[opendtv] Re: News: The People Vs. Comcast

  • From: "David Devereaux-Weber" <ddevereauxweber@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 22 Jan 2008 15:58:17 -0600

I'll chime in on this one.  I have worked in the cable and telephone
industries, and have consulted for cities which used to regulate cable
television.  (with current legislation in many states, regulation
formerly done at the local level is being drastically reduced and
moved to the state level.)  Now I work as a network consultant at the
University of Wisconsin-Madison.  Our Internet traffic grows at a rate
of between 50%-100% per year.  We are constantly adjusting the way we
connect to various parts of the Internet.

One of the ways we control the cost of increasing traffic is to "peer"
(exchange traffic on a zero-cost model) with other large universities
and content generators.  For example, we now peer directly with
Google.

The issues of whether the rates of cable/DSL/fiber companies should be
regulated is complex and almost beside the point.  Currently, there is
very little "marketplace" competition.  Delivery of video over IP will
challenge existing business models.  The only options for incumbent
companies to protect their markets is to limit the technology or to
charge extra for video delivery over IP (paid quality of service or
QOS).  This will only succeed if the cable and telephone industries
can keep other competitors out of the marketplace, and if cable and
telephone can prevent program suppliers form distributing directly to
the customer over IP.  In the long term, neither of those strategies
can succeed.

Dave
 
 
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