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BBC and ISPs Clash over iPlayer 350

randomtimes writes "A row about who should pay for extra network costs incurred by the iPlayer has broken out between internet service providers (ISPs) and the BBC. ISPs say the on-demand TV service is putting strain on their networks, which need to be upgraded to cope. '"The iPlayer has come along and made downloading a legal and mass market activity," said Michael Phillips, from broadband comparison service broadbandchoices.co.uk. He said he believed ISPs were partly to blame for the bandwidth problems they now face. "They have priced themselves as cheaply as possible on the assumption that people were just going to use e-mail and do a bit of web surfing," he said. ISPs needed to stop using the term 'unlimited' to describe their services and make it clear that if people wanted to watch hours of downloaded video content they would have to pay a higher tariff, he added.'"
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BBC and ISPs Clash over iPlayer

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  • Amen (Score:5, Insightful)

    by MightyMartian ( 840721 ) on Wednesday April 09, 2008 @01:15PM (#23014614) Journal
    That's exactly right. For years ISPs have been flagrantly misrepresenting their services, using words like "unlimited" and quoting download speeds that you might have a hope of getting within 10% of at 3am. They have been playing their customers for fools, but now that content providers are beginning to provide more and more of their productions, suddenly the ISPs are screaming at the content providers and the customers.

    I think that consumer protection laws need to be beefed up to protect consumers against the outrageous practices of ISPs.
  • by Bryansix ( 761547 ) on Wednesday April 09, 2008 @01:17PM (#23014650) Homepage
    Because there is a difference between how much a simple home user is going to research an ISP and how much a corporate user hosting a website is expected to follow up and research into their contract.
  • by Qwerpafw ( 315600 ) on Wednesday April 09, 2008 @01:22PM (#23014718) Homepage
    If Net Neutrality laws were in place, the ISPs couldn't be "having discussions" over whether they can extort the BBC into paying them extra. Service providers would then be forced to market and sell their services honestly, because they couldn't get someone else to pay for the bandwidth they're selling.

    The BBC pays for upstream bandwidth. Consumers pay for downstream bandwidth. But ISPs don't actually have the bandwidth they're selling, so they want the BBC to pay as well for the bandwidth consumers already paid for. It's ridiculous.
  • Re:Amen (Score:5, Insightful)

    by ari_j ( 90255 ) on Wednesday April 09, 2008 @01:28PM (#23014806)
    The good thing is that smart lawyer tricks trump the stupid kind. If you can show damages due to the false advertising, go ahead and sue. If you can only show a few dollars of damages, get a class action going. Our legal system may permit a certain level of litigiousness, but it's also the necessary check and balance to our capitalist economy.
  • Managing Free (Score:4, Insightful)

    by bill_mcgonigle ( 4333 ) * on Wednesday April 09, 2008 @01:28PM (#23014812) Homepage Journal
    I think that consumer protection laws need to be beefed up to protect consumers against the outrageous practices of ISPs.

    We're in this mess partly because the governments saw fit to grant monopolies to various companies who now behave like monopolies. Raise your hand if you're shocked. We should always be leery of patching bad government with more government, because it's probably going to turn out to be bad government, and then people will want to...

    But, yes, your're right, these guys are selling 'Free' stuff and 'free' doesn't exist [bfccomputing.com]. In a non-monopoly position you might assume the customers are fools, but when they have no choice, it could be either. Certainly it's hard to chasten the customer put into this position if he doesn't have choice.
  • But then who foots the bill for various things like all the ads that get displayed? It's not as simple as a water bill because a shower head manufacturer can't suddenly turn your water usage up in order to promote a new product.

    Yeah, it's a bad example, but it's also a bad idea.
  • Re:Amen (Score:1, Insightful)

    by Anonymous Coward on Wednesday April 09, 2008 @01:30PM (#23014826)

    I think that consumer protection laws need to be beefed up to protect consumers against the outrageous practices of ISPs.


    And I would go further and say that the whole telecom industry needs to be nationalized and service should be given to all citizens for free. And can I get a pony with that too?.

