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Who Pays for Rebuilding the Internet? 473

pcause writes "The Internet (physical as opposed to technical) was really not designed for applications that want to use maximum bandwidth all of the time, such as P2P and streaming video. Here in the US we've seen Comcast try to balance the demands of P2P traffic with other traffic and its backbone capacity. In the UK, a flame war has broken out between the BBC and ISPs about the same issue. So the question is who pays? Should the content owners who make the profits pay for the extra infrastructure, or should the consumer pay?"
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Who Pays for Rebuilding the Internet?

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  • Duh - we all do. (Score:4, Interesting)

    by seanadams.com ( 463190 ) * on Wednesday April 09, 2008 @09:55PM (#23020298) Homepage
    The interesting question is not who pays, but how can we all collectively pay less for better performance? The problem is that the billing model for the internet is broken. ISPs need to start billing for usage, that much is obvious. But in addition, I think it would be really interesting if they billed based on a function of their actual cost for delivering every individual packet. I.e. if it stays in their network it's really cheap, if it goes through a peer then it's still pretty cheap, and if it goes to a transit provider then it gets expensive. the upstream ISP could in turn bill based on their cost to deliver it. Routers could pass along this metadata about the cost, accumulating it along each hop.

    Obviously this has tremendous implications in terms of the additional work that routers would need to do to account for traffic, and how the costs are communicated to the customer. However, I think the end result would be something quite incredible, because what would happen is it would drive the development of smarter P2P protocols that keep traffic nearby, and widespread deployment of caches for static content and such. Right now there is very little incentive to do these things.

    The end result, once everything has had a chance to adapt, would be a phenomenally efficient internet, with reduced costs and better performance all around. ISPs wouldn't give a hoot about this new class of "smart" P2P because the bulk of the traffic would stay among their local subscribers, the bandwidth to whom is free. Massive loads would be disappear from peering centers and long distance links. The cost of bandwidth would plummet.

    I think all of this is feasible, and it's worth doing.
    • by ximenes ( 10 ) on Wednesday April 09, 2008 @10:00PM (#23020334)
      Sorry, I think thats a terrible idea. One of the major benefits of the Internet is its inherent globalization. You don't have to worry about talking to someone in Russia and paying $5 a minute to the phone company, its the same cost as connecting to a site next door.

      Just think how people's lives would be different if international or long distance phone charges didn't exist. How many times have you heard of someone waiting until a certain time of day to make a really long distance call? Or using Skype or some other Internet-based replacement for phone calls to get around the fees?

      What you're proposing is basically to bring that sort of thing to the Internet itself, and I can't say that I want to wait until 2AM to save on my bandwidth bill.
      • It might be nice to have zero packet cost, but unless there is some way for a provider to profit there is no motivation for that provider to lay on services.

        Consider all those folk choking up the internet with video downloads, P2P etc "because it's free" and they've got nothing better to do with their time. They're all choking up the pipes for everyone.

        Pay-per-use is one way to get a free market into this and allow people to buy the QoS they want and the market decides the price points. It would also motiva

        • Re: (Score:3, Interesting)

          by saitoh ( 589746 )
          Correct, the incentive option is a neat way of involving the principles of economics on the internet. However consider this:

          If the people downloading tons of stuff on youtube (or posting it, thats an even better one, generation of content) are charged even $1 to transfer a video, how many are still going to do it? I don't think nearly as many, so suddenly, not only do you have bandwidth to spare, but there isn't the demand to utilize it (thus no infrastructure improvements), nor is there the diversity of co
        • by duffbeer703 ( 177751 ) * on Wednesday April 09, 2008 @11:33PM (#23020928)

          They're all choking up the pipes for everyone.

          What is your basis for claiming that the internet is clogged and choked up? With few exceptions, the internet is working just fine, thank you very much. Moving to a consumption-based billing model is nothing more than an excuse for the telecommunications providers to extract more money and perform fewer upgrades. The notion that ISPs are buckling under the weight of P2P and YouTube is even more retarded when you consider that P2P protocols by their nature prefer to use fast, local peers and companies like Google use backhaul networks to deliver content to local peering points.

          The current model is elegant in that the exchanges between ISPs are essentially free. If Comcast/AT&T/Time Warner/etc are suddenly able to charge me in KB/s or have a tariff for each Email/IM sent like the wireless carriers do, someday they'll wake up and say "Hey, let's charge Verizon for accessing our customers!" Then the whole system breaks down, and you time travel back to 1989 when you had Prodigy (the IBM/Sears version), Compuserve and GEnie.

