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Virgin Media CEO Says Net Neutrality Is Already Gone

Journal written by Presto Vivace (882157) and posted by kdawson on Sun Apr 13, 2008 05:13 PM
from the it's-not-your-internet-sonny dept.
Virgin Media CEO Says Net Neutrality is "A Load of Bollocks". Anyone here been shaken down by their Internet Service Provider? "The new CEO of Virgin Media is putting his cards on the table early, branding net neutrality 'a load of bollocks' and claiming he's already doing deals to deliver some people's content faster than others... If you aren't prepared to cough up the extra cash, he says he'll put you in the Internet 'bus lane.'"
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[+] Your Rights Online: BPI Defends Anti-File-Sharing Partnership With Virgin Media 98 comments
MrSteveSD writes "The British Phonographic Industry (BPI) has responded to criticism by Bill Thomson over its collusion with Virgin Media in targeting UK file sharers. BPI chief executive Geoff Taylor personally wrote to the BBC to set things straight, and he asserts that 'it's Mr Thompson, rather than music companies, who is stuck in the past.' Of course, Virgin Media customers who download music and TV legally often find their connections being turned down to unusable speeds due to Virgin's aggressive throttling policy." Mike also points out a blog entry that describes one of the letters received by a Virgin Media customer. In the letter were suggestions regarding the customer's router settings and anti-virus software.
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  • by Anonymous Coward on Sunday April 13 2008, @05:17PM (#23056862)
    ...is every one of his Slashdot-using customers running to cancel their accounts and find 'net access elsewhere - even if the data gets sent down a wet piece of string.
    • Re: (Score:3, Informative)

      So go find an honest ISP like this one [aaisp.net]. Yes they have some limits on how much data you can use in a month but they don't secretly block or throttle stuff are completely up front and honest about it and don't pretend you can get unlimited usage when it's a complete lie like most ISPs.
      • by MoonBuggy (611105) on Sunday April 13 2008, @05:51PM (#23057168) Homepage
        Unless I'm reading something very wrongly, holy crap they're expensive! I know you have to pay for good service, but those per GB charges are insane. You'll certainly pay more for a 'real' connection than you would if you went with TalkTalk or Sky, but you don't have to take it to the extremes of what these people are charging.
    • by mikael (484) on Sunday April 13 2008, @06:31PM (#23057454)
      Already have done - After Virgin Media decided to unlaterally drop Sky One and Sky News from their channel selections, 44,000 subscribers switched to Sky. Others like myself decided to cancel their premium rate channel subscription, and pay only for broadband service. The first sign of trouble was when Virgin decided that they wouldn't "bamboozle their customers with technical details", but instead to refer to all service options using S, M, L, and XL.

      Digital Spy forums [digitalspy.co.uk] have in-depth discussions about Virgins financial status. In particular "Virgin Media TV channels have posted a loss for the past two quarters." [digitalspy.co.uk]

      Not surprisingly, Virgin are in the process of increasing their service fees (a +1 pound/month surcharge for paper bills), and an increase for daytime telephone calls, (from 3.25 pence/minute to 4.00 pence/minute) for anyone doesn't have an XL service.

      Trying to extract some revenue from their content producers seems to be the next moneymaking scheme.
      • by nbannerman (974715) on Sunday April 13 2008, @05:32PM (#23057020)
        Just FYI - whilst Virgin have the cable market in the UK sewn up, we're lucky enough to not have a situation whereby ISPs are limited to any particular area.

        Of course - the only other alternative for digital TV would be freeview (limited channels) or Rupert Murdoch's Sky.

        However, if enough people got wind of this, it would be possible to give Virgin a bit of a kicking financially.
          • by electrictroy (912290) on Monday April 14 2008, @09:43AM (#23063348)
            They'll care when Virgin announces, "If you want faster than 50k access to Itunes.com or BBC.com, you need to cough up another $10 a month." Then they will sit-up and take notice. Net neutrality is not just a good idea; it's how you prevent corporate dictatorship and/or manipulation of the user-citizens.