  • by SwordsmanLuke ( 1083699 ) on Wednesday April 09, 2008 @01:32PM (#23014864)

    people that only use the internet for email and light web surfing are charged less than people who troll Youtube all day.
    Exactly. This is probably why ISPs have not yet adopted a pay as you go approach. I used to work for a webhosting company and we oversold our service by about 80% (e.g. we only had 20% of the total advertised capacity) but that was okay, because 90% of our customers only used 5% of their purchased package (of course, the other 10% tried to use 150% and complained when their site went down after burning through their alloted bandwidth). If the ISP business is anything like it, they're making money like mad on the e-mail only crowd. They're not going to be happy about killing that golden goose, even if they get to charge the heavy users more.
  • Yeah, right... (Score:5, Insightful)

    by spaceyhackerlady ( 462530 ) on Wednesday April 09, 2008 @01:33PM (#23014872)

    Let's see if I've got this right.

    Consumers upgrade to high-speed internet. They pay for it.

    When they actually start to use it, the ISPs start bitching about bandwidth and demanding more money.

    ...laura

  • by ari_j ( 90255 ) on Wednesday April 09, 2008 @01:33PM (#23014882)
    People like predictability. The amount of water you use is fairly constant over time. Same with electricity, fluctuating with the seasons. Also, both of those are fairly mandatory for continued life, so a little bit of uncertainty will not convince a consumer to forgo either one. Bandwidth and cell phone minutes are different - you can live without them and your usage is harder to predict and more likely to fluctuate on a monthly basis, so you will be less willing to just let them bill you for your usage and pay the bill each month.
  • by FudRucker ( 866063 ) on Wednesday April 09, 2008 @01:35PM (#23014904)
    RE:["The [insert - any website] pays for upstream bandwidth. Consumers pay for downstream bandwidth. But ISPs don't actually have the bandwidth they're selling, so they want the BBC to pay as well for the bandwidth consumers already paid for. It's ridiculous."]

    that is exactly what is going on, it is extortion. i am not one for BIG government regulation but there needs to be oversight of some sort, because if not then both the websites that serve news and other content and the customers will be squeezed by the ISPs because they have the keys to the tubes...
  • Some people don't understand the concept of 'bandwidth'. They don't realize that downloading that movie from bittorrent is much more data than pulling down one page of the web, except that one 'takes longer' than the other.

    The rest of the bandwidth hogs point to the 'unlimited' marketing. Until the marketing of the service changes (and people are told about their limits and are capable of measuring them), you're still going to get grief.
  • by WombatDeath ( 681651 ) on Wednesday April 09, 2008 @01:41PM (#23014976)
    Completely mental, even disregarding the obvious point that they're already getting paid at both ends for their fucking bandwidth.

    Imagine that you're selling product X. The lovely BBC comes with an application that encourages lots of people to use lots of X. Fantastic! Coke and hookers all round!

    Unless you've come up with some sort of freakish business model which relies on people paying for lots of X without actually using it. In which case, well, you're probably fucked.

    Good.
  • by Pig Hogger ( 10379 ) <pig.hogger@g[ ]l.com ['mai' in gap]> on Wednesday April 09, 2008 @01:42PM (#23014980) Journal
    What's the problem? 300 people connect to the BBC and stream Benny Hill. Those 300 streams take X amount of bandwidth, once for every subscriber, and 300 times for the BBC.

    Each subscriber pays for his little tube, and the BBC pays for it's tube big enough to carry 300 Benny Hill streams.

    So what's the problem? Why are ISPs bitching?

  • by peragrin ( 659227 ) on Wednesday April 09, 2008 @01:51PM (#23015110)
    Actually that's the point. There is no difference between downloadng a thousand websites and downloading a movie. Data is data. ISP's are going to need to realize that it doesn't matter what i am downloading it's still data.

    the ISP's sold me bandwidth on false assumptions that I wouldn't use it all, all the time. If they didn't plan properly then that's their fault when i do start to use all the bandwidth all the time.
  • by contrapunctus ( 907549 ) on Wednesday April 09, 2008 @01:56PM (#23015166)

    We constantly have clients that think they can get 100000 TB of storage and 1000000 ZB of transfer for $3.95/mth. Then they get attitudes when we charge them $30/Mbps.
    Do you advertise "unlimited"? If so you eat it. If you advertise correctly then your clients know what to expect.
  • by Rob Y. ( 110975 ) on Wednesday April 09, 2008 @01:59PM (#23015214)
    That's a silly comparison. Nobody viewing normal websites keeps their pipe in constant use. Presumably you take some time to actually look at the sites you download. I don't think they'd be too happy if you ran an automated web crawler over your home circuit either.

