Re: Observations of an Internet Middleman (Level3) (was: RIP
Harping on symmetric ratios seems very 1990. not so much. that kink came in later randy
Re: Observations of an Internet Middleman (Level3) (was: RIP
I'm forced to peer with certain African providers in London and Amsterdam because they don't want to peer in Africa, where we are literally are an x-connect away from each other. And the reasons are not even because either of us is larger or smaller than the other... it's just legacy thinking and we're the new guy that has grown rapidly. Now we both have to pay for traffic to get sent to Europe and back. How nice... which is amusing given you have massive east coast to europe fiber capacity. randy
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Sunday, May 18, 2014 11:57:51 AM Randy Bush wrote: which is amusing given you have massive east coast to europe fiber capacity. My point exactly - as an operator, it costs me close to nothing given all the capacity we have (and can further light) on this path, but the other guys do not necessarily have that advantage. But that is beside the point - I'm willing to spend the money intra-Africa to avoid the silliness of switching in Europe. It's 2014... Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On May 16, 2014, at 10:06 AM, Scott Helms khe...@zcorum.com wrote: Blake, I might agree with your premise if weren't for a couple of items. 1) Very few consumers are walking around with a HD or 4K camera today. Not true. Most cell phones have HD cameras. Most CCD video cameras sold in the last 5 years are HD capable. 2) Most consumers who want to share video wouldn't know how to host it themselves, which isn't an insurmountable issue but is a big barrier to entry especially given the number of NAT'ed connections. I think this is much more of a problem than available bandwidth. Yes, but NAT is a temporary problem that is already gone for ~40% of the subscribers on the largest CMTS networks in the US and is disappearing for everyone else fairly quickly. It’s disappearing even faster for anyone who buys an X-Box One or gets an IPv6 Tunnel. An application on an X-Box One could literally solve the video hosting problem overnight. This is an example of the limitations on innovation posed by NAT which is one of the reasons it’s becoming more and more important to move forward with IPv6. Since there are enough drivers and that transition is already in progress, treating it like it’s a bigger problem than available bandwidth really doesn’t make sense to me. Available bandwidth is the much more insurmountable barrier at this point. 3) Most consumers who want to share videos seem to be satisfied with sharing via one of the cloud services whether that be YouTube (which was created originally for that use), Vimeo, or one of the other legions of services like DropBox. Sure, but there are other more interactive services that are under greater and greater demand and realistically, people will come to expect multi-party HD video chat as a given over time. The reason they accept it not working so far is because they haven’t seen it actually working. As it becomes more ubiquitous in other parts of the world, demand will grow in the US. Shared gaming experiences will be another driver. While games are engineered today to deal with the limited bandwidth available, developers are seeking ways to deliver a richer, more immersive interactive experience and that’s going to require more bandwidth. Once NAT can no longer be blamed as the primary barrier, bandwidth will be their next target. 4) Finally, upstream bandwidth has increased on many/most operators. I just ran the FCC's speedtest (mLab not Ookla) and got 22 mbps on my residential cable internet service. I subscribe to one of the major MSOs for a normal residential package. Good for you. I’m paying for business service at the middle tier in my area and get 27Mbps down and only 7Mbps up, both in what my provider tells me they are selling me and in most of my mLab _AND_ Ookla tests. If I went with DSL, the most I could get would be 1.5Mbps down and only 384Kbps up. I’ve been getting those same levels of service for more than 5 years now. Upstream bandwidth is definitely a limitation and it definitely hasn’t improved for many customers. Owen
Re: Observations of an Internet Middleman (Level3) (was: RIP
Traffic Symmetry is a distraction that the $ACCESS_PROVIDERS would like us to focus on. The reality is that $ACCESS_PROVIDERS want us to focus on that so that we don’t see what is really going on which is a battle to deeper (or avoid increasing peering capacity with) networks they think they can force to pay them more money. This is an age old tactic and it isn’t unique to $ACCESS_PROVIDERS. The larger $BACKBONE_PROVIDERS did it in the past, too. The first one was a railroad company turned telecom. Then came the remnants of PSI. Today, it’s the largest $ACCESS_PROVIDERS. Usually, this just results in harm to both sides and eventually a loss of subscribers. The $ACCESS_PROVIDERS have an advantage in the latter as they mostly avoid loss of subscribers through the fact that the subscribers don’t have anywhere else that they can usefully go. Owen On May 16, 2014, at 12:15 PM, Matthew Petach mpet...@netflight.com wrote: On Fri, May 16, 2014 at 11:52 AM, Christopher Morrow morrowc.li...@gmail.com wrote: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Traffic asymmetry across peering connections was what lit the fuse on this whole powder keg, if I understand correctly; at the point the traffic went asymmetric, the refusals to augment capacity kicked in, and congestion became a problem. I've seen the same thing; pretty much every rejection is based on ratio issues, even when offering to cold-potato haul the traffic to the home market for the users. If the refusals hinged on any other clause of the peering requirements, you'd be right; but at the moment, that's the flag networks are waving around as their speedbump-du-jour. So, it may be very 1990, but unfortunately that seems to be the year many people in the industry are mentally stuck in. :( Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Sun, May 18, 2014 at 11:40 AM, Owen DeLong o...@delong.com wrote: Traffic Symmetry is a distraction that the $ACCESS_PROVIDERS would like us to focus on. The reality is that $ACCESS_PROVIDERS want us to focus on that so that we don’t see what is really going on which is a battle to deeper (or avoid increasing peering capacity with) networks they think they can force to pay them more money. This is an age old tactic and it isn’t unique to $ACCESS_PROVIDERS. The larger $BACKBONE_PROVIDERS did it in the past, too. The first one was a railroad company turned telecom. Then came the remnants of PSI. Today, it’s the largest $ACCESS_PROVIDERS. Usually, this just results in harm to both sides and eventually a loss of subscribers. The $ACCESS_PROVIDERS have an advantage in the latter as they mostly avoid loss of subscribers through the fact that the subscribers don’t have anywhere else that they can usefully go. Owen I agree it's a distraction from the primary reason behind it; today, networks using traffic ratios as the excuse why peering 'doesn't make sense'; even if the traffic ratios are balanced, though, I'm sure there would be another requirement, such as minimum number of prefixes announced (mass deaggregation should meet that one), minimum number of downstream ASNs announced (a 4-byte ASN for every rack switch cluster should handle that one), minimum backbone size (isn't everyone already doing 100G at this point?), present on multiple continents (isn't everyone?). When you get right down to it, though, it's all just hand waving around the age-old question of how many entities can I push to pay, without going too far, and alienating the entire rest of the internet? In years gone by, that line was relatively conservative; hosting spammers, for example, was thought to be a sure kiss of death that would lead all other networks to shun you, effectively cutting you off from the internet community. However, I think we've all seen that our notion of the power of the community was overstated; internet-wide shunning didn't materialize, we failed at being able to cut spammers off to a level that would make it unprofitable, and we still have thread after thread about BCP 38 compliance. Seeing that, it's really not surprising that networks would become bolder, no longer fearing widespread disapproval or community disaffection for actions that might have seemed more extreme in years past. I mean, at this point we can't even seem to effectively shame people into not leaking deaggregated prefixes, in spite of the weekly email to the list naming names, and in spite of Patrick's exhortations. Given all that, it really isn't all that suprising that a certain 3-digit ASN is trying to pull games like this, refusing to augment capacity in the hopes they can use their customer base as leverage. They've realized the internet has no teeth, so they can act with impunity. It's sad to see, but somehow, it's not all that surprising. So yes, Owen--I agree with you; it's not a new tactic, it's just being carried out more brazenly and with less and less fear of community opprobrium. Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 08:47:53 PM Blake Hudson wrote: How residential ISPs recoup costs (or simply increase revenue/profit) is another question entirely. I think the most insightful comment in this discussion was made by Mr. Rick Astley (I assume a pseudonym), when he states that ISPs have several options to increase revenue A) Increase price of their product, B) Implement usage restrictions, or C) Charge someone else/Make someone else your customer. I think he successfully argues that option C may be the best. As we've seen, the wireless market in the US went for option B. We've yet to see where the wireline market will go. Some of the operators, here in Africa, who are venturing into FTTH, are continuing on with their data caps. I suppose if you're primarily a mobile carrier who uses data caps to charge for access (and makes lots of money in the process for, pretty much, selling nothing), the model becomes attractive regardless of the medium. New providers who are not encumbered by this type of thinking, obviously, have a more flexible and forward- thinking business model. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 08:52:31 PM Christopher Morrow wrote: is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Agree. We don't have a ratio requirement, for example. We have a if it makes sense requirement. I'm forced to peer with certain African providers in London and Amsterdam because they don't want to peer in Africa, where we are literally are an x-connect away from each other. And the reasons are not even because either of us is larger or smaller than the other... it's just legacy thinking and we're the new guy that has grown rapidly. Now we both have to pay for traffic to get sent to Europe and back. How nice... Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 09:11:56 PM Blake Hudson wrote: But hey, why peer at little or no cost if they can instead hold out and possibly peer at a negative cost? Because they hope that, one day, you'll cave and become a customer. Isn't that more prestigious :-)? Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 09:44:55 PM Scott Helms wrote: I don't think that anyone disputes that when you improve the upstream you do get an uptick in usage in that direction. What I take issue with is the notion that the upstream is anything like downstream even when the capacity is there. Certainly not - what I'm saying is that there can be a lot more upstream utilization than we are typically seeing today, if that stopper is unblocked. We can, then, take it from there... Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On 14-05-15 16:17, Keenan Tims wrote: As primarily an eyeball network with a token (8000 quoted) number of transit customers it does not seem reasonable for them to expect balanced ratios on peering links. Pardon my ignorance here, but isn't there a massive difference between settlement-free peering between large transit providers at the core which happens with balanced traffic, and some free peering at local exchanges at the edge where there is no expectation of balanced traffic, just an oppportunity to exchange traffic without using transit capacity. (isn't that how CDN nodes in a exchange works ? Lets ISPs connect to it and bypass transit links to save money ? Seems to me like the word peering shouldn't have been used to denote relationships at the core between the big guys if it is also used at the edge for a fairly different purpose.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Thursday, May 15, 2014 09:05:57 PM Joe Greco wrote: Hi I'm an Internet company. I don't actually know what the next big thing next year will be but I promise that I won't host it on my network and cause our traffic to become lopsided. You mean like almost every other mobile carrier the world over, and their data-capped services? Want to guess how many mobile carrier executives converge around a table on a daily basis to discuss how to stem growth in demand for traffic by their customers? Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
What you're missing is that the transit provider is selling full routes. The access network is selling paid peering, which is a tiny fraction of the routes. Considering they charge on a $per/mb basis I don't think its just routes they are selling. It looks a lot like they are selling bits. From the perspective of a content provider it looks like they swivel chair most those bits to access networks for delivery. That tiny fraction of routes on the access networks make up most delivered content. In total network size the access networks are larger although less spread out globally. Being globally connected is useful but it doesn't make a legitimate case for having exclusive rights to charge for content being delivered in North America. If you are planning to serve large scale data over oceanic fiber it's a strong selling point but that's not the case here. If instead of $per/mb traffic delivery you want to get into arbitrary justifications access networks have more directly assigned IP addresses than transit networks. I'm not making the case that a middle man should never be used, I'm making the case that they shouldn't be used where there isn't a requirement for one. Bypassing the middleman is generally better for everyone but the middle man. So, at the end of the week, I *had* been paying $10/mb to send traffic through transit to reach the whole rest of the internet. Now, I'm paying $5+$4+$4+$5+$2, or $30, and I don't have a full set of routes, so I've still got to keep paying the transit provider as well at $10. If this is the math you are using to justify your stance it's probably worth reconsidering. You ignore that each of those if sent through transit would have been $10 so the cost of $5, $4, and $2/Mb represent a savings of $5, $6,and $8. Why would you add them? Sure there are factors you have to evaluate like putting yourself under a minimum commit with $transit or if the amount of traffic is worth peering over but you would generally have to make those evaluations for peering anyway. The real difference is the volume of traffic needed before a $2/mb savings is worth peering directly for is higher than if the savings were the full $10 but that doesn't mean its never worth it. There is a difference between saying I did the math and transit remains the cheaper option and saying Paid peering would save us both money and improve performance at the same time but we refuse to do it anyway on principal. The concept of fair gets brought up a lot when talking about the ability of a startup to come in to compete against bigger players in the content space but really what do you think the impact is if the largest established content providers peer freely and smaller newcomers only have paid options available for traffic? Some other things I also want to get to: On Vi's analogy vs Amazon prime One major different I think people overlook is overusing Amazon prime would mean buying too many things from Amazon. Even when you purchase through companies selling through Amazon they get a cut of the sale and some of that I assume gets applied to covering any additional shipping costs not covered by Prime. If Internet traffic used the same model would ISP's receive a portion of proceeds for ad revenue on places like Youtube or a percentage of Netflix subscription fees? I'm not making the case that thats the model that should be used I'm only pointing out that analogies are best to break things down into simple terms for people but have diminishing returns in usefulness when getting into details. The other problem with Vi's analogy is the shipping company delivers to the driveway of the customer where a more real life scenario would be something closer to Amazon having a distribution center in that city, and both Comcast and FedEx are already both sitting idle in the parking lot. Amazon pays FedEx to give the package to Comcast in the next parking space, who then drives it to the customers house. Comcast says to Netflix, since I am the one driving this from the parking lot to the customers house, why not just pay me instead of paying FedEx more money to just put it on my truck? Amazon says, but FedEx will deliver the package to France if I tell them to. Comcast says, but you don't even serve france out of this distribution center, and I am not asking to be charged for all packages, only the ones I deliver instead of FedEx. Amazon says, you are right, we have technology to give your packages directly to you and stuff going to France to Fedex, and it would be best for both of us to do it, but unless you'll deliver my packages for free I'm going to keep paying FedEx to just keep loading them on your truck. Comcast says have at it, there are 5 trucks for FedEx to load freely now but if you need more you have to compromise with us on a deal that works better for both of us. Amazon says, when we are done with you in the media we won't need to compromise. Government regulation of interconnects I agree with
Re: Observations of an Internet Middleman (Level3) (was: RIP
