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The Internet Businesses

Virgin Media CEO Says Net Neutrality Is Already Gone 378

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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Virgin Media CEO Says Net Neutrality Is Already Gone

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  • by Anonymous Coward on Sunday April 13, 2008 @06:17PM (#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.
  • by Zeinfeld ( 263942 ) on Sunday April 13, 2008 @06:17PM (#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.
  • Unfortunately... (Score:2, Insightful)

    by woot account ( 886113 ) on Sunday April 13, 2008 @06:18PM (#23056872)
    it's not a battle we're going to win. This is the United States, where the corporations control the government, entertainment controls the people, and the people control nothing.

    Hell, ask the average Joe Sixpack if they'd like to have their American Idol episodes download faster at the expense of a bunch of pasty faced nerds not being able to access Slashdot at the same speed, I'm sure they'll be quite happy about it.

  • Meanwhile... (Score:5, Insightful)

    by Infonaut ( 96956 ) <infonaut@gmail.com> on Sunday April 13, 2008 @06:19PM (#23056882) Homepage Journal
    An anguished, collective shout of horror and surprise emanates from Virgin Media's PR department: "Nooooooooooo!!!"
  • by Pantero Blanco ( 792776 ) on Sunday April 13, 2008 @06:25PM (#23056938)
    Unfortunately, his Slashdot-using customers probably wouldn't make a dent if every one of them dropped him. Furthermore, many of them won't, because the ISP will be the only one available in some areas.

    Maybe his bombastic words will provide good ammo to use against others like him, at least.
  • by Doc Ruby ( 173196 ) on Sunday April 13, 2008 @06:27PM (#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.
  • by Anonymous Coward on Sunday April 13, 2008 @06:28PM (#23056962)
    Have you missed the whole Phorm issue, where BT have essentially admitted to illegally intercepting thousands of customers' data and giving it to an ex-spyware company?

    Which they now plan to roll out across the board, with an opt-out clause that essentially says "we'll be collecting all the data anyway, but promise not to give it to anybody".
  • by Jimmy_B ( 129296 ) <jim.jimrandomh@org> on Sunday April 13, 2008 @06:32PM (#23057018) Homepage
    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 Anonymous Coward on Sunday April 13, 2008 @06:34PM (#23057032)
    He's a wealthy CEO. He owns a big condo near the corporate office and uses a limo between them. His other home is in the country. He may never have even been on a city bus.

    Speculation, but I wouldn't be surprised it its true.
  • by gigne ( 990887 ) on Sunday April 13, 2008 @06:38PM (#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.
  • by MLCT ( 1148749 ) on Sunday April 13, 2008 @06:45PM (#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.
  • A market solution (Score:2, Insightful)

    by Anonymous Coward on Sunday April 13, 2008 @06:46PM (#23057124)
    What if Google stopped responding to requests from Virgin customers? I think Virgin would cave in pretty quickly.
  • Re:grow up (Score:5, Insightful)

    by Doc Ruby ( 173196 ) on Sunday April 13, 2008 @06:50PM (#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 Lobster Quadrille ( 965591 ) on Sunday April 13, 2008 @07:02PM (#23057268)
    I don't like what he's saying, but at least he's straightforward about it.

    That is a breath of fresh air.
  • by Le Jimmeh ( 1086671 ) on Sunday April 13, 2008 @07:37PM (#23057520)
    Well, considering it's a British Company the "American spirit" was never really there. Regardless, it's not that we're treating the lone provider as an "opportunity", but rather we have no choice. What do you expect us to do, make our own cable company?
  • by vux984 ( 928602 ) on Sunday April 13, 2008 @07:39PM (#23057534)
    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.

  • by Le Jimmeh ( 1086671 ) on Sunday April 13, 2008 @07:40PM (#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 Anonymous Coward on Sunday April 13, 2008 @08:35PM (#23057860)
    An honest crook is still a crook.
  • How do you think the cable companies got started? One cable at a time.

    You left out one government granted monopoly to use the right of way at a tyme.

    Falcon
  • by dreamchaser ( 49529 ) on Sunday April 13, 2008 @08:42PM (#23057926) Homepage Journal
    Nonono. That's Canada. The UK is the 52nd State.
  • by urbanriot ( 924981 ) on Sunday April 13, 2008 @09:01PM (#23058052)
    And your trite quote doesn't alter the fact that I prefer openness and honesty over secrecy.