    ISP's are ultimately going to have to go to a model like cellphone contracts. 100 GB per month (or whatever). After that your bandwidth drops off or you pay for the overage, depending on your plan. Carry-over MB's and all. At least that's nominally fair. And maybe for those non-downloaders, there'd be a really low-cost, low volume plan.
  • > Actually that's the point. There is no difference between downloadng a thousand websites and downloading a movie.

    Unless the webpages are megabytes each there is. But that's not the point.

    The point is the rate of information consumption. A large webpage (say, a few hundred k) will take longer to read than will the same amount of movie file. If the video rate is high enough, a few hundred kilobytes will pass in a few seconds or less.

    The funny thing is that before the days of HD video, the ISPs sold their 'faster-than-dialup' service as 'fast' and 'unlimited'. I'm not sure why they put 'unlimited' in there, but they're paying for it now. I for one have no sympathy
  • by hardburn ( 141468 ) <hardburn@wumpus-ca[ ]net ['ve.' in gap]> on Wednesday April 09, 2008 @02:01PM (#23015238)

    When ISPs ask "who's going to pay for new infrastructure?", the answer should aways be "you are, in the form of reinvesting your profits into new development, like every other business does, you useless fracks". The "useless frack" part should be put at the end of most statements when dealing with government-mandated monopolies.

  • peak phone usage (Score:5, Insightful)

    by CustomDesigned ( 250089 ) <stuart@gathman.org> on Wednesday April 09, 2008 @02:01PM (#23015250) Homepage Journal
    You don't have to talk slower, but you *do* get "All circuits are busy, please try later." If QoS was implemented, then VoIP (and live video) connections would have a "guarantee bandwidth" tag that would block the connection until sufficient bandwidth was available, and then reserve the bandwidth for the remainder of the connection. Bittorrent connections would have an "as available" tag to minimize cost.

    Under an endpoint driven QoS scheme, if millions of consumers all try to watch the latest BBC special at once, most of them will get the "all connections busy" error. They can then wait (like with POTS), or just start up a bittorrent so that the show will be stored locally when they come back later.

    The key to ethical QoS schemes is that the endpoints should do the tagging, *not* the ISP. The ISP should just charge for the tagging. Currently, the ISP decides which kinds of traffic are "unacceptable" and throttles them. That is unacceptable. QoS can make the internet work at least as well as the POTS network.

  • by Danse ( 1026 ) on Wednesday April 09, 2008 @02:04PM (#23015290)

    I think you are missing that the iPlayer can work in a P2P mode, so the ISPs claim that the BBC does not pay its fair share (because it merely seeds the downloads).
    If the BBC is paying for the data that it is uploading, then it is paying its fair share. The rest of the bandwidth use is customers uploading and downloading data with each other, which they also pay for via their ISP fees. If those fees don't cover the cost of the bandwidth, then that is the fault of the ISP, not the BBC. ISPs keep promising the world to their customers, only to complain when they actually try to make use of all that "unlimited" downloading speed the ISP told them they were getting.
  • The irony (Score:5, Insightful)

    by Alioth ( 221270 ) <no@spam> on Wednesday April 09, 2008 @02:32PM (#23015588) Journal
    The irony is, of course, is the ISPs all put out flashy ads about how broadband allows you to get music and video.

    But as soon as people do just what the service was explicitly advertised to do...the ISPs all start bleating.

    I don't have any sympathy for them. They did it to themselves - they set the expectation you could use broadband to watch video, why are they acting all surprised when people do just that?
  • by ShieldW0lf ( 601553 ) on Wednesday April 09, 2008 @02:36PM (#23015628) Journal
    Here's an illustration:

    I have a house. I rent it out.

    It doesn't matter if I rent it to someone with a family of 2, or a family of 5, it still costs me the same amount of annual maintenance, because I only have one house.

    It doesn't matter if you're never home, or never leave, it still costs me the same amount of annual maintenance.

    Line costs are like a house. You add up the capacity, you divide it by the amount of capacity you promise people, that's how many people you can support on your service. You divide your annual costs by that number, add a percentage for profit, and that is how you should price your services.