All the talk about ratios is a red herring… The real issue boils down to this: 1. The access (eyeball) networks don’t want to bear the cost of delivering what they promised to their customers. 2. This is because when they built their business models, they didn’t expect their customers to use nearly as much of their promised bandwidth as they are now using. Most of the models were constructed around the idea that a customer receiving, say 27mbps down/7mbps up would use all of that bandwidth in short bursts and mostly use less than a megabit. 3. New services have been developed (streaming video, et al.) which have created an increasing demand from customers for more of the bandwidth they were sold. 4. Instead of raising the prices to the access network customers or accepting that the lavish profits that they eyeball networks had been pocketing were no more, the access networks are trying to slough off the costs of delivering that higher fraction of what they sold onto someone else. 5. The content providers looked like an easy target with the advantage that: A. Some of them appear to have deep pockets. B. They are the competition for many of the access network’s other lines of business, so increasing their costs helps make them less competitive. C. Consumers are emotional about price increases. Content providers look at it as a business problem and perform a mathematical analysis. If their customer satisfaction impact costs more than paying the extortion from the access networks, they’ll pay it. In reality, if the $ACCESS_PROVIDERS wanted to satisfy their customers, they’d be aggressively seeking to peer with content providers in as many locations as possible. They might (reasonably) require content providers to build out to additional locations to keep their long-haul costs down (It’s reasonable, IMHO, for a content provider not to want to carry multiple gigabits of traffic from a content provider clear across the country for free. If $CONTENT_PROVIDER wants to access California customers of $ACCESS_PROVIDER, then it’s reasonable for $ACCESS_PROVIDER to insist that $CONTENT_PROVIDER peer in California for delivering those bits.) Neither side of this issue has completely clean hands. Both have been trying to take as much of the money on the table for themselves with limited regard for serving the consumer. The Access Networks have done a far worse job of serving the consumer than the content providers and that’s a big part of what is driving the current backlash. As a general rule, access customers don’t select the provider they love the most, they select the one they think sucks the least. I think the recent FCC NPRM is a bit optimistic in that it expects the $ACCESS_PROVIDERS to act in good faith. If they do, it will likely turn out to be a limited victory for the $ACCESS_PROVIDERS. However, I don’t expect the $ACCESS_PROVIDERS to live within that limited victory. Assuming the NRPM becomes rule and then withstands the likely legal challenges, I expect they will, as usual, play in the gray areas of the ruling as much as they think they legally can and push the edges as far as possible to try and extort every dollar they can from $CONTENT_PROVIDERS with this so-called fast-lane (which we all know is just preferential peering and/or QoS[1] tuning). I suspect they will likely push this far enough that over the next several years, things will get progressively worse until the FCC finally decides that they have to move from section 706 to Title II. OTOH, if I’m wrong and the $ACCESS_PROVIDERS suddenly start behaving like civilized companies, develop a sudden concern for their customers’ experiences, and start unimaginably acting in good faith, the proposed rule wouldn’t be so bad for $CONTENT_PROVIDERS, $CONSUMERS, or $ACCESS_PROVIDERS. Of course, you can already see the $ACCESS_PROVIDERS laying the groundwork to try and mount a legal challenge against the FCC’s authority to use rule 706. Sadly, some of this groundwork is being laid by FCC commissioners. Said commissioners clearly have no interest in representing the people’s interest and are strictly there as mouth-pieces for some of the big players in the industry. Owen [1] QoS — A deceptive name if ever there was one. QoS is not about Quality of Service, it’s about screwing over network users by choice rather than by chance when you haven’t built an adequate network.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On May 16, 2014, at 3:25 AM, Rick Astley jna...@gmail.com wrote: Broadband is too expensive in the US compared to other places I have seen this repeated so many times that I assume it's true but I have never seen anything objective as to why. I can tell you if you look at population density by country the US is 182nd in the world and the average broadband speed (based on OOKLA: http://www.netindex.com/download/allcountries/) is 30th in the world. South Korea that is well known for its fast broadband speeds has a density of 505/km vs the US at 32/km. We have about 1/15 of the population density and about 1/2 the average broadband speed. Hong Kong, Singapore, Netherlands, Japan, Macau etc. all have more than 10x the population density in the US so definitely not all countries with fast broadband make for a fair comparison and there are likely fewer that do. The UK is only beating the US by 2Mbps but has a population density of 262/km. So while its a fair assessment that broadband in the US is very bias to ignore some of the other factors involved. Another mistake I see people keep making is in comparing the cost of broadband in the US in $USD to other countries around the world. The cost of broadband in Estonia is only about $30/month. OMG, I can't believe broadband is cheaper in Estonia! What people ignore is everything is cheaper in Estonia, the average household income in Estonia is $14k vs $55k here. By that measure broadband is more expensive for families there than it is in the US. This is another point people repeat without bothering to qualify. This would be like my grandfather comparing the costs of a candy bar from back when he was a kid to today but ignoring inflation. I might be willing to accept this argument if it weren’t for the fact that rural locations in the US are far more likely to have FTTH than higher density areas because the whole USF thing has inverted the priorities. I live in the largest city in the bay area, yet there is only one facilities based provider in my area that can deliver 2mbps or more and that’s over HFC. Twisted pair is abysmal and there is no fiber. The situation is not significantly better in the densest city in the bay area, either. South Korea averages 4x US Speed for an average $28.50/month. US averages 1x US Speed for an average $45.50/month. (http://edition.cnn.com/2010/TECH/03/31/broadband.south.korea/) Korean average annual wage: $36,757 @ 21% tax = $29,038 take-home. US Average annual wage: $55,048 @ 29.6% tax = $38,753 take-home. (http://en.wikipedia.org/wiki/List_of_countries_by_average_wage) So that says KR take-home wage = ~75% of US wage. 75% of $45.50 is $34.125 So 4x speed is still approximately $5 cheaper per month in KR than in the US. Owen
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 03:54:33 PM Owen DeLong wrote: customers. 2. This is because when they built their business models, they didn’t expect their customers to use nearly as much of their promised bandwidth as they are now using. Most of the models were constructed around the idea that a customer receiving, say 27mbps down/7mbps up would use all of that bandwidth in short bursts and mostly use less than a megabit. And in general, models have assumed, for a long time, that customer demand patterns are largely asymmetric. While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, and making the gist of this thread an even bigger issue, if you discount the fact, of course, that Broadband in the U.S. currently sucks for a developed market. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
Social media is not a big driver of symmetrical traffic here in the US or internationally. Broadband suffers here for a number of reasons, mainly topological and population density, in comparison to places like Japan, parts (but certainly not all) of Europe, and South Korea. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 11:02 AM, Mark Tinka mark.ti...@seacom.mu wrote: On Friday, May 16, 2014 03:54:33 PM Owen DeLong wrote: customers. 2. This is because when they built their business models, they didn’t expect their customers to use nearly as much of their promised bandwidth as they are now using. Most of the models were constructed around the idea that a customer receiving, say 27mbps down/7mbps up would use all of that bandwidth in short bursts and mostly use less than a megabit. And in general, models have assumed, for a long time, that customer demand patterns are largely asymmetric. While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, and making the gist of this thread an even bigger issue, if you discount the fact, of course, that Broadband in the U.S. currently sucks for a developed market. Mark.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 05:08:33 PM Scott Helms wrote: Social media is not a big driver of symmetrical traffic here in the US or internationally. Broadband suffers here for a number of reasons, mainly topological and population density, in comparison to places like Japan, parts (but certainly not all) of Europe, and South Korea. It might not be (now), but if symmetrical bandwidth will go in on the back of teenagers wanting to upload videos about their lives, the meer fact that the bandwidth is there means someone will find bigger and better use for it, than social media. We saw this when we deployed FTTH in Malaysia, back in '09. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
- Original Message - From: Mark Tinka mark.ti...@seacom.mu While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, Oh yes; clearly, Twitter will be the end of L3. :-) Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? Cheers, -- jra -- Jay R. Ashworth Baylink j...@baylink.com Designer The Things I Think RFC 2100 Ashworth Associates http://www.bcp38.info 2000 Land Rover DII St Petersburg FL USA BCP38: Ask For It By Name! +1 727 647 1274
Re: Observations of an Internet Middleman (Level3) (was: RIP
Mark, Bandwidth use trends are actually increasingly asymmetical because of the popularity of OTT video. Social media, even with video uploading, simply doesn't generate that much traffic per session. During peak period, Real-Time Entertainment traffic is by far the most dominant traffic category, accounting for almost half of the downstream bytes on the network. As observed in past reports, Social Networking applications continue to be very well represented on the mobile network. This speaks to their popularity with subscribers as these applications typically generate far less traffic than those that stream audio and video. https://www.sandvine.com/downloads/general/global-internet-phenomena/2013/sandvine-global-internet-phenomena-report-1h-2013.pdf Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 11:26 AM, Mark Tinka mark.ti...@seacom.mu wrote: On Friday, May 16, 2014 05:08:33 PM Scott Helms wrote: Social media is not a big driver of symmetrical traffic here in the US or internationally. Broadband suffers here for a number of reasons, mainly topological and population density, in comparison to places like Japan, parts (but certainly not all) of Europe, and South Korea. It might not be (now), but if symmetrical bandwidth will go in on the back of teenagers wanting to upload videos about their lives, the meer fact that the bandwidth is there means someone will find bigger and better use for it, than social media. We saw this when we deployed FTTH in Malaysia, back in '09. Mark.
Re: Observations of an Internet Middleman (Level3) (was: RIP
Jay Ashworth wrote the following on 5/16/2014 10:35 AM: - Original Message - From: Mark Tinka mark.ti...@seacom.mu While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, Oh yes; clearly, Twitter will be the end of L3. :-) Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? Cheers, -- jra Applications like Skype and Facetime (especially conference calls) would be one example where an application benefits from symmetric (or asymmetric in favor of higher upload speed) connectivity. Cloud office applications like storage of documents, email, and IVR telephony also benefit from symmetrical connectivity. Off-site backup software is another great example. Most residential connections are ill suited for this. I believe these applications (and derivatives) would be more popular today if the connectivity was available. --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
Blake, None of those applications come close to causing symmetrical traffic patterns and for many/most networks the upstream connectivity has greatly improved. Anything related to voice is no more than 80 kbps per line, even if the SIP traffic isn't trunked (less if it is because the signaling data is shared). Document sharing is not being impinged, on my residential account right now I've uploaded about 30 documents this morning including large PDFs and Power Point presentations. Off site back up is one use that could drive traffic, but I don't believe that the limiting factor is bandwidth. We looked at getting into that business and from what we saw the limiting factor was that most residential and SOHO accounts didn't want to pay enough to cover your storage management costs. In our analysis the impact of bandwidth on the consumer side adoption was basically zero. There is no expectation that back ups run instantly. Having said all of that, even if hosted back up became wildly popular would not change the balance of power because OTT video is both larger, especially for HD streams, and used much more frequently. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 11:53 AM, Blake Hudson bl...@ispn.net wrote: Jay Ashworth wrote the following on 5/16/2014 10:35 AM: - Original Message - From: Mark Tinka mark.ti...@seacom.mu While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, Oh yes; clearly, Twitter will be the end of L3. :-) Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? Cheers, -- jra Applications like Skype and Facetime (especially conference calls) would be one example where an application benefits from symmetric (or asymmetric in favor of higher upload speed) connectivity. Cloud office applications like storage of documents, email, and IVR telephony also benefit from symmetrical connectivity. Off-site backup software is another great example. Most residential connections are ill suited for this. I believe these applications (and derivatives) would be more popular today if the connectivity was available. --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
Certainly video is one of the most bandwidth intensive applications. I don't deny that a 1 Mbps video call is both less common and consumes less bandwidth than an 8Mbps HD stream. However, if Americans had access to symmetric connections capable of reliably making HD video calls (they don't, in my experience), we might be seeing video calls as a common occurrence and not a novelty. I think the state of usage is a reflection on the technology available. If the capability was available at an affordable price to residential consumers, we might see those consumers stream movies or send videos from their home or mobile devices via their internet connection directly to the recipient rather than through a centralized source like Disney, NetFlix, Youtube, etc. Video sharing sites (like youtube, vimeo, etc) primary reason for existence is due to the inability of the site's users to distribute content themselves. One of the hurdles to overcome in video sharing is the lack of availability in affordable internet connectivity that is capable of sending video at reasonable (greater than real time) speeds. --Blake Scott Helms wrote the following on 5/16/2014 11:02 AM: Blake, None of those applications come close to causing symmetrical traffic patterns and for many/most networks the upstream connectivity has greatly improved. Anything related to voice is no more than 80 kbps per line, even if the SIP traffic isn't trunked (less if it is because the signaling data is shared). Document sharing is not being impinged, on my residential account right now I've uploaded about 30 documents this morning including large PDFs and Power Point presentations. Off site back up is one use that could drive traffic, but I don't believe that the limiting factor is bandwidth. We looked at getting into that business and from what we saw the limiting factor was that most residential and SOHO accounts didn't want to pay enough to cover your storage management costs. In our analysis the impact of bandwidth on the consumer side adoption was basically zero. There is no expectation that back ups run instantly. Having said all of that, even if hosted back up became wildly popular would not change the balance of power because OTT video is both larger, especially for HD streams, and used much more frequently. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 11:53 AM, Blake Hudson bl...@ispn.net mailto:bl...@ispn.net wrote: Jay Ashworth wrote the following on 5/16/2014 10:35 AM: - Original Message - From: Mark Tinka mark.ti...@seacom.mu mailto:mark.ti...@seacom.mu While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, Oh yes; clearly, Twitter will be the end of L3. :-) Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? Cheers, -- jra Applications like Skype and Facetime (especially conference calls) would be one example where an application benefits from symmetric (or asymmetric in favor of higher upload speed) connectivity. Cloud office applications like storage of documents, email, and IVR telephony also benefit from symmetrical connectivity. Off-site backup software is another great example. Most residential connections are ill suited for this. I believe these applications (and derivatives) would be more popular today if the connectivity was available. --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
Blake, I might agree with your premise if weren't for a couple of items. 1) Very few consumers are walking around with a HD or 4K camera today. 2) Most consumers who want to share video wouldn't know how to host it themselves, which isn't an insurmountable issue but is a big barrier to entry especially given the number of NAT'ed connections. I think this is much more of a problem than available bandwidth. 3) Most consumers who want to share videos seem to be satisfied with sharing via one of the cloud services whether that be YouTube (which was created originally for that use), Vimeo, or one of the other legions of services like DropBox. 4) Finally, upstream bandwidth has increased on many/most operators. I just ran the FCC's speedtest (mLab not Ookla) and got 22 mbps on my residential cable internet service. I subscribe to one of the major MSOs for a normal residential package. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 12:38 PM, Blake Hudson bl...@ispn.net wrote: Certainly video is one of the most bandwidth intensive applications. I don't deny that a 1 Mbps video call is both less common and consumes less bandwidth than an 8Mbps HD stream. However, if Americans had access to symmetric connections capable of reliably making HD video calls (they don't, in my experience), we might be seeing video calls as a common occurrence and not a novelty. I think the state of usage is a reflection on the technology available. If the capability was available at an affordable price to residential consumers, we might see those consumers stream movies or send videos from their home or mobile devices via their internet connection directly to the recipient rather than through a centralized source like Disney, NetFlix, Youtube, etc. Video sharing sites (like youtube, vimeo, etc) primary reason for existence is due to the inability of the site's users to distribute content themselves. One of the hurdles to overcome in video sharing is the lack of availability in affordable internet connectivity that is capable of sending video at reasonable (greater than real time) speeds. --Blake Scott Helms wrote the following on 5/16/2014 11:02 AM: Blake, None of those applications come close to causing symmetrical traffic patterns and for many/most networks the upstream connectivity has greatly improved. Anything related to voice is no more than 80 kbps per line, even if the SIP traffic isn't trunked (less if it is because the signaling data is shared). Document sharing is not being impinged, on my residential account right now I've uploaded about 30 documents this morning including large PDFs and Power Point presentations. Off site back up is one use that could drive traffic, but I don't believe that the limiting factor is bandwidth. We looked at getting into that business and from what we saw the limiting factor was that most residential and SOHO accounts didn't want to pay enough to cover your storage management costs. In our analysis the impact of bandwidth on the consumer side adoption was basically zero. There is no expectation that back ups run instantly. Having said all of that, even if hosted back up became wildly popular would not change the balance of power because OTT video is both larger, especially for HD streams, and used much more frequently. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 11:53 AM, Blake Hudson bl...@ispn.net mailto: bl...@ispn.net wrote: Jay Ashworth wrote the following on 5/16/2014 10:35 AM: - Original Message - From: Mark Tinka mark.ti...@seacom.mu mailto:mark.ti...@seacom.mu While that is true a lot of the time (especially for eyeball networks), it is less so now due to social media. Social media forces the use of symmetric bandwidth (like FTTH), putting even more demand on the network, Oh yes; clearly, Twitter will be the end of L3. :-) Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? Cheers, -- jra Applications like Skype and Facetime (especially conference calls) would be one example where an application benefits from symmetric (or asymmetric in favor of higher upload speed) connectivity. Cloud office applications like storage of documents, email, and IVR telephony also benefit from symmetrical connectivity. Off-site backup software is another great example.
