On Tue, 22 Jul 2014, Will Dennis wrote:

I think all of this PR battle (which now parts of the LOPSA membership is getting sucked into ;) is over Netflix trying not to have to pay VZ to reach their customers like they did Comcast -- http://www.nytimes.com/2014/02/24/business/media/comcast-and-netflix-reach-a-streaming-agreement.html

I agree that this is what Verizon is trying to do. I think the comcast agreement was a bad thing for the Internet (for all the reasons mentioned here)

VZ has a right to run their network any way it sees fit. If they can make more profit from Netflix with a pay-to-play agreement, that's good for the owners of VZ, and is incumbent on management trying to maximize profit for the owners (which is every businesses' job #1.) However, somewhere, it crosses the line of "reasonable" profit and is construed to hurt consumers, and the Fed steps in to limit profiteering via regulation. Seeing as how the FCC already regulates VZ, VZ is making the calculated risk that Netflix will blink before the FCC will act... "It's just business."

remember, that maximizing profit includes the long-term "we need to stay in business by keeping our customers happy" requirement. It's really easy to miss that when looking at a balance sheet.

David Lang

Disclaimer: I'm a Comcast customer for home Internet services (we do have VZ 
FiOS run to our home, but no compelling reason to switch) and I'm not a Netflix 
customer.

W.

-----Original Message-----
From: discuss-boun...@lists.lopsa.org [mailto:discuss-boun...@lists.lopsa.org] 
On Behalf Of Derek Balling
Sent: Tuesday, July 22, 2014 5:04 PM
To: David Lang
Cc: discuss@lists.lopsa.org
Subject: Re: [lopsa-discuss] Https - the solution to net neutrality and ISP 
monopolies


On Jul 22, 2014, at 4:57 PM, David Lang <da...@lang.hm> wrote:
They aren't slowing down Netflix to allow other traffic through, they are 
letting an congestion point exist, which hurts all traffic through that 
connection, not just Netflix traffic.

Do we have documented evidence of the other impacted traffic, or is that just 
your assertion?

Assuming for the moment you're right (and I don't know, it could be, it's not how I'd play the game 
sitting in their chair), that's motivating other L3 customers (who have negative impact) to put 
pressure on their uplink to "solve the problem" (which would be accomplished by paying 
VZN), or to switch to other carriers. (In other words, playing a variation on the PR game Netflix 
is playing on VZN, against L3), which point it in the "goose and gander" category.

D



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