          I work in an organization that maintains a carrier-grade private network that connects about 25,000 locations. But since even carrier-grade equipment has a relatively short lifespan, routine infrastructure refreshes give us next-generation technology, automatically, whether we need it or not. In 2004, it would have cost millions for ISPs to implement metro Gigabit networks to connect customer nodes... but today, equipment swap-outs will essentially give them that capability for next to nothing. In 2012/2013 when today's new equipment is obsolete, 10G ethernet will be the norm.

          When your local transportation department discovers that traffic patterns have changed, they don't start billing you for your time on the highways. They figure out what the problem is, re-engineer traffic signaling or change maintenance schedules to widen/pave/etc roads. ISPs need to do the same.

          • by Grail ( 18233 )

            It's not the urban services that are choking on P2P and YouTube, it's the driveways in private estates.

            If your private estate's driveway can't handle the flotilla of heavy vehicles bringing HD video to your home, is it the responsibility of the HD video provider, the trucking company, or the private estate to upgrade the driveways to handle the traffic? Remember, the road leading to the estate was big enough already - the choke point is the private estate's single lane driveways.

            However, all of my goods

          • by Basehart ( 633304 ) on Wednesday April 09, 2008 @11:53PM (#23021030)
            Lets face it, only Earth people get to use the internet so it won't be getting bogged down anytime soon. It's when aliens start tapping into it that we're screwed.
      • Re: (Score:3, Insightful)

        by catwh0re ( 540371 )
        Spot on, the internet is successful because there is no penalty for the creation of content. Data is usually billed as a receiver pays system. (Generating more reasons to come up with compelling content.)

        If you begin to charge the content creators, then it will stop seeding start ups. Yahoo! is a good example of how the ability to host content inexpensively leads to growth.

    • ..adjust the rates based on time of day (or generally, demand at a given instant). There's a ton of spare bandwidth at night.
      • by bagboy ( 630125 ) <neo@nOSpam.arctic.net> on Wednesday April 09, 2008 @10:09PM (#23020412)
        >>There's a ton of spare bandwidth at night.

        I don't know where you get this from. As an engineer for an ISP, our low point is only from approx 2-4 am. Bittorrent and other P2P clients left running all night still consume constant traffic in both directions.
      • isp's already do it, it's called off peak allowance and has been standard for years
    • Re: (Score:3, Insightful)

      "The interesting question is not who pays, but how can we all collectively pay less for better performance? The problem is that the billing model for the internet is broken. ISPs need to start billing for usage, that much is obvious."

      While this sounds smart, that's exactly the model for water and right now there is a bit of a crisis for the home owners conserving their water around the Toronto area where I live... all of a sudden they are not taking in enough money to maintain infrastructure because it's ba
      • then you have to increase the base rate for everybody by a little bit, which is always unpopular as people want people that use "more than them" to pay to fix it. In the case of towns, they borrow money and charge taxes for needed things. Of course the feds did give away hundreds of millions in tax breaks that weren't properly invested!
    • by Kagato ( 116051 )
      I think you're half right. ISPs advertise more bandwidth than their pricing model supports (or get greedy and way oversell their bandwidth). The BBC, YouTube and other large bandwidth content providers pay a pretty penny to upstream providers. That money is used to beef up top tier backbones. When I buy "Unlimited" service with X, Y and Z bandwidth, well, that's what I expect to get.

      In either case, everyone is suppose to pay. Which is why when I transfer large payloads b2b where companies have paid fo
    • Re: (Score:2, Interesting)

      by jeff419 ( 1112781 )
      I've actually been giving a lot of thought to the idea of how the people can make the internet completely peer to peer so there are no ISPs or Data Centers. Why not come up with a wireless routers that connects everyone to everyone and relays the traffic. With everyone connected we can share our unused processing resources to facilitate a massive cloud computer that can host the entire internet and serve every developers needs. Think about shutting down all these Telecommunication companies in one fell swo
    • by mabhatter654 ( 561290 ) on Wednesday April 09, 2008 @10:34PM (#23020612)
      Why, when we already have something better?

      Think of your cell phone service, you pay for the company to maintain antennas to talk to YOUR phone. Your friends 2 states away pay for their company to maintain antennas in their towns. The cost is in maintaining the equipment for a given level of usage, not the per call cost. The particulars of how your call gets from your phone to your friends phone at a different phone company really aren't important and the companies should work that out.

      That's how the internet was started from the beginning. The current high-bandwidth places like Google pay so much for bandwidth they by stock in Fiber. They are paying, considerably more than customers for all the packet they send out to their provider. And consumers are "legally" paying for the packet they accept...Which if you think about phone service or any other situation like mail is totally silly that IPS want to charge for "incoming call" packets.

