Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Owen DeLong via NANOG



> On Oct 10, 2021, at 13:21 , Mark Tinka  wrote:
> 
> 
> 
> On 10/10/21 22:13, Michael Thomas wrote:
> 
>> Isn't that what Erlang numbers are all about? My suspicion is that after 
>> about 100Mbs most people wouldn't notice the difference in most cases. My 
>> ISP is about 25Mbs on a good day (DSL) and it serves our needs fine and have 
>> never run into bandwidth constraints. Maybe if we were streaming 4k all of 
>> the time it might be different, but frankly the difference for 4k isn't all 
>> that big. It's sort of like phone screen resolution: at some point it just 
>> doesn't matter and becomes marketing hype.
>> 
> 
> The ISP looking to charge BigContent for increased link saturation isn't 
> looking at the individual 100Mbps links they have sold to their downstream 
> customers.
> 
> They are looking at the aggregate Gbps or Tbps of traffic that BigContent is 
> seeking to deliver across their network, for "no $$".

Which is the kind of ignorant view of the situation that creates this problem 
in the first place.

It’s not for “no $$”, it’s for all the $$ they got from all those 100Mbps links 
that they are delivering those Tbps of traffic to.

If the aggregate $$ they are collecting is insufficient, then they have priced 
their service incorrectly and should either re-evaluate,
or go bankrupt and sell to someone that knows how to run a business.

Owen



Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Owen DeLong via NANOG



> On Oct 10, 2021, at 13:18 , Mark Tinka  wrote:
> 
> 
> 
> On 10/10/21 22:10, Geoff Huston wrote:
> 
>> I have to agree with Doug Barton's earlier observation is that the base 
>> problem is that the ISPs are using a flawed business model and they don't 
>> want to charge their customers what it really costs to provide them with 
>> high speed access, nor do they want to fund additional back-end capacity in 
>> their network without some form of offset revenue stream.
> 
> I think ISP's do want to charge their customers what it actually costs to 
> provide them with a service, but they can't because many ISP's business 
> models are based purely on undercutting their nearest competitor.

Then that’s a flawed business model and one of them will eventually get lucky 
in each market place and race prices once they are a monopoly.

> I might be naive and hopeful to think that operators will have a blood 
> handshake to set prices where customers can't wag the tail.

Such collusion is usually the basis of antitrust laws and ill-advised at best.

Owen



Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Owen DeLong via NANOG
>> (in the same way that corporations don't pay taxes, their customers do),...
> 
> 
> Many a company pays corporate tax, which is separate from the income tax they 
> pay for compensation to their staff.
> 
> Of course, YMMV depending on where you live.

That’s irrelevant to what he is saying.

What he’s saying (and he’s 100% correct) is that any tax a corporation pays is 
collected from their customers one way or another.

A corporation has no other source of income with which to pay its taxes beyond 
those revenues collected from customers.

Of course I should probably expect this from someone who thinks IPv4 shortages 
can be avoided by rationing IPv4 addresses.

Owen




Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Owen DeLong via NANOG



> On Oct 10, 2021, at 12:08 , Doug Barton  wrote:
> 
> On 10/1/21 7:45 AM, Mark Tinka wrote:
>> The reason Google, Facebook, Microsoft, Amazon, e.t.c., all built their own 
>> global backbones is because of this nonsense that SK Broadband is trying to 
>> pull with Netflix. At some point, the content folk will get fed up, and go 
>> build it themselves. What an opportunity infrastructure cost itself!
> 
> Except that Facebook, Microsoft, and Amazon all caved to SK's demands:
> 
> "The popularity of the hit series "Squid Game" and other offerings have 
> underscored Netflix's status as the country's second-largest data traffic 
> generator after Google's YouTube, but the two are the only ones to not pay 
> network usage fees, which other content providers such as Amazon, Apple and 
> Facebook are paying, SK said."
> 
> Which has emboldened SK to go after the bigger fish.
> 
> One incentive I haven't seen anyone mention is that ISPs don't want to charge 
> customers what it really costs to provide them access. If you're the only one 
> in your market that is doing that, no one is going to sign up because your 
> pricing would be so far out of line with your competition.