              • by Thuktun (221615) on Monday April 14 2008, @09:47AM (#23063418) Homepage Journal

                Truth is, the debate over net neutrality has glossed over the fact that we never really had it. You pay to play and for cost, FIOS>cable>dsl>dialup. How fast do you want your data? Pay up. Netzero offered free dialup for years.

                We need to stop ranting and instead start discussing ways to protect freedom of information and privacy. ISP's have a very real problem in that bandwidth is not free and a small percentage of users do in fact use the majority of bandwidth. The real problem is more about truth in advertising. We share bandwidth and the routers can only handle so much traffic.
                You seem to mistake "network neutrality" with a call for cheap, all-you-can-consume bandwidth. The rates they charge for the bits are their own concern as long as they don't inspect your packets and charge you based on what they see.
              • by NeutronCowboy (896098) on Monday April 14 2008, @09:58AM (#23063606)
                It seems to me you misunderstand net neutrality. You seem to argue that the bandwidth of your connection is tied to net neutrality. It isn't. Net neutrality is about what happens to packets when both sides of a connection have a standing agreement with the provider about each one's bandwidth. By default, and the way the Internet was designed to work, the end points are the only points with any intelligence built in. Everything in between just carries stuff around in a best effort fashion.

                What providers try to do now is to say "yes, I know both sides already paid for a certain amount of data to be delivered. Now I want to be paid to make sure that nothing happens to said data." I don't have a problem with dynamic throttling of all sites, or any other generic traffic shaping. What I do object to is ISPs trying to tell me that msn.com will load quickly (because MS paid up), but google.com won't (because Google hasn't).

                If you think Net Neutrality isn't a big deal, it is. As a matter of fact, it is the reason that we have Amazon.com, Netflix, Google, Yahoo or any of the other major internet players. They would have died in an environment where they would have had to pay to load as quickly as other established players.
      • by gigne (990887) on Sunday April 13 2008, @05:38PM (#23057054) Homepage Journal
        In the UK Virgin Media represent the largest cable company, meaning that most people have the option of a BT line and ADSL.

        I personally use Virgin cable, and although it is throttled its still 2x faster than any ADSL provider. I really don't like the idea of people messing with my packets, but when the only other option is DSL providers, who don't tell you that they mess with your packets, cable still makes sense. At least they are up front about it.
        • Re: (Score:3, Informative)

          How fast is it?

          I have 24Mbps service from bethere.co.uk

          Sure, it suffers from real speeds bein anywhere from 13 to 20, but that's still a good chunk.
        • by twitter (104583) * on Sunday April 13 2008, @06:41PM (#23057552) Homepage Journal

          It's only faster until they decide to shake down your favorite site or service. Then you might as well have dial up.

          Their brazen admission of these practices is not better than alleged shameful practices. Both are wrong and both lead to the same place if the other companies are determined to rip everyone off. The practice can't be hidden for long, so what you have is a choice between ignorant leadership that may be evil or plain evil. Both suck.

        • by Le Jimmeh (1086671) on Sunday April 13 2008, @06:40PM (#23057542)
          So it's all right what he's doing, as long as he's honest about it?

          Honestly, it annoys me that someone can do something as bad as this and be honest about it yet receive no repercussions. I don't know whether this says more about Western civilisation in general or British ignorance towards the internet. Internet neutrality seems like a much bigger deal over than than here.
  • by Zeinfeld (263942) on Sunday April 13 2008, @05:17PM (#23056866) Homepage
    The point is not whether companies can get higher bandwidth by paying more. What has people angry is the idea that their cable provider might deny them the full bandwidth that they paid for when they connect to certain content providers or use VOIP.
    • I don't know about other people, but it angers me greatly that an ISP that has already been paid by me for the bandwidth I use, gets to turn around and extort money from the providers that I access. Overselling bandwidth and net neutrality are two separate issues. I can deal with the overselling of bandwidth for longer, because overall it doesn't limit the amount of content available to me, it just makes me wait a little longer. Allowing ISP's to charge providers for a transaction that has essentially already been paid for is dangerous and downright wrong. It's not unthinkable that this could lead to payment disputes between companies where some major providers are only available on certain networks, in fact it's probable that this is the end result.