Re: Observations of an Internet Middleman (Level3) (was: RIP
Thanks for the insight Scott. I appreciate the experience and point of view you're adding to this discussion (not just the responses to me). While I might be playing the devil's advocate here a bit, I think one could argue each of the points you've made below. I do feel that general usage patterns are a reflection of the technologies that have traditionally been available to consumers. New uses and applications would be available to overcome hurdles if the technologies had developed to be symmetrical. I'm not saying that the asymmetrical choice was a bad one, but it was not without consequences. If residential ISPs sell asymmetric connections for decades, how can the ISP expect that application developers would not take this into account when developing applications? I don't think my application would be very successful if it required X Mbps and half of my market did not meet this requirement. Of course content/service providers are going to tailor their services based around their market. --Blake Scott Helms wrote the following on 5/16/2014 12:06 PM: Blake, I might agree with your premise if weren't for a couple of items. 1) Very few consumers are walking around with a HD or 4K camera today. 2) Most consumers who want to share video wouldn't know how to host it themselves, which isn't an insurmountable issue but is a big barrier to entry especially given the number of NAT'ed connections. I think this is much more of a problem than available bandwidth. 3) Most consumers who want to share videos seem to be satisfied with sharing via one of the cloud services whether that be YouTube (which was created originally for that use), Vimeo, or one of the other legions of services like DropBox. 4) Finally, upstream bandwidth has increased on many/most operators. I just ran the FCC's speedtest (mLab not Ookla) and got 22 mbps on my residential cable internet service. I subscribe to one of the major MSOs for a normal residential package. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 12:38 PM, Blake Hudson bl...@ispn.net mailto:bl...@ispn.net wrote: Certainly video is one of the most bandwidth intensive applications. I don't deny that a 1 Mbps video call is both less common and consumes less bandwidth than an 8Mbps HD stream. However, if Americans had access to symmetric connections capable of reliably making HD video calls (they don't, in my experience), we might be seeing video calls as a common occurrence and not a novelty. I think the state of usage is a reflection on the technology available. If the capability was available at an affordable price to residential consumers, we might see those consumers stream movies or send videos from their home or mobile devices via their internet connection directly to the recipient rather than through a centralized source like Disney, NetFlix, Youtube, etc. Video sharing sites (like youtube, vimeo, etc) primary reason for existence is due to the inability of the site's users to distribute content themselves. One of the hurdles to overcome in video sharing is the lack of availability in affordable internet connectivity that is capable of sending video at reasonable (greater than real time) speeds. --Blake Scott Helms wrote the following on 5/16/2014 11:02 AM: Blake, None of those applications come close to causing symmetrical traffic patterns and for many/most networks the upstream connectivity has greatly improved. Anything related to voice is no more than 80 kbps per line, even if the SIP traffic isn't trunked (less if it is because the signaling data is shared). Document sharing is not being impinged, on my residential account right now I've uploaded about 30 documents this morning including large PDFs and Power Point presentations. Off site back up is one use that could drive traffic, but I don't believe that the limiting factor is bandwidth. We looked at getting into that business and from what we saw the limiting factor was that most residential and SOHO accounts didn't want to pay enough to cover your storage management costs. In our analysis the impact of bandwidth on the consumer side adoption was basically zero. There is no expectation that back ups run instantly. Having said all of that, even if hosted back up became wildly popular would not change the balance of power because OTT video is both larger, especially for HD streams, and used much more frequently. Scott Helms Vice President of Technology ZCorum (678) 507-5000 tel:%28678%29%20507-5000
Re: Observations of an Internet Middleman (Level3) (was: RIP
Blake, You're absolutely correct. The world adapts to the reality that we find ourselves in via normal market mechanics. The problem with proposing that connectivity for residential customers should be more symmetrical is that its expensive, which is why we as operators didn't roll it out that way to start. We also don't see consumer demand for symmetrical connections and with the decline in peer to peer file sharing we've actually seen a decrease the ratio of used upstream bandwidth (though not a decrease in absolute terms). I would like to deliver symmetrical bandwidth to all consumers just so those few customers who need it today would have lower bills but trying to justify that to our CFO without being able to point to an increase in revenue either because of more revenue per sub or more subs is a very tough task. I don't believe my situation is uncommon. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 1:20 PM, Blake Hudson bl...@ispn.net wrote: Thanks for the insight Scott. I appreciate the experience and point of view you're adding to this discussion (not just the responses to me). While I might be playing the devil's advocate here a bit, I think one could argue each of the points you've made below. I do feel that general usage patterns are a reflection of the technologies that have traditionally been available to consumers. New uses and applications would be available to overcome hurdles if the technologies had developed to be symmetrical. I'm not saying that the asymmetrical choice was a bad one, but it was not without consequences. If residential ISPs sell asymmetric connections for decades, how can the ISP expect that application developers would not take this into account when developing applications? I don't think my application would be very successful if it required X Mbps and half of my market did not meet this requirement. Of course content/service providers are going to tailor their services based around their market. --Blake Scott Helms wrote the following on 5/16/2014 12:06 PM: Blake, I might agree with your premise if weren't for a couple of items. 1) Very few consumers are walking around with a HD or 4K camera today. 2) Most consumers who want to share video wouldn't know how to host it themselves, which isn't an insurmountable issue but is a big barrier to entry especially given the number of NAT'ed connections. I think this is much more of a problem than available bandwidth. 3) Most consumers who want to share videos seem to be satisfied with sharing via one of the cloud services whether that be YouTube (which was created originally for that use), Vimeo, or one of the other legions of services like DropBox. 4) Finally, upstream bandwidth has increased on many/most operators. I just ran the FCC's speedtest (mLab not Ookla) and got 22 mbps on my residential cable internet service. I subscribe to one of the major MSOs for a normal residential package. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 12:38 PM, Blake Hudson bl...@ispn.net mailto: bl...@ispn.net wrote: Certainly video is one of the most bandwidth intensive applications. I don't deny that a 1 Mbps video call is both less common and consumes less bandwidth than an 8Mbps HD stream. However, if Americans had access to symmetric connections capable of reliably making HD video calls (they don't, in my experience), we might be seeing video calls as a common occurrence and not a novelty. I think the state of usage is a reflection on the technology available. If the capability was available at an affordable price to residential consumers, we might see those consumers stream movies or send videos from their home or mobile devices via their internet connection directly to the recipient rather than through a centralized source like Disney, NetFlix, Youtube, etc. Video sharing sites (like youtube, vimeo, etc) primary reason for existence is due to the inability of the site's users to distribute content themselves. One of the hurdles to overcome in video sharing is the lack of availability in affordable internet connectivity that is capable of sending video at reasonable (greater than real time) speeds. --Blake Scott Helms wrote the following on 5/16/2014 11:02 AM: Blake, None of those applications come close to causing symmetrical traffic patterns and for many/most networks the upstream connectivity has greatly improved. Anything related to voice is no more than 80 kbps per line, even if the SIP traffic isn't trunked (less if it is
Re: Observations of an Internet Middleman (Level3) (was: RIP
Oh, I'm not proposing symmetrical connectivity at all. I'm just supporting the argument that in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric when the overwhelming majority of what they're selling (and have been selling for over a decade) is asymmetric connectivity. Their traffic imbalance is, arguably, their own doing. How residential ISPs recoup costs (or simply increase revenue/profit) is another question entirely. I think the most insightful comment in this discussion was made by Mr. Rick Astley (I assume a pseudonym), when he states that ISPs have several options to increase revenue A) Increase price of their product, B) Implement usage restrictions, or C) Charge someone else/Make someone else your customer. I think he successfully argues that option C may be the best. As we've seen, the wireless market in the US went for option B. We've yet to see where the wireline market will go. Of course, the market would ideally keep ISPs' demands for revenue/profit in check and we'd all reach a satisfactory solution. One of the arguments, one I happen to support, in this thread is that there is not a free market for internet connectivity in many parts of the US. If there was, I believe Comcast would be focusing on how to provide a balance between the best product at the lowest cost and not on how they can monetize their paying customers in order to increase profits. I appreciate honesty; When a service provider advertises X Mbps Internet speeds, I expect they can deliver on their claims (to the whole Internet, and not just the portions of it they've decided). I understand congestion, overselling, etc. But choosing which portions of the internet work well and which don't is a lot more like censorship than service. --Blake Scott Helms wrote the following on 5/16/2014 12:39 PM: Blake, You're absolutely correct. The world adapts to the reality that we find ourselves in via normal market mechanics. The problem with proposing that connectivity for residential customers should be more symmetrical is that its expensive, which is why we as operators didn't roll it out that way to start. We also don't see consumer demand for symmetrical connections and with the decline in peer to peer file sharing we've actually seen a decrease the ratio of used upstream bandwidth (though not a decrease in absolute terms). I would like to deliver symmetrical bandwidth to all consumers just so those few customers who need it today would have lower bills but trying to justify that to our CFO without being able to point to an increase in revenue either because of more revenue per sub or more subs is a very tough task. I don't believe my situation is uncommon. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 1:20 PM, Blake Hudson bl...@ispn.net mailto:bl...@ispn.net wrote: Thanks for the insight Scott. I appreciate the experience and point of view you're adding to this discussion (not just the responses to me). While I might be playing the devil's advocate here a bit, I think one could argue each of the points you've made below. I do feel that general usage patterns are a reflection of the technologies that have traditionally been available to consumers. New uses and applications would be available to overcome hurdles if the technologies had developed to be symmetrical. I'm not saying that the asymmetrical choice was a bad one, but it was not without consequences. If residential ISPs sell asymmetric connections for decades, how can the ISP expect that application developers would not take this into account when developing applications? I don't think my application would be very successful if it required X Mbps and half of my market did not meet this requirement. Of course content/service providers are going to tailor their services based around their market. --Blake Scott Helms wrote the following on 5/16/2014 12:06 PM: Blake, I might agree with your premise if weren't for a couple of items. 1) Very few consumers are walking around with a HD or 4K camera today. 2) Most consumers who want to share video wouldn't know how to host it themselves, which isn't an insurmountable issue but is a big barrier to entry especially given the number of NAT'ed connections. I think this is much more of a problem than available bandwidth. 3) Most consumers who want to share videos seem to be satisfied with sharing via one of the cloud services whether that be YouTube (which was created originally for that use), Vimeo, or one of the other legions of
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand.