      The real problem is that ISPs traditionally discouraged being part of the real internet and were established as pure consumer leachers. They grew up their structures based on how fast they could "broadcast" web pages while severely limiting any kind of hosting between hosts or to the general internet. In a peer-sharing network, they have nothing to actually share. The structure forced means that all of the traffic for all of AT&T's customers in a given state go thru just a few actual internet connections, and no routes go thru. It's like car traffic thru all the "closed" subdivisions that all dump into one main road instead of providing alternate routes thru the countryside for the increased traffic.

      I agree that P2P and caching would be good, but the telcos want big bucks for that... they are still thinking client-server. They want Viewers, not Customers... trying to monetize those under-priced DSL customers by selling expensive services found elsewhere on the internet.
  • Better question (Score:5, Interesting)

    by Raindance ( 680694 ) * <`johnsonmx' `at' `gmail.com'> on Wednesday April 09, 2008 @09:55PM (#23020300) Homepage Journal
    A better question would be, "why is the market broken?"
    • by Anonymous Coward on Wednesday April 09, 2008 @10:13PM (#23020456)
      If the content providers pay, but cannot (or do not) pass those costs along to the consumers, then their business model will not be viable. They will be paying more than they are making, and eventually will starve to death.

      Obviously, this isn't going to happen.

      If the content providers pay, and can still squeeze a profit out of the deal, they will *still* pass the cost along to consumers, for two obvious reasons: 1) they want to maximize their own profit margins, 2) they will get sued by their own shareholders if they don't try.

      The cost will be passed on to consumers one way or another...perhaps in the form of a direct infrastructure tax, perhaps in the form of tax incentives/subsidies specifically for ISPs, perhaps in the form of higher cost service to the consumers, most likely as a combination of all three (and maybe other common means of paying that I haven't thought of).

      Remember...the workers generate wealth while the organizers skim off the top. There is no more universal principle.

      • Re: (Score:3, Insightful)

        by MadAhab ( 40080 )
        Mod this parent up: the subject is what I came here to say - the consumer always pays.

        I'm ready to take up cutlass and musket against those who are against Net Neutrality - I think it's that important.

        But there is, indeed, a more nuanced side. The trick is that the big content companies and the ISPs have to, uh, to quote McCain, "cut the bullshit". Miro, Bittorrent and P2P in general have to be accepted. Because it saves them (and everyone) shitloads of money. If the broadband providers - worldwide, this is
      • Re: (Score:3, Insightful)

        by feepness ( 543479 )

        Remember...the workers generate wealth while the organizers skim off the top. There is no more universal principle.
        Organizing isn't work?
      • Re: (Score:3, Insightful)

        by ToadMan8 ( 521480 )

        Remember...the workers generate wealth while the organizers skim off the top.
        The organizers aren't doing anything to generate the wealth, right?

        Those workers who were all doing other things would have just spontaneously found this empty building to all put their stuff in, organize themselves into semi-functional work teams, and accomplish the generation of wealth? Hrm...
    • Re:Better question (Score:5, Interesting)

      by Deadplant ( 212273 ) on Wednesday April 09, 2008 @11:14PM (#23020836)
      The market is broken by the last-mile monopolies.

      The solution is fiber to every building as public infrastructure.

      Then we can have a proper free market for Internet services over that fiber.

      • Cui bono? (Score:5, Insightful)

        by definate ( 876684 ) on Thursday April 10, 2008 @12:29AM (#23021222)
        Who gets the contract to do the fiber? How much should be paid to do this contract? Should everyone get it or only dense populations? How dense do the populations have to be? How do we pay for it, do we inflate the currency through debt or do we increase tax?

        Who gets the maintenance contracts? How much do we pay for the maintenance contracts? How much maintenance should be spent on all fiber or should only dense populations get it? How dense do the populations have to be? How do we pay for it, do we inflate the currency through debt or do we increase tax?

        Who gets to use the fiber? How much do we charge companies to use this fiber? How do we ensure its being used for the right purposes and companies aren't bidding for contacts and locking in those customers? Who is responsible for faults in the network? How are costs allocated?

        The market is fine, the solution is to deregulate so companies are forced to compete, as opposed to the more segregated systems that we are used to now a days.

        I don't recall anyone ever saying "To have a free market, it must be provided by public Government services", a free market can never have any Government regulation or intervention, else it is not a free market.
        • Re: (Score:3, Insightful)

          The most obvious analogy is the roads, and the majority of roads are paid for by the government (i.e. taxpayers). The roads provide the infrastructure needed to enable a lot of competition, for example taxis and courier services can all use these roads and compete on something other than "we own more roads than the other guys!".