    An honest crook is still a crook.
  • by dachshund ( 300733 ) on Sunday April 13, 2008 @09:08PM (#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 Solandri ( 704621 ) on Sunday April 13, 2008 @09:10PM (#23058112)
    In a neutral network, each content provider has to negotiate only one contract with their connectivity provider. So if there are N content providers, there are N contracts.

    If you ditch net neutrality, each content provider has to negotiate contracts with every connectivity provider. So if there are N content providers and M ISPs, the system needs up to M*N contracts to function. That's a huge market inefficiency. Since ditching net neutrality doesn't magically create more bandwidth (it only prioritizes it), the system as a whole has gained zero additional capability at the cost of an enormous amount of extra paperwork. It's a classic tragedy of the commons, where each individual acting in their own best interests will result in the worst possible outcome for the system as a whole.

    Also, the ISPs have yet to realized that this is a two-way street. If they start charging unaffiliated content providers extra money, the natural response is going to be content providers "unionizing" to increase their negotiating clout. Suddenly they'll be demanding lower network connectivity prices than they were initially charged. "You ISPs are getting money from other content providers, but haven't dropped your prices! We demand the prices you charge us reflect your new cost of operation."

    The end result of all this will be a lot of running around to arrive at exactly where we started. It's stupid, wasteful, and inefficient. That's why net neutrality makes sense. If there's a bandwidth problem, the solution is to add more bandwidth; none of this stealing from the right hand to pay the left silliness.

  • by Timothy Brownawell ( 627747 ) <tbrownaw@prjek.net> on Sunday April 13, 2008 @09:11PM (#23058126) Homepage Journal

    1/ This isn't in the US.

    2/ (In the US, at least) These companies tend to have government-granted monopoly status, where you're not allowed to compete with them. This is why US broadband sucks so much.

  • by davide marney ( 231845 ) on Sunday April 13, 2008 @09:47PM (#23058302) Journal
    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 Doc Ruby ( 173196 ) on Sunday April 13, 2008 @10:04PM (#23058422) Homepage Journal
    Well, maybe in their imaginations. But that "libertarian" was hustling for exactly that kind of rigged market. Which is the only kind of market I've ever seen any "actual" libertarian hustle for in reality.

    Maybe you're referring to some characters in an Ayn Rand novel. Those are all fiction.
  • by Anonymous Coward on Monday April 14, 2008 @03:28AM (#23060390)
    I'd say the majority of people just won't care, or even know the difference. All they know is that their broadband access goes to websites and they no longer need to use a dial-up modem.

    The only people who will care are the users who would frequent places like Slashdot.
  • by Sockatume ( 732728 ) on Monday April 14, 2008 @03:43AM (#23060442)
    It wasn't all Virgin's decision to drop the Sky channels. Sky's contract with Virgin came up for renewal and Virgin refused to pay what Sky were asking for the channels (which included a "no matter how many people subscribe, you must pay us this minimum charge2 clause). Of couse it sucks if you're a customer, but Sky would just as happily exist in a world where we all used ADSL, had £60-per-month basic satellite subscriptions, and most of the hardware support was provided through really dodgy outside contractors, so it was kind of nice to see somebody sticking it to them.
  • by Dr_Barnowl ( 709838 ) on Monday April 14, 2008 @04:55AM (#23060768)

    50Mbps which gets down to 2Mbps after you use it for 10 minutes? ...
    You're not being entirely fair. This only occurs during peak hours (1600 - 2100), if you're maxing out your connection for those 10 minutes.

    Faced with the prospect of a (small) horde of P2P users ruining the service for all their other users, Virgin have implemented what has to be one of the most fair and lenient ways of spreading the load, by limiting the impact that the minority has during the period when the segment of their customer base that is least likely to be understanding about a poor connection is online.

    For the remaining 19 hours of the day you are free to exercise your bandwidth to it's limit. Bear in mind that 50Mbit/s is equivalent to at least 4 simultaneous broadcast quality DVB-T channels - if you can't pull in enough content to satisfy you across that kind of bandwidth, you either have serious ADD, or you're a warez duplicator.

    ASDL ISPs in the UK typically cap your monthly download bandwidth instead, which isn't nearly as fair (doesn't address the real problem of peak-time congestion), or as useful - a 5 hour throttle down to 2MBit/s isn't nearly as painful as having your connection choked to sub-modem speeds for the rest of the month.

    Unless you have a business need for that much bandwidth, in which case you shouldn't be using a residential ISP service.

