[CAnet - news] Will bandwidth caps be the next battle for Network Neutrality

"Bill St. Arnaud" <[email protected]> Tue, 14 Apr 2009 13:54:18 -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

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

 

 

 [Increasingly we are seeing carriers look to impose bandwidth caps and a
variety of tiered services for Internet usage.  Although I think some sort
of bandwidth cap may be necessary for egregious users, there proliferation
and adoption by cablecos and telco flies in the face of the fact that growth
of Internet traffic is slowing down substantially as evidenced by the data
provided by Andrew Olydzko.  The cablecos and telcos seem to be the only
industry that intentionally punishes their biggest customers when given
declining growth rates they should be rewarding them.  One suspects other
motives may be at play as detailed in the following blogs and e-mails.  From
David Farber and Lauren Weinstein's lists - BSA]

 

Andrew Oldzyko Presentation

Internet traffic growth and implications for access technologies

http://www.dtc.umn.edu/~odlyzko/talks/index.html

 

 

[From a posting by Richard Forno on David Farber's list]

 

Download capping is the new DRM

 

http://www.tomshardware.com/news/time-warner-cable-internet-drm,7530.html#xt
or

=RSS-181

 

Much like everyone reading this article, I'm a genuine supporter of
advancement in hardware and technology services. Suffice to say, I was happy
with the progression of Internet connection services over the years. 

Recently, however, I would have to say that Internet connection advancement
in the U.S. and Canada has been purely an interest of the corporations that
provide them and not about serving the consumer-- you--and the advancement
of technology in America in general.

 

In late March, I wrote an article on Tom's Hardware explaining why HDCP
(high definition content protection) is the bane of movie watchers
everywhere. Not only is HDCP an invasive technology that kills the enjoyment
of movies for enthusiasts, it does nothing to stop pirates. We all know this
to be true.

 

Don't think for a moment though, that big media doesn't know this--they
absolutely do. Now, they have a new plan. Since big media can't directly go
after pirates, they've decided to go after to after the group of people who
they think can't do a thing about it: anyone using an Internet connection.

 

< - >

 

Download capping is the new DRM.

 

It ensures several things:

 

- You will be more hesitant to download movies and music legitimately-- even
though you've paid to watch/listen.

- You will watch more cable TV (so you can see all those great ads).

- You will accidentally pay more for less.

- Pirates get a whacking.

 

Big media and ISPs can't effectively eliminate piracy by going after pirates
directly or stop online video and music streaming services. So they have a
better plan now: go after everyone.

 

 

 

How Much Time Warner's Broadband Caps Will Screw You -  Broadband caps

 

The money quote comes from Time Warner's SEC filing as highlighted in this
article and reveals the anti-competitive issue for consumers and video
producers.

http://www.obsessable.com/news/2009/04/10/time-warner-makes-broadband-cap-co
ncessions-unlimited-plan-for-150-month/

One position from Time Warner's COO,

Moreover it's clear that Time Warner fully expects its customers to keep
climbing that bandwidth ladder over time, ratcheting themselves into sweeter
and sweeter profit positions thanks to the tiered strategy plus known usage
increases, thanks to a money
<http://bits.blogs.nytimes.com/2009/04/08/time-warner-cable-profits-on-broad
band-are-great-and-will-grow-because-of-caps/>  quote (literally) from
Hobbs: "Broadband data is such a great product. I think there will be some
customers who don't use much that will select the lower tier. But over time,
they will use more and move up to the higher price plans." This too reveals
that metered broadband isn't really about saving the internet or ensuring
great customer experience for the more "polite," less bandwidth-hungry users
on the network - it's about setting up a tiered scheme in which Time Warner
stands to make an incredible amount of bank as general demand for internet
usage is increasing.

And now the anti-competitive "money quote" from TW:

Thanks also to TW's SEC filing we know it's additionally about thwarting
<http://stopthecap.com/2009/04/10/why-is-time-warner-saying-costs-increasing
-to-consumers-but-decreasing-to-stockholders/comment-page-1/#comment-1529>
the increasing competition their cable video business faces from competitors
delivering video content over the web: "TWC faces competition from a range
of other competitors, including, increasingly, companies that deliver
content to consumers over the Internet, often without charging a fee for
access to the content. This trend
could negatively impact customer demand for TWC's video services, especially
premium and On-Demand services."

Time Warner's data caps could cost us much more than high monthly fees, if
the company has it way.




On Fri, Apr 10, 2009 at 10:08 AM, David Farber <[email protected]> wrote:

 

http://i.gizmodo.com/5206697/how-much-time-warners-broadband-caps-will-screw
-you

Like the virus in 28 Days Later,  <http://gizmodo.com/tag/time-warner/> Time
Warner's internet-strangling  <http://gizmodo.com/tag/broadband-caps/>
broadband caps is
<http://i.gizmodo.com/5195436/time-warner-monthly-data-caps-spread-beyond-te
xas> spreading all over the country. They've
<http://a.longreply.com/109511> got brand new pricing plans too and they
yep, they suck. Let's look.