Re: Observations of an Internet Middleman (Level3) (was: RIP
Blake, I'm not sure what the relationship between what an access network sells has to do with how their peering is done. I realize that everyone's favorite target is Comcast right now, but would anyone bat an eye over ATT making the same requirement since they have much more in the way of transit traffic? I don't think anyone forced Level 3 into their peering agreement with Comcast and it was (roughly) symmetrical for years before Level 3 was contracted by Netflix. Shouldn't Level 3 gone to Comcast and told them they needed to change their peering or get a different contract? Why was Cogent able to maintain (roughly) symmetrical traffic with Comcast when they were the primary path for Netflix to Comcast users? Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: Oh, I'm not proposing symmetrical connectivity at all. I'm just supporting the argument that in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric when the overwhelming majority of what they're selling (and have been selling for over a decade) is asymmetric connectivity. Their traffic imbalance is, arguably, their own doing. How residential ISPs recoup costs (or simply increase revenue/profit) is another question entirely. I think the most insightful comment in this discussion was made by Mr. Rick Astley (I assume a pseudonym), when he states that ISPs have several options to increase revenue A) Increase price of their product, B) Implement usage restrictions, or C) Charge someone else/Make someone else your customer. I think he successfully argues that option C may be the best. As we've seen, the wireless market in the US went for option B. We've yet to see where the wireline market will go. Of course, the market would ideally keep ISPs' demands for revenue/profit in check and we'd all reach a satisfactory solution. One of the arguments, one I happen to support, in this thread is that there is not a free market for internet connectivity in many parts of the US. If there was, I believe Comcast would be focusing on how to provide a balance between the best product at the lowest cost and not on how they can monetize their paying customers in order to increase profits. I appreciate honesty; When a service provider advertises X Mbps Internet speeds, I expect they can deliver on their claims (to the whole Internet, and not just the portions of it they've decided). I understand congestion, overselling, etc. But choosing which portions of the internet work well and which don't is a lot more like censorship than service. --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
Christopher Morrow wrote the following on 5/16/2014 1:52 PM: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. I agree about the term being passe ...and that it never applied to ISPs ...and that peering is about cost reduction, reliability, and performance. It seems to me that many CDNs or content providers want to setup peering relationships and are willing to do so at a cost to them in order to bypass the internet middle men. But I mention traffic ratios because some folks in this discussion seem to be using it as justification for not peering. But hey, why peer at little or no cost if they can instead hold out and possibly peer at a negative cost? --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
All this talk about symmetry and asymmetry is interesting. Has anyone actually quantified how much congestion is due to buffer bloat which is, in turn, exacerbated by asymmetric connections? James R. Cutler james.cut...@consultant.com PGP keys at http://pgp.mit.edu signature.asc Description: Message signed with OpenPGP using GPGMail
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Fri, May 16, 2014 at 11:52 AM, Christopher Morrow morrowc.li...@gmail.com wrote: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Traffic asymmetry across peering connections was what lit the fuse on this whole powder keg, if I understand correctly; at the point the traffic went asymmetric, the refusals to augment capacity kicked in, and congestion became a problem. I've seen the same thing; pretty much every rejection is based on ratio issues, even when offering to cold-potato haul the traffic to the home market for the users. If the refusals hinged on any other clause of the peering requirements, you'd be right; but at the moment, that's the flag networks are waving around as their speedbump-du-jour. So, it may be very 1990, but unfortunately that seems to be the year many people in the industry are mentally stuck in. :( Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Fri, May 16, 2014 at 12:14 PM, James R Cutler james.cut...@consultant.com wrote: All this talk about symmetry and asymmetry is interesting. Has anyone actually quantified how much congestion is due to buffer bloat which is, in turn, exacerbated by asymmetric connections? James R. Cutler james.cut...@consultant.com PGP keys at http://pgp.mit.edu I think you might have the cart before the horse. If there's no congestion on a peering link, buffering doesn't come into play, at least not within the transport infrastructure. We're not talking congestion on the last mile side, we're looking at congestion on the interconnect links between networks, typically 10G or 100G ports. Unless you're running those links near or at capacity, buffering should be a complete non-issue. And if you're running those links at capacity, then the congestion is due to too much traffic, period, not to the size of buffers involved on either side of the link. ^_^; Thanks! Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP
Matthew, There is a difference between what should be philosophically and what happened with Level 3 which is a contractual issue. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 3:15 PM, Matthew Petach mpet...@netflight.comwrote: On Fri, May 16, 2014 at 11:52 AM, Christopher Morrow morrowc.li...@gmail.com wrote: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Traffic asymmetry across peering connections was what lit the fuse on this whole powder keg, if I understand correctly; at the point the traffic went asymmetric, the refusals to augment capacity kicked in, and congestion became a problem. I've seen the same thing; pretty much every rejection is based on ratio issues, even when offering to cold-potato haul the traffic to the home market for the users. If the refusals hinged on any other clause of the peering requirements, you'd be right; but at the moment, that's the flag networks are waving around as their speedbump-du-jour. So, it may be very 1990, but unfortunately that seems to be the year many people in the industry are mentally stuck in. :( Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 05:35:39 PM Jay Ashworth wrote: Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? What we saw with FTTH deployments is that customers uploaded more videos and photos to Youtube, Facebook, MySpace, e.t.c. They didn't do this on ADSL as much (it's too frustrating). When that caught on, customers started buying online backup services - synchronizing backups of their home or office computers to remote backup infrastructure. Again, they never did this with ADSL. What we learned: don't take it for granted that you will always know what your customers (or the content providers who serve them) will do with the bandwidth. If they have it, expect the worst, and plan for it as best you can. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Fri, May 16, 2014 at 3:15 PM, Matthew Petach mpet...@netflight.com wrote: On Fri, May 16, 2014 at 11:52 AM, Christopher Morrow morrowc.li...@gmail.com wrote: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Traffic asymmetry across peering connections was what lit the fuse on this whole powder keg, if I understand correctly; at the point the traffic went asymmetric, the refusals to augment capacity kicked in, and congestion became a problem. Is it that? or is it that planning at some ISP pair had a '6 months to upgrade' regularly penciled in, then 'all of a sudden' their links were filling up faster than every 6months and... now they are 1x or 2x upgrade cycles behind? I imagine that up to a point upgrading a router that does only 'peering' (SFP) is 'easy', but at some step function of upgrades on the edge ports you need to provision more backhaul and more core and probably upgrade the link types and the chassis and ... At some ISPs this process involves more than 1 dude/group. So coordination and budget issues and scheduling ... become a bit harder. Adjusting to the new reality of 'you need to plan for pipe filling more often, increase upgrade cycle crank speed!' seems like at least one problem, to me at least. It's really hard to tell what's upsetting people about this whole topic :( There's a mix of 'my access link blows' to 'isps should peer better and for freer' and a bunch of other stuff all mixed in the middle :( I've seen the same thing; pretty much every rejection is based on ratio issues, even when offering to cold-potato haul the traffic to the home market for the users. yes, welp... it's often rough to get folk who want to think in terms of apples to suddenly thing in terms of the new best fruit 'acai berry'. Especially at large and entrenched organizations. If the refusals hinged on any other clause of the peering requirements, you'd be right; but at the moment, that's the flag networks are waving around as their speedbump-du-jour. sure, it's also super easy for them to do this, see entrenched org comment above. it seems to me that the point of peering is not stalin voice'ratio or bust'/stalin voice but 'mutual benefit'. If a skewed ratio of 100:1 in a local market still is cheaper than 'backhaul that traffic from LHR to SFO' there's mutual benefit and a reason to peer. I understand that this is a bit of a rosy landscape I'm painting, but... So, it may be very 1990, but unfortunately that seems to be the year many people in the industry are mentally stuck in. :( oh, entrenched. I see. thanks! -chris
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Fri, May 16, 2014 at 3:11 PM, Blake Hudson bl...@ispn.net wrote: Christopher Morrow wrote the following on 5/16/2014 1:52 PM: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. I agree about the term being passe ...and that it never applied to ISPs ...and that peering is about cost reduction, reliability, and performance. ok. It seems to me that many CDNs or content providers want to setup peering relationships and are willing to do so at a cost to them in order to bypass the internet middle men. But I mention traffic ratios because some folks 'the internet middle men' - is really, it seems to me, 'people I have no business relationship with'. There's also no way to control the capacity planning process with these middle-men, right? Some AS in the middle of my 3-AS-way conversation isn't someone I can capacity plan with :( -chris in this discussion seem to be using it as justification for not peering. But hey, why peer at little or no cost if they can instead hold out and possibly peer at a negative cost? --Blake
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Friday, May 16, 2014 05:45:06 PM Scott Helms wrote: Bandwidth use trends are actually increasingly asymmetical because of the popularity of OTT video. Social media, even with video uploading, simply doesn't generate that much traffic per session. Our experience showed that there is a direct co-relation between the lack of traffic in the upstream direction and poor upload bandwidth (primarily, due to asymmetric tech. such as ADSL), e.g., because of the ADSL I have at home (512Kbps up, 4Mbps down), I generally do not send very large e-mails when working from home; nor do I use my laptop for remote router/switch updates as the software images are a nightmare to upload. And yes, there is a larger proportion of downstream traffic than there is upstream traffic pretty much most of the time (even with symmetric links). However, with symmetry, upstream traffic will increase significantly as customers realize it is now available. One of the use-cases we thought about when deploying an FTTH backbone was having remote PVR's. So rather than record and save linear Tv programming on the STB, record and save it in the network. This could only be done with symmetric bandwidth. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP
Mark, I don't think that anyone disputes that when you improve the upstream you do get an uptick in usage in that direction. What I take issue with is the notion that the upstream is anything like downstream even when the capacity is there. Upstream on ADSL is horribad, especially the first generations (g.lite and g.dmt). Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Fri, May 16, 2014 at 3:25 PM, Mark Tinka mark.ti...@seacom.mu wrote: On Friday, May 16, 2014 05:35:39 PM Jay Ashworth wrote: Could you expand a bit, Mark on Social media forces the use of symmetric bandwidth? Which social media platform is it that you think has a) symmetrical flows that b) are big enough to figure into transit symmetry? What we saw with FTTH deployments is that customers uploaded more videos and photos to Youtube, Facebook, MySpace, e.t.c. They didn't do this on ADSL as much (it's too frustrating). When that caught on, customers started buying online backup services - synchronizing backups of their home or office computers to remote backup infrastructure. Again, they never did this with ADSL. What we learned: don't take it for granted that you will always know what your customers (or the content providers who serve them) will do with the bandwidth. If they have it, expect the worst, and plan for it as best you can. Mark.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On May 16, 2014 12:21 PM, Matthew Petach mpet...@netflight.com wrote: On Fri, May 16, 2014 at 11:52 AM, Christopher Morrow morrowc.li...@gmail.com wrote: On Fri, May 16, 2014 at 2:47 PM, Blake Hudson bl...@ispn.net wrote: in the context of this discussion I think it's silly for a residential ISP to purport themselves to be a neutral carrier of traffic and expect peering ratios to be symmetric is 'symmetric traffic ratios' even relevant though? Peering is about offsetting costs, right? it might not be important that the ratio be 1:1 or 2:1... or even 10:1, if it's going to cost you 20x to get the traffic over longer/transit/etc paths... or if you have to build into some horrific location(s) to access the content in question. Harping on symmetric ratios seems very 1990... and not particularly germaine to the conversation at hand. Traffic asymmetry across peering connections was what lit the fuse on this whole powder keg, if I understand correctly; at the point the traffic went asymmetric, the refusals to augment capacity kicked in, and congestion became a problem. What lit this powder keg?: conspiracy theory Netflix bought transit from cogent and expected it to work. C'mon. This happens every month on this list and every month people tell others not to rely on cogent. Right? Netflix is smart, they know cogent is willing to burn down their network and blow up their customers for 15 minutes of fame $0.03 a meg. This makes me think the whole thing is a net neutrality strawman. They set the stage and all the players played their part. Now, what will be the result? I expect some concession from the comcast/twc deal. They made a big deal about net neutrality / netflix / strawman so they can trump up a meaningful concession to allow the merger. /conspiracy I've seen the same thing; pretty much every rejection is based on ratio issues, even when offering to cold-potato haul the traffic to the home market for the users. If the refusals hinged on any other clause of the peering requirements, you'd be right; but at the moment, that's the flag networks are waving around as their speedbump-du-jour. So, it may be very 1990, but unfortunately that seems to be the year many people in the industry are mentally stuck in. :( Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
I don’t disagree. However, given the choice between Comcast and broadband services in NL, Chatanooga, or Seoul, just to name a few, Comcast loses badly. Choosing between Comcast and a legacy Telco is like choosing between legionnaire’s disease and SARS. Owen On May 14, 2014, at 5:15 PM, Jared Mauch ja...@puck.nether.net wrote: Owen, I've seen a vast difference between Comcast and others in the marketplace. Right now, if I had the choice between Comcast and a legacy telco, I would pick Comcast hands-down for: a) performance b) IPv6 support c) willingness to work on issues - Jared On May 14, 2014, at 5:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Having an actual free market would require having competition. So long as we have monopoly layer 1 providers being allowed to use that monopoly as leverage for higher layer service monopolies, (or oligopolies), an actual free market is virtually impossible. The result of deregulating the current environment would only be more pain and cost to the consumer than we currently have with no improvement in speeds or capabilities and no additional innovation. Owen On May 14, 2014, at 6:05 PM, Matt Palmer mpal...@hezmatt.org wrote: On Wed, May 14, 2014 at 07:01:36PM -0500, Larry Sheldon wrote: Maybe it is time to try a free market. Can't do that, it would be UnAmerican! - Matt -- I can only guess that the designer of the things had a major Toilet Duck habit and had managed to score a couple of industrial-sized bottles of the stuff the night before. -- Tanuki
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Yes, you've got some of the largest Internet companies as customers. Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick On Thu, May 15, 2014 at 10:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Guys, I'm already pretty far off the reservation and will not respond to trolling. I think most ISPs are starting to avoid participation here for the same reason. I'm going to stop for a while. - Kevin On May 15, 2014, at 12:42 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers. Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick On Thu, May 15, 2014 at 10:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto:kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083tel:215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto:kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083tel:215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.commailto:h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.orgmailto:char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