          This system works pretty well, and you always have the option to pay for your own private amazing road if you really want to, or if you need a road where nobody else needs one. All

        • Re:Cui bono? (Score:5, Insightful)

          by feepness ( 543479 ) on Thursday April 10, 2008 @03:01AM (#23021730)

          I don't recall anyone ever saying "To have a free market, it must be provided by public Government services", a free market can never have any Government regulation or intervention, else it is not a free market.
          This is actually incorrect.

          A free market [wikipedia.org] is one in which participants are fully informed and free from force or fraud. While the goal is as little regulation as possible, it is not anarchy. Only what level of regulation is required to achieve the ideal free market is debatable, not whether there should be regulation at all. Many people confuse free market above with strict lassez-faire [wikipedia.org], which is what you are describing. This is an easy mistake to make.

          In this example, there is a case for government provided last-mile as it consists of a natual monopoly [wikipedia.org]. There is also a case against it as well. Arguing about the questions you raised would be a wonderful use of government, rather than deciding whether we should boycott some gaming event (for example).
        • Re: (Score:3, Interesting)

          "I don't recall anyone ever saying "To have a free market, it must be provided by public Government services", a free market can never have any Government regulation or intervention, else it is not a free market."

          Hogwash and wordplay. There is no free market without regulations and governments to impose them. An unregulated market is not free, it's a playground for the strongest party to create a monopoly.

          If you don't recall anyone telling you this, maybe you should make it a point to educate yourself on th
        • Re: (Score:3, Insightful)

          by Instine ( 963303 )
          There are very few things in this world more regulated than the BBC, and yet it has managed to create demand for a service that is pretty deregulated, and that service is complaining. I don't see their point and I don't see yours.
          Open Market != solution to all problems

          Marxism != solution to all problems

          idealism != solution to all problems

  • This is in many ways, the same question we ask about factories/industries that pollute heavily. The environment belongs to all of us, so people ask "shouldn't they pay?"
  • Whoever pays, owns (Score:5, Interesting)

    by Telvin_3d ( 855514 ) on Wednesday April 09, 2008 @09:59PM (#23020330)
    Well, here is the catch. Who ever spends the money should gain control of the resulting infrastructure. If the BBC/British government pays to upgrade the lines you can expect a great big (politely worded) fuck you to the telecoms if they try to set any demands.

    If the telecoms pay for the infrastructure, they get to say what happens to it. Within whatever terms they negotiate for the use of public land to build on. And if they continue the false advertising of their services, they can expect that at some point a class action lawsuit will be made and will break them.
    • Either way, it's ultimately the consumer. I think the consumer should be handed the control. Either they're paying through their taxes, or they're paying through higher bills, so perhaps the governments and the companies should be forced to do exactly what those that really foot the bills demand.
    • Re: (Score:2, Insightful)

      by tux_attack ( 1173501 )
      In this case the inverse of your statement is instructive as well: "Whoever owns should pay". The telecoms have received plenty of free money from governments already. Its absurd for them to come whining about bad infrastructure when they built it themselves. The high capacity fiber backbone of the internet can handle todays and tomorrow's needs, the fact that the last mile infrastructure sucks is their own doing.
  • by SanityInAnarchy ( 655584 ) <ninja@slaphack.com> on Wednesday April 09, 2008 @10:01PM (#23020344) Journal
    This is essentially the same argument raised by those who are truly anti net neutrality -- not just "don't let the government interfere", but "why, yes, I do think Google should pay Comcast's bills."

    Look, it's simple: Google pays Google's bandwidth bill. I pay mine. Both of them go towards building the infrastructure. If it's not enough, raise taxes to pay for it, I don't care.

    What you do not get to do is raise the bar for the next Google, and continue to let ISPs deceptively advertise "unlimited" Internet access. Yes, technically, the advertising is truthful, but it is intentionally misleading, and we are all paying the price for it.
    • Re: (Score:3, Insightful)

      [...] and continue to let ISPs deceptively advertise "unlimited" Internet access. Yes, technically, the advertising is truthful, but it is intentionally misleading, and we are all paying the price for it.

