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[ NNSquad ] Re: NYT: Differing views on Time Warner'sBandwidth Cap Experiment


Counter view - a Pay-per-view movie as ordered today by a cable subscriber (NOT over the Internet) isn't necessarily just another set of bits. It operates in a separate band. That band could, in theory have been allocated to Internet, but it wasn't. I doubt the allocation between Internet (esp. with any upload requirements) could be so dynamic.

This raises a broader question on affiliate transactions and the like (we've been there before, talking of intra vs. inter-modal competition). Of the hundreds of MHz of spectrum allocated by cable providers, at some point ala-carte channels will do much more to moving towards a unicast model of "TV" than today's broadcast.

Let's try simple math. If we have 300 homes sharing a head end, and 300 channels, assuming multi-TVs is countered by not everyone watching at all times, then we could easily move to a switched world (esp. with buffering). THAT would make your NN argument far clearer.

Rahul



Lauren Weinstein wrote:
Now we get squarely into core Network Neutrality issues.  For
example, when you order a PPV movie from your cable company, it's
just bytes being pumped down the line on the same physical cable as
your cable Internet connection.  However, you can be sure that the
bytes used to send you that film from your cable company servers
won't be counted against your monthly allocation of Internet data.

So, if you had a choice of paying N dollars to your cable company to
get a movie without affecting your Internet usage totals, or
alternatively paying the same amount to a cable company competitor
for the film, but using up a significant fraction of your monthly
Internet allocation in the process, which would most people
presumably choose?

--Lauren--
NNSquad Moderator


---


If qualifying traffic by throttling certain types of traffic is unacceptable - then shouldn't a strategy that quantifies cumulative traffic be unacceptable too? I mean, ISP's already charge differently for access speeds (tiers of down/upload speed), how can another layer of costs be put on top of that without creating mass confusion, not to mention anger on the part of the end user/consumer?

Content providers already pay for bandwidth charges to web hosting firms who pay handsomely for their own connectivity. Why should end users also be charged simply for downloading an excess of the same content that the content provider has already paid to deliver. This would be like the post office charging receivers of mail a fee if the quantity of mail exceeded a certain arbitrary level (I know - not the best analogy).

Also - will Time Warner charge people who exceed the cap when they are downloading content exclusively from Time Warner sites? Or will TW privilege their own offerings - thus discouraging users from seeking content from outside providers (for whom TW receives no advertising revenue).

It all raises more questions than answers . . . none of them good.

Michael



Fred Reimer wrote:
This need not be a case of wealth
transfers only - there can be value creation as well. In one simple
world with a zero-sum-game, for every penny charged for over-usage, the
average bill for others should go down commensurately.

A first Q to me is to what extent is or isn't this a zero-sum game?
In the US companies have a fiduciary responsibility to make as much money as
they can for their stockholders.  If you think Time Warner, or any ISP, will
reduce the price for Internet access for the "average Joe" who uses minimal
bandwidth to something that is comparable to India (even with exchange rates
and cost of living calculations included) you are mistaken.  The ONLY reason
why Time Warner is doing this is because it is a chance for them to make
more money.

You can have your opinion of what SHOULD and should not happen, but
realistically this is not how business in the US works.  Especially not in
the telephone / cable / DSL markets.  I have no special knowledge of this,
it is common knowledge.

Fred Reimer, CISSP, CCNP, CQS-VPN, CQS-ISS
Senior Network Engineer
Coleman Technologies, Inc.
954-298-1697


-----Original Message-----
From: nnsquad-bounces+freimer=ctiusa.com@nnsquad.org [mailto:nnsquad-
bounces+freimer=ctiusa.com@nnsquad.org] On Behalf Of Rahul Tongia
Sent: Friday, January 18, 2008 12:59 PM
To: Barry Gold
Cc: Lauren Weinstein; nnsquad@nnsquad.org
Subject: [ NNSquad ] Re: NYT: Differing views on Time Warner'sBandwidth
Cap Experiment

As someone who's spent lots of time internationally, there are many
tiered pricing plans for DSL. All you can use are often MUCH more
expensive. BUT, the entry plans are dramatically cheaper, e.g.,
$2-6/month in India.

