[opendtv] Re: Lawsuit wave challenges FCC on net neutrality | ZDNet

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 28 Mar 2015 00:39:12 +0000

Craig Birkmaier wrote:

> Unfortunately it is far from clear what the new FCC rules mean, or
> how the FCC will enforce and regulate interconnection agreements.

Not clear, although as the Yahoo article I posted showed, the FCC is not 
talking about free access to content providers either. They are definitely 
talking like they expect agreeable terms on both sides.

> When CDNs like Cogent or Akamai present a highly asymmetrical load
> to ISPs (heavy downstream/light upstream) they typically have paid
> the ISP a higher interconnect fee, or in some cases pay the ISP
> for colocation of servers to help balance the load by preloading
> popular bit during off hours.

Yes, Craig. We've already covered this many times. The FCC has said nothing to 
indicate they're considering anything different.

Let's say you're a high volume, popular source, not part of the ISP's own 
walled-in MVPD bandwidth. If you won't have an opportunity to buy preferential 
treatment through the core network, you're going to want to distribute those 
mirrored servers to the edges. This also diminishes the demands placed on the 
core network, so the ISPs should favor that approach. And it looks to me like 
the FCC is thinking along these lines too.

> Bottom line, there are real costs associated with moving from
> dedicated linear MVPD networks to Internet delivery of
> entertainment.

Clearly, Craig, there's a reason why radio and TV developed as one-way 
broadcast technologies. With old tech, it was possible to handle high volume 
traffic. It's also very limiting. The telephone network was the original 
two-way network (well, also telegraph), but the price it paid for this feat was 
very low bandwidth. The Internet is the network that combines two-way service 
with high bandwidth. Costs associated with that modus operandi are now low 
enough that we have seen multiple content sources very competitively using the 
Internet, Craig, competitive enough to steal people from the MVPD broadcast 
networks. This is where we are now. We are *not* still wondering whether this 
transformation can take place. It is taking place.

>> But that does not mean that Netflix can get access on the same
>> terms as your local thrift store. At least, that hasn't been
>> decided, last I know.
>
> The local thrift store does not generate 30% of all U.S.
> Internet traffic during prime time.

That's why I said that, Craig. The FCC is well aware of this state of affairs.

> What we are seeing is the introduction of vast uncertainty, in
> an industry that has done a remarkable job of building out a new
> infrastructure that is critical to our new economy.

Unfortunately, monopolistic industries inevitably show evidence of an inability 
to control themselves, when conflicting interests emerge. That's the problem. 
As long as TV content and Internet distribution were incompatible, everything 
was just fine without government regs.

Bert

 
 
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