the money went into content. So content producers are fairy profitable, but the network operators feel like they've been left out - they're the ones carrying all of this expensive content, but they don't get a slice of the money.
That's not to say that companies like Comcast won't try to get more money out of consumers too, but that's trickier since the customers are used to a certain type of service and getting them to pay more for more of the same would be an uphill battle.
Not true. When you remove net neutrality, you open up new possibilities for price-discrimination for the monopolist and they can extract more revenue for providing the same service.
Simple illustrative example: Suppose for the sake of argument that almost all VPN users are willing to pay an extra $1 / month for VPN access. Then Comcast can make strictly more money by charging everyone exactly the same as before except VPN access costs an additional $1/month.
(Also, I know you didn't bring it up, but there are lots of important free speech NN issues as well as economic ones, for example, Comcast might easily decide to completely block sites like Wikileaks.)
In fact, it would be worse for them, because if everyone is paying as much as they can bear for internet, and they have given some the option to opt out of an unneeded service, then they will lose money.
Assuming they have total monopoly power.
Only a small fraction of people use VPN, so the monopoly price in a world with net neutrality basically ignores those people and charges the optimal price for everyone who does not use VPN.
However, in a world without net neutrality, the company is able to charge a different price to those who want VPNs and those who don't (this is price discrimination). So it keeps charging the old price to everyone else, but adds on a surcharge only to those users who want a VPN. In this simple example, it makes an extra dollar per month per VPN-user.
2. Unfortunately that isn't the choice we have before us. It doesn't make sense to make awful decisions on the premise that, in some fantasy ideal world, the decisions wouldn't be awful.
Where I draw the line is throttling when the network could support higher speed. Say the fast lane is using 20% of resources and the slow lane is only using 20%, then the slow lane shouldn't be artificially slowed.
But I really have no huge issue with an ISP creating a fast lane that gets 30% of resources even if the slow lane wants 90% and gets throttled to 70%. Priced based mechanisms are useful for allocating scarce resources.
I have news for you : this is the service you're already receiving. All ISPs throttle user traffic to below their network's capacity.
> [T]he Commission also should bear in mind that a more flexible approach to prioritization may be warranted and may be beneficial to the public. For example, a telepresence service tailored for the hearing impaired requires high-definition video that is of sufficiently reliable quality to permit users "to perceive subtle hand and finger motions" in real time. And paid prioritization may have other compelling applications in telemedicine. Likewise, for autonomous vehicles that may require instantaneous data transmission, black letter prohibitions on paid prioritization may actually stifle innovation instead of encouraging it. Commercial arrangements that entail prioritizing such traffic could ensure the low latency levels needed to achieve the high level of data quality necessary for such services to thrive.
VoIP really needs low latency. Buffering a Youtube video or downloading a torrent doesn't.
Selective prioritization could improve the former drastically, while having no noticeable effect on the latter.
Note I'm not taking a stance on the issue either way. Maybe it would be better to keep Net Neutrality and add provisions for latency-sensitive applications. Maybe it's better to nuke it and let the markets figure it out.
Either way, this is an important point and I'm surprised that the HN crowd doesn't discuss it more.
> A network management practice is a practice that has a primarily technical network management justification, but does not include other business practices. A network management practice is reasonable if it is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband Internet access service.
It's debatable what exactly this means, but providing higher QoS for traffic that needs it--in a way that does not discriminate between providers of those services--would seem to be a strong candidate.
Exactly. Anti-NN (broadly) wants to be able to discriminate on the basis of provider, not service.
Every connection can have a max high-priority bandwidth and a max best-effort bandwidth, so people won't benefit from just marking every connection as high-QoS.
Instead, ISPs are creating artificial congestion on their transit links (by leaving router ports unplugged) and then selling that bandwidth to content providers via paid peering to avoid the congestion. Basically "it would be a shame if massive packet loss were to happen... never mind, we already did it". So yeah, paid peering probably does have lower latency than congested and bufferbloated transit links, but it's not like ISPs are using any kind of QoS as the term is traditionally understood.
ISPs always talk about low-latency applications (think of the deaf people!) but then they don't do anything that would actually reduce latency/jitter.
Neither is true, so QoS basically should not be implemented and it's Comcast's own fault for being a rent-seeking monopoly.