So, if only a few percent of people are using up "too much" bandwidth
perhaps a solution would involve congestion pricing and/or graceful
degradation only for those who go above reasonable fair use caps.  Is
there too much complexity in this? If I want to download something huge,
there should be ways for the system/network to signal "off-peak"
pricing. I think we need some new protocols/tweaks/out-of-channel
signalling for that.  Given these are all happening on the last mile, it
shouldn't be hard to program that in (in a layered, scalable, manner).

There are parallels in the power industry, where I use kWh any time of
day (as a retail consumer) for the same price. If I knew, with minimal
effort or better, automatically, when things were not only peak but
expected to peak, I and my appliances could behave a little better (to
the extent there's a win-win). Everyone can benefit if there is less
peak capacity required. Of course, I need to see the numbers more (and
we don't have transparency on this).   This need not be a case of wealth
transfers only - there can be value creation as well. In one simple
world with a zero-sum-game, for every penny charged for over-usage, the
average bill for others should go down commensurately.

A first Q to me is to what extent is or isn't this a zero-sum game?

Rahul

************************************************************************
Rahul Tongia, Ph.D.
Senior Systems Scientist

Program in Computation, Organizations, and Society (COS)
School of Computer Science (ISR) /
Dept. of Engineering & Public Policy

Carnegie Mellon University
Pittsburgh, PA 15213 USA
tel: 412-268-5619
fax: 412-268-2338
email: tongia@cmu.edu
http://www.cs.cmu.edu/~rtongia



Barry Gold wrote:
Lauren Weinstein wrote:
http://bits.blogs.nytimes.com/2008/01/17/time-warner-download-too-much-
and-you-might-pay-30-a-movie/?ref=technology
This is beyond stupid, and I hope TW gets smacked down by its customers
if and when they try this.  See my earlier post on what customers want.

Item 1: No surprises.  A $30 surcharge on their bill is going to result
in a very unhappy user.  I know what Time Warner is thinking: when the
user sees a $30 surcharge on his cable bill, he'll buy a higher service
tier and we make more money.  Well, it's a lot more likely that the user
will
  a) Switch to satellite, DSL, or any other competitor he can find,
  b) Write his city councilman about turning the city into a hotspot
(some small cities already are)
  c) write his congressman about regulating cable prices.

So the *best* likely scenario is that TW loses a customer.  Other
possibilities include losing a whole city of customers, or being turned
into a regulated utility like phone and electric service used to be (and
natural gas still is).  That's a nice niche, you always make a
guaranteed profit -- but your profits are pretty strictly limited.

I hope TW and Comcast wise up, because frankly I *like* the current
(nearly) unregulated market.  But if they keep trying stunts like this,
they will feel like Wile E. Coyote when the anvil falls on him.

I can hear Brett and others asking, so what _should_ we do when we have
one customer who uses 100 times as much as our average.  Answer:
graceful degradation.  Slow him down.  This can be done manually -- you
notice that user X is using more than most, so you re-program his cable
modem to a lower bit rate, and/or drop some of the packets destined for
him.  Or you can just make it automatic - the system notices when a
customer is using a large amount of bandwidth over a period of time, and
takes steps.

And as I said elsewhere, I would favor allowing ISPs to modify the TCP
headers to reduce the window, even though strictly speaking it's a
violation of the protocol -- that header is supposed to be for
communication between the end-points.  But until we get protocol stacks
that actually _pay attention_ to Source Quench, I think this would be a
good way to limit bandwidth consumption.