Only if your competition is somehow getting funding from another source (e.g. 
extorting content providers).

As such, I’d guess that this situation won’t untangle itself any time soon 
because markets which lack transparency and/or have (mostly) ignorant customers 
tend to be dysfunctional in exactly these kinds of ways.

> Given that issue, I have some sympathy for eyeball networks wanting to charge 
> content providers for the increased capacity that is needed to bring in their 
> content. The cost would be passed on to the content provider's customers (in 
> the same way that corporations don't pay taxes, their customers do), so the 
> people on that ISP who are creating the increased demand would be 
> (indirectly) paying for the increased capacity. That's actually fairer for 
> the other customers who aren't Netflix subscribers.

An interesting argument, but I don’t entirely buy it.

I’m a high consumer of bandwidth. I end up paying an extra surcharge each month 
to get data without a cap. I think that’s perfectly fair.

OTOH, I think it’s not particularly fair if after I pay for that cap removal, 
my ISP turns around and extorts even more money from the companies I’m paying 
for content in order to effectively make my circuit even more expensive.

> The reason that Netflix doesn't want to do it is the same reason that ISPs 
> don't want to charge their customers what it really costs to provide them 
> access.


Sounds like the electrical deregulation plan that Enron wrote for California 
and then criticized while they gamed the system for fun and profit.

Owen




Re: DNS pulling BGP routes?

2021-10-10 Thread Owen DeLong via NANOG



> On Oct 7, 2021, at 06:49 , Masataka Ohta  
> wrote:
> 
> William Herrin wrote:
> 
 This is quite common to tie an underlying service announcement to BGP
 announcements in an Anycast or similar environment.
>>> 
>>> Yes, that is a commonly seen mistake with anycast.
>> You don't know what you're talking about.
> 
> I do but you don't.
> 
>> If your anycast node stops
>> receiving updated data and you can't reach any of the other nodes to
>> check whether they're online, 99 times out of 100 this means a local
>> failure of some sort.
> 
> Yes. In case of DNS, if expiration period of a zone is passed
> without successful check of the current most zone version,
> unicast or anycast name servers stop responding requests for
> the zone.
> 
> But, it has nothing specifically to do with anycast. As there
> are other name servers with different IP addresses, there is
> no reason to withdraw routes. So?

WRONG.

First, assuming that there are non-anycast name servers assumes
facts not in evidence.

Second, if you are a participant in an anycast name server network,
there are good reasons to withdraw your announcement of that
prefix in order to avoid users having to wait for timeouts (which in
some cases might be even worse than serving stale data).

>> You withdraw the node's announcement so that you
>> don't serve bad data to the end user.
> 
> That will only introduce new failure modes of mismatches between
> server availability and server reachability and is a bad idea.

No, if the server is available, it should announce the anycast prefix.
If it i snot available, it should withdraw it. That’s the best way to make
anycast work and it’s what virtually every anycast DNS server network
does.

If the server is unavailable, but doesn’t withdraw, then you have the
failure mode of the server being reachable, but unavailable and it
becomes a black hole for traffic that should otherwise flow to other
available anycast nodes.

>> That's what happened here -
> 
> Yes, facebook did wrong thing to actively withdraw routes.

No, facebook did the right thing for 99+% of situations that would trigger this
withdraw. The problem was that they withdrew EVERY server when the failure
wasn’t local instead of having some way to recognize the failure for what it 
was,
global in nature and continue serving DNS.

>> Simply
>> turning themselves off, instead of withdrawing the routes, would
>> result in suboptimal performance.
> 
> This time, facebook is saying that they could not reach their
> name servers even though the servers were perfectly working.

Because their servers couldn’t verify that they were working and thus
thought that they had stale data. Thus, the servers were “perfectly
working” with stale data and the safe thing to do if you can’t confirm
that your reason for believing you have stale data is erroneous,
is to stop serving what you have. If you’re not going to serve what you
have, then you shouldn’t announce the anycast prefix, either.

> How much performance, do you think, facebook enjoyed? A lot
> less than "suboptimal", I'm afraid.