      Make no mistake, what this guy is talking about makes me very angry.
      • This coming from Virgin, a brand whose business model and valuation depends entirely on its coolness factor... I am speechless...

        Napoleon used to say: "I fear three newspapers more than a hundred thousand bayonets."

        I hesitate between thanking this guy to state openly what the other ISP's have worked hard to disguise and warning him to watch the speed at which his brand will disintegrate...

        Because, indeed, as the parent implies, Virgin's scheme means the end of the Internet as we know it, and we are r
  • Meanwhile... (Score:5, Insightful)

    by Infonaut (96956) <infonaut@gmail.com> on Sunday April 13 2008, @05:19PM (#23056882) Homepage Journal
    An anguished, collective shout of horror and surprise emanates from Virgin Media's PR department: "Nooooooooooo!!!"
  • Bus Lane? (Score:5, Funny)

    by WombatDeath (681651) on Sunday April 13 2008, @05:20PM (#23056892)
    "If you aren't prepared to cough up the extra cash, he says he'll put you in the Internet 'bus lane'."

    Let me see if I've got this right - if I don't pay him money, he'll put me in the subsidized lane that contains no other traffic?

    Errm, OK. Much obliged!
  • by jrumney (197329) on Sunday April 13 2008, @05:20PM (#23056894) Homepage

    If you aren't prepared to cough up the extra cash, he says he'll put you in the Internet 'bus lane'.

    Isn't the whole point of bus lanes to keep the buses moving in rush hour traffic? Not the best analogy for a Virgin wannabe-mobster to be using to coerce content providers to cough up.

    • Re: (Score:3, Insightful)

      I think he's referring to the publicly usable curb lane on streets that do NOT have reserved exclusive bus lanes, the ones which are soul destroying to be in, because the bus in front of you stops every block to pickup/dropoff people, and moves much slower than the lanes to the left which aren't plagued by busses constantly parking.

  • Virgin? (Score:5, Funny)

    by Soko (17987) on Sunday April 13 2008, @05:20PM (#23056896) Homepage
    I doubt it.

    "You wanna do it without a condom? It'll cost you..."
  • by OMNIpotusCOM (1230884) * on Sunday April 13 2008, @05:22PM (#23056918) Homepage Journal
    Ok, summary and title have virgin, internet, balls (bollocks), and media in it. Alright, all we need is MS, conspiracy and goatse before we have and uberstory.
  • by urbanriot (924981) on Sunday April 13 2008, @05:23PM (#23056928)
    Finally a company is honest enough to admit that net neutrality doesn't exist. Here in Canada, almost every ISP is throttling torrents, throttling DSL 'nodes', circumventing advertisements for their own, prioritizing certain web pages, and worse. This is rarely publicized until some intelligent people discover it and bring it to light and since there's no rules or laws, it's perfectly acceptable by everyone but the consumer.
  • by Naughty Bob (1004174) * on Sunday April 13 2008, @05:25PM (#23056946)

    Virgin Media CEO Says Net Neutrality is "A Load of Bollocks"
    "The best we can do with p2p is try to slow it down."

    ...he's already doing deals to deliver some people's content faster than others...
    IANAL, so does anybody know if these kinds of deals might have the effect of invalidating an ISP's 'common carrier' protections?

    If so, I vote we prosecute him for downloading child porn, as a modern-day equivalent of walking the plank, and a warning to the other ISPs...

    Yarrrrr!
    • by Jeff DeMaagd (2015) on Sunday April 13 2008, @07:52PM (#23057990) Homepage Journal
      IANAL, so does anybody know if these kinds of deals might have the effect of invalidating an ISP's 'common carrier' protections?