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If qualifying traffic by throttling certain types of traffic is
unacceptable&nbsp; - then shouldn't a strategy that quantifies cumulative
traffic be unacceptable too? I mean, ISP's already charge differently
for access speeds (tiers of down/upload speed), how can another layer
of costs be put on top of that without creating mass confusion, not to
mention anger on the part of the end user/consumer?<br>
<br>
Content providers already pay for bandwidth charges to web hosting
firms who pay handsomely for their own connectivity. Why should end
users also be charged simply for downloading an excess of the same
content that the content provider has already paid to deliver. This
would be like the post office charging receivers of mail a fee if the
quantity of mail exceeded a certain arbitrary level (I know - not the
best analogy).&nbsp; <br>
<br>
Also - will Time Warner charge people who exceed the cap when they are
downloading content exclusively from Time Warner sites? Or will TW
privilege their own offerings - thus discouraging users from seeking
content from outside providers (for whom TW receives no advertising
revenue).<br>
<br>
It all raises more questions than answers . . . none of them good.<br>
<br>
Michael<br>
<br>
<br>
<br>
Fred Reimer wrote:
<blockquote
 cite="98B7739FB65BF04F9B3233AB842EEC9501A4479A@EXCHANGE.ctiusa.com"">mid:98B7739FB65BF04F9B3233AB842EEC9501A4479A@EXCHANGE.ctiusa.com";
 type="cite">
  <blockquote type="cite">
    <pre wrap="">This need not be a case of wealth
transfers only - there can be value creation as well. In one simple
world with a zero-sum-game, for every penny charged for over-usage, the
average bill for others should go down commensurately.

A first Q to me is to what extent is or isn't this a zero-sum game?
    </pre>
  </blockquote>
  <pre wrap=""><!---->
In the US companies have a fiduciary responsibility to make as much money as
they can for their stockholders.  If you think Time Warner, or any ISP, will
reduce the price for Internet access for the "average Joe" who uses minimal
bandwidth to something that is comparable to India (even with exchange rates
and cost of living calculations included) you are mistaken.  The ONLY reason
why Time Warner is doing this is because it is a chance for them to make
more money.

You can have your opinion of what SHOULD and should not happen, but
realistically this is not how business in the US works.  Especially not in
the telephone / cable / DSL markets.  I have no special knowledge of this,
it is common knowledge.

Fred Reimer, CISSP, CCNP, CQS-VPN, CQS-ISS
Senior Network Engineer
Coleman Technologies, Inc.
954-298-1697


  </pre>
  <blockquote type="cite">
    <pre wrap="">-----Original Message-----
From: <a class="moz-txt-link-abbreviated" href="mailto:nnsquad-bounces+freimer=ctiusa.com@nnsquad.org";>nnsquad-bounces+freimer=ctiusa.com@nnsquad.org</a> [<a
 class="moz-txt-link-freetext" href="mailto:nnsquad";>mailto:nnsquad</a>-
<a class="moz-txt-link-abbreviated" href="mailto:bounces+freimer=ctiusa.com@nnsquad.org";>bounces+freimer=ctiusa.com@nnsquad.org</a>] On Behalf Of Rahul Tongi
a
Sent: Friday, January 18, 2008 12:59 PM
To: Barry Gold
Cc: Lauren Weinstein; <a class="moz-txt-link-abbreviated" href="mailto:nnsquad@nnsquad.org";>nnsquad@nnsquad.org</a>
Subject: [ NNSquad ] Re: NYT: Differing views on Time Warner'sBandwidth
Cap Experiment

As someone who's spent lots of time internationally, there are many
tiered pricing plans for DSL. All you can use are often MUCH more
expensive. BUT, the entry plans are dramatically cheaper, e.g.,
$2-6/month in India.

So, if only a few percent of people are using up "too much" bandwidth
perhaps a solution would involve congestion pricing and/or graceful
degradation only for those who go above reasonable fair use caps.  Is
there too much complexity in this? If I want to download something huge,
there should be ways for the system/network to signal "off-peak"
pricing. I think we need some new protocols/tweaks/out-of-channel
signalling for that.  Given these are all happening on the last mile, it
shouldn't be hard to program that in (in a layered, scalable, manner).