To be fair, I have no evidence that Comcast demanded money in advance. As far as I can tell, Level 3, Cogent and Comcast all agree on the rest though, Comcast's peering filled up. Both Level 3 and Cogent offered/requested to upgrade. Then at least Cogent (IIRC?) offered to upgrade *and pay Comcast to upgrade*. All of these offers were ignored or rejected, and at this point I think all parties agree that ransom was demanded by Comcast. Then, just weeks after Verizon's successful litigation against Net Neutrality, Netflix agreed to pay Comcast directly. I'm not sure if the removal of Netflix is enough to resolve the congestion on the Level 3 and Cogent links, but I'm not sure how one could explain the above situation other than deliberate throttling in an attempt to extort money. Nick On Thu, May 15, 2014 at 12:51 PM, arvindersi...@mail2tor.com wrote: Yes Kevin, this is understood - but valid observation from Nick. Can you pls answer my question first? Very curious. Arvinder Guys, I'm already pretty far off the reservation and will not respond to trolling. I think most ISPs are starting to avoid participation here for the same reason. I'm going to stop for a while. - Kevin On May 15, 2014, at 12:42 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers. Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick On Thu, May 15, 2014 at 10:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto: kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083tel:215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto: kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083tel:215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.commailto:h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.orgmailto:char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. Peers that are balanced only due strong arm tactics used against smaller hosting and content providers. On Thu, May 15, 2014 at 11:46 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Guys, I'm already pretty far off the reservation and will not respond to trolling. I think most ISPs are starting to avoid participation here for the same reason. I'm going to stop for a while. - Kevin On May 15, 2014, at 12:42 PM, Nick B n...@pelagiris.orgmailto: n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers. Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick On Thu, May 15, 2014 at 10:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto: kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083tel:215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.commailto: o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto: kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083tel:215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.commailto: o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.commailto: h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.orgmailto: char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 14-05-15 10:26, Owen DeLong wrote: Choosing between Comcast and a legacy Telco is like choosing between legionnaire’s disease and SARS. Twisted pair is certantly legacy. Is there a feeling that coax cable/DOSCIS is also legacy in terms of current capacity/speeds ? Or is that technology still considered viable against FTTH ? I realise that business practices make north american incumbents undesirable compared to the rest of the world, especially Comcast's dirty tricks with Netflix as an example. But in terms of the last mile technology and wiring (for instance, homes per HFC node) sre north american cavlecos up to par with the rest of the world ?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On May 15, 2014, at 7:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc I didn’t say they weren’t doing any upgrades/buildouts. I will say that the copper capabilities in my neighborhood are so far behind demand(s) that it is abysmal. There hasn’t been significant maintenance to the $TELCO copper plant in my neighborhood since it was installed in 1960. What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. I’ve been asked by my employer to stop picking on specific large ISPs. However, my experiences with $CABLECO have been as described. The infrastructure in my neighborhood was horrible and did not improve at all until I ordered business class service from them. I’ve seen nothing to indicate that there is any significant effort to improve customer satisfaction, but lots of things to indicate that they are trying to leverage as much revenue out of as little investment as possible. Owen - Kevin 215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.com wrote: Oh, please do explicate on how this is inaccurate… Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 5/15/14, 12:43 PM, Nick B n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers². Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick That is categorically untrue, however nice a soundbite it may be. If you or anyone else truly believes we are throttling someone then I encourage you to file a formal complaint with the FCC. According to their Open Internet rules that we are bound to through at least 2018 (IIRC) we may not discriminate on traffic in that way, so there is a clear rule and a clear process for complaints. Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Nick On Thu, May 15, 2014 at 1:26 PM, Livingood, Jason jason_living...@cable.comcast.com wrote: On 5/15/14, 12:43 PM, Nick B n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers². Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick That is categorically untrue, however nice a soundbite it may be. If you or anyone else truly believes we are throttling someone then I encourage you to file a formal complaint with the FCC. According to their Open Internet rules that we are bound to through at least 2018 (IIRC) we may not discriminate on traffic in that way, so there is a clear rule and a clear process for complaints. Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 5/15/14, 1:28 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Throttling is taking, say, a link from 10G and applying policy to constrain it to 1G, for example. What if a peer wants to go from a balanced relationship to 10,000:1, well outside of the policy binding the relationship? Should we just unquestionably toss out our published policy – which is consistent with other networks – and ignore expectations for other peers? Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Yes, throttling an entire ISP by refusing to upgrade peering is clearly a way to avoid technically throttling. Interestingly enough only Comcast and Verizon are having this problem, though I'm sure now that you have set an example others will follow. Nick On Thu, May 15, 2014 at 1:34 PM, Livingood, Jason jason_living...@cable.comcast.com wrote: On 5/15/14, 1:28 PM, Nick B n...@pelagiris.org wrote: By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Throttling is taking, say, a link from 10G and applying policy to constrain it to 1G, for example. What if a peer wants to go from a balanced relationship to 10,000:1, well outside of the policy binding the relationship? Should we just unquestionably toss out our published policy – which is consistent with other networks – and ignore expectations for other peers? Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
So by extension, if you enter an agreement and promise to remain balanced you can just willfully throw that out and abuse the heck out of it? Where does it end? Why even bother having peering policies at all then? To use an analogy, if you and I agree to buy a car together and agree to switch off who uses it every other day, can I just say forget our agreement – I’m just going to drive the car myself every single day – its all mine”? And as you say, “interestingly enough only Comcast and Verizon are having this problem” someone else might say “interestingly enough one content distributor is at the center of all of these issues.” I’m frankly surprised that no one is stepping back to try to understand what was and is driving those changes. Jason On 5/15/14, 1:43 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, throttling an entire ISP by refusing to upgrade peering is clearly a way to avoid technically throttling. Interestingly enough only Comcast and Verizon are having this problem, though I'm sure now that you have set an example others will follow. Nick
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
I said I would step away, but trying to keep some level of emotion out of this... We all need rational actor behavior in the ecosystem. We need our policies and agree to live up to those policies between players. Random and inconsistent behavior does not build a well functioning market and is the root of most disputes We can argue about what the policy should be, the impacts, etc and that is a fair discussion. - Kevin 215-313-1083 On May 15, 2014, at 2:11 PM, Livingood, Jason jason_living...@cable.comcast.commailto:jason_living...@cable.comcast.com wrote: So by extension, if you enter an agreement and promise to remain balanced you can just willfully throw that out and abuse the heck out of it? Where does it end? Why even bother having peering policies at all then? To use an analogy, if you and I agree to buy a car together and agree to switch off who uses it every other day, can I just say forget our agreement – I’m just going to drive the car myself every single day – its all mine”? And as you say, “interestingly enough only Comcast and Verizon are having this problem” someone else might say “interestingly enough one content distributor is at the center of all of these issues.” I’m frankly surprised that no one is stepping back to try to understand what was and is driving those changes. Jason On 5/15/14, 1:43 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, throttling an entire ISP by refusing to upgrade peering is clearly a way to avoid technically throttling. Interestingly enough only Comcast and Verizon are having this problem, though I'm sure now that you have set an example others will follow. Nick
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
I agree, and those peers should be then paid for the bits that your customers are requesting that they send through you if you cannot maintain a balanced peer relationship with them. It's shameful that access networks are attempting to not pay for their leeching of mass amounts of data in clear violation of standard expectations for balanced peering agreements. Oh... you meant something else? -Blake On Thu, May 15, 2014 at 12:34 PM, Livingood, Jason jason_living...@cable.comcast.com wrote: On 5/15/14, 1:28 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Throttling is taking, say, a link from 10G and applying policy to constrain it to 1G, for example. What if a peer wants to go from a balanced relationship to 10,000:1, well outside of the policy binding the relationship? Should we just unquestionably toss out our published policy – which is consistent with other networks – and ignore expectations for other peers? Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On May 15, 2014, at 10:18 AM, Jean-Francois Mezei jfmezei_na...@vaxination.ca wrote: On 14-05-15 10:26, Owen DeLong wrote: Choosing between Comcast and a legacy Telco is like choosing between legionnaire’s disease and SARS. Twisted pair is certantly legacy. Is there a feeling that coax cable/DOSCIS is also legacy in terms of current capacity/speeds ? Or is that technology still considered viable against FTTH ? I realise that business practices make north american incumbents undesirable compared to the rest of the world, especially Comcast's dirty tricks with Netflix as an example. But in terms of the last mile technology and wiring (for instance, homes per HFC node) sre north american cavlecos up to par with the rest of the world ? I am not speaking specifically about any one company here. In North America, very few places have any level of FTTH. If you are in a rural area with USF subsidies, you are more likely to have FTTH than many urban areas. Co-ax, or if you’re somewhat lucky, HFC is about the best last mile technology available to most US subscribers. In states where some city invested in municipal FTTH on an open-access basis, the incumbent $CABLECOS and $TELCOS have fought hard to push legislation making it illegal for other cities in the state to do the same. The state of broadband networks in the US in general can best be described as pathetic and/or apathetic when it comes to the consumer’s interest. Lilly Tomlin summed this up very well in a number of her early comedy sketches where she pretended to be a telephone company operator. Her catch phrase was “We don’t care. We don’t have to. We’re the phone company!” Further, it appears that several of the $CABLECOS and $TELCOS will actually attempt to quash their more vocal opponents by discussing public comments they make on a personal basis with said opponents employer and using them as a “negotiating tactic”. Personally, I think this is one of the most underhanded and lowest forms of an act of desperation to try and squash public debate. To be very clear… This statement is absolutely not targeted at any one company. There were several. Owen
Re: Observations of an Internet Middleman (Level3) (was: RIP
Throttling is taking, say, a link from 10G and applying policy to constrain= it to 1G, for example. Throttling is also trying to cram 20G of traffic through that same 10G link. What if a peer wants to go from a balanced relation= ship to 10,000:1, well outside of the policy binding the relationship? What if you're running a 10G port at saturation in both directions and you decide to stop accepting announcements from the peer on that port? Now you have a 10,000:0 ratio. Then what? Should we just unquestionably toss out our published policy =96 which is consis= tent with other networks =96 and ignore expectations for other peers? What's your goal at the end of the day? You have customers who are paying you for connectivity to Teh Interwebz. Do you have an obligation to run a dedicated 100GbE to each and every host on the planet? No. Do you have an obligation to make a reasonable effort to move the traffic that your customer is paying you for? Yes. At the end of the day, if I'm your customer and I'm trying to pull 50Mbps of data on my 50Mbps connection that I am buying from you, then it seems like a reasonable thing to expect that you'll have the 50Mbps of capacity to actually fulfill the demand. That does not mean that I will actually GET 50Mbps - it just means that you should be making a reasonable effort and especially that you are not actively sabotaging it, by aggregating it through a congested 10Gbps port, or forcing the packets through a congested peer, or any of a number of other underhanded things. If you cannot figure out how to arrange your transit and peering affairs in a manner that allows you to deliver on what you've sold to customers in the current unregulated model, I think you'll find that the alternative of regulation is very much less palatable. So, to answer your question, yes, if you're unable to figure out that Netflix is always going to generate tons more traffic than it receives, and that your customers desperately want to get good connectivity to there, then that's dumb. Perhaps you should figure out how to arrange peering with sites where there's obviously going to be an unrectifiable traffic imbalance. You're a service provider. What should your goal be? I would have thought it obvious: Provide the service. ... JG -- Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net We call it the 'one bite at the apple' rule. Give me one chance [and] then I won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN) With 24 million small businesses in the US alone, that's way too many apples.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
AFAIK Comcast wasn't consuming, mass amounts of data from Level 3 (Netflix's transit to them). Are you implying that a retail customer has a similar expectation (or should) as a tier 1 ISP has for peering? I hope not, that would be hyperbole verging on the silly. Retail customer agreement spell out, in every example I've seen, realistic terms and expectations for service and those are very different from peering arrangements. Scott Helms Vice President of Technology ZCorum (678) 507-5000 http://twitter.com/kscotthelms On Thu, May 15, 2014 at 2:28 PM, Blake Dunlap iki...@gmail.com wrote: I agree, and those peers should be then paid for the bits that your customers are requesting that they send through you if you cannot maintain a balanced peer relationship with them. It's shameful that access networks are attempting to not pay for their leeching of mass amounts of data in clear violation of standard expectations for balanced peering agreements. Oh... you meant something else? -Blake On Thu, May 15, 2014 at 12:34 PM, Livingood, Jason jason_living...@cable.comcast.com wrote: On 5/15/14, 1:28 PM, Nick B n...@pelagiris.orgmailto: n...@pelagiris.org wrote: By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Throttling is taking, say, a link from 10G and applying policy to constrain it to 1G, for example. What if a peer wants to go from a balanced relationship to 10,000:1, well outside of the policy binding the relationship? Should we just unquestionably toss out our published policy – which is consistent with other networks – and ignore expectations for other peers? Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
If traffic is unbalanced, what determines who is the payer and who is the payee? Apparently whoever can hold on to their customers better while performance is shit. On Thu, May 15, 2014 at 1:28 PM, Blake Dunlap iki...@gmail.com wrote: I agree, and those peers should be then paid for the bits that your customers are requesting that they send through you if you cannot maintain a balanced peer relationship with them. It's shameful that access networks are attempting to not pay for their leeching of mass amounts of data in clear violation of standard expectations for balanced peering agreements. Oh... you meant something else? -Blake On Thu, May 15, 2014 at 12:34 PM, Livingood, Jason jason_living...@cable.comcast.com wrote: On 5/15/14, 1:28 PM, Nick B n...@pelagiris.orgmailto: n...@pelagiris.org wrote: By categorically untrue do you mean FCC's open internet rules allow us to refuse to upgrade full peers? Throttling is taking, say, a link from 10G and applying policy to constrain it to 1G, for example. What if a peer wants to go from a balanced relationship to 10,000:1, well outside of the policy binding the relationship? Should we just unquestionably toss out our published policy – which is consistent with other networks – and ignore expectations for other peers? Jason
Re: Observations of an Internet Middleman (Level3) (was: RIP
So by extension, if you enter an agreement and promise to remain balanced y= ou can just willfully throw that out and abuse the heck out of it? Where do= es it end? Why even bother having peering policies at all then? It doesn't strike you as a ridiculous promise to extract from someone? Hi I'm an Internet company. I don't actually know what the next big thing next year will be but I promise that I won't host it on my network and cause our traffic to become lopsided. Wow. Is that what you're saying? To use an analogy, if you and I agree to buy a car together and agree to sw= itch off who uses it every other day, can I just say forget our agreement = =96 I=92m just going to drive the car myself every single day =96 its all m= ine=94? Seems like a poor analogy since I'm pretty sure both parties on a peering can use the port at the same time. ... JG -- Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net We call it the 'one bite at the apple' rule. Give me one chance [and] then I won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN) With 24 million small businesses in the US alone, that's way too many apples.