Sorry to the hearing impaired community for not prioritizing your latency needs, but Fox News buying up all the ISPs and controlling the news is worse.
And yes, there's a whole list of individual token offenses ISPs have committed that people will spam out when you point this out, but it doesn't change the fact that the fears and horrors propping up this movement on a large scale do not exist.
No they aren't; many of them are things that the FCC responded to in if years of enforcing net neutrality principles through case by case actions, such as mobile and fixed broadband ISPs blocking services that competed with their offerings, and blocking other lawful services or content, sometimes for political reasons.
> Nobody offers "fast lanes" now, is planning to introduce them in the near future, and nobody offered fast lanes before the regulation was put into place. And yet, it's the top net neutrality supporter panic call.
“Fast lanes” have gotten blown out of proportion because of discussion of a possible weakness in an earlier draft of the 2015 order. They aren't actually a concern for the non-neutral net, they are a concern about a potential end-run around a net regulated for neutrality but with a loophole. Unfortunately, a popular distortion side that that draft was designed by enemies of neutrality rather than people trying to save it who might have designed the draft insufficiently tightly, and so “fast lanes” have become associated with the goals and plans of the anti-neutrality camp rather than just a potential weakness in a no-longer-relevant pro-neutrality draft regulation.
I mostly blame John Oliver for that.
Although, in point of fact, edge provider preference much like fast lanes exists in the form of zero rating, which is occurring in the mobile broadband space. It's not precisely the same thing, but had much the same issue.
But for example, the paid fast lane situation... does not currently exist. The whole "you might have to pay for the social media package to see this tweet" nonsense? Not only doesn't actually exist but has no chance of even remotely existing.
You’re argument is probably false. The fears are real we’ve seen ISPs provide tired bandwidth in the past. Everything except BitTorrent traffic was in the fast lane and BitTorrent traffic was in the slow lane.
Today this might be a bit more interesting of a case since a lot of software patchers from major protocols now use the BitTorrent protocol to patch software. I believe Star Citizen does, Blizzard games may as well. Windows Update at the very least now uses a similar system, though I don't know if it's specifically BitTorrent based or not.
Most BitTorrent traffic may not be, but that's a matter of content not protocol. Most of the people physically located in the death row wing of a particular prison may be condemned convicts but if a government says it's not going to kill anyone not duly sentenced to execution and just drops a bomb on that wing, killing mostly condemned criminals, but also a few correctional officers and service workers, the action would be clearly out of line with the commitment.
If you're going to throttle a protocol to keep your network optimized for legitimate users, crippling a piracy protocol seems pretty practical, wouldn't you say?
"Fast lanes" as a general product aren't likely going to be offers on the company home page, they're going to be in the private peering agreements they have with larger companies. This has already happened. [Netflix had to pay Comcast](https://consumerist.com/2014/02/23/netflix-agrees-to-pay-com...), and [Comcast throttled their VoIP competitor Vonage](https://www.wired.com/2006/03/comcast_throttling_vonage_user...). Vonage and Netflix started working again but the why was never made public. It seems likely that paying for fast lanes was involved. These aren't the cold hard facts we'd like to have about what exactly happened, but they're clear violations of Net Neutrality that were resolved ambiguously.
As far as negative effects in general, beyond fast lanes, there's more than a few examples:
* [AT&T blocked FaceTime](https://www.savetheinternet.com/att-facetime) * [Verizon blocked Google Wallet](http://money.cnn.com/2011/12/06/technology/verizon_blocks_go...) * [Verizon throttles video](https://arstechnica.com/tech-policy/2017/07/verizons-throttl...) * And [a lot more](https://www.freepress.net/blog/2017/04/25/net-neutrality-vio...).
The violations are often subtle, and haven't always affected everyone, but the negative effects of the lack of NN are not hypothetical.
Netflix gets free colocation from ISPs through Netflix Open Connect. (Hilariously, Netflix claims it "offers this for free to ISPs", whereas if you realize it is colocation, it is obviously Netflix should be paying for it.) Net neutrality cripples ISPs' negotiating position with Netflix (since it prevents ISPs from controlling their traffic in other ways), which protects their special treatment, ironically, since only Netflix has the market share to dictate terms to ISPs. If you made a startup video competitor, you'd have to pay for the service net neutrality guarantees Netflix gets for free. ISPs must host Netflix's boxes for free, or get hit by a deluge of upstream Netflix traffic.
