[ NNSquad ] Re: Bell Canada proposal to cap wholesale customers

[Brett Glass <nnsquad@brettglass.com>]

This isn't actually a proposal to "cap" wholesale customers, but 
rather to charge them by data volume instead of by the capacity of 
the connection.

This isn't necessarily disadvantageous to all customers. Those who 
need high speeds but do not transfer large volumes of data will 
benefit. And ISPs which charge by the byte will find it easy to set 
retail prices based on their wholesale costs, because the metrics 
used for both will be the same.

One downside, though, is that ISPs will not be able to offer flat 
rate service. This is a shame, because both I and my customers 
prefer this model. We'd much rather shape and prioritize traffic, 
and limit the users' duty cycles, so that those users can know that 
they're paying a known amount for service every month. However, 
billing by the byte is the inevitable consequence of the regulation 
advocated by "network neutrality" proponents, who have insisted 
that such practices be banned.

Another downside is that the wholesaler will have very direct 
control over retail ISPs' costs and hence their prices. This is a 
serious concern where the wholesale carrier is also a retail 
provider, as is the case with the ILECs in the United states. Given 
the recent Supreme Court rulings in the Trinko and Linkline cases, 
legislation may be necessary to ensure that such wholesale/retail 
carriers do not "price squeeze" all competitive ISPs out of 
business. However, this is an antitrust and competition issue, not 
a "network neutrality" issue.

--Brett Glass


  [ Let's not get hung up over naming issues.  The general term
    "network neutrality" has changed over time to take on meaning in
    a broad range of contexts related to Internet provisioning,
    fairness, transparency, and various other areas.  I also
    recommend that we allow "network neutrality" advocates to speak
    for themselves, rather than depend on your characterizations of
    what they do or do not "insist on."  I am intrigued by your
    willingness to endorse the possibility of legislation that would
    enhance your competitive position, even while your "hands off my
    business, regulation will destroy us" mantra seems to also apply.
    However, to each his own.

         -- Lauren Weinstein
            NNSquad Moderator ]