As noted, this was that 1% failure that isn’t anticipated. The behavior of
the system was correct for 99% of failures and the number of years facebook
has operated without a significant or noticeable DNS outage is testament to
that fact.

> 
> > And 99 times out of 100, not doing
> > one or the other would cause rather than prevent an outage.
> 
> That is a commonly seen misconception wrongly assuming that
> server routes were withdrawn if and only if the server is
> unavailable.

The servers withdrew their routes because the servers had no ability to
verify that they were serving valid data. If you can’t verify your data is 
valid,
it’s better (in most cases) to not serve the data you have. If you’re not going
to serve, the best thing to do is withdraw the anycast prefix that claims you
are a server for the data.

> But, the reality is that it is impossible to correctly
> recognize server is unavailable or to correctly withdraw
> routes only when server is unavailable.

Yes… So you go with something that works 99% of the time and you get
an event like this in that 1% of cases where the failure in question was not
one of the failure modes that was previously anticipated. I’m betting that
facebook is quickly figuring out changes that will mitigate this type of failure
in the future and their DNS will likely stay up until the next 1 in 100 (or 
will it
be 1 in 10,000 this time?) events pops up that surprised them again.

That’s the nature of operations.

Owen



RE: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Keith Medcalf


On Sunday, 10 October, 2021 14:21, Mark Tinka wrote:

>They are looking at the aggregate Gbps or Tbps of traffic that
>BigContent is seeking to deliver across their network, for "no $$".

This is blatantly incorrect.  The bits were payed for by the requestor.

BigContent does not "send bits" to non-requestors.
The Internet is Point-to-Point, not a Broadcast medium.

If the seller (the network operator) cannot provide the service which they have 
sold, they should be imprisoned for the remainder of their natural lives at 
hard labour.  This sort of behaviour by the network operator is a Criminal 
Activity called FRAUD (based on Fraudulent Misrepresentation of Material Fact) 
and is, in fact, a Criminal Conspiracy.

--
You can tell a politician is lying because it's lips are moving.
The only good politician is a dead politician.





Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Glenn Kelley
Netflix has programs for which many ISPs - even smaller are able to 
build a cache system.

This may help the ISP who filed suit here -

That being said - Our Consultancy has helped a number of smaller ISPs 
build using the Open Connect options - however for many they cannot 
justify the want from Netflix to have the minimum of 5Gbps of peak 
Netflix traffic let alone the 1.2Gbps of inbound traffic daily during 
the 12 hour update windows.


A move like this may help wake up Netflix to making these options a bit 
nicer for the smaller boys



Glenn



Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Geoff Huston


> On 11 Oct 2021, at 7:18 am, Mark Tinka  wrote:
> 
> 
> 
> On 10/10/21 22:10, Geoff Huston wrote:
> 
>> I have to agree with Doug Barton's earlier observation is that the base 
>> problem is that the ISPs are using a flawed business model and they don't 
>> want to charge their customers what it really costs to provide them with 
>> high speed access, nor do they want to fund additional back-end capacity in 
>> their network without some form of offset revenue stream.
> 
> I think ISP's do want to charge their customers what it actually costs to 
> provide them with a service, but they can't because many ISP's business 
> models are based purely on undercutting their nearest competitor.
> 
> I might be naive and hopeful to think that operators will have a blood 
> handshake to set prices where customers can't wag the tail.
> 

In many environments, the words we use to describe this form of price setting 
are generally prefixed by the adjective “illegal” :-)

Geoff




Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Niels Bakker

* do...@dougbarton.us (Doug Barton) [Sun 10 Oct 2021, 23:44 CEST]:
First, I'm not saying "should." I'm saying that given the market 
economics, having the content providers who use "a lot" of bandwidth 
do something to offset those costs to the ISPs might be the 
best/least bad option. Whether "something" is a local cache box, 
peering, money, or  is something I think that the market 
should determine.


Sounds like you think SK should be paying Netflix for bringing their 
content all the way from the US to the Korean peninsula. That's 
some expensive wet cable being used there.



-- Niels.


Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Sabri Berisha
- On Oct 10, 2021, at 2:42 PM, Doug Barton do...@dougbarton.us wrote:

Hi,

> And for the record, not only have I never worked for an ISP, I was
> saying all the way back in the late '90s that the oversubscription
> business model (which almost always includes punishing users who
> actually use their bandwidth) is inherently unfair to the customers, and
> when the Internet becomes more pervasive in daily life will come back to
> bite them in the ass. I was laughed at for being hopelessly naive, not
> understanding how the bandwidth business works, etc.

I have worked for ISPs. And I remember the late 90s. Bandwidth was $35/mbit
on average, at least for the outfit where I was. Consumers paid roughly $40
for their DSL connections, which at the time went up to 2Mbit depending
on the age of the copper and distance to the DSLAM. Consumer connections
were oversubscribed, on average, 1:35 to 1:50. B2B connections got a better
deal, 1:10 to 1:15.

It was simply not feasible to offer 1:1 bandwidth and still make a profit,
unless you're charging fees the average consumer cannot afford. 

Especially considering that the average user doesn't even need or use that
much bandwidth. It's a recurring discussion. People demand more bandwidth
without considering whether or not they need it. End-users, business subs,
and host-owners at large enterprises where I worked. The last ones are the
funniest: entire racks using no more than 100mbit/s and hostowners are 
demanding an upgrade from 10G to 25G bEcaUse LaTenCy.

The last consumer ISP I worked at had a very small subset of users that 
really needed bandwidth: the "download dudes" who were 24/7 leeching news
servers, and the inevitable gamers that complained about the latency due
to the links being full as a result of said leechers. In that case, a
carefully implemented shaping of tcp/119 did the trick.

Thanks,

Sabri


Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Doug Barton

[some snipping below]

Also just to be clear, these are my own opinions, not necessarily shared 
by any current or former employers.


On 10/10/21 12:31 PM, Mark Tinka wrote:



On 10/10/21 21:08, Doug Barton wrote
Given that issue, I have some sympathy for eyeball networks wanting to 
charge content providers for the increased capacity that is needed to 
bring in their content. The cost would be passed on to the content 
provider's customers...


But eyeballs are already paying you a monthly fee for 100Mbps of service 
(for example). So they should pay a surcharge, over-and-above that, that 
determines how they can use that 100Mbps? Seems overly odd, to me.


Yes, I get that. But as you pointed out here and in other comments, the 
ISP market is based entirely on undercutting competitors (with a lot of 
gambling thrown in, as Matthew pointed out).


(in the same way that corporations don't pay taxes, their customers 
do),...



Many a company pays corporate tax, which is separate from the income tax 
they pay for compensation to their staff.


Of course, YMMV depending on where you live.


I didn't say income tax. Corporate taxes are considered an expense by 
the corporation paying them. Like all other expenses, they are factored 
into the cost of goods/services sold.


so the people on that ISP who are creating the increased demand would 
be (indirectly) paying for the increased capacity. That's actually 
fairer for the other customers who aren't Netflix subscribers.


The reason that Netflix doesn't want to do it is the same reason that 
ISPs don't want to charge their customers what it really costs to 
provide them access.


So what rat hole does this lead us down into? People who want to stream 
Youtube should pay their ISP for that? People who want to spend 
unmentionable hours on Linkedin should be their ISP for that? People who 
want to gawk over Samsung's web site because they love it so much, 
should pay their ISP for that?


First, I'm not saying "should." I'm saying that given the market 
economics, having the content providers who use "a lot" of bandwidth do 
something to offset those costs to the ISPs might be the best/least bad 
option. Whether "something" is a local cache box, peering, money, or 
 is something I think that the market should determine.


And to answer Matthew's question, I don't know what "a lot" is. I think 
the market should determine that as well.


And for the record, not only have I never worked for an ISP, I was 
saying all the way back in the late '90s that the oversubscription 
business model (which almost always includes punishing users who 
actually use their bandwidth) is inherently unfair to the customers, and 
when the Internet becomes more pervasive in daily life will come back to 
bite them in the ass. I was laughed at for being hopelessly naive, not 
understanding how the bandwidth business works, etc.




Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Mark Tinka




On 10/10/21 22:13, Michael Thomas wrote:

Isn't that what Erlang numbers are all about? My suspicion is that 
after about 100Mbs most people wouldn't notice the difference in most 
cases. My ISP is about 25Mbs on a good day (DSL) and it serves our 
needs fine and have never run into bandwidth constraints. Maybe if we 
were streaming 4k all of the time it might be different, but frankly 
the difference for 4k isn't all that big. It's sort of like phone 
screen resolution: at some point it just doesn't matter and becomes 
marketing hype.




The ISP looking to charge BigContent for increased link saturation isn't 
looking at the individual 100Mbps links they have sold to their 
downstream customers.


They are looking at the aggregate Gbps or Tbps of traffic that 
BigContent is seeking to deliver across their network, for "no $$".


Mark.


Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Mark Tinka




On 10/10/21 22:10, Geoff Huston wrote:


I have to agree with Doug Barton's earlier observation is that the base problem 
is that the ISPs are using a flawed business model and they don't want to 
charge their customers what it really costs to provide them with high speed 
access, nor do they want to fund additional back-end capacity in their network 
without some form of offset revenue stream.


I think ISP's do want to charge their customers what it actually costs 
to provide them with a service, but they can't because many ISP's 
business models are based purely on undercutting their nearest competitor.


I might be naive and hopeful to think that operators will have a blood 
handshake to set prices where customers can't wag the tail.


Mark.


Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Michael Thomas


On 10/10/21 12:57 PM, Mark Tinka wrote:



On 10/10/21 21:33, Matthew Petach wrote:


If you sell a service for less than it costs to provide, simply
based on the hopes that people won't actually *use* it, that's
called "gambling", and I have very little sympathy for businesses
that gamble and lose.


You arrived at the crux of the issue, quickly, which was the basis of 
my initial response last week - infrastructure is dying. And we simply 
aren't motivated enough to figure it out.


When you spend 25+ years sitting in a chair waiting for the phone to 
ring or the door to open, for someone to ask, "How much for 5Mbps?", 
your misfortune will never be your own fault.


Isn't that what Erlang numbers are all about? My suspicion is that after 
about 100Mbs most people wouldn't notice the difference in most cases. 
My ISP is about 25Mbs on a good day (DSL) and it serves our needs fine 
and have never run into bandwidth constraints. Maybe if we were 
streaming 4k all of the time it might be different, but frankly the 
difference for 4k isn't all that big. It's sort of like phone screen 
resolution: at some point it just doesn't matter and becomes marketing hype.


Mike



Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Geoff Huston


> On 11 Oct 2021, at 6:33 am, Matthew Petach  wrote:
> 
> […] Facebook, Microsoft, and Amazon all caved to SK's demands:
> 
> I will note that my $previous_employer was a top-10 web content provider 
> that did *not* pay SK Broadband.  Not all the content providers caved 
> to SKB.
> 


The situation in South Korea between content providers and broadband providers 
has a long history. Back in early 2012 Korea Telecom implemented a block on 
Samsung’s “smart TV” models because they had a streaming high def content 
service that KT claimed that was saturating their broadband network. According 
to KT, Samsung opted to take a "very negative response" to KT's actions. 
Samsung obtained a court injunction to lift KT's block on their TVs and an 
associated court order for KT and Samsung to enter into arbitration. At the 
same time Samsung filed a lawsuit against KT. In due course the temperature of 
the dispute abated and all the parties backed down. KT discontinued its block, 
and Samsung dropped its lawsuit. However, there was evidently some residual bad 
feeling here as Samsung expressed their desire for the national regulator to 
convey a "strict warning" to KT over its actions.

You have to wonder if the major difference some nine years later is that while 
Samsung is a Korean business, Netflix is a ‘foreign’ entity, and perhaps the 
broadband ISPs feel that the Korean legal actions in this round will have a 
different outcome and favour the local ISP enterprises over the foreign 
streamer.

