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Netflix replies to Verizon cease and desist letter

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Re: Netflix replies to Verizon cease and desist letter

#282

Netflix is paying someone for their traffic. Verizon customers are paying for broadband which includes streaming movies. The ISP need to quit whining. They need to quit trying to get laws passed in every state that keep competition out. Verizon 2014 1st quarter. $30.8 billion revenue $7.2 billion operating income http://www.verizon.com/investor/news_verizon_reports_fifth_c... no sympathy

And I'll bet landline CAPEX, even adjusted for getting rid of various territories, is flat or declining. It certainly is for AT&T.

Re: Netflix replies to Verizon cease and desist letter

#283
This is exactly why I dropped Netflix. I want a high-def movie, not their whining about someone else's network. I have no problems streaming from Amazon. I have a choice of streamers. Other streamers work better. I have less choice of wired ISPs and they're harder to switch. Netflix would rather whine and preserve its profit margins than pay up. OK, fine, but since their whining does not get me the movie I want, I cut it off.

Netflix will find that most other people also do not care to hear their whining. I can understand why Netflix does it though...it's $8 a month. Between production costs, licensing costs, marketing, and profits, all $8 a month leaves room for is crappy movies, poor investment, and a continuous drive to shift costs to ISPs and whine about it.

Re: Netflix replies to Verizon cease and desist letter

#284

Earlier quoted context omitted.

But then doesn't that mean that it's also easier to put a cache in front of those overused switches and solve the problem much more easily? I guess the core issue here is that, from a customer's point of view, the ISP is selling me inet access, regardless of where the data actually goes, so it is the ISP's responsibility to keep their end of the bargain (to provide inet access). As a customer I should not care how is…

Good point about U > T. It also happens in Gym business where they oversell their gym capacity betting that 80% of their customers will be too lazy to come exercise everyday. Now imagine if I sell a motivation pill that makes you go to gym everyday. It would be absurd if Gym companies send me a cease and desist letter because i am overburdening their facilities because everyone who takes my pill wants to use their gy…

Actually, now that I think of it, we could probably name a lot of other services that rely on this business model and do a thought experiment like the gym one.

An airline for example; now everyone actually caches their flight because Google's self-driving cars always make it on time, and then they demand that Google stops bringing passengers on time?

Or a buffet restaurant, since now everyone goes to the gym, they can actually eat a lot more, thus restaurants complain about, either the gym or the pill maker?

I don't know, it would be a strange world to live in if this happened in other industries. Maybe prices would rise too much?

Re: Netflix replies to Verizon cease and desist letter

#285

Earlier quoted context omitted.

Excellent question. Anything that doesn't have a natural monopoly. I can say with certainty that the following should be socialized or delivered in non-profit ways: * Water * Sewer * Power * Internet * Healthcare * Fire * Police * Roads * Education (added per /u/CodeMage) Feel free to chime in if you can add anything I forgot.

Education, Police, Fire, Healthcare do not have natural monopolies. Still a good list to have around so we can argue about where the line should be drawn. Kudos!

Police have a natural monopoly because they're agents of the government, and the government by definition has a monopoly on violence.

Re: Netflix replies to Verizon cease and desist letter

#286

Earlier quoted context omitted.

Edit: rewritten because I misunderstood your point. Funny, I actually just added an edit to my post above that discusses this. Comcast adds interconnect capacity as needed. So in at least one way, it's actually easier this way, right? Just one peer to make sure they have capacity for. But either way, it's Comcast's job to run a network that's optimized for its customers needs, not some abstract concept of fairness. A…

I am not talking about imbalance in U/D, but rather imbalance in destination (or source). If tremendous amounts of traffic is going to or from just a small handful of nodes, you need tremendous routers & pipes going to those nodes.

Thankfully netflix expose their stuff via bgp (as well as other nice things) so you can have multiple paths into their network (and out of yours) without any single giant router. allowing you to balance your traffic.

You can even ask them for a freeish box to run inside your network to reduce requests to their CDNs

Re: Netflix replies to Verizon cease and desist letter

#287

Earlier quoted context omitted.

Excellent question. Anything that doesn't have a natural monopoly. I can say with certainty that the following should be socialized or delivered in non-profit ways: * Water * Sewer * Power * Internet * Healthcare * Fire * Police * Roads * Education (added per /u/CodeMage) Feel free to chime in if you can add anything I forgot.

Not a bad list. Cheers. I'll note that we should have explicit public subsidies for Internet and that I would much prefer to have public networks with private operators (to my mind that's heaven for competitive markets but politically impossible in the US).

Or you could have public last miles with openaccess requirements providing competition on the parts that can see competition.

Re: Netflix replies to Verizon cease and desist letter

#288

Earlier quoted context omitted.

I don't think that is how it works. The letter pretty clearly explains that Netflix uses for delivery third parties that have insufficient bandwidth to Verizon. Verizon did not -- at least according to this letter -- actively DO anything to slow Netflix down.

I haven't been following this too closely (I don't live in the US) so I apologise if what I'm about to say it absolute rubbish but... my understanding is Netflix use Level3 for transit and the problem is Verizon refuse to upgrade their peering capacity with Level3.

Yes. There was a post on Level3's blog explaining that they have zero peering problems worldwide with the exception of a tiny group of ISPs in the US, and this group is coincidentally ranked dead last in customer satisfaction.

Re: Netflix replies to Verizon cease and desist letter

#289
post #63
post #31

Earlier quoted context omitted.

It could be so that the ISP can't claim "if you had peered with us, we wouldn't be so congested" or some other BS.

In Germany, this would actually be a great thing! If the German Telekom (biggest provider here, formerly owned by the state) played that card, other providers could start to demand peering with them. The strange thing with German Telekom is not that peering with them would be too expensive, it is that they don't take part in the big peering points at all. As a "smaller" provider, you can connect with Telekom on by be…

We have a similar problem in australia. The ACCC (consumer competition watchdogs) forced the 4 largest at the time to peer together (which was a good move) but they refuse to peer with other australian ISPs.

They also control a fair chunk of the overseas connections.

Re: Netflix replies to Verizon cease and desist letter

#290
post #279

Earlier quoted context omitted.

How many of us had to bluff our way through the first gatekeeper on tech support like this? Tech: "Could you please unplug your computer for 20 seconds and restart it?" Me: "Okay. . Okay, it's back" Or this gem? Tech: "What browser are you using?" Me: " Internet Explorer 6".

I had a fun time with a Comcast installation tech a year or two ago: Tech: "Looks like we're about done. Now I just need to use your computer to activate the connection." Me: "I don't have a computer, I only use my internet for tablets and my roku" Tech: "I need to use your computer to activate your connection..." Me: "I don't have a computer, and of course you do not." Tech: "Okay, just a second, I have to make a ca…

Wow, that's some real Jedi action going on there. Nicely done.
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