The old cap scheme was pretty limited, only going up to a max of 40GB. Now
they've got a whole Skittles bag of caps. Here's how Time Warner Cable's COO
Landel Hobbs breaks it down, all while breaking out the familiar warning
that the internet is about to die if you don't limit your porn consumption
to  <http://gizmodo.com/381782/att-the-internet-will-explode-in-2010> two
times a day-MAX:

Internet demand is rising at a rate that could outpace capacity within a few
years. According to industry analysts, the infrastructure may not be able to
accommodate the explosion of online content by 2012. This could result in
Internet brownouts.

 

. 1GB with 768kbps downstream for $15/month with $2/GB overcharges
. 10, 20, 40 and 60GB will go with Roadrunner Lite, Basic, Standard and
Turbo packages, respectively, and maintain the same pricing. Overage is
$1/GB.
. 100GB will be the new Road Runner...Turbo (I'm not sure why there are two
Turbo packages) which is 10Mbps downstream and 1Mbps upstream for $75/month.
This is still an order of magnitude more restrictive than AT&T and Comcast,
who have caps of 150GB and 250GB, respectively.
. A 50Mbps/5Mbps down/up speed tier is coming for $100/month wh

 

 

 

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

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.

 

 

 

 

------

[email protected]

[email protected]

http://billstarnaud.blogspot.com/

 

 


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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>&nbsp;<o:p></o:p></p>

<p class=3DMsoNormal>&nbsp;[Increasingly we are seeing carriers look to =
impose
bandwidth caps and a variety of tiered services for Internet =
usage.&nbsp;
Although I think some sort of bandwidth cap may be necessary for =
egregious
users, there proliferation and adoption by cablecos and telco flies in =
the face
of the fact that growth of Internet traffic is slowing down =
substantially as
evidenced by the data provided by Andrew Olydzko.&nbsp; The cablecos and =
telcos
seem to be the only industry that intentionally punishes their biggest
customers when given declining growth rates they should be rewarding =
them.&nbsp;
One suspects other motives may be at play as detailed in the following =
blogs
and e-mails.&nbsp; From David Farber and Lauren Weinstein&#8217;s lists =
&#8211;
BSA]<o:p></o:p></p>

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

<p class=3DMsoNormal>Andrew Oldzyko Presentation<o:p></o:p></p>

<p class=3DMsoNormal><b>Internet traffic growth and implications for =
access
technologies</b><o:p></o:p></p>

<p class=3DMsoNormal><a =
href=3D"http://www.dtc.umn.edu/~odlyzko/talks/index.html">http://www.dtc.=
umn.edu/~odlyzko/talks/index.html</a><o:p></o:p></p>

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

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

<p class=3DMsoPlainText>[From a posting by Richard Forno on David =
Farber&#8217;s
list]<o:p></o:p></p>

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

<p class=3DMsoPlainText>Download capping is the new DRM<o:p></o:p></p>

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

<p class=3DMsoPlainText><a
href=3D"http://www.tomshardware.com/news/time-warner-cable-internet-drm,7=
530.html#xtor">http://www.tomshardware.com/news/time-warner-cable-interne=
t-drm,7530.html#xtor</a><o:p></o:p></p>

<p class=3DMsoPlainText>=3DRSS-181<o:p></o:p></p>

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

<p class=3DMsoPlainText>Much like everyone reading this article, I'm a =
genuine
supporter of advancement in hardware and technology services. Suffice to =
say, I
was happy with the progression of Internet connection services over the =
years. <o:p></o:p></p>

<p class=3DMsoPlainText>Recently, however, I would have to say that =
Internet
connection advancement in the U.S. and Canada has been purely an =
interest of
the corporations that provide them and not about serving the consumer--
you--and the advancement of technology in America in =
general.<o:p></o:p></p>

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

<p class=3DMsoPlainText>In late March, I wrote an article on Tom's =
Hardware
explaining why HDCP (high definition content protection) is the bane of =
movie
watchers everywhere. Not only is HDCP an invasive technology that kills =
the
enjoyment of movies for enthusiasts, it does nothing to stop pirates. We =
all
know this to be true.<o:p></o:p></p>

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

<p class=3DMsoPlainText>Don't think for a moment though, that big media =
doesn't
know this--they absolutely do. Now, they have a new plan. Since big =
media can't
directly go after pirates, they've decided to go after to after the =
group of
people who they think can't do a thing about it: anyone using an =
Internet
connection.<o:p></o:p></p>