      How is it any more misleading than your phone company telling you you can use your phone any day, any time of the day, despite the fact that if too many people try to use it at once, you start hitting limits on the number of simultaneous active circuits? One can even argue it's less misleading, because an

    • by houstonbofh ( 602064 ) on Wednesday April 09, 2008 @11:31PM (#23020916)
      The entire concept since the beginning of the internet was that everyone pays for there part. Google pays it's part, and I pay mine. The problem is that Comcast has not been paying its bill. (They have not built up the infrastructure to keep pace with demand) The fact that they sold something based on assumptions that are no longer correct is called a risk of doing business. At one time we did not bail out every risk that did not pan out, but now I guess we will...
  • Uh, (Score:5, Interesting)

    by msauve ( 701917 ) on Wednesday April 09, 2008 @10:02PM (#23020358)
    they both pay (consumer and content owner). They even pay according to the bandwidth they're provided, in most cases. Exactly who does the writer think is getting free service?
  • by Chas ( 5144 ) on Wednesday April 09, 2008 @10:04PM (#23020368) Homepage Journal

    Should the content owners, who make the profits pay for the extra infrastructure or should the consumer pay?

    The consumer will pay. PERIOD. Even if the content owners pay, the costs STILL get passed down to the consumer.

    • Re: (Score:3, Insightful)

      by chinakow ( 83588 )
      Oh FFS I so tired of this stupid ass argument. The same logic says that the consumer passes his or her costs on to one's employer. Get over it, entities make money. then those entities pay that money for services they want. All of these entities budget for what they need and then charge, in actual charges or in salary, what they need to cover those expenses. None of this, IT GETS PASSED TO THE CONSUMER!!!!!!!!1111!one Get over yourself, that is how life works. We all trade something we have for something we
      • Re: (Score:2, Insightful)

        by smussman ( 1160103 )

        The same logic says that the consumer passes his or her costs on to one's employer.

        Any increased costs to the content owners must be passed on to the consumers, because charging the consumers is how the content owners cover their costs.
        When my ISP bill goes up, on the other hand, my employer is not suddenly going to start paying me that much more per month.
        This is why the GP is saying that the costs of the content owner are passed to the consumer, but not the consumer's employer.

  • First of all, I question the assertion that the technology wasn't designed to operate at maximum capability, I would like to hear from the designers on that. That aside, using the BBC v. ISPs is a terrible example as the ISPs are just being whiny bastards. They are being paid for the the bandwidth THEY promised by both the BBC and the end users. This is like me buying a meal at a restaurant and then having the manager throw a fit when I say that I want the side item that supposed to come with the meal.

    Als

  • FTP? (Score:4, Insightful)

    by HaeMaker ( 221642 ) on Wednesday April 09, 2008 @10:07PM (#23020390) Homepage
    FTP has been around since the 70's and http since the 90's and they want to take MAXIMUM BANDWIDTH.
  • by j0nb0y ( 107699 ) <(jonboy300) (at) (yahoo.com)> on Wednesday April 09, 2008 @10:07PM (#23020394) Homepage
    The question presumes that if the content owners pay, the consumers won't have to pay.

    This is wrong. If the content owners are forced to pay, then the consumers will have to pay for the bandwidth when they pay for the content.

    Here is the correct question: Should consumers pay for bandwidth when they pay for bandwidth? Or should consumers pay for bandwidth when they pay for content?

    When phrased correctly, the answer becomes obvious. Consumers should pay for bandwidth when they pay for bandwidth. Any other answer has negative consequences, both to the economy and to the current nature of the Internet.
    • Consumers should pay for a minimum connection speed, and no matter how much bandwidth they use they should still have that and it would be truly unlimited. You want people to use less bandwidth? Offer more low-bandwidth options. Most of the time the people who use the more bandwidth pay more because they have a better connection then those with lower-bandwidth connections.
      • exactly, but most slashdotters will hate it when it happens to them. The real trouble with such a situation now is that everybody wants to bitch about bandwidth but nobody wants to start informing users what they actually use. My opinion is that telcos want this to "break" so they can implement "pay per page" internet as the only way to fix the problems without actually spending money to build out. Note how Verison didn't implement fios in ernest until they got the "common carrier" traits rescinded for "
  • The consumer will ultimately pay.

    He may pay directly.

    He may pay indirectly, getting subsidized delivery in exchange for advertising.

    Guess who pays for advertising: The people who consume the product being advertised.

    TANSTAAFL.
  • by TheLink ( 130905 ) on Wednesday April 09, 2008 @10:10PM (#23020426) Journal
    I thought we paid already, and the ISPs just didn't reinvest into rebuilding their network.

    The last I checked most of these ISPs either had monopolies granted to them, and/or had existing infrastructure handed to them by Governments.

    Some even had billions of _public_ money handed to them by Governments to build their _future_ networks.

    So now they want us to pay again?

    This is like the power and water companies asking us to pay extra just because they went "Oops, oh yeah forgot about this reinvesting into infrastructure for the future thing".