    Now, as far as adding capacity, that's like building another house. It lets you get more customers, it doesn't make your existing customers more expensive to service.

    The reason that the ISPs are having trouble is because their business model is based on fraud.

    The fact that this fraud is normalized to the point that people consider it business as usual doesn't change the fact that they were fraudulently selling capacity they didn't have to deliver.

    At the end of the day, they were renting the house out to several people at once, in the hopes that they would all be business travelers who are hardly ever home and there would always be an empty house when they needed it.

    Now, all those business travelers are retiring all at once, and the fraud is being revealed.

    This is the current ISPs business model. This is why they are throwing a fit.

    When you get right down to it, it shouldn't be the responsibility of the public to eat the cost of their line improvements. They've been making large profits on false pretenses, and it should be those profits that are used to build the lines and rectify the situation.

  • Re:Amen (Score:5, Insightful)

    by fm6 ( 162816 ) on Wednesday April 09, 2008 @02:42PM (#23015696) Homepage Journal
    I agree that it's dishonest to advertise a service as "unlimited" when it's not. Not only should they admit that they impose limits, they should be required to specify what the limits are.

    But let's be honest here. For years now, geeks have been pretending that bandwidth is an unlimited resource. We've had huge ranting flamefests on Slashdot whenever anybody suggests that you should pay a per-packet charge for your data, or that you be restricted for re-selling your packets. That's not the only reason ISPs have to pretend that they're selling unlimited flat-rate access, but it's a big one.

    Let's examine the choices here:
    • Keep the flat fee structure, and force ISPs to build up so they can actually support all the bandwidth people are trying to squeeze out of it. That's expensive, and would price access out of a lot of user's reach. It's also difficult to specify, since it's a moving target.

      And don't say, "they can just build up so that there's enough bandwidth in case everybody wants to use the system at once." No telecom network operates on that basis. If it were feasible, the landline phone system wouldn't crash every time there's a natural disaster and everybody runs to the phone to see if Aunt Bee is OK.

    • Require ISP to specify caps and fees for being allowed to exceed them. That's probably the most practical approach, and certainly one most users could live with. But as I said, geeks have always resisted this model.
    • Meter bandwidth and charge per-packet. Same problem.
    • Make content providers pay for the extra cost of serving their high-bandwidth applications. That's what the ISPs are pushing for, but it would destroy the "everybody's a publisher" model that's made the internet so popular.
    • Muddle along as we have been, with deliberately obfuscated usage rules that work OK for most people. Not my first choice, but probably what we'll end up doing.
  • Re:Managing Free (Score:3, Insightful)

    by Pig Hogger ( 10379 ) <pig.hogger@g[ ]l.com ['mai' in gap]> on Wednesday April 09, 2008 @02:53PM (#23015812) Journal
    Only the yankees automatically assume that government is bad. Meanwhile, elsewhere, other government are nevertheless ran competently, and take decisions that are not second-guessed and immediately dismissed by the people. Now walk back in that snowstorm you came from.
  • Lets examine this argument a little more. If everyone paid for the full bandwidth they get (say a 3Mbps connection), and the ISP had to dedicate this much bandwidth per user, the consumer would have to pay hundreds or thousands of dollars a month for their connection. What are the going rates on a dedicated T1, I haven't looked at it lately, but it's not cheap by any means. Building up the infrastructure to fully satisfy the full demand of everyone is a bit ridiculous. The water utilities can't do that, the electric utilities can't do this, the telephone companies could never do this, etc. Imagine if we built roads to the specification that they had to carry the maximum possible number of vehicles in the area at once. We'd have 4 and 6 lane highways running through most every neighborhood. There's a reason that in events requiring an evacuation that roads crawl to a halt. The city and state oversubscribes them, and builds them to accept the average usage pattern, or more often they are built to accept the average peak usage. The same is true of ISPs. They don't build their network to hold the theoretical peak usage, but rather they build them to hold their average peak usage, or a little beyond that (monthly peak usage perhaps). The problem they are facing is that this average peak usage is increasing, however it isn't increasing anywhere near the point of the maximum theoretical peak usage possible.