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

<p class=3DMsoPlainText>&lt; - &gt;<o:p></o:p></p>

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

<p class=3DMsoPlainText>Download capping is the new DRM.<o:p></o:p></p>

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

<p class=3DMsoPlainText>It ensures several things:<o:p></o:p></p>

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

<p class=3DMsoPlainText>- You will be more hesitant to download movies =
and music
legitimately-- even though you've paid to watch/listen.<o:p></o:p></p>

<p class=3DMsoPlainText>- You will watch more cable TV (so you can see =
all those
great ads).<o:p></o:p></p>

<p class=3DMsoPlainText>- You will accidentally pay more for =
less.<o:p></o:p></p>

<p class=3DMsoPlainText>- Pirates get a whacking.<o:p></o:p></p>

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

<p class=3DMsoPlainText>Big media and ISPs can't effectively eliminate =
piracy by
going after pirates directly or stop online video and music streaming =
services.
So they have a better plan now: go after everyone.<o:p></o:p></p>

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

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

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

<p class=3DMsoNormal><b><span =
style=3D'font-size:9.0pt;font-family:"Helvetica","sans-serif"'>How
Much Time Warner's Broadband Caps Will Screw You -<span
class=3Dapple-converted-space>&nbsp; </span>Broadband =
caps</span></b><o:p></o:p></p>

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

<p class=3DMsoNormal style=3D'margin-bottom:12.0pt'>The money quote =
comes from Time
Warner's SEC filing as highlighted in this article and reveals the
anti-competitive issue for consumers and video producers.<br>
<br>
<a
href=3D"http://www.obsessable.com/news/2009/04/10/time-warner-makes-broad=
band-cap-concessions-unlimited-plan-for-150-month/">http://www.obsessable=
.com/news/2009/04/10/time-warner-makes-broadband-cap-concessions-unlimite=
d-plan-for-150-month/</a><br>
<br>
One position from Time Warner's COO,<br>
<br>
Moreover it's clear that Time Warner fully expects its customers to keep
climbing that bandwidth ladder over time, ratcheting themselves into =
sweeter
and sweeter profit positions thanks to the tiered strategy plus known =
usage
increases, thanks to a <a
href=3D"http://bits.blogs.nytimes.com/2009/04/08/time-warner-cable-profit=
s-on-broadband-are-great-and-will-grow-because-of-caps/">money
quote (literally) from Hobbs</a>: &quot;Broadband data is such a great =
product.
I think there will be some customers who don&#8217;t use much that will =
select
the lower tier. But over time, they will use more and move up to the =
higher
price plans.&quot; This too reveals that metered broadband isn't really =
about
saving the internet or ensuring great customer experience for the more
&quot;polite,&quot; less bandwidth-hungry users on the network &#8212; =
it's
about setting up a tiered scheme in which Time Warner stands to make an
incredible amount of bank as general demand for internet usage is =
increasing.<br>
<br>
And now the anti-competitive &quot;money quote&quot; from TW:<br>
<br>
Thanks also to TW's SEC filing we know it's additionally about <a
href=3D"http://stopthecap.com/2009/04/10/why-is-time-warner-saying-costs-=
increasing-to-consumers-but-decreasing-to-stockholders/comment-page-1/#co=
mment-1529">thwarting
the increasing competition their cable video business faces from =
competitors</a>
delivering video content over the web: &quot;TWC faces competition from =
a range
of other competitors, including, increasingly, companies that deliver =
content
to consumers over the Internet, often without charging a fee for access =
to the
content. This trend<br>
could negatively impact customer demand for TWC&#8217;s video services,
especially premium and On-Demand services.&quot;<br>
<br>
Time Warner's data caps could cost us much more than high monthly fees, =
if the
company has it way.<br>
<br>
<br>
<o:p></o:p></p>

<p class=3DMsoNormal>On Fri, Apr 10, 2009 at 10:08 AM, David Farber =
&lt;<a
href=3D"mailto:[email protected]">[email protected]</a>&gt; =
wrote:<o:p></o:p></p>

<p class=3DMsoNormal><span =
style=3D'font-size:9.0pt;font-family:"Helvetica","sans-serif";
color:black'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal><a
href=3D"http://i.gizmodo.com/5206697/how-much-time-warners-broadband-caps=
-will-screw-you"
target=3D"_blank">http://i.gizmodo.com/5206697/how-much-time-warners-broa=
dband-caps-will-screw-you</a><span
style=3D'font-size:12.0pt;font-family:"Times New =
Roman","serif"'><o:p></o:p></span></p>