    Compare how much ISPs charge and how much power and water companies charge, and what you get for it. While small ISPs have to pay per bit (like water and power companies which have to pay per unit of gas/coal/water), AFAIK large ISPs have cushier arrangements with each other, since the incremental costs of sending bits isn't high once the network capacity is paid for - if nobody uses the bandwidth, the ISP still has to pay about the same for the network.
  • Why don't the ISPs pay for their own hardware? I am not getting how it is the content creator or customer that pays for buying new hardware that an ISP owns. If an ISP is not able to pass on the cost of new hardware and stay competitive with service and price, then I guess that ISP goes obsolete. I think that is how the market is supposed to work, right? After all, it is the ISPs and bandwidth wholesalers that screwed the pooch by building networks and a pricing model that was asymmetrical because they thou
  • by weston ( 16146 ) * <<westonsd> <at> <canncentral.org>> on Wednesday April 09, 2008 @10:15PM (#23020470) Homepage
    You're in business selling a service that's so popular you cannot meet all the demand that exists for it.

    And you're asking how you're going to pay for building out to be able to provide more?

    (1) Raise your prices. Use the extra revenue to pay for buildout. Sell more service. Profit.

    (2) Get investment. Use it for buildout. Sell more service. Return profit to investors.

    I understand that the peering agreements make things more complicated, but the basic issue is that people on the ends of the network have demands for the services, and it really seems like there's fairly transparent economic solutions to that problem without trying to do anything particularly complicated like having ISPs shake down content providers who don't have points of origin on their networks.

    In short: bill the people you provide service to. Don't try billing the people you don't provide service to.

  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Wednesday April 09, 2008 @10:21PM (#23020512)
    Comment removed based on user account deletion
  • "Content providers" should pay for their bandwidth, and users should pay for their bandwidth. Passing off the cost of "providing content" to the theoretical consumers of such content distorts the market in two ways:

    First, no matter who actually signs the check, the providers would find a way of passing off the cost to the consumer anyway. (Which they do now... the point is that having to pay for their own bandwidth every month at least shows where the money is actually coming from and where it is going.)
  • I will. (Score:5, Funny)

    by tverbeek ( 457094 ) on Wednesday April 09, 2008 @10:23PM (#23020542) Homepage
    Here, I'll pay for it. Whom do I make the check out to?
    • Center Against Stagnant Hex-bytes, but please write the check out to our acronym. Please provide your Social Security Number and Mothers Maiden name for tax verification purposes, and let us know when and where we can pick up the check and we will gladly send an authorized agent out to receive it.

      Thank You for your support.
  • Connectivity should be treated like a public service [wikipedia.org]. We don't expect private companies to compete at building our water infrastructure, so what sense is there in having them compete to upgrade our (wired) connectivity infrastructure? Both are analogous in that upgrades involve lots of digging where per capita costs are inversely proportional to population density. The ISP industry is a natural monopoly [wikipedia.org], and should be handled accordingly. If the government is hell bent on privatising things, surely they
  • I think it will be the advertizers that will pay in the short term, then after a while it will be the stolen identities of the consumers that fall for the advertized services.

    Oh Wait...

    This is already reality.
  • All the posts so far talk about the consumer vs. the provider - but the internet is becoming an essential service just like roads and telephone service. So, it should be the government who pays for it - through our tax dollars.

    So yes, this means that the consumer pays - but businesses pay taxes too. Everyone pays - because everyone benefits - because everyone needs essential services (like roads).

    Countries in which taxes are higher have better broadband coverage. It isn't by accident - the governments of
    • wow give control of the internets to the government, what could go wrong?!?! I notice you very conviently left china and north korea off your list. what their internet experience like????
  • Is there a reason the summary pits the Content owner versus the Consumer in paying for infrastructure? Shouldn't we include the ISPs themselves? Just wondering why this submitter left that out.

    (I'd add the government, but that ends up being the Consumer in the end)
    • by Belial6 ( 794905 )
      Well, since we are pointing out problems with the summery, lets not for get that the internet WAS designed to be peer to peer. ISPs have pretty well successfully broken one of the main points of the internet.
  • Haven't we already discussed this today [slashdot.org]?

    That's an interesting link from the BBC, but perhaps not that interesting.

  • Consumers pay ISPs (Score:4, Informative)

    by gringer ( 252588 ) on Wednesday April 09, 2008 @10:35PM (#23020622)
    Okay, I live in a somewhat crazy country (New Zealand) in which we have this deal where both parties pay an ISP for Internet services. The consumer of the product (e.g. people who view videos) pays their ISP for internet traffic (something like $b + $x per hour + $y per gigabyte, billed or prepaid at some interval, where b, x, y may be zero). The providers of the product (e.g. people who host videos on their server) are themselves consumers of Internet services, so also pay their ISP for internet traffic. It seems to generally be the case that each party pays for both upstream and downstream traffic.