There are parallels in the power industry, where I use kWh any time of
day (as a retail consumer) for the same price. If I knew, with minimal
effort or better, automatically, when things were not only peak but
expected to peak, I and my appliances could behave a little better (to
the extent there's a win-win). Everyone can benefit if there is less
peak capacity required. Of course, I need to see the numbers more (and
we don't have transparency on this).   This need not be a case of wealth
transfers only - there can be value creation as well. In one simple
world with a zero-sum-game, for every penny charged for over-usage, the
average bill for others should go down commensurately.

A first Q to me is to what extent is or isn't this a zero-sum game?

Rahul

************************************************************************
Rahul Tongia, Ph.D.
Senior Systems Scientist

Program in Computation, Organizations, and Society (COS)
School of Computer Science (ISR) /
Dept. of Engineering &amp; Public Policy

Carnegie Mellon University
Pittsburgh, PA 15213 USA
tel: 412-268-5619
fax: 412-268-2338
email: <a class="moz-txt-link-abbreviated" href="mailto:tongia@cmu.edu";>tongia@cmu.edu</a>
<a class="moz-txt-link-freetext" href="http://www.cs.cmu.edu/~rtongia";>http://www.cs.cmu.edu/~rtongia</a>



Barry Gold wrote:
    </pre>
    <blockquote type="cite">
      <pre wrap="">Lauren Weinstein wrote:
      </pre>
      <blockquote type="cite">
        <pre wrap=""><a class="moz-txt-link-freetext" href="http://bits.blogs.nytimes.com/2008/01/17/time-warner-download-too-much";>http://bits.blogs.nytimes
.com/2008/01/17/time-warner-download-too-much</a>-
        </pre>
      </blockquote>
    </blockquote>
    <pre wrap="">and-you-might-pay-30-a-movie/?ref=technology
    </pre>
    <blockquote type="cite">
      <pre wrap="">This is beyond stupid, and I hope TW gets smacked down by its customers
if and when they try this.  See my earlier post on what customers want.

Item 1: No surprises.  A $30 surcharge on their bill is going to result
in a very unhappy user.  I know what Time Warner is thinking: when the
user sees a $30 surcharge on his cable bill, he'll buy a higher service
tier and we make more money.  Well, it's a lot more likely that the user
will
  a) Switch to satellite, DSL, or any other competitor he can find,
  b) Write his city councilman about turning the city into a hotspot
(some small cities already are)
  c) write his congressman about regulating cable prices.

So the *best* likely scenario is that TW loses a customer.  Other
possibilities include losing a whole city of customers, or being turned
into a regulated utility like phone and electric service used to be (and
natural gas still is).  That's a nice niche, you always make a
guaranteed profit -- but your profits are pretty strictly limited.

I hope TW and Comcast wise up, because frankly I *like* the current
(nearly) unregulated market.  But if they keep trying stunts like this,
they will feel like Wile E. Coyote when the anvil falls on him.

I can hear Brett and others asking, so what _should_ we do when we have
one customer who uses 100 times as much as our average.  Answer:
graceful degradation.  Slow him down.  This can be done manually -- you
notice that user X is using more than most, so you re-program his cable
modem to a lower bit rate, and/or drop some of the packets destined for
him.  Or you can just make it automatic - the system notices when a
customer is using a large amount of bandwidth over a period of time, and
takes steps.

And as I said elsewhere, I would favor allowing ISPs to modify the TCP
headers to reduce the window, even though strictly speaking it's a
violation of the protocol -- that header is supposed to be for
communication between the end-points.  But until we get protocol stacks
that actually _pay attention_ to Source Quench, I think this would be a
good way to limit bandwidth consumption.

      </pre>
    </blockquote>
  </blockquote>
</blockquote>
<br>
</body>
</html>

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