      I think it's some Slashdotters that are perpetrating the myth that "common carrier protections" exist for data providers. As far as I know, that's not true, that it's only for voice, as in POTS.
  • Refreshing (Score:3, Interesting)

    by Sanat (702) on Sunday April 13 2008, @05:26PM (#23056950)
    In one way it is refreshing to hear a CEO describe in truth what is going on whether one agrees with him/her or not. Usually a CEO stands behind innuendos and words with double meanings to avoid a head on collision. Not so with this one apparently.

    It happens that I believe that all should have equal access but then I do not run an ISP. It seems clear that multiple levels of service can be commanded by varying levels of payments. Sort of like steak or hamburger.

    It will be interesting to see how all of this finally works out.

  • by Doc Ruby (173196) on Sunday April 13 2008, @05:27PM (#23056958) Homepage Journal
    This blatant confession by Virgin Media is the best news yet for the Net Neutrality movement. Because the main argument of the enemies of Net Neutrality (who are therefore the promoters of Net Doublecharge) has always been that "equal access is never threatened", while usually contradictorily also saying "unequal access will be necessary to pay for increased capacity". Now Virgin Media is just admitting that's all a bunch of BS, and they're so hellbent on destroying the equal access for everyone that they already do it.

    This is an industry claiming we don't need our equal access protected. And now, at the same time, telling us that it's gone, and we're whining too much because they've already destroyed it.

    The enemy has blinked. There now should follow a backlash that will guarantee that we don't continue to give away our most profitable, most strategic global asset, that the public paid to invent, and build and promote, to those crooks who will say anything to steal it. And evidently are now so arrogant that they'll even admit they've already stolen it. Even though they haven't, or at least not so much that we can't take it back.
      • Re:grow up (Score:5, Insightful)

        by Doc Ruby (173196) on Sunday April 13 2008, @05:50PM (#23057150) Homepage Journal
        I paid to invent and build that Internet that Virgin Media is now holding hostage for charging ransom against the billing model that made it worth holding for ransom. That's not a "free market", except in the corporate handouts you "Libertarians" love to pretend is "free" because you'd love to be the next ripoff artist yourself.

        So I'm not "fighting WW2", a ridiculous comment from yet another Anonymous Libertarian Coward. I'm trying to keep some corporate interloper from ruining something that's too important to ignore. And as a trivial side skirmish, I'm slapping down your nonsense about a "free market" that erupts across an open Internet only because it does have equal access.
      • by Doc Ruby (173196) on Sunday April 13 2008, @05:54PM (#23057188) Homepage Journal
        I was cynical enough to believe that myself, that "Net Neutrality" would die an obscure inside baseball battle in which telcos easily rolled over a few geeks with a sense of history, economics and fair play. But then it turned out to be surprisingly popular and accessible to the public at large. I don't know how it happened, but it did.

        It doesn't hurt to underestimate the public's attention span and insight into its self-interest, because it's usually absent, especially in the face of distracting entertainment. Unless by underestimating you ignore when it's available as a powerful ally. In Net Neutrality, this has somehow turned out to be the case. Let's not pass it up.
  • Net neutrality means you can't bill your competitor's customers. This is absolutely essential to a free market.

    See, there are actually four parties involved. The end user, Bob, buys a connection from an ISP, CableCo. Meanwhile, example.com, buys a connection from a different ISP, ExampleOnline. CableCo and ExampleOnline are competitors, but they have a peering agreement, which means that they agree to share the costs of a connection which lets Bob visit example.com. What's happening here is that CableCo is trying to get money from example.com. But example.com is ExampleOnline's customer! If ExampleOnline's customers are generating traffic which CableCo can't handle, then they need to renegotiate their peering agreement, not go after ExampleOnline's customers. That's unethical and possibly illegal.
    • by dachshund (300733) on Sunday April 13 2008, @08:08PM (#23058098)
      This is a very good point. I would also point out that CableCo has most likely been granted advantaged access to a large pool of customers (if it isn't actually a legally-mandated regional monopoly). What it's trying to do is leverage its "ownership" of this customer base to extort money from service providers (like your example.com).

