On Fri, Mar 12, 2010 at 02:38:44PM -0500, Larry Yunker wrote:
> <RANT>
> 
> Gee, now this (ESPN Live 360) won't make the Cable-Op internet providers
> have an unfair advantage over traditional ISPs!
> 
> You have to imagine that the cable-op's are negotiating this "internet
> service" into their network programming agreements with EPSN, whereas if you
> are a non-cable-op you will have to pay outright and separate for the
> service and then pass along that fee to all of your subscribers or more
> likely... eat the cost.

My understanding is that ESPN is the 800 pound gorilla here. You can't 
sell non-basic cable if you don't have ESPN. ESPN is reported to get 
$4/customer/month from the cable companies for providing the television 
programming it does. 

Things like this: 
http://www.nytimes.com/2009/12/29/business/media/29cable.html happen all 
the time where the broadcasters and operators can't agree over money and 
threaten to shut off your favorite channels. A cable company might be 
persuaded to get espn360 to hedge their position incase they were afraid 
of hardball negotiations over their cable channel costs. It wounldn't be 
all or nothing with ESPN if they offered espn360. If they can't provide 
something, the customers will go straight to dish or directv. I'm not 
sticking up for the cable companies here.

Those participating might also see the Internet as simply a conduit for 
proprietary and costly entertainment, which is a travesty in it's own 
right. That is something to rant about.


> This is another case where a utility is able to abuse its monopoly power to
> the disadvantage of a non-utility ISP.  The regulated and non-regulated
> portions of a company that engages in internet service need to be forced to
> conduct business as arms-length transactions.
> 
> For instance... if MegaCableCompany operates as a Cable TV provider and
> operates as an internet provider, the Cable TV provider business unit is
> regulated and enjoys an advantage as a utility, whereas the Internet
> Provider Business Unit is unregulated and operates in an open market.  The
> Cable TV unit is free to negotiate terms for TV programming from the various
> networks.  The Internet Unit is free to negotiate terms of service for
> internet related valued-added-services.  Whereas, the Cable TV unit should
> not be permitted to negotiate terms for unrelated internet services.  (i.e.
> ESPN Live 360).  The CableTV unit as a utility providing TV service should
> have no interest in internet valued added services.  However, in the
> alternative... if the Cable TV unit were permitted to negotiate terms for
> unrelated internet services, it should be prepared to offer those services
> to the open market at the same rate that it charges its own Internet Service
> Business Unit!!
> 
> Of course.. this argument may sound familiar to some of you...  I've made
> this same argument time and time again for the unbundling of network
> elements within the TelCo monopolies.  If you sell phone service as a
> utility, your associated unregulated ISP business unit should not enjoy
> preferential pricing with regards to internet transport or internet
> termination.
> 
> </RANT>
> 
> Larry Yunker
> 
> 
> -----Original Message-----
> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
> Behalf Of RickG
> Sent: Friday, March 12, 2010 1:57 PM
> To: WISPA General List
> Subject: [WISPA] here it come$
> 
> The television content providers are going to bill ISP's?
> Try using ESPN Live 360 and see what it tells you.
> -RickG
> 
> 
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