    The idea of this approach seems to be that the money given to the ISP goes towards paying other higher-level providers for traffic, and upgrading the network where/when necessary. If the ISP doesn't think they have enough money to support traffic, they should either bump up consumer prices, or alter their accounting system. Both consumers and providers of products are already paying the ISP for the traffic and infrastructure maintenance.
  • For too long, the ISPs knew that their infrastructure would eventually get burdened down with data. It's not what kind of data, per se, but how many users are going to start requesting and sending data. The amount of users accessing the internet has reached a large enough point that the development of social networks seemed obvious. Every ISP knew about the potential to deliver video, but they must have underestimated the adoption of it by .....about ten years. How come we don't all have fiber to our ho
  • by trawg ( 308495 ) on Wednesday April 09, 2008 @11:08PM (#23020822) Homepage
    ...because they're the ones telling consumers they can download as much as they want with their 'unlimited' plans.

    We did all this in Australia years ago; the most common form of Internet we get is on tiered monthly plans (3gb/month, 12gb/month, etc). Our international bandwidth is still (apparently) really expensive, so the volume of data ISPs feel comfortable giving us is relatively small to what I'd expect US ISPs to offer.

    All yall other countries need to just play catchup on this issue and stop those douchebags from selling unlimited plans and then acting all surprised when people actually expect them to have no limits. People that use 200gb a month shouldn't be paying the same as people that use 5gb a month, and that should be reflected by ISP pricing.
  • by Ungrounded Lightning ( 62228 ) on Wednesday April 09, 2008 @11:12PM (#23020832) Journal
    What we're looking at here is the Quality of Service question.

    Different services require different service characteristics. For instance:

    - File transfers can take "best effort" service. They don't care if the transit time of packets varies (jitter) or is long (large latency). They don't care if occasional packets get lost or corrupted because they can have them resent. They don't care if the rate is fast or slow - and can self-adjust to go as fast as possible to use the available bandwidth.

    - Streaming protocols care about all of the above: If they're 2-way interactive they care about latency. They always care about jitter. They don't want packets to drop - but if occasional packets DO drop it's better for them to NOT try to get them resent, which would create massive jitter and latency. They have a bandwidth requirement that is either constant or related to what they are carrying - and has no relation to the actual speed available to the connection under varying amounts of congestion.

    To serve both of these types of traffic on the same packet-switching network you have to treat them differently. Otherwise the file transfers will speed up to try to hog all the available bandwidth, dividing it evenly among themselves, and stomping on the streaming protocols. Things will only work for the streams on a best-effort net when all the file transfers are limited by some OTHER bottleneck and there is enough bandwidth ON EVERY HOP for essentially all the stream packets to go right through.

    But because the streams have some other inherent bandwidth limit you CAN treat them differently. You can give them Quality of Service rules that puts them at the head of the line, limiting jitter, minimizing latency, and causing other types of packets to drop while they go through. And you can reserve bandwidth for them, refusing to set up the flow (connection) if there isn't enough to service them and have some left over for other services. Then you can guarantee they get delivered, while the file transfers etc. expand to hog and divide only the UNreserved bandwidth. Also: If they're going to multiple destinations you can use multicast and reserve bandwidth for only one copy while serving many endpoints.

    And IPv4 was designed to do much of that: It has a "type of service" field that lets you declare what kind of service would be good for each packet. It didn't do bandwidth reservation (by itself). But you could declare preferences about latency, jitter, and drop probability.

    Unfortunately, this means that packets could ask to be treated better than their competition. And it was completely on an honor system. And before streaming was widely deployed Microsoft deployed an IP stack that "improved" their product's performance by lying about the type of service the packets really needed, demanding stream-type service for everything, including file transfers. This got widely deployed. So ISPs generally don't honor the Type of Service bits, and QoS isn't widely deployed on the backbone.

    Nowdays, in addition to the fast-as-mercury, dumb-as-rocks backbone routers, there are reliable-as-telecom, smart-as-firewalls edge routers, full of arrays of processors so they have a bunch of instruction executions available to think about every packet. These boxes can do things like act as a reverse-firewall to protect the network against cheaters, certifying that, if a given customer has bought - or temporarily reserved - a certain amount of high-QoS bandwidth he doesn't exceed it, and if necessary rewriting the QoS/Type of Service tagging so the backbone can trust the packets again.

    So with the brains available to watch over the packets and apply rules, so that streams can get the bandwidth they need and file transfers can use all the rest on a common network, the question is what rules to apply.