Re: Observations of an Internet Middleman (Level3) (was: RIP
On 5/15/14, 3:05 PM, Joe Greco jgr...@ns.sol.net wrote: Hi I'm an Internet company. I don't actually know what the next big thing next year will be but I promise that I won't host it on my network and cause our traffic to become lopsided. Wow. Is that what you're saying? Of course not. JL
Re: Observations of an Internet Middleman (Level3) (was: RIP
On Thu, May 15, 2014 at 3:05 PM, Joe Greco jgr...@ns.sol.net wrote: So by extension, if you enter an agreement and promise to remain balanced y= ou can just willfully throw that out and abuse the heck out of it? Where do= es it end? Why even bother having peering policies at all then? It doesn't strike you as a ridiculous promise to extract from someone? You could certainly say its ridiculous, but it is (and has been) the basis for almost all peering arrangements in North America for several decades in my personal experience. I believe that the practice came from the telco world when large telephone companies would exchange traffic without billing each other so long as the traffic was relatively balanced. You can imagine ATT and Sprint exchange toll traffic and so long as things we're fairly close there wasn't a big imbalance of traffic to worry the financial folks over and thus having to do exact accounting on each minute, which was technically challenging 30 years ago. Hi I'm an Internet company. I don't actually know what the next big thing next year will be but I promise that I won't host it on my network and cause our traffic to become lopsided. Wow. Is that what you're saying? That's not what happened. What happened is that Netflix went to Level 3 who already had a peering arrangement with Comcast which was built around normal (roughly) balanced peering. It had been in place for years before Netflix signed with Level 3 and worked, and was contracted this way, around relatively balanced traffic. Once Netflix started sending most of their traffic destined to Comcast end user through Level 3 things got out of balance. Netflix still has a contract with Cogent (I believe that is the correct one) or other provider that had previously been handling the bulk of the Comcast directed traffic, but the Level 3 connection was cheaper for Netflix. If anyone actually acted in bad faith it was, IMO, Level 3. To use an analogy, if you and I agree to buy a car together and agree to sw= itch off who uses it every other day, can I just say forget our agreement = =96 I=92m just going to drive the car myself every single day =96 its all m= ine=94? Seems like a poor analogy since I'm pretty sure both parties on a peering can use the port at the same time. His point was you can't simply change a contract without having both parties involved. Level 3 tried to do just that. ... JG -- Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net We call it the 'one bite at the apple' rule. Give me one chance [and] then I won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN) With 24 million small businesses in the US alone, that's way too many apples.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On Thu, May 15, 2014 at 07:29:06AM -0700, Owen DeLong wrote: The result of deregulating the current environment would only be more pain and cost to the consumer than we currently have with no improvement in speeds or capabilities and no additional innovation. Indeed. While I certainly understand (and sympathise with) the sentiments of those who say, we don't want the government regulating the Internet!, unfortunately in *this* particular battle I can't see a way out of the morass without a certain amount of government intervention. Of course, it would greatly help the situation if the idiotic restrictions imposed by many states making it illegal to setup muni fibre and wifi (at the behest of the monopoly carriers, of course) were repealed (or overridden), and holding companies like Verizon to account for breaking their promises to build out fibre plant, but I think the situation is *such* a mess that removing all the barriers and hoping that things naturally take care of themselves is, well, optimistic at best. - Matt -- You have a 16-bit quantity, but 5 bits of it are here and 2 bits of it are there... and 2 bits of it are back here and 3 bits of it are up there. The C code to extract useful data had so many and operators in it that it looked like the C++ version of hello world. -- Matt Roberds, ASR
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Yes Kevin, this is understood - but valid observation from Nick. Can you pls answer my question first? Very curious. Arvinder Guys, I'm already pretty far off the reservation and will not respond to trolling. I think most ISPs are starting to avoid participation here for the same reason. I'm going to stop for a while. - Kevin On May 15, 2014, at 12:42 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers. Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick On Thu, May 15, 2014 at 10:57 AM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto:kevin_mcelear...@cable.comcast.com wrote: Upgrades/buildout are happening every day. They are continuous to keep ahead of demand and publicly measured by SamKnows (FCC measuring broadband), Akamai, Ookla, etc What is not well known is that Comcast has been an existing commercial transit business for 15+ years (with over 8000 commercial fiber customers). Comcast also has over 40 balanced peers with plenty of capacity, and some of the largest Internet companies as customers. - Kevin 215-313-1083tel:215-313-1083 On May 15, 2014, at 10:19 AM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Oh, please do explicate on how this is inaccurate Owen On May 14, 2014, at 2:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.commailto:kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083tel:215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.commailto:o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.commailto:h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.orgmailto:char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On Wed, May 14, 2014 at 9:29 PM, Hugo Slabbert h...@slabnet.com wrote: So, at the end of the week, I *had* been paying $10/mb to send traffic through transit to reach the whole rest of the internet. Now, I'm paying $5+$4+$4+$5+$2, or $30, and I don't have a full set of routes, so I've still got to keep paying the transit provider as well at $10. I would like to agree with you as I'm not a fan (by any stretch) of this type of paid peering to enter access networks, but your formula's off. It supposes that the same bit is traversing multiple paid peering links. The formula (if we ignore commits for now) should be something more like: C(T) = R(t) * M(t) + R(1) * M(1) ... + R(n) * M(n) Where: C(T) = total cost R(t) = transit $/mbit rate M(t) = transit mbps R(1) = paid peering agreement #1 $/mbps rate M(1) = paid peering agreement #1 mbps R(n) = paid peering agreement #n $/mbps rate M(n) = paid peering agreement #n mbps For your $10/mb transit example, suppose we had 1 Gbps of traffic and so our transit cost would be $10,000/month. We take your mixed bag of paid peering and say we give each of those 5 paid peers 100 mbps: C(T) = 500 * 10 + 100 * 5 + 100 * 4 + 100 * 4 + 100 * 5 + 100 * 2 C(T) = $7,000/month So, yes, as long as R(n) is lower than R(t), your overall cost should be lower, since you're moving some number of mbps from your higher priced transit link to one or more (slightly) cheaper paid peering links. Now, as I mentioned, this ignores commits, so it's really more like: This is exactly where it gets ugly. Pretty much everyone that wants money, also wants minimum commitments in order to keep the link. C(T) = ( c(t) + R(t) * M(t) ) + ( c(n) + R(n) * M(n) ) Where: c(t) = transit commit $ M(t) = transit mbps over commit c(n) = paid peering agreement #n commit $...I've not personally had to deal with paid peering so I don't know if commit rates are at all common on them, but you can sub or add in other fixed costs e.g. transport to reach the paid peering exchange point M(n) = paid peering agreement #n mbps over commit So, it starts to get murkier. E.g. if you're not over your transit commit and now you're shifting traffic off of your transit onto paid peering, you may want to lower your transit commits. You may *want* to lower your transit commits; doesn't mean the transit provider will go along happily with that; they may require turning off some ports, and raising the per-mbit price, throwing your calculations off, as now you're having to haul traffic to centralized hubs to hand off, because you had to shut down transit ports in smaller cities based on your reduced commit level, which can also cause performance issues for users. In the worst case, you get stuck still paying for your transit port (as your need to reach the rest of the internet hasn't gone away), as *well* as the commits for all the individual provider ports. This also does not account for other potential costs were this type of arrangement to become commonplace, e.g. the additional burden on content providers of maintaining direct business relationships with any access network that would require paid peering for preferential/decent quality. Again: I'm not a fan of some of the possible abuses or strong-arm tactics of this type of arrangement between eyeball networks and content providers (e.g. running transit or existing peering links hot to push content providers to paid peering to reach the eyeball customers), but the math is not quite so dire as it was made out to be. -- Hugo The math *may* not be as dire; but there's no guarantee it won't be, which is the big challenge; working through the scenarios takes multiple iterations, as reducing your transit volumes changes the commit size and pricing on those ports, and may change the count of ports you can maintain; and splitting your traffic up among separate individual links to every access network uses up limited port counts available on routers. There's a lot of factors involved that all working together help provide a strong incentive for transit providers to continue to exist in the ecosystem, which was the main point I was trying to make; while it might be easy at first blush to say gosh, why doesn't everyone just pay the access networks, bypass the transit providers, and life will be rosy and happy, the reality is that model largely doesn't work out well, as both your math and mine highlight, to differing degrees. But yes, the actual calculations involved are far beyond the realm of a simple NANOG post to completely enumerate. :/ Thanks! Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Jason, like Kevin, thank you very much for opening up to us. It is not every day that someone so close to the issues posts with insight. From what we see here in India, it is true only Comcast and Verizon are access networks with peering problems. We are able to reach Cox, RCN, Charter, Sonoma Interconnect, other without congestion from AS 6453 Tata. Please can you explain what it is about your network design or management that causes the choke? Arvinder So by extension, if you enter an agreement and promise to remain balanced you can just willfully throw that out and abuse the heck out of it? Where does it end? Why even bother having peering policies at all then? To use an analogy, if you and I agree to buy a car together and agree to switch off who uses it every other day, can I just say forget our agreement Im just going to drive the car myself every single day its all mine? And as you say, interestingly enough only Comcast and Verizon are having this problem someone else might say interestingly enough one content distributor is at the center of all of these issues. Im frankly surprised that no one is stepping back to try to understand what was and is driving those changes. Jason On 5/15/14, 1:43 PM, Nick B n...@pelagiris.orgmailto:n...@pelagiris.org wrote: Yes, throttling an entire ISP by refusing to upgrade peering is clearly a way to avoid technically throttling. Interestingly enough only Comcast and Verizon are having this problem, though I'm sure now that you have set an example others will follow. Nick
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Jason I think it is important to consider that you are operating your AS 7922 to serve a global Internet. In US, there is not a lot of choke because all the big Internet property - Google, Facebook, Microsoft, Amazon - pay toll to reach Comcast Broadband customer. If they do not pay u, there is not a competitive provider to pay. The routes to Comcast from peers are very congested. If u don't pay Comcast, you get sent over throttled Tata link... how is that open internet? In my home country, the routes to Comcast are poor bc dominant provider, AS 6453 Tata, is vendor Comcast refuses to upgrade so it can play games. Thank u again for helping provide information, but pls try to keep it accurate. Regards- Arvinder Singh On 5/15/14, 12:43 PM, Nick B n...@pelagiris.org wrote: Yes, you've got some of the largest Internet companies as customers². Because you told them if you don't pay us, we'll throttle you. Then you throttled them. I'm sorry, not a winning argument. Nick That is categorically untrue, however nice a soundbite it may be. If you or anyone else truly believes we are throttling someone then I encourage you to file a formal complaint with the FCC. According to their Open Internet rules that we are bound to through at least 2018 (IIRC) we may not discriminate on traffic in that way, so there is a clear rule and a clear process for complaints. Jason
RE: Observations of an Internet Middleman (Level3) (was: RIP
Their existing agreements notwithstanding, I believe the problem many have with Comcast's balanced ratio requirement is that they have 10s of millions of customers, all or almost all of whom are sold unbalanced services. In addition the majority of their customers are end users, who are also going to bias toward heavily inbound patterns (which is one of the reasons for the asymmetric connections in the first place). As primarily an eyeball network with a token (8000 quoted) number of transit customers it does not seem reasonable for them to expect balanced ratios on peering links. They are, effectively by their own choice of market, always going to have a heavily inbound traffic ratio. It seems to me that requiring anything else is basically a way to give the finger to a potential peer while claiming to be neutral. I find it hard to believe that Comcast would be running many balanced links (peering or transit) at all, except perhaps to other consumer ISPs. In today's environment there are inevitably going to be heavily inbound and heavily outbound networks. Content networks don't have any problem with SFI despite their ratio. Eyeball networks do. Both are in the position they are because of the line of business they have respectively chosen. But the eyeball network is the only one that is explicitly and exclusively paid *to carry traffic*. IMO if the content network is willing to bring their content, for free, to the eyeball network's edge, this is to the benefit of the eyeball network more than content, in the absence of other factors. In this case that factor appears to me to be ad-hoc oligopoly. If customers had options and an easy path to switch, they would not tolerate this behaviour when they can switch to a competitor who provides good service for the bits they request. Content would gain a lot of leverage in this situation as they could help educate customers on alternatives, automatically and without paying a support agent. Of course we should be careful not to let the opposite situation occur either... Keenan From: NANOG nanog-boun...@nanog.org on behalf of Scott Helms khe...@zcorum.com Sent: May 15, 2014 12:54 PM To: Joe Greco Cc: nanog@nanog.org Subject: Re: Observations of an Internet Middleman (Level3) (was: RIP On Thu, May 15, 2014 at 3:05 PM, Joe Greco jgr...@ns.sol.net wrote: So by extension, if you enter an agreement and promise to remain balanced y= ou can just willfully throw that out and abuse the heck out of it? Where do= es it end? Why even bother having peering policies at all then? It doesn't strike you as a ridiculous promise to extract from someone? You could certainly say its ridiculous, but it is (and has been) the basis for almost all peering arrangements in North America for several decades in my personal experience. I believe that the practice came from the telco world when large telephone companies would exchange traffic without billing each other so long as the traffic was relatively balanced. You can imagine ATT and Sprint exchange toll traffic and so long as things we're fairly close there wasn't a big imbalance of traffic to worry the financial folks over and thus having to do exact accounting on each minute, which was technically challenging 30 years ago. Hi I'm an Internet company. I don't actually know what the next big thing next year will be but I promise that I won't host it on my network and cause our traffic to become lopsided. Wow. Is that what you're saying? That's not what happened. What happened is that Netflix went to Level 3 who already had a peering arrangement with Comcast which was built around normal (roughly) balanced peering. It had been in place for years before Netflix signed with Level 3 and worked, and was contracted this way, around relatively balanced traffic. Once Netflix started sending most of their traffic destined to Comcast end user through Level 3 things got out of balance. Netflix still has a contract with Cogent (I believe that is the correct one) or other provider that had previously been handling the bulk of the Comcast directed traffic, but the Level 3 connection was cheaper for Netflix. If anyone actually acted in bad faith it was, IMO, Level 3. To use an analogy, if you and I agree to buy a car together and agree to sw= itch off who uses it every other day, can I just say forget our agreement = =96 I=92m just going to drive the car myself every single day =96 its all m= ine=94? Seems like a poor analogy since I'm pretty sure both parties on a peering can use the port at the same time. His point was you can't simply change a contract without having both parties involved. Level 3 tried to do just that. ... JG -- Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net We call it the 'one bite at the apple' rule. Give me one chance [and] then I won't contact you again. - Direct