<p =
style=3D'margin:0in;margin-bottom:.0001pt;line-height:15.0pt;vertical-ali=
gn:
baseline;outline-width: 0px'><span =
style=3D'font-size:9.0pt;font-family:"inherit","serif";
color:#51646B'>Like the virus in&nbsp;<i><span style=3D'border:none =
windowtext 1.0pt;
padding:0in'>28 Days Later</span></i>,&nbsp;<a
href=3D"http://gizmodo.com/tag/time-warner/" target=3D"_blank"
title=3D"Click here to read more posts tagged TIME WARNER"><span
style=3D'color:#51646B;border:none windowtext =
1.0pt;padding:0in;text-decoration:
none'>Time Warner</span></a>'s internet-strangling&nbsp;<a
href=3D"http://gizmodo.com/tag/broadband-caps/" target=3D"_blank"
title=3D"Click here to read more posts tagged BROADBAND CAPS"><span
style=3D'color:#51646B;border:none windowtext =
1.0pt;padding:0in;text-decoration:
none'>broadband caps</span></a>&nbsp;is&nbsp;<a
href=3D"http://i.gizmodo.com/5195436/time-warner-monthly-data-caps-spread=
-beyond-texas"
target=3D"_blank"><span style=3D'color:#DC870E;border:none windowtext =
1.0pt;
padding:0in;text-decoration:none'>spreading all over the =
country</span></a>.
They've&nbsp;<a href=3D"http://a.longreply.com/109511" =
target=3D"_blank"><span
style=3D'color:#DC870E;border:none windowtext =
1.0pt;padding:0in;text-decoration:
none'>got brand new pricing plans</span></a>&nbsp;too and they yep, they =
suck.
Let's look.<o:p></o:p></span></p>

<p =
style=3D'margin:0in;margin-bottom:.0001pt;line-height:15.0pt;vertical-ali=
gn:
baseline;outline-width: 0px'><span =
style=3D'font-size:9.0pt;font-family:"inherit","serif";
color:#51646B'>The old cap scheme was pretty limited, only going up to a =
max of
40GB. Now they've got a whole Skittles bag of caps. Here's how Time =
Warner
Cable's COO Landel Hobbs breaks it down, all while breaking out the =
familiar
warning that the internet is about to die if you don't limit your porn
consumption to&nbsp;<a
href=3D"http://gizmodo.com/381782/att-the-internet-will-explode-in-2010"
target=3D"_blank"><span style=3D'color:#DC870E;border:none windowtext =
1.0pt;
padding:0in;text-decoration:none'>two times a =
day&#8212;MAX</span></a>:<o:p></o:p></span></p>

<p class=3DMsoNormal =
style=3D'line-height:13.5pt;background:#EAF2F4;vertical-align:
baseline'><span style=3D'font-size:10.0pt;font-family:"inherit","serif";
color:#51646B'>Internet demand is rising at a rate that could outpace =
capacity
within a few years. According to industry analysts, the infrastructure =
may not
be able to accommodate the explosion of online content by 2012. This =
could
result in Internet brownouts.<o:p></o:p></span></p>

<p class=3DMsoNormal =
style=3D'line-height:13.5pt;background:#EAF2F4;vertical-align:
baseline'><span style=3D'font-size:10.0pt;font-family:"inherit","serif";
color:#51646B'><o:p>&nbsp;</o:p></span></p>

<p style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:.25in;
margin-left:0in;line-height:15.0pt;vertical-align:baseline;outline-width:=
 0px'><span
style=3D'font-size:9.0pt;font-family:"inherit","serif";color:#51646B'>&#8=
226; 1GB
with 768kbps downstream for $15/month with $2/GB overcharges<br>
&#8226; 10, 20, 40 and 60GB will go with Roadrunner Lite, Basic, =
Standard and
Turbo packages, respectively, and maintain the same pricing. Overage is =
$1/GB.<br>
&#8226; 100GB will be the new Road Runner...Turbo (I'm not sure why =
there are
two Turbo packages) which is 10Mbps downstream and 1Mbps upstream for
$75/month. This is still an order of magnitude more restrictive than =
AT&amp;T
and Comcast, who have caps of 150GB and 250GB, respectively.<br>
&#8226; A 50Mbps/5Mbps down/up speed tier is coming for $100/month =
wh<o:p></o:p></span></p>

<p class=3DMsoPlainText style=3D'outline-width: =
0px'><o:p>&nbsp;</o:p></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 style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:.25in;
margin-left:0in;line-height:15.0pt;vertical-align:baseline'><span
style=3D'font-size:9.0pt;font-family:"inherit","serif";color:#51646B'><o:=
p>&nbsp;</o:p></span></p>

<p class=3DMsoPlainText style=3D'outline-width: =
0px'><o:p>&nbsp;</o:p></p>

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

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

<p class=3DMsoNormal>[email protected]<o:p></o:p></p>

<p class=3DMsoNormal>[email protected]<o:p></o:p></p>

<p class=3DMsoNormal>http://billstarnaud.blogspot.com/<o:p></o:p></p>

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

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

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