    Forcing networks to support the theoretical peak usage is silly, just as sill as expanding all interstates to 10 lanes in each direction so that traffic can flow more smoothly during evacuations etc. The cost of such plans is just too high compared to the gains we'd have by it. In fact, the cost of not oversubscribing bandwidth would price internet access to the point where most people might have a dialup connection. If you keep up the comparison, imagine if we kept going on this peak theoretical usage, and said that this peak theoretical usage had to work anywhere. Well most internet traffic is fairly local (same city, state, country, etc). What if ISPs were required to have the same bandwidth between chicago and new york as they have between chicago and shanghai. If you consider these massive links, we just wouldn't have anywhere near enough bandwidth.

    Phil
  • by gnuman99 ( 746007 ) on Wednesday April 09, 2008 @03:18PM (#23016078)
    How about charging the way you charge for normal utilities like electricity? You get a charge like,

        $10 - base charge (infrastructure maintenance, etc.)
        $2/GB - first 10GB
        $1/GB - next 100GB
        $0.75/GB - anything over 110GB usage

    There ya go. Cheap for people using low bandwidth. Not exuberant for people using lots of bandwidth. Adjust prices accordingly per region and then don't bitch (either customer or ISP) that they don't have money for bandwidth.

    Going back on topic, BBC *pays* for the use of bandwidth on their side. If ISP "can't cope with demand", it is not BBC's problem. And BBC should post blacklisting messages for customers connecting from ISPs that throttle their service, and suggest ones that do not. But then UK has one of the crappiest service from what I can read on forums like for EVE Online. Like people wanting to play a low bandwidth game like EVE can't connect because Tiscani choses to shaft them - http://myeve.eve-online.com/ingameboard.asp?a=topic&threadID=553090 [eve-online.com]
  • Re:Managing Free (Score:3, Insightful)

    by Chandon Seldon ( 43083 ) on Wednesday April 09, 2008 @03:38PM (#23016284) Homepage

    It's true that there is an innate "Yankee" cultural distrust of government - but to simply assume that's wrong because your personal culture didn't leave you with any such warning is foolish.

    There are some very few governments in the world today that seem to work well and generally do good. The necessary but not sufficient requirements seem to be 1.) a rich and well educated populace 2.) a population under 10 million.

    But even in those places, there's always a risk that *any* power structure can be co-opted for evil. It happens constantly; assuming that it's not going to happen to your government is ignorant and dangerous.

  • And then the ISP can cut off customer access to the iPlayer, and THEN they can deal with the malestrom of calls from angry customers who want it back or they'll switch to another ISP.
    The ISPs won't cut customers off from the iPlayer, that would be far too obvious and you're right, customers would complain and switch. What they'll do in stead is use shaping and throttling to limit access to iPlayer or iPlayer-like traffic. When people only see "Buffering..." rather than their BBC program of choice, they'll complain to the BBC. The BBC will tell them it's not the fault of their application and blame the ISP. The ISP will say they don't troubleshoot individual websites, and tell the customer their connection is working fine.

    Most customers don't have any idea how the internet works. And that's fine. It's a big complex system, and really they only need to know enough to get by. The problem is that ISPs can use that lack of understanding to abuse customers like this. It's what makes the net neutrality issue such a serious one.
  • by sm62704 ( 957197 ) on Wednesday April 09, 2008 @03:45PM (#23016360) Journal
    Some people don't understand the concept of 'bandwidth'.

    If their ISP is advertising "unlimited bandwidth" they shouldn't have to understand the concept of bandwith. All they should have to know is that they can have as much of it as they want.

    The ISP, OTOH, doesn't understand the concept of "telling the truth."
  • by Sleepy ( 4551 ) on Wednesday April 09, 2008 @03:47PM (#23016386) Homepage
    >Honestly, how is the ISP that's going to have any leverage over the BBC?

    >Sure the ISP can send a bill.

    A rhetorical question, or better still a "strawman" of your choosing that has nothing to do with the issue discussed.

    If you are going to drag in the "regulation" boogeyman of the libertarian, consider that cartel-like collusion is the OPPOSITE of a free market machine.

    The ISP's are PERFECTLY capable of selling "metered" service by the megabyte to the consumer. This is a fact, and no one decries such plainly worded terms of service.