    Streams put a higher demand for service on the net - but have limited bandwidth. File transfers want bandwidth but are happy to take what's left after the strea
  • by Orion Blastar ( 457579 ) <orionblastar@@@gmail...com> on Wednesday April 09, 2008 @11:33PM (#23020930) Homepage Journal
    Put a tax on spam emails, and popup advertising? Then use that tax to pay for the new Internet.

    Also charge the spyware and adware companies fees for infecting a majority of the Internet and affecting bandwidth, and use those fees to pay for the new Internet.

    My plan is to get the money from companies and people that abuse the Internet via taxes or fees and use that to build the new faster Internet.

    Maybe it will cut down on spam, adware, spyware, and popup ads? Just a thought.
  • by ewhac ( 5844 ) on Thursday April 10, 2008 @02:19AM (#23021588) Homepage Journal
    Okay, children, listen as hard as you fscking can:

    It has been obvious since dialup-to-BBS days that bandwidth demands were only going to go up, and go up fast. Every new, faster modem was snapped up immediately, until the bandwidth of voice lines was saturated. And those of you with longer memories may recall the RBOCs/ILECs bitching along the lines of, "Oh noes! Our trunks and switches, they are overloaded! We can haz data tax?" Proposals to surcharge data traffic were floated, which were all greeted with hearty, derisive laughter.

    Fast-forward not-at-all-many-years to the broadband age, and the RBOCs/ILECs are saying, "Oh noes! Our switches and routers, they are overloaded. We can haz content tax?" The only real difference between then and now is that now the cable television providers are joining in the chorus. This, however, does not make the argument any more valid.

    Now, whether or not heavy users of the network should be surcharged, and how much they should be surcharged -- while a subject worthy of some discussion -- is nevertheless completely swamped by the Actual Point. Here is the Actual Point:

    YOU SHOULD HAVE BEEN BUILDING OUT YOUR NETWORK IN THE FIRST DAMNED PLACE!

    Really, after watching dialup explode in popularity, after watching broadband explode in popularity, after watching other nations build out their digital infrastructure to some amazing levels... There is no fscking excuse for any RBOC/ILEC to be whining about overloaded networks!

    You had plenty of warning, you had more than plenty of money, you even got $200 billion in handouts from the Fed... I mean, what the fsck have you been up to the last fifteen years?

    The floor of your monthly fee structure should be covering not only maintenance, but also aggressive buildout. If they aren't, then you've deliberately kept your head in the sand this whole time (and you suck at math).

    Tweak everyone's base rates, build out the network to the required capacities like you should have been doing, and stop trying to propogate this self-serving pathetic meme that some network users are more equal than others.

    Schwab

  • by Bob9113 ( 14996 ) on Thursday April 10, 2008 @03:48AM (#23021970) Homepage
    As a consumer and not a content provider, I believe the consumer should pay. I should purchase a certain level of service. The ISP should tell me what level of service they offer, I should make my decision, then they should provide that level of service. And the penalties for anti-trust violations and monopoly violations should be astronomical.

    Why? Because I want to be the person that controls the purse strings. I want to be the person deciding what level of service is appropriate. The last thing I want is for a few dozen major players to make that decision without my direct input.

    The person closest to the purse strings makes the decisions. That means that if you want to make the decisions, you have to be the person closest to the purse strings. You want to be the person who is getting charged for QoS. That gives you the power to decide what QoS should be. The last thing I want (and the last thing I think any of us want) is for Internet service to work the way cell phones do.

    Please, charge me. Give me the power of the purse. In an amoral capitalist economy, the power of the purse is the only power that matters. Unless we're figuring on going socialist, I want to be the decider.
  • by sherriw ( 794536 ) on Thursday April 10, 2008 @09:31AM (#23024298)
    Wait till you see how high Comcast and friends jack up the prices once all desktop publishing and more is done online, and everyone's files are no longer stored locally. Not to mention net TV and phone continuing to expand. Did anyone NOT see this coming?

    The thing is, the ISPs are in the same situation that the North American auto companies are in. They twiddled their thumbs and failed to innovate and keep ahead of the trends, and now they're crying for handouts.

    Boo hoo, Toyota got the jump on us, and we're losing market share. Boo hoo, we didn't pay attention when web content providers got creative and started offering heavier media.

    When did North America lose it's drive to innovate? Push the boundries? The ISPs should have been upgrading the networks a decade ago.

    Time to deregulate and let some foreign company with vision jump in and start laying fiber like it's... actually... in demand!

If all the world's economists were laid end to end, we wouldn't reach a conclusion. -- William Baumol

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