      This significantly distorts the market, since example.com can't just go elsewhere to access these customers. If CableCo is the only way to reach them, it basically has to pony up whatever CableCo asks for, or just give up that section of its customer base. And ultimately it's CableCo's customers who wind up paying for it, since--- to stay in business--- example.com will just past the additional costs along to its customers (e.g., the cost of premium services gets boosted so that CableCo can make its competition-free profit.)

      If you were to consider an alternative model where CableCo offers tiered services, but the end-customer foots the bill for using these resources, you'd have a much healthier situation. If CableCo charges too much, then there's pressure on it (via regulation or competition) to lower its prices. In either case, the customer has an accurate perception of how much their ISP is charging them, and they're not subject to all of the hidden charges.

      Which is, of course, exactly why companies like CableCo want to do things this way. It's much better to extract a rent from your customers without their knowing it.

  • by MLCT (1148749) on Sunday April 13 2008, @05:45PM (#23057110)

    he's already doing deals to deliver some people's content faster
    Typical bit of marketing here - this shouldn't be allowed to stand. Deals aren't being done to deliver content "faster" - deals are being done to deliver other content slower. Bandwidth is a zero-sum equation.

    Assuming (since I am not an expert on this) that the prioritisation of content is being done by some sort of prioritising of packets then it is a mutually exclusive situation. The line is only so fast - the line contains only so much bandwidth. If all providers pay to have their content prioritised then nothing moves any "faster" than it is with neutrality. If only one pays to have their content "faster" then all they are doing is degrading all other traffic.

    ISP provisions need to be revolutionised - the current crop are perfectly happy as a hegemony of providers - do what they like, charge what they like. There is "competition" in only a very superficial sense.
  • by The Mutant (167716) on Sunday April 13 2008, @06:02PM (#23057274) Homepage
    We're on Virgin ADSL. About one month ago, someone hacked our WEP and started leaching. It was all my fault - I'd replaced a router, didn't lock down by MAC address, and they locked on.

    We noticed slowdowns / issues but didn't call Virgin until my wife determined these always happened after 4PM. This was after some three weeks of slowdowns.

    Called Virgin's "pay as you go support", where a technician cheerfully told us we'd been capped due to a violation of AUP.

    Ok. Someone had leached our connection. Our fault. But it took TWO weeks to get uncapped.

    All this after several weeks of leaching - which impacted ALL customers on our local net mind you - no email, no call, nothing. Until we incurred expense calling their "pay as you go support".

    Virgin's shaping is poorly executed, and heavy handed.
    • Re: (Score:3, Informative)

      Slightly OT, but if someone is savvy enough to hack a WEP encrypted network, they'll be savvy enough to sidestep MAC address restrictions - use WPA2, or even a RADIUS/VPN solution if you want real security.
  • counter attack (Score:5, Interesting)

    by ILuvRamen (1026668) on Sunday April 13 2008, @07:11PM (#23057716)
    If I was some content provider like a youtube knock off or something and I got some bullshit shakedown letter asking for money or they'll limit the download speed at my site, I'd note the ISP sending it and put a blatent note on every video playing page that said "If _____ is your ISP, they're purposely slowing down video streaming on this site. To view videos at full speed, switch to another ISP." That would really burn their ass. You get enough of those messages around the internet on high traffic sites and everyone will get a really bad image of that ISP really fast and switch like crazy. That would be the end of that crap and it would force net nuetrality faster than any law would.
  • The government builds and operates the interstate highway system for the common benefit of all. It's not much of a stretch to see the advantages of them building and operating a public data network, too.