FaceTime is an excellent example of a reasonable reason a provider may wish to get involved in content for performance reasons: Everyone switching to video chat would have a massive and immediate impact on that ISP's network traffic. With "unlimited data" models, ISPs don't necessarily get increased revenue to offset massively increased bandwidth use and network congestion. It's understandable why AT&T moved here. I actually prefer a pay-as-you-go data model, because it incentivizes carriers to provide neutral data as fast as possible: The more you use, the more money they make.
Verizon blocking Google Wallet stands in a long line of incidents where good PR has reversed the blame. ;) Google refused to allow competitors' payment systems from using the secure element in phones... a market Google has monopoly control of. Eventually, Verizon's hardline stance on being able to offer a competing service forced Google to rework Wallet to be more fair, and not get an exclusive security feature everyone else was prohibited from using. Of course, Google just moved to kill their competition another way: They bought out Softcard/ISIS and turned it into Android Pay. (And kicked Windows Mobile Softcard users to the curb too, hurting a second competitor in the process! Efficiency!) NFC payment competitors to Android Pay on Android phones like Samsung Pay only exist today thanks to Verizon's hardline stance.
What, then, does their eagerness for prioritization tell us? It tells us that these companies would like to stop investing so much in increasing capacity, and instead squeeze as much money as they can out of their existing infrastructure.
They're going to make things worse (or let them gradually become worse over time) just so they can charge extra money to people who need something better.
Beyond that, prioritization is not in conflict with net neutrality. If my ISP wants to offer me a premium subscription that prioritizes my traffic over normal subscribers, that's fine. Where we run into trouble is when they start doing this for other people who aren't their customers. If they want to charge me more for better service, that's fine. If they want to charge Netflix more to provide me with better service, that's not fine.
This doesn't make sense to me. Sometimes there can be large spikes in network traffic. In theory, if your network has enough capacity to handle _all_ the traffic at low latency during normal load, then the prioritization has no effect anyways. It's only there for when you are low on capacity.
I'd love for someone to correct my understanding here.
But right now all latency-sensitive applications should be operating just fine. I regularly play online first person shooters, and that is a latency-sensitive application if there ever was one. So that strongly suggests, seeing how I'm on Comcast / Xfinity's cheapest plan, that all lanes are fast lanes right now.
Accordingly, that means if you were to
>nuke [net neutrality] and let the markets figure it out
that's actually just letting a monopoly extract more profit from their network by intentionally degrading the quality of some connections unless paid more money.
I don't really think I need to say more, if this was a fair and competitive market where giant ISPs weren't lawsuit-happy in order to keep out competition, or they weren't able to do that successfully, sure, maybe the market would figure it out, and eventually the ISPs that offer true net neutrality would probably have traffic because no consumer is interested in paying more to be able to use the internet in specific ways.
As it stands, it's extortion being codified into law via bribery, disguised as 'the removal of heavy-handed Obama regulations in order to improve the network you've never had any issues with'.
https://www.polygon.com/2016/2/17/11037220/league-of-legends...
As I understand, the monopolies like Comcast and Time Warner have almost no incentive to actually improve their infrastructure unless they have the ability to shake down the services that want speedier connections when they need them.
Not all traffic is equal and not all consumers have identical needs.
What the REAL issue is is local governments providing de facto monopoly power to ISPs thus preventing the sort of competition that would make a much more innovative and customizable product for consumers. My needs are more geared around real-time and less around large downloads, yet here in France where I live, all traffic is identically treated, supposedly.
There are unintended consequences with NN that I feel that people don’t understand. The internet isn’t the same as a phone call — some traffic has different requirements in order to be successful, while phone calls are all pretty much the same.
I experience virtually no issues from my internet, and like I said, I pay $30 a month for this service. I don't use a lot of band-width, I simply use a consistent stream, and I see no reason why I should have to pay more for that right. It's an automaton wiring packets, not people scrambling to move data.
Back to you, though: what sort of issues arise from this extreme sensitivity to latency you have? Is 'telehealth' just a doctor skyping with a patient or do you have some kind of real-time devices that depend on communication over a distance? If the latter, how sure are you that your architecture isn't the issue, and some computations couldn't be done in a different link in the chain?