    The ISPs want to keep promising "unlimited" service and mislead the customer, and they want to do it by colluding on a single domain to bring them down... in effect the ISPs want to derail what has been until now a free market. A free market doesn't care if the bytes you consume on your "unlimited" Internet are Google's bytes or the BBC.
  • by NexusTw1n ( 580394 ) on Wednesday April 09, 2008 @03:49PM (#23016400) Journal

    When the level of utilization changes, they are going to have to eventually upgrade the system. Eventually. This isn't going to happen overnight because of the costs involved. Should they have done it before? Maybe.
    The problem at least in the UK is that 2-3 years ago most people were on 0.5MB ADSL and that was good enough for email and surfing for most people.

    The ISPs then had a new product to sell - ADSL2, with speeds up to 8 Meg, and they advertised it like crazy and they promised Dad could read email, while mum was downloading showtunes from itunes, while Son was playing online games, and Daughter was downloading funny clips from youtube.

    They wanted everyone to move to the new system and they deliberately hyped all the bandwidth hogging services as the reason you really should move to faster broadband.

    Stupidly they fought for market share on price at the same time, some ISPs were offering free home broadband with your mobile phone price plan for example. At the time even pro consumer groups were saying the prices were too low and unsustainable.

    So here we are a few years later, ISPs are shocked that people are using bandwith hogging services, they themselves promoted, and because of the price war, margins are too tight to widen pipes.

    iPlayer has proven such a success there isn't a hope in hell of the BBC being made to stop the service and any money the BBC has to pay out, comes out of the licence fee, and that isn't going to happen either. The ISPs dug their own grave and some aren't going to dig their way out.
  • by Nullav ( 1053766 ) <moc@noSPAM.liamg.valluN> on Wednesday April 09, 2008 @03:56PM (#23016498)

    OK, so if I get 12 mbps speed, which is what is needed for high definition video in real time, you're going to charge $360 per month? It seems like your network isn't ready for 2009. Oh wait, it's still 2008. I guess you have another year.
    $360/month for a guaranteed 12Mbps line is damn good. That 10-15Mb/s downstream CableCo X offers is nothing but burstable bandwidth, meaning that they promise you nothing but the line itself. In short: "Up to 15Mb/s".

    Residential ISPs (at least in the US) typically oversell like there's no tomorrow, sometimes block ports to force you to use their 'business' service to say...run an HTTP server without the tacky port number at the end of the URL. 'Business' lines usually aren't oversold and go down about as often as residential ISPs upgrade their infrastructure, usually don't block ports, and tend to have better upstream.

    Think of it as buying from a pharmacist instead of a dealer.
  • Re:Amen (Score:3, Insightful)

    by h4rm0ny ( 722443 ) on Wednesday April 09, 2008 @05:24PM (#23017640) Journal

    You realised it.
  • by tacokill ( 531275 ) on Wednesday April 09, 2008 @05:30PM (#23017690)
    Back in the 80's and 90's, we already tried doing metered service. AOL, Compuserve, Genie, and other ISP's had hourly rates back in those days.

    It made their product a niche product and eventually ALL of those companies abandoned that billing scheme in favor of unlimited pricing. Guess what happened? The internet hit critical mass BECAUSE they changed to "unlimited" monthly plans.

    So now, in 2008, we are looking back into metered service? Good luck with that. My gut tells me "the people" will reject it. Just like they did back in the 80's and 90's. As soon as someone (Netzero) offered all you can eat for one price....the other competitors started bleeding customers. It will be the same this time around.

    People don't want to look over their shoulders or monitor their usage. They do it for cell phones because they have to (no other choice). Not true for ISP's.
  • by Anonymous Coward on Wednesday April 09, 2008 @06:59PM (#23018688)
    Unless you've come up with some sort of freakish business model which relies on people paying for lots of X without actually using it.

    Sounds like my local gym membership :-) Apart from in January.

  • by AK Marc ( 707885 ) on Wednesday April 09, 2008 @08:31PM (#23019398)
    Next we have the problem that for the last 10-15 years or so the Internet has been defined by web surfing and email and not much else. Sure it would have been nice if a few ISPs had been forward-thinking enough to build out 10x the capacity they needed to operate. You know, just in case some need came along. Suprisingly, this isn't a very effective way to operate a business.

