In general I prefer market solutions, but perfect competition isn't a good model for infrastructure, for a whole host of reasons.
In general I prefer market solutions, but perfect competition isn't a good model for infrastructure, for a whole host of reasons.
I'm not opposed to some regulation in this area, but I worry about driving investment out of wireline. Goldman is already saying Verizon should ditch its wireline business. Also, I think some level of traffic shaping (e.g. throttling Bittorrent and prioritizing HTTP) is necessary just from a network engineering point of view. I don't want my Netflix packets waiting behind some BT packets containing pirated movies.
That isn't exactly what Goldman said.
http://www.dslreports.com/shownews/Goldman-Sachs-Wants-Veriz...
1) That was when they were trying to get them to merge with Vodafone.
2) That was more about dumping the overhead that came with the union Verizon was dealing with, dumping pension liabilities, etc. and basically splitting the "high growth" business off from the slower growth business.
That isn't really the same thing. All utilities are going to be low growth businesses by their very nature.
http://seekingalpha.com/article/1599192-slow-growth-but-a-hi...
Unless you are talking about a newer angle of attack from Goldman about it?
EDIT: I guess I'm trying to say it speaks more to Goldman's bias [splitting it up based on what looks to be growing faster so they can invest accordingly].
Even if the bittorrent packets do contain a pirated movie, sure you have the moral highground because you paid for your movie, but in the end they're both essentially the same thing.
That way the customer can decide what they want their own priorities to be without interfering with other customers.
These concepts can be applied to both outbound and, to a limited extent, inbound traffic. Throttle the customer+QoS pair, not the technology.
But even that is not addressing the point. The point is that if two people are paying for the same connection and using the same amount of bandwidth, the fact that one is using it for BT Sync and the other is using it for Netflix should be of no concern to the ISP and the ISP should be making no distinction between the two.
The problem is, if say Verizon was to honestly advertise their speed capabilities, they would have to advertise 100Kbit speeds on the minimum side. They are consistently, and purposefully lying about their networks capabilities.