    As a bonus for the security-minded, if the government operated the public network, they wouldn't have to go cap-in-hand to the private sector for permission to monitor traffic. There are cameras on all the major highway intersections, and no one complains. The same could be done for a data network.

    Governments aren't as cost-effective as private enterprise, but they have the terrific advantage of operating more in the public eye. For a public resource, this is an extremely valuable characteristic.

    The fact is, telecom doesn't operate in a free market, so almost none of the normal arguments for letting private enterprise take the lead are valid. Competition doesn't truly exist, so corporations are free to invent ever more resourceful ways to make us pay more for less.

    At the very least, a publicly-run network would be more responsive to ordinary users who at least have a vote. As it stands now, we really are at the telecomm's mercy.
  • by MrSteveSD (801820) on Sunday April 13 2008, @09:36PM (#23058662)
    The service was great while my ISP was Blueyonder, but then the "Bearded Demon" (Richard Branson) and his hooded Virgin Media hordes took them over. Now I can't download a single TV program from ITunes without being throttled into oblivion. What's the point of broadband when you just get throttled when you use it?
    • Re:Unfortunately... (Score:5, Informative)

      by pdbaby (609052) on Sunday April 13 2008, @05:24PM (#23056932)
      Actually, old bean, this is the United Kingdom we're talking about in this article :-)
      • Re: (Score:3, Informative)

        I believe "Joe Sixpack" commonly refers to the common practice of selling beer in packs of six.

        To answer your question, this guy is talking about charging content providers for faster throughput. Which implicitly is saying that they're going to slow down service for the majority of sites that don't pay the toll.

        So while I am sure your $10 is appreciated, it's not going to help with this kind of tiered pricing.
    • Re: (Score:3, Informative)

      Mr Rose, check out www.bethere.co.uk they hump everyone else on price(bang for buck) at 22 per month for up to 25mb down and 2.5mb up! they also do not have limits on downloads. swapped to them last november and am loving it HUGE they also have 24 hour tech and customer support. they truly kick ass. hope your exchange has their equipment bud. luckily i stay close to my exchange so and pretty near full tilt!
      • Re:This is Hilarious (Score:5, Informative)

        by MoonBuggy (611105) on Sunday April 13 2008, @05:39PM (#23057056) Homepage
        I'm pleased overall with my Entanet DSL. All the resellers seem to offer the same price packages, so I use UKFSN [ukfsn.org] (no association with them other than as a customer) who use all of their profits to fund UK free software projects. The business packages are reasonably priced and seem to be the closest thing you can get to a direct, neutral, non 'managed' connection these days. They also offer genuine unlimited packages, although the prices might be a bit of a shock to people used to the so-called unlimited offerings from other ISPs.

        The one thing that I would fault them on is their data transfer allowance system. Basically the penalty fees for going a few GB over the limit will add about 50% to that month's bill.
    • Re: (Score:3, Interesting)

      What if Google stopped responding to requests from Virgin customers? I think Virgin would cave in pretty quickly.

      Isn't this more or less the same thing that we're fighting against? And the same thing that Microsoft did to Dr DOS?

      In all seriousness though, I would love to see Google sneak in a special version of their adwords. Every time a Virgin ISP user is served a Google ad, make sure one says:

      Attention Virgin Media Customer
      Your ISP is slowing your connection down to extort money out of you! Click here for more information!

      • by teh moges (875080) on Sunday April 13 2008, @07:01PM (#23057672) Homepage
        I see this as one area where Google, MS and Yahoo can show some real leadership. Don't hand over any extra money, and if the customer's ISP is a known throttler, then place a message at the top of each page stating "The page you have requested is being slowed down by your internet provider. Click here to find out why and what you can do about it". If the three biggest websites and their other websites (remember that Google owns YouTube and Yahoo owns Flickr) all put this message on, the backlash against the ISP would be way too big. Remember that speed is relative, especially when downloading webpages. Telling the user to expect the pages slower then usual will give the user the impression it is, even if the ISP hasn't yet started throttling.