>the REAL issue is local governments providing de facto monopoly power to ISPs
I totally agree. Like I literally said in my comment, the whole calculus of this conversation would change if ISPs actually had to compete, but since they obviously don't, I can't possibly see how revoking net neutrality is a good idea. It simply lets them tighten their stranglehold in a fashion that costs everyone more money and extends the anti-competitive sphere they exist in into the whole realm of business that relies on sending traffic over the internet.
So sure, it's easy to say "telehealth has a real impact on lives and YouTube for children doesn't", but that doesn't mean eliminating net neutrality here and now is a good choice.
Other comments have stated their goal clearly: increase margins from existing infrastructure.
If fair repartition of resources was their goal, why not make that an explicit part of the laws they want to introduce? Why do it in a roundabout way? Presenting a wall of 'possibilities' only serves to obfuscate their true goal.
Would you let 'the markets figure out' your water supply?
The prospect of net neutrality being repealed definitely sucks, but great things can come from hitting rock bottom
OTOH American people chose this, so it's not some evil corporations who are to blame, it's the people, your friends, neighbors, etc. People forget that sometimes.
Also IIRC there was a case in the 90s of an ISP not playing ball with the government WRT surveillance IIRC and it ended up out of business and IIRC the CEO in legal trouble.
We the majority have NO voice.
"Obama’s attack on the internet is another top down power grab. Net neutrality is the Fairness Doctrine. Will target conservative media."
https://twitter.com/realdonaldtrump/status/53260835850816716...
The person who appointed the FCC commissioner
If you're referring to Pai, that would be Obama.You are always going to be able to encrypt your data in a way that their filters do not understand. The problem is that anything the filters do not understand will go to the low priority queue. Your Tor traffic will get treated just like Netflix traffic, in the event that Netflix chooses not to pay protection money.
We have that; it's called radio.
If you're hoping for something spookier and more quantum-mechanical, then see e.g. https://en.wikipedia.org/wiki/No-communication_theorem which implies that under quantum mechanics as currently understood, entanglement cannot be used for communication.
The real question is what do we after net neutrality is repealed?
Do we try to break up the cable monopolies ? FTC lawsuits ? Start having Cities or States write laws enforcing neutrality ?
Your best odds is to never vote for a GOPer if you care about NN. This can easily be reversed next election/presidential cycle.
Both sides are hugely pro-corporation (not counting the bernie fringe wing), we need to force them to run on specific issues related to net neutrality not vague notions.
I'm thinking an analogous to how many NRA republicans campaign very specifically and with specific actions they'd take. The NRA should be the model we coopt to protect NN.
https://arstechnica.com/tech-policy/2015/05/north-carolina-s...
https://arstechnica.com/information-technology/2016/09/muni-...
It should be illegal to use children, handicap, illness and death to promote products unless all of your money goes to helping just those things.
> why can’t the consumer simply use their own brains to decide what to buy?
I wish I knew.
ISPs always have to make decisions about who to peer with, how many links to have with each other network, etc. These decisions are made with business motivations, and have a huge effect on QOS for various upstream services. You can't tell an ISP they need the exact same bandwidth for each upstream connection.
So what rules SHOULD they have as far as their peering and transit arrangements?
-- edit: this is in the article.. I saw it after..
Not saying it can't be done, but just saying it can be worse than the current alternatives.
See previous HN discussion: https://news.ycombinator.com/item?id=15655548
Government should provide incentives for competition, not socialist collectivization. People here seem to have an unhealthy obsession with government. Have we learned nothing from the soviet era? We should be demanding smaller government. Government is what created the ISP near-monopolies.
What we need is competition. Government should be facilitating that. Would we want internet to be run like the NYC MTA? A profit motive is a powerful thing.
The existing ISP infrastructure is not something I opted in, even though I fortunately get to enjoy gigabit speeds via AT&T. I already have "buyer's remorse" but can I be given a clause, a lot like our "lemon laws" that state that if they, free from the shackles of regulation, make things arguably worse for everyone involved, that we can get some of that money back? I feel like there needs to be some sort of "upper bounds" to deregulation that to use a metaphor says something like "We'll give you the Wild West but it's still illegal to murder people." in whatever highly damaging thing "murder people" turns out to actually be.
I truly hope someone physically removes Pai from power as the people have no say.
What can one do when is forced to deal with psychopathic corporations that lie straight into one's face? i.e. https://twitter.com/comcast/status/933396998958567442