I have to agree with Doug Barton's earlier observation is that the base problem 
is that the ISPs are using a flawed business model and they don't want to 
charge their customers what it really costs to provide them with high speed 
access, nor do they want to fund additional back-end capacity in their network 
without some form of offset revenue stream.

Geoff






Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Mark Tinka



On 10/10/21 21:33, Matthew Petach wrote:


If you sell a service for less than it costs to provide, simply
based on the hopes that people won't actually *use* it, that's
called "gambling", and I have very little sympathy for businesses
that gamble and lose.


You arrived at the crux of the issue, quickly, which was the basis of my 
initial response last week - infrastructure is dying. And we simply 
aren't motivated enough to figure it out.


When you spend 25+ years sitting in a chair waiting for the phone to 
ring or the door to open, for someone to ask, "How much for 5Mbps?", 
your misfortune will never be your own fault.


Mark.

Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Matthew Petach
On Sun, Oct 10, 2021 at 12:12 PM Doug Barton  wrote:

> On 10/1/21 7:45 AM, Mark Tinka wrote:
> > The reason Google, Facebook, Microsoft, Amazon, e.t.c., all built their
> > own global backbones is because of this nonsense that SK Broadband is
> > trying to pull with Netflix. At some point, the content folk will get
> > fed up, and go build it themselves. What an opportunity infrastructure
> > cost itself!
>
> Except that Facebook, Microsoft, and Amazon all caved to SK's demands:
>

I will note that my $previous_employer was a top-10 web content provider
that did *not* pay SK Broadband.  Not all the content providers caved
to SKB.



> One incentive I haven't seen anyone mention is that ISPs don't want to
> charge customers what it really costs to provide them access. If you're
> the only one in your market that is doing that, no one is going to sign
> up because your pricing would be so far out of line with your competition.
>

That's a problem with your (collective) business model, then.

If you sell something for less than it costs to make, it's called a
loss-leader; and while you can do it for a little while, you'll get
very little sympathy if people take advantage of it to drain your
coffers.

If you sell a service for less than it costs to provide, simply
based on the hopes that people won't actually *use* it, that's
called "gambling", and I have very little sympathy for businesses
that gamble and lose.


> Given that issue, I have some sympathy for eyeball networks wanting to
> charge content providers for the increased capacity that is needed to
> bring in their content. The cost would be passed on to the content
> provider's customers (in the same way that corporations don't pay taxes,
> their customers do), so the people on that ISP who are creating the
> increased demand would be (indirectly) paying for the increased
> capacity. That's actually fairer for the other customers who aren't
> Netflix subscribers.
>

That argument makes no sense whatsoever.

What if instead of a single content provider, the extra traffic
was generated by 10,000 small websites, each adding 1/10,000th
of the volume of a single content provider?

The cumulative impact on the eyeball network to handle the
increased traffic is the same whether it comes from one
content provider or from 10,000 separate smaller websites.

Why should it be OK to go after the one content provider,
but not go after the 10,000 smaller websites?

At one point does your argument break down, and can you
defend why that break point makes sense?  Why is it OK to
go after one, two, three, four content providers, but not to
go after every website that is contributing to the increased
traffic volume the eyeball network is handling?

Seriously.  Make your case.
At what point do you draw that line, and say "we can charge
content sites if there's less than 5 of them, but not if there's
more than 10,000 of them?"
How do you defend the choice of where you drew that
arbitrary line?

The reason that Netflix doesn't want to do it is the same reason that
> ISPs don't want to charge their customers what it really costs to
> provide them access.
>

ISPs who don't charge enough to cover their costs are gambling,
and hoping they get lucky.

When they don't get lucky, and they lose their bet, they shouldn't
get to make up for it by trying to strong-arm others to make up the
difference.

if you decide that "sender pays" is a fair model for the Internet to
follow, then it needs to be applied equally, not just cherry-picking
a few companies to extort, but leaving everyone else alone.

As it stands, what you're arguing for is completely arbitrary and
unfair.