    If people weren't using it, then they wouldn't pay $1 more for 15 Mbps over 1 Mbps. Why are they offering such high speed packages? Because they know people want it. They are selling something they know people want, yet they aren't able to deliver. It hasn't "snuck" up on them. The ISPs have been steadily increasing their package speeds. If they haven't been increasing their core at the same rate (and they haven't) then it is their own fault, and not because of any unexpected demand. It may be that in the post 2000 years spending on the core has decreased while desire for revenue (sell higher priced packages) has increased. But just because they haven't been doing what they know is technically required for a stable network doesn't mean they didn't see it coming or excuse them when the network approaches unusability under increased demand. If the packages don't make sense financially, they shouldn't have offered them.

    And start paying a lot closer to what dedicated bandwidth costs businesses today.

    You talked about T1 pricing. One reason that's an issue is because of local loops. The phone company charges anywhere from $100 to $300 (or more) just to connect one end to the other. That's the greatest cost for a T1. Then add the increased support. In reality, the data flowing over the wire is almost free. It's getting the dedicated wires to the ISP and the increased level of service (ever have a phone company tech spend 20 hours at your home for a single 1.5Mbps DSL connection? I've had it with a T1, and it's not that uncommon when there are minor intermittent issues). The ISPs saw this coming. They charged more where they could, paid less where they could, and there is a collision happening between the two.
  • Re:Amen (Score:3, Insightful)

    by totally bogus dude ( 1040246 ) on Wednesday April 09, 2008 @11:42PM (#23020676)

    Require ISP to specify caps and fees for being allowed to exceed them. That's probably the most practical approach, and certainly one most users could live with. But as I said, geeks have always resisted this model.

    Maybe for American geeks, but Australian geeks have [ii.net] had [on.net] quota [peopletelecom.com.au] systems [aapt.com.au] for years and it works perfectly well. The last unlimited account I had was a dialup account in the early 2000's (iiNet Explorer), but even unlimited dialup is something of a rarity these days. There are a handful of providers offering unlimited downloads on low-speed ADSL connections (usually 256kbit), but the vast majority of ADSL plans give you a fixed amount of downloads per month at a fixed price. For home accounts, exceeding your quota typically results in you being shaped for the remainder of the month (to 64 to 128kbit depending on the ISP) so you can still access the internet but it's not much fun. On business-oriented accounts they'll normally charge a per-megabyte fee for excess usage. Some ISPs also let you buy blocks of additional quota on an ad-hoc basis for a premium, to encourage people to keep within their monthly quota (presumably this makes it easier for the ISP to anticipate demand on their network).

    While I would of course prefer to be able to download an unlimited amount of data each month, obviously that's not realistic and a quota system like this makes it clear what the actual costs are and keeps demand in check. This system works perfectly well, but the trick is actually getting ISPs to switch to it -- if all your competitors advertise "unlimited downloads*" and you advertise "100 GB per month" you're going to look much worse, even if your "unlimited" competitor throttle particular types of traffic. Here it happened when they started rolling out ADSL, because having unlimited downloads at 10x the speed of dialup was utterly untenable. Bandwidth costs are a lot lower in the US so they've been able to keep offering "unlimited" for a lot longer knowing that the majority of users would subsidise the few who actually do use a lot of bandwidth, but the increasing speeds of consumer internet connections coupled with the increasing amount of high-bandwidth content available means the camel's back has to break, eventually.

  • by PMBjornerud ( 947233 ) on Thursday April 10, 2008 @11:09AM (#23024850)
    I don't understand the problem with fixing "infinite" plans. Why not use a plan structure like this?:

    Full bandwidth until 10 GB limit.
    128kbps after limit is reached.
    Reset each month.

    The numbers are just pulled out of the air. You'll want enough GB than most people will never hit it, making the plan infinite for all practical purposes. They can keep their computers turned on every day, all day. No surprises, no huge bill suddenly happening because they passed the cap. Even if someone get some malware maxing their connection. Customers might accept that the email-spamming virus "makes the Internet slow". They will NOT accept a $5000 bill for the bandwith used by said virus.

    And after the cap, it's still as good as infinite. Email and browsing will function fine, just a little bit slow.

    The only ones that will notice are heavy users. I'll happily pay a bit extra for the bandwidth I use. Just get a bigger plan with more GB before capped.

    Such a plan could also easily be extended with off-peak rates. Usage between 2am-6am only count 50% towards your cap limit, for example.

    Dead simple to implement, and would make perfect sense for everyone. No?

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