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Hi, On May 15, 2014, at 12:12 PM, arvindersi...@mail2tor.com wrote: Jason I think it is important to consider that you are operating your AS 7922 to serve a global Internet. Actually, I suspect Jason is operating 'his' AS to serve Comcast customers and/or shareholders... Regards, -drc signature.asc Description: Message signed with OpenPGP using GPGMail
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On Wednesday, May 14, 2014 09:04:11 AM Jean-Francois Mezei wrote: The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. That depends on your point-of-view and/or interpretation of growth. In the last several years, networks have been adding more capacity than they have customers. I suppose, for a number of operators now, growth is in bandwidth, which is non- linear to customer growth. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On Sat, May 10, 2014 at 8:04 AM, Rick Astley jna...@gmail.com wrote: [...] The reality is an increasingly directly peered Internet doesn't sit well if you are in the business of being the middle man. Now if you will, why do transit companies themselves charge content companies to deliver bits? How is it fair to be in the business of charging companies to receive their bits and hand them to a settlement free peer on the hook to deliver them, but not fair for content to just bypass the transit company and enter a paid peering agreement with the company delivering the bits? In this case paid peering is mutually beneficial to both companies involved and is typically cheaper for the content company than it would cost to send that traffic over transit. What you're missing is that the transit provider is selling full routes. The access network is selling paid peering, which is a tiny fraction of the routes. If I pay transit provider X $10/mb (i know, not realistic, but it makes my math work) to reach the entire internet, it might seem reasonable to pay access network C $5/mb to hand traffic to them, and bypass the transit provider, avoiding potentially congested links. But then access network A decides they want to cut out the middleman as well--so they do the same thing, run their ports to transit provider X hot; to avoid that, I can pay the cheap price of $4/mb to reach them. Now access networks F and D want to do the same thing; their prices for their routes are $4 and $5/mb, respectively. Finally, little access provider T wants in at $2/mb for their routes. So, at the end of the week, I *had* been paying $10/mb to send traffic through transit to reach the whole rest of the internet. Now, I'm paying $5+$4+$4+$5+$2, or $30, and I don't have a full set of routes, so I've still got to keep paying the transit provider as well at $10. Depending on port counts, locations, and commit volumes, your typically cheaper for the content company than it would cost to send that traffic over transit has flown completely out the window. It could even end up being many times more expensive to handle the traffic that way. In order for the costs to work out, you'd really need to apply a formula along the lines of C(n) = T(n) * C(t) where T(n) =fraction of traffic volume destined for access network X C(t)=cost of transit (ie, full routes, reachability to the entire internet) C(n)=cost of paid peering to access network X So, if you're an access network and want to charge for paid peering, and you represent 1/20th of my traffic, there's no reason for me to pay more than 1/20th of my transit cost for your routes; otherwise, it's more cost effective for me as a business to continue to pay a transit provider. I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume. The math just doesn't work out. It's nothing about being tier 1, or bigger than someone else; it's just math, pure and simple. Matt (currently not being paid by anyone for my time or thoughts, so take what I'm saying as purely my own thoughts on the matter, nothing more)
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On May 14, 2014, at 3:11 PM, Matthew Petach mpet...@netflight.com wrote: I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume. My guess is that from the perspective of the access providers, they aren't selling traffic volume or routes, per se - their view is that they're selling privileged engagement with large numbers of potentially monetizable individual prospects. Note that I'm neither endorsing nor disputing this perspective, just mooting it as a possible explanation. Are there any real-world models out there for revenue-sharing between app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges? -- Roland Dobbins rdobb...@arbor.net // http://www.arbornetworks.com Equo ne credite, Teucri. -- Laocoön
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On Wednesday, May 14, 2014 10:11:30 AM Matthew Petach wrote: I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume. The math just doesn't work out. It's nothing about being tier 1, or bigger than someone else; it's just math, pure and simple. I suppose because (in the context of Access networks) the most interested folk that would be even willing to consider paying them for their routes are the content owners. As a fellow middleman with no content on the backbone, I'd have little interest in paying an Access network for their routes, if it's cheaper to get to them through an existing peer or upstream. Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On Wednesday, May 14, 2014 11:27:57 AM Roland Dobbins wrote: Are there any real-world models out there for revenue-sharing between app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges? I think so, but none will cop to it publicly :-). Mark. signature.asc Description: This is a digitally signed message part.
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On May 14, 2014, at 5:47 AM, Mark Tinka mark.ti...@seacom.mu wrote: On Wednesday, May 14, 2014 11:27:57 AM Roland Dobbins wrote: Are there any real-world models out there for revenue-sharing between app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges? I think so, but none will cop to it publicly :-). Mark. 900- numbers and xxx-976 numbers come to mind. Owen
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
--As of May 14, 2014 9:23:21 AM -0500, char...@thefnf.org is alleged to have said: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. --As for the rest, it is mine. This whole argument is about them seeking new sources of revenue: The content providers who their current customers want to access. Daniel T. Staal --- This email copyright the author. Unless otherwise noted, you are expressly allowed to retransmit, quote, or otherwise use the contents for non-commercial purposes. This copyright will expire 5 years after the author's death, or in 30 years, whichever is longer, unless such a period is in excess of local copyright law. ---
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
On Wed, May 14, 2014 at 2:27 AM, Roland Dobbins rdobb...@arbor.net wrote: On May 14, 2014, at 3:11 PM, Matthew Petach mpet...@netflight.com wrote: I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume. My guess is that from the perspective of the access providers, they aren't selling traffic volume or routes, per se - their view is that they're selling privileged engagement with large numbers of potentially monetizable individual prospects. For an ad-supported enterprise, that becomes quite the challenge; if the access network has 40M users, but they're all endemic cheapskates that never click on ads, a) is it worth trying to improve connectivity to them? (will better connectivity increase likelihood of clicking, or are they simply cheap to the core, in which case it would be wasted money and effort), and b) would the access network be willing to divulge the demographic nature of their customer base ahead of time (we have 40M skinflints who will never click on your ads--come pay for direct access to them!). That potentially is quite a big ? in the equation. ^_^; Are there any real-world models out there for revenue-sharing between app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges? An interesting proposal, to be sure. I'll pay you a portion of all ad revenue I generate from your users clicking on my ads. If you get users with more disposable income who are more likely to click on my ads, you get more revenue share from me. If you go after the bottom of the barrel cheap users who never click on ads, you end up with no revenue share income. Would be somewhat amusing to have broadband providers sending out notes to their customers I'm sorry, we're not going to give you the option of renewing your service; you never click on ads, we don't get any revenue share out of you. Go find some other network to sponge off it, you're not worth it for us anymore. ;P Not going to happen, of course, but an interesting thought exercise to contemplate. ^_^;; Matt
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 5/14/2014 4:27 AM, Roland Dobbins wrote: On May 14, 2014, at 3:11 PM, Matthew Petach mpet...@netflight.com wrote: I'm constantly amazed at how access networks think they can charge 2/3 the price of full transit for just their routes when they represent less than 1/10th of the overall traffic volume. My guess is that from the perspective of the access providers, they aren't selling traffic volume or routes, per se - their view is that they're selling privileged engagement with large numbers of potentially monetizable individual prospects. In a world ruled by by the dreaded principles of completion, that would be described as the price where buyer and seller agreed on the value of the product. Note that I'm neither endorsing nor disputing this perspective, just mooting it as a possible explanation.| I do endorse a free market as providing the best value to all. Are there any real-world models out there for revenue-sharing between app/content providers and access networks which would eliminate or reduce 'paid peering' (an alternate way to think of it is as 'delimited transit', another oxymoron like 'paid peering', but with a slightly different emphasis) monetary exchanges? Maybe it is time to try a free market. -- Requiescas in pace o email Two identifying characteristics of System Administrators: Ex turpi causa non oritur actio Infallibility, and the ability to learn from their mistakes. (Adapted from Stephen Pinker)
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Owen, I've seen a vast difference between Comcast and others in the marketplace. Right now, if I had the choice between Comcast and a legacy telco, I would pick Comcast hands-down for: a) performance b) IPv6 support c) willingness to work on issues - Jared On May 14, 2014, at 5:14 PM, McElearney, Kevin kevin_mcelear...@cable.comcast.com wrote: Respectfully, this is a highly inaccurate sound bite - Kevin 215-313-1083 On May 14, 2014, at 3:05 PM, Owen DeLong o...@delong.com wrote: Yes, the more accurate statement would be aggressively seeking new ways to monetize the existing infrastructure without investing in upgrades or additional buildout any more than absolutely necessary. Owen On May 14, 2014, at 8:02 AM, Hugo Slabbert h...@slabnet.com wrote: So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). Sure they are (seeking new sources of revenue). They're not necessarily creating new products or services, i.e. actually adding any value, but they are finding ways to extract additional revenue from the same pipes, e.g. through paid peering with content providers. I'm not endorsing this; just pointing out that you two are actually in agreement here. -- Hugo On Wed, May 14, 2014 at 7:23 AM, char...@thefnf.org wrote: On 2014-05-14 02:04, Jean-Francois Mezei wrote: On 14-05-13 22:50, Daniel Staal wrote: They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. There is the issue of control over the market. But also the pressure from shareholders for continued growth. Yes. That is true. Except that it's not. How do service providers grow? Let's explore that: What is growth for a transit provider? More (new) access network(s) (connections). More bandwidth across backbone pipes. What is growth for access network? More subscribers. Except that the incumbent carriers have shown they have no interest in providing decent bandwidth to anywhere but the most profitable rate centers. I'd say about 2/3 of the USA is served with quite terrible access. The problem with the internet is that while it had promises of wild growth in the 90s and 00s, once penetration reaches a certain level, growth stabilizes. Penetration is ABYSMAL sir. Huge swaths of underserved americans exist. When you combine this with threath to large incumbents's media and media distribution endeavours by the likes of Netflix (and cat videos on Youtube), large incumbents start thinking about how they will be able to continue to grow revenus/profits when customers will shift spending to vspecialty channels/cableTV to Netflix and customer growth will not compensate. Except they aren't. Even in the most profitable rate centers, they've declined to really invest in the networks. They aren't a real business. You have to remember that. They have regulatory capture, natural/defacto monopoly etc etc. They don't operate in the real world of risk/reward/profit/loss/uncertainty like any other real business has to. So they seek new sources of revenues, and/or attempt to thwart competition any way they can. No to the first. Yes to the second. If they were seeking new sources of revenue, they'd be massively expanding into un/der served markets and aggressively growing over the top services (which are fat margin). They did a bit of an advertising campaign of smart home offerings, but that seems to have never grown beyond a pilot. The current trend is to if you can't fight them, jon them where cablecos start to include the Netflix app into their proprietary set-top boxes. The idea is that you at least make the customer continue to use your box and your remote control which makes it easier for them to switch between netflix and legacy TV. True. I don't know why one of the cablecos hasn't licensed roku, added cable card and made that available as a hip/cool set top box offering and charge another 10.00 a month on top of the standard dvr rental. Would be interesting to see if those cable companies that are agreeing to add the Netflix app onto their proprietary STBs also play peering capacity games to degrade the service or not. So how is the content delivered? Is it over the internet? Or is it over the cable plant, from cable headends?
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On Wed, May 14, 2014 at 07:01:36PM -0500, Larry Sheldon wrote: Maybe it is time to try a free market. Can't do that, it would be UnAmerican! - Matt -- I can only guess that the designer of the things had a major Toilet Duck habit and had managed to score a couple of industrial-sized bottles of the stuff the night before. -- Tanuki
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality (was: Wow its been quiet here...
