[CAnet - news] The delusions of net neutrality

"Bill St. Arnaud" <[email protected]> Mon, 18 Aug 2008 12:23:50 -0400
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For more information on this item please visit my blog at 

http://green-broadband.blogspot.com/ or http://billstarnaud.blogspot.com

-------------------------------------------

 

[Another excellent paper by the famous iconoclast Andrew Odlyzko.  My only
comment is that I believe that soon there will be little or no revenue
opportunities in delivering video or other services over the Internet, with
or without deep packet inspection. The revenue opportunities of using QoS
and Deep Packet Inspection will pale against the revenue potential of the
"over the top" providers such as Hulu, Google, Skype etc.  So how does a
carrier make a buck and pay for the infrastructure? As Andrew points out
customers want connectivity much more than content. My suggestion is to
bundle broadband with resale of energy, where it is in the carrier's
financial interest to give away the Internet and applications and make money
on connectivity- http://free-fiber-to-the-home.blogspot.com/--BSA]

 

http://www.dtc.umn.edu/~odlyzko/doc/net.neutrality.delusions.pdf

 

The delusions of net neutrality

Andrew Odlyzko

School of Mathematics, University of Minnesota

Minneapolis, MN 55455, USA

[email protected]

http://www.dtc.umn.edu/_odlyzko

Revised version, August 17, 2008

 

Abstract. Service providers argue that if net neutrality is not enforced,
they

will have sufficient incentives to build special high-quality channels that
will

take the Internet to the next level of its evolution. But what if they do
get their

wish, net neutrality is consigned to the dustbin, and they do build their
new

services, but nobody uses them? If the networks that are built are the ones
that

are publicly discussed, that is a likely prospect.

What service providers publicly promise to do, if they are given complete

control of their networks, is to build special facilities for streaming
movies. But

there are two fatal defects to that promise. One is that movies are unlikely
to

offer all that much revenue. The other is that delivering movies in
real-time

streaming mode is the wrong solution, expensive and unnecessary.

If service providers are to derive significant revenues and profits by
exploiting

freedom from net neutrality limitations, they will need to engage in much
more

intrusive control of traffic than just provision of special channels for
streaming

movies.

 

[.]

 

 

 

-------------------------------------

To subscribe or unsubscribe send e-mail to [email protected]

 

These news items and comments are mine alone and do not necessarily reflect
those  of the CANARIE board or management.

 

 


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<div class=3DSection1>

<p class=3DMsoPlainText>For more information on this item please visit =
my blog at
<o:p></o:p></p>

<p class=3DMsoPlainText><a =
href=3D"http://green-broadband.blogspot.com/">http://green-broadband.blog=
spot.com/</a>
or <a =
href=3D"http://billstarnaud.blogspot.com">http://billstarnaud.blogspot.co=
m</a><o:p></o:p></p>

<p =
class=3DMsoPlainText>-------------------------------------------<o:p></o:=
p></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p class=3DMsoPlainText>[Another excellent paper by the famous =
iconoclast Andrew
Odlyzko.&nbsp; My only comment is that I believe that soon there will be =
little
or no revenue opportunities in delivering video or other services over =
the
Internet, with or without deep packet inspection. The revenue =
opportunities of
using QoS and Deep Packet Inspection will pale against the revenue =
potential of
the &#8220;over the top&#8221; providers such as Hulu, Google, Skype =
etc.&nbsp;
So how does a carrier make a buck and pay for the infrastructure? As =
Andrew
points out customers want connectivity much more than content. My =
suggestion is
to bundle broadband with resale of energy, where it is in the =
carrier&#8217;s
financial interest to give away the Internet and applications and make =
money on
connectivity- =
http://free-fiber-to-the-home.blogspot.com/--BSA]<o:p></o:p></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><a
href=3D"http://www.dtc.umn.edu/~odlyzko/doc/net.neutrality.delusions.pdf"=
>http://www.dtc.umn.edu/~odlyzko/doc/net.neutrality.delusions.pdf</a><spa=
n
style=3D'font-size:10.5pt;font-family:Consolas'><o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:10.5pt;
font-family:Consolas'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:17.0pt;
font-family:CMBX12'>The delusions of net =
neutrality<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>Andrew Odlyzko<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMR9'>School of Mathematics, University of =
Minnesota<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMR9'>Minneapolis, MN 55455, USA<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMTT9'>[email protected]<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMTT9'>http://www.dtc.umn.edu/</span><span =
style=3D'font-size:9.0pt;
font-family:CMSY9'>_</span><span =
style=3D'font-size:9.0pt;font-family:CMTT9'>odlyzko<o:p></o:p></span></p>=


<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMTT9'>Revised version, August 17, =
2008<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:9.0pt;
font-family:CMTT9'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMBX12'>Abstract. </span><span =
style=3D'font-size:12.0pt;font-family:
CMR12'>Service providers argue that if net neutrality is not enforced, =
they<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>will have sufficient incentives to build special
high-quality channels that will<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>take the Internet to the next level of its evolution. =
But
what if they do get their<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>wish, net neutrality is consigned to the dustbin, and =
they
do build their new<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>services, but nobody uses them? If the networks that =
are
built are the ones that<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>are publicly discussed, that is a likely =
prospect.<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>What service providers publicly promise to do, if =
they are
given complete<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>control of their networks, is to build special =
facilities
for streaming movies. But<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>there are two fatal defects to that promise. One is =
that
movies are unlikely to<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>offer all that much revenue. The other is that =
delivering
movies in real-time<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>streaming mode is the wrong solution, expensive and
unnecessary.<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>If service providers are to derive significant =
revenues and
profits by exploiting<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>freedom from net neutrality limitations, they will =
need to
engage in much more<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>intrusive control of traffic than just provision of =
special
channels for streaming<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>movies.<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'>[&#8230;]<o:p></o:p></span></p>

<p class=3DMsoNormal style=3D'text-autospace:none'><span =
style=3D'font-size:12.0pt;
font-family:CMR12'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p =
class=3DMsoPlainText>-------------------------------------<o:p></o:p></p>=


<p class=3DMsoPlainText>To subscribe or unsubscribe send e-mail to <a
href=3D"mailto:[email protected]">[email protected]</a><o=
:p></o:p></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p class=3DMsoPlainText>These news items and comments are mine alone and =
do not
necessarily reflect those&nbsp; of the CANARIE board or =
management.<o:p></o:p></p>

<p class=3DMsoPlainText><o:p>&nbsp;</o:p></p>

<p class=3DMsoNormal><o:p>&nbsp;</o:p></p>

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