    Yes, it would be great if they had enough capacity to serve everyone at full speed all the time. It would be great if their marketing wasn't misleading about speed. But frankly, if you're a technically adept user you should appreciate the difficulty of providing all-you-can-eat bandwidth, and you should take marketing with a pinch of salt.

    I initially found it a pain in the ass too, then I just changed my habits, queued downloads for after 2100, etc. I also took a deep breath and remembered that even when my connection was throttled, it was still 180 times faster than the crappy old 56k modem I used to use.
  • by c0p0n ( 770852 ) <copong@@@gmail...com> on Monday April 14, 2008 @06:40AM (#23061202)
    Not my problem if they haven't got enough capacity for all their users. If I pay for something I expect to get what I pay for. It ain't me who's limiting other users if I'm downloading lots, it's them for being tight arses and overloading their infrastructure with far more users that it can support. Unlimited means unlimited. As you point out this is highly misleading. This is one of the reasons I've been looking for an alternative to Virgin.
  • by Anonymous Coward on Monday April 14, 2008 @08:11AM (#23061598)

    I don't think you can claim that Virgin Media has a monopoly just because you "don't use" the competitors. The ADSL providers are the competitors to cable Internet.

  • by Anonymous Coward on Monday April 14, 2008 @08:23AM (#23061692)

    As soon as they get a semi-decent userbase, Tiscali will buy them. It's probably best for you to be quiet and keep the good ISP as your little secret.

  • by h4rm0ny ( 722443 ) on Monday April 14, 2008 @09:04AM (#23062052) Journal

    Kingston Communications was Hull's own telephone company and network. I don't know the history of it, though I expect it's interesting. And having not been to Hull for a few years, I don't know what the situation is today. But based on my experience with them, no-one ever complained because they were quite frankly very much better than the rest of the country.

    As regards the poster who's saying net neutrality is already gone, there's room for it to get a whole Hell of a lot worse and we have to fight it till it's dead and it stays dead. He might say that the loss of Slashdotters as customers is not going to bother him, but I'm personally responsible for eight friends and one company's choice of provider just by myself. The IT community is not the community to piss off if you're an IT company.
  • by MBGMorden ( 803437 ) on Monday April 14, 2008 @10:21AM (#23063066)
    Until then another DSL provider opens up that doesn't prioritize them based on kickbacks, and scoops up all the business of people because they realize that all the sites run faster on that service.

    Then the idiots will realize that the money they're losing due to people using an unrestricted service is greater than what they'll be getting by extorting the companies who make people WANT TO PAY YOU FOR INTERNET ACCESS.

    Problem is that many areas are only served by one ISP/cable company, often with a government grated monopoly. In those cases there's no where else to really turn. IMHO, if they government put in restrictions to restrict competition, they should also put in laws to fix the problems that competition would have fixed.
  • by electrictroy ( 912290 ) on Monday April 14, 2008 @10:43AM (#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 @10:47AM (#23063418) 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 @10:58AM (#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.
  • Re:grow up (Score:3, Insightful)

    by Doc Ruby ( 173196 ) on Monday April 14, 2008 @04:47PM (#23069174) Homepage Journal
    The connections are in the posts to which I'm replying. They're not just "general attacks", they're counterattacks to what some libertarian has attacked me with.

    One problem with libertarians is that you don't properly distinguish between the specific and the general. Like when you just capitalized "Libertarianism": that's the specific ideology of the Libertarian Party, not the general ideology of the political philosophy.

    That tendency to conflation also underwrites the thinking in that entire post you just made. I never said "well, [l]ibertariams support the free market, and this happened in a free market, so, ummm DEATH TO LIBERTARIANS!" or anything close. In fact, I pointed out that the market in which Virgin's making its grab is not free, just the most obvious way in which your contrived "summary" is unconnected to reality. But it is a self-serving oversimplification, from a libertarian, so of course I should dignify it with the respect of a logical response :P.

    Libertarianism is political extremism, worshiping liberty while ignoring every other value, fetishizing a reductionist logic ad absurdum. I've had to deal with it for years, as generation after generation discovers Ayn Rand and "the virtue of selfishness" for itself, as if the world were brand new. There's as little chance of clear and reasoned debate about extremist libertarianism as there is about any other fundamentalism, as I've learned over and again for so long. No, it's much better to just laugh at it, because it's really better as a joke. Taking it seriously is just much too sad.

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