Matt


Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Mark Tinka




On 10/10/21 21:08, Doug Barton wrote:



Except that Facebook, Microsoft, and Amazon all caved to SK's demands:

"The popularity of the hit series "Squid Game" and other offerings 
have underscored Netflix's status as the country's second-largest data 
traffic generator after Google's YouTube, but the two are the only 
ones to not pay network usage fees, which other content providers such 
as Amazon, Apple and Facebook are paying, SK said."


Which has emboldened SK to go after the bigger fish.


Prior to the popularity of "House Of Cards", Netflix would have bent 
over and taken it without any lube. Heck, they signed away plenty of 
rights around the world to several networks for "House Of Cards", purely 
because they didn't know how well their own in-house production would 
succeed. Fast-forward, it's 2021 now.


Other players in BigContent that haven't yet found their leverage, will do.




One incentive I haven't seen anyone mention is that ISPs don't want to 
charge customers what it really costs to provide them access. If 
you're the only one in your market that is doing that, no one is going 
to sign up because your pricing would be so far out of line with your 
competition.


Isn't this the curse of a service people consider to be a basic utility 
for life to occur?


Unlike water and power, nearly anyone can start an ISP, and further feed 
the race to the bottom.





Given that issue, I have some sympathy for eyeball networks wanting to 
charge content providers for the increased capacity that is needed to 
bring in their content. The cost would be passed on to the content 
provider's customers...


But eyeballs are already paying you a monthly fee for 100Mbps of service 
(for example). So they should pay a surcharge, over-and-above that, that 
determines how they can use that 100Mbps? Seems overly odd, to me.



(in the same way that corporations don't pay taxes, their customers 
do),...



Many a company pays corporate tax, which is separate from the income tax 
they pay for compensation to their staff.


Of course, YMMV depending on where you live.


so the people on that ISP who are creating the increased demand would 
be (indirectly) paying for the increased capacity. That's actually 
fairer for the other customers who aren't Netflix subscribers.


The reason that Netflix doesn't want to do it is the same reason that 
ISPs don't want to charge their customers what it really costs to 
provide them access.


So what rat hole does this lead us down into? People who want to stream 
Youtube should pay their ISP for that? People who want to spend 
unmentionable hours on Linkedin should be their ISP for that? People who 
want to gawk over Samsung's web site because they love it so much, 
should pay their ISP for that?


Hey, maybe you're right. Maybe that's the model that is needed. After 
all, when we go to a rave, the entry fee is just the entry fee. You 
still need to fork out more cash to actually buy drinks, food or engage 
in some kind of entertainment that may be taking place inside that 
walled garden you paid a cover charge to be a part of.


I don't know...

Mark.



Re: S.Korea broadband firm sues Netflix after traffic surge

2021-10-10 Thread Doug Barton

On 10/1/21 7:45 AM, Mark Tinka wrote:
The reason Google, Facebook, Microsoft, Amazon, e.t.c., all built their 
own global backbones is because of this nonsense that SK Broadband is 
trying to pull with Netflix. At some point, the content folk will get 
fed up, and go build it themselves. What an opportunity infrastructure 
cost itself!


Except that Facebook, Microsoft, and Amazon all caved to SK's demands:

"The popularity of the hit series "Squid Game" and other offerings have 
underscored Netflix's status as the country's second-largest data 
traffic generator after Google's YouTube, but the two are the only ones 
to not pay network usage fees, which other content providers such as 
Amazon, Apple and Facebook are paying, SK said."


Which has emboldened SK to go after the bigger fish.

One incentive I haven't seen anyone mention is that ISPs don't want to 
charge customers what it really costs to provide them access. If you're 
the only one in your market that is doing that, no one is going to sign 
up because your pricing would be so far out of line with your competition.


Given that issue, I have some sympathy for eyeball networks wanting to 
charge content providers for the increased capacity that is needed to 
bring in their content. The cost would be passed on to the content 
provider's customers (in the same way that corporations don't pay taxes, 
their customers do), so the people on that ISP who are creating the 
increased demand would be (indirectly) paying for the increased 
capacity. That's actually fairer for the other customers who aren't 
Netflix subscribers.


The reason that Netflix doesn't want to do it is the same reason that 
ISPs don't want to charge their customers what it really costs to 
provide them access.