So, at the end of the week, I *had* been paying $10/mb to send traffic through transit to reach the whole rest of the internet. Now, I'm paying $5+$4+$4+$5+$2, or $30, and I don't have a full set of routes, so I've still got to keep paying the transit provider as well at $10. I would like to agree with you as I'm not a fan (by any stretch) of this type of paid peering to enter access networks, but your formula's off. It supposes that the same bit is traversing multiple paid peering links. The formula (if we ignore commits for now) should be something more like: C(T) = R(t) * M(t) + R(1) * M(1) ... + R(n) * M(n) Where: C(T) = total cost R(t) = transit $/mbit rate M(t) = transit mbps R(1) = paid peering agreement #1 $/mbps rate M(1) = paid peering agreement #1 mbps R(n) = paid peering agreement #n $/mbps rate M(n) = paid peering agreement #n mbps For your $10/mb transit example, suppose we had 1 Gbps of traffic and so our transit cost would be $10,000/month. We take your mixed bag of paid peering and say we give each of those 5 paid peers 100 mbps: C(T) = 500 * 10 + 100 * 5 + 100 * 4 + 100 * 4 + 100 * 5 + 100 * 2 C(T) = $7,000/month So, yes, as long as R(n) is lower than R(t), your overall cost should be lower, since you're moving some number of mbps from your higher priced transit link to one or more (slightly) cheaper paid peering links. Now, as I mentioned, this ignores commits, so it's really more like: C(T) = ( c(t) + R(t) * M(t) ) + ( c(n) + R(n) * M(n) ) Where: c(t) = transit commit $ M(t) = transit mbps over commit c(n) = paid peering agreement #n commit $...I've not personally had to deal with paid peering so I don't know if commit rates are at all common on them, but you can sub or add in other fixed costs e.g. transport to reach the paid peering exchange point M(n) = paid peering agreement #n mbps over commit So, it starts to get murkier. E.g. if you're not over your transit commit and now you're shifting traffic off of your transit onto paid peering, you may want to lower your transit commits. This also does not account for other potential costs were this type of arrangement to become commonplace, e.g. the additional burden on content providers of maintaining direct business relationships with any access network that would require paid peering for preferential/decent quality. Again: I'm not a fan of some of the possible abuses or strong-arm tactics of this type of arrangement between eyeball networks and content providers (e.g. running transit or existing peering links hot to push content providers to paid peering to reach the eyeball customers), but the math is not quite so dire as it was made out to be. -- Hugo On Wed 2014-May-14 01:11:30 -0700, Matthew Petach mpet...@netflight.com wrote: On Sat, May 10, 2014 at 8:04 AM, Rick Astley jna...@gmail.com wrote: [...] The reality is an increasingly directly peered Internet doesn't sit well if you are in the business of being the middle man. Now if you will, why do transit companies themselves charge content companies to deliver bits? How is it fair to be in the business of charging companies to receive their bits and hand them to a settlement free peer on the hook to deliver them, but not fair for content to just bypass the transit company and enter a paid peering agreement with the company delivering the bits? In this case paid peering is mutually beneficial to both companies involved and is typically cheaper for the content company than it would cost to send that traffic over transit. What you're missing is that the transit provider is selling full routes. The access network is selling paid peering, which is a tiny fraction of the routes. If I pay transit provider X $10/mb (i know, not realistic, but it makes my math work) to reach the entire internet, it might seem reasonable to pay access network C $5/mb to hand traffic to them, and bypass the transit provider, avoiding potentially congested links. But then access network A decides they want to cut out the middleman as well--so they do the same thing, run their ports to transit provider X hot; to avoid that, I can pay the cheap price of $4/mb to reach them. Now access networks F and D want to do the same thing; their prices for their routes are $4 and $5/mb, respectively. Finally, little access provider T wants in at $2/mb for their routes. So, at the end of the week, I *had* been paying $10/mb to send traffic through transit to reach the whole rest of the internet. Now, I'm paying $5+$4+$4+$5+$2, or $30, and I don't have a full set of routes, so I've still got to keep paying the transit provider as well at $10. Depending on port counts, locations, and commit volumes, your typically cheaper for the content company than it would cost to send that traffic over transit has flown completely out the window. It could even end up being many times more expensive to handle the traffic that way. In order for the costs to work out, you'd really
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality)
Shouldn't there be a rule against using RIP in the subject line of a NANOG post? Every time I see that, a shudder goes down *my* spine. jms -- Joel M Snyder, 1404 East Lind Road, Tucson, AZ, 85719 Senior Partner, Opus One Phone: +1 520 324 0494 j...@opus1.comhttp://www.opus1.com/jms
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality)
It could be worse! Somebody might have thrown a 'v1' in there, too, Joel! Sent from my iPhone On May 13, 2014, at 8:08, Joel M Snyder joel.sny...@opus1.com wrote: Shouldn't there be a rule against using RIP in the subject line of a NANOG post? Every time I see that, a shudder goes down *my* spine. jms -- Joel M Snyder, 1404 East Lind Road, Tucson, AZ, 85719 Senior Partner, Opus One Phone: +1 520 324 0494 j...@opus1.comhttp://www.opus1.com/jms
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality)
On 13 May 2014, at 14:17, coy.h...@coyhile.com wrote: It could be worse! Somebody might have thrown a 'v1' in there, too, Joel! Well - just imagine that network without mask. On public list. Horrible. Thankfully, we have civilization stuff, so nothing like that couldn’t have had happened. -- There's no sense in being precise when | Łukasz Bromirski you don't know what you're talking | jid:lbromir...@jabber.org about. John von Neumann |http://lukasz.bromirski.net signature.asc Description: Message signed with OpenPGP using GPGMail
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
--As of May 12, 2014 3:02:28 PM +0200, Nick Hilliard is alleged to have said: On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. In the net neutrality debate, the last mile service providers are in a position where they need to upgrade their access networks, but the end-user pricing is not necessarily keeping pace. --As for the rest, it is mine. So the fact that the USA has higher prices than many other countries, for slower service, and those prices are rising (mine went up three times in the past year, including them starting to charge rent for a cable modem I bought when I signed up, for the same service) doesn't mean anything? Or the fact that they are one of the most profitable market segments in the country? They have the money. They have the ability to get more money. *They see no reason to spend money making customers happy.* They can make more profit without it. Daniel T. Staal --- This email copyright the author. Unless otherwise noted, you are expressly allowed to retransmit, quote, or otherwise use the contents for non-commercial purposes. This copyright will expire 5 years after the author's death, or in 30 years, whichever is longer, unless such a period is in excess of local copyright law. ---
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. In the net neutrality debate, the last mile service providers are in a position where they need to upgrade their access networks, but the end-user pricing is not necessarily keeping pace. There are lot of ways to argue this point, depending on whether you're the user, the access provider or the content provider. From a financial point of view, the content providers will say that access providers need to charge their end users in a way which reflects their usage requirements because let's face it, it's the users that are pulling the traffic - they're not sending traffic to arbitrary IP addresses just for the fun of it. The end users will say that they're only going to pay market rate for their services, and they won't care whether this covers their costs or not. The access providers will say that they're only upgrading to deal with the additional requirements of the larger content providers, particularly the CDNs and the video streaming services, and that the going market rate doesn't allow them to charge the end users more. Besides, it's a whole pile easier to chase a small number of companies for a large amount of money than it is to chase a large number of customer for a small amount of money. Even better, if you chase the the content sources for cash, you can do this without increasing customer prices which means you can stay more competitive in the sales market. So from a business perspective it makes lots of sense to deprioritise the large companies that don't pay in favour of the ones that do. Those who pay get better service for their customers; seems fair, right? From the proverbial helicopter viewpoint, we are walking towards a situation where the short-term business actions of the individual companies involved in the industry is going to lead towards customers being hurt and this means that the likely long-term outcome is more regulation and legislative control imposed on the industry. It is another tragedy of the commons. Nick
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
At 09:02 AM 12/05/2014, Nick Hilliard wrote: So from a business perspective it makes lots of sense to deprioritise the large companies that don't pay in favour of the ones that do. Those who pay get better service for their customers; seems fair, right? I think that's where the biggest gulf exists. It doesn't seem fair. It seems like extortion. The last mile access guys are the gatekeepers to the end user, with little competition. The access providers are saying Our customers are paying us to use our service, but we don't want to raise our retail prices to match their usage patterns, so we'll put the squeeze on the guys on the other side who are distributing the content. They can raise their prices, so we don't look like the bad guys. The benefit is, since their video services compete with our packaged television services, we may have fewer TV cord cutters. I have a mix of wholesale and facilities based last mile access in my network. I don't sell TV. I see Netflix as a reason people sign up for my service - not as a competitor trying to ride my pipes for free. I would welcome peering with them, but sadly, they don't peer in Canada, so their traffic ends up on transit links. --- Clayton Zekelman Managed Network Systems Inc. (MNSi) 3363 Tecumseh Rd. E Windsor, Ontario N8W 1H4 tel. 519-985-8410 fax. 519-985-8409
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On Mon, 12 May 2014 15:02:28 +0200, Nick Hilliard said: a small amount of money. Even better, if you chase the the content sources for cash, you can do this without increasing customer prices which means you can stay more competitive in the sales market. Thank you, I needed my morning chuckle. :) We know which last-mile providers are doing this. Over what percentage of their territory is there any *realistic* competition? pgpeBT_F7MzX5.pgp Description: PGP signature
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Google Fiber and various other FTTH services disprove the omg it costs a lot theory. This is purely a money grab by a monopoly, sanctioned by the FCC because.. the people doing the money grab own the FCC. It helps to keep in mind that several of the parties involved in this grab *HAVE ALREADY BEEN PAID TO EXPAND THEIR NETWORKS BY THE PUBLIC, AND HAVE FAILED TO DO SO*. I'm not really sure how anyone could view this whole thing as fair, honest or even legal. I also fully expect the FCC to sign off on it as the receipt says Paid by Verizon. Nick On Mon, May 12, 2014 at 9:02 AM, Nick Hilliard n...@foobar.org wrote: On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. In the net neutrality debate, the last mile service providers are in a position where they need to upgrade their access networks, but the end-user pricing is not necessarily keeping pace. There are lot of ways to argue this point, depending on whether you're the user, the access provider or the content provider. From a financial point of view, the content providers will say that access providers need to charge their end users in a way which reflects their usage requirements because let's face it, it's the users that are pulling the traffic - they're not sending traffic to arbitrary IP addresses just for the fun of it. The end users will say that they're only going to pay market rate for their services, and they won't care whether this covers their costs or not. The access providers will say that they're only upgrading to deal with the additional requirements of the larger content providers, particularly the CDNs and the video streaming services, and that the going market rate doesn't allow them to charge the end users more. Besides, it's a whole pile easier to chase a small number of companies for a large amount of money than it is to chase a large number of customer for a small amount of money. Even better, if you chase the the content sources for cash, you can do this without increasing customer prices which means you can stay more competitive in the sales market. So from a business perspective it makes lots of sense to deprioritise the large companies that don't pay in favour of the ones that do. Those who pay get better service for their customers; seems fair, right? From the proverbial helicopter viewpoint, we are walking towards a situation where the short-term business actions of the individual companies involved in the industry is going to lead towards customers being hurt and this means that the likely long-term outcome is more regulation and legislative control imposed on the industry. It is another tragedy of the commons. Nick
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
Actually, I've done a bit of overbuild, and it does omg cost a lot. We don't know how much Google Fiber has paid to build the network. They're Google, they can do it just because they feel like it. Of course I don't have any proof, but the rest of your points may not be far off the mark. At 09:44 AM 12/05/2014, Nick B wrote: Google Fiber and various other FTTH services disprove the omg it costs a lot theory. This is purely a money grab by a monopoly, sanctioned by the FCC because.. the people doing the money grab own the FCC. It helps to keep in mind that several of the parties involved in this grab *HAVE ALREADY BEEN PAID TO EXPAND THEIR NETWORKS BY THE PUBLIC, AND HAVE FAILED TO DO SO*. I'm not really sure how anyone could view this whole thing as fair, honest or even legal. I also fully expect the FCC to sign off on it as the receipt says Paid by Verizon. Nick --- Clayton Zekelman Managed Network Systems Inc. (MNSi) 3363 Tecumseh Rd. E Windsor, Ontario N8W 1H4 tel. 519-985-8410 fax. 519-985-8409
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On May 12, 2014, at 6:02 AM, Nick Hilliard n...@foobar.org wrote: On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. Two words nuke your suggestion here: Amazon Prime Owen
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 5/12/14, 7:07 AM, Owen DeLong wrote: On May 12, 2014, at 6:02 AM, Nick Hilliard n...@foobar.org wrote: On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. Two words nuke your suggestion here: Amazon Prime Once you build the capacity to reach every delivery point every-day it's maybe not enough to hope that people utilize that facility . decreasing the cost per package requires higher unit volume. The incremental cost of delivering the second package is much lower than the first. Owen signature.asc Description: OpenPGP digital signature
Re: Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality
On 5/12/14, 10:07 AM, Owen DeLong o...@delong.com wrote: On May 12, 2014, at 6:02 AM, Nick Hilliard n...@foobar.org wrote: On 10/05/2014 22:34, Randy Bush wrote: imiho think vi hart has it down simply and understandable by a lay person. http://vihart.com/net-neutrality-in-the-us-now-what/. my friends in last mile providers disagree. i take that as a good sign. Vi's analogy is wrong on a subtle but important point. In the analogy, the delivery company needs to get a bunch of new trucks to handle the delivery but as the customer is paying for each delivery instances, the delivery company's costs are covered by increased end-user charges. Two words nuke your suggestion here: Amazon Prime Amazon Prime isn’t a flat-rate delivery service for the delivery company, else it’d be called FedUPS Prime. It’s a flat rate shipping subscription for *Amazon*, and is likely a loss leader to ensure better stickiness of Amazon’s potential customers. They may have a great deal of negotiating leverage on their delivery partners to reduce their shipping costs, and the sheer volume of Amazon warehouses mean that they can take advantage of proximity to reduce costs further (like a CDN), but I haven’t seen anything implying that they’ve been successful in negotiating a contract that is insensitive to the *amount* of items being shipped. Wes George This E-mail and any of its attachments may contain Time Warner Cable proprietary information, which is privileged, confidential, or subject to copyright belonging to Time Warner Cable. This E-mail is intended solely for the use of the individual or entity to which it is addressed. If you are not the intended recipient of this E-mail, you are hereby notified that any dissemination, distribution, copying, or action taken in relation to the contents of and attachments to this E-mail is strictly prohibited and may be unlawful. If you have received this E-mail in error, please notify the sender immediately and permanently delete the original and any copy of this E-mail and any printout.