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EU to Telecoms companies: Try charging Google and we’ll take action

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Re: EU to Telecoms companies: Try charging Google and we’ll take action

#41
post #21
post #2

Aah, Neelie Kroes, the person who gave Bill Gates both a honorary doctorate and a €500 million fine. ( http://en.wikipedia.org/wiki/Neelie_Kroes )

FWIW, the fine was to Microsoft, not Bill Gates.

Yes, but it's close enough to the truth and a better story.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#42
The ISP position is brain-dead. They say that services like Youtube are unfairly saturating their pipes and not compensating them.

Nevermind that access to things like Youtube is exactly what CREATES demand for internet service. You think people are paying for broadband so they can send emails faster??

What they're saying to Google is "if you don't stop creating so much demand for our connections, we're going to go out of business!" Which can be simplified to, "we don't charge enough to cover our costs!"

Which is either false (likely) or indicates that they're incompetent. But it's nobody else's fault, least of all the fault of services that ISP customers are paying to access.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#43
post #9
post #4

I don't understand the argument the telecoms are trying to make here. On the ISP side, the end user has already paid for the bandwidth. Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Said network operators have some sort of peering agreement. Under what theory could it possibly be fair to charge Google at both ends?

Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Google has no-charge peering agreements with the companies which are complaining. Google's traffic is so vast that a major carrier which doesn't peer with Google would endanger other high-volume peering agreements or (less likely) pay more in transit charges to reach Google. Tier 1 carriers play this game…

I always find it extremely humorous when some bean-counter working at a telco looks at a peering agreement like this and says "Holy crap! We're delivering their packets for free! We should be charging them money!" The reality is that having a peering agreement with Google saves that telco a ton of money. If they didn't have the direct peer with Google, one of their other Tier 1 peers would have to provide it to them, which would surely change the terms of their peering agreement (cost them $$$). What's more, if you can get traffic from a peer for free that is destined for an endpoint on your network, you ALWAYS want to take it. After all, you'll have to deliver the traffic anyway; better to get it for free than to pay someone else to transit it for you.

This is what happens when accountants try to understand how BGP works.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#44
post #37
post #36

Earlier quoted context omitted.

The comment to which you are replying offers a bit of reasoning as to why a cartel against Google would fail even without regulation: any defectors would have a big advantage in the marketplace. Against that, you offered an assertion without reasoning -- "some sort of regulation is necessary". Your assertion is wrapped in vaguely dismissive filler words -- "honestly sounds like" and "maybe?" -- that suggest you think…

A market where one market participant can, well, force other market participants to carry their content free of charge sounds to me like a failed market. That’s why I asked whether regulation might be something to counter that. I don’t know whether it is. I don’t even know if my assumptions are correct. Maybe this is no failed market at all and it’s just normal and good that ISPs have no-charge peering agreements wit…

That's not what's happening here at all. While Google might or might not have peering agreements in Europe like they do here in the US. Google isn't free loading anywhere. It either pays someone to carry it's traffic from it's data center to the next ISP or it already has that infrastructure and trades bandwidth on its network for traffic on the other ISP network. Since google bought a large chunk of dark fiber, they have lots of capacity and are making a sweet deal, it seems, to other ISP which allows them to pay nothing almost nothing for bandwidth except for the infrastructure.

What these ISP want is: when one of their customers wants to access a google site, google pays them for the traffic that goes over their network.

What doesn't make sense with that is that the traffic is already paid for twice, once with the customers subscription and another time before the data reaches this particulars ISP's network. (If google peers directly with them, they have some sort of deal currently, if the google doesn't then the ISPs inbetween already have a deal with this ISP for the traffic). In effect they are trying to find a way to charge another time for something that already paid for.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#45

Earlier quoted context omitted.

That's not quite true - all they buy from BT is the "last mile" between the telephone exchange and the customer end point. Everything else is on the ISP's own (or rented) infrastructure.

True, all they rely on BT for is the bit that's completely impossible for them to get anywhere else or duplicate.

[deleted]

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#46
post #19

Earlier quoted context omitted.

In the EU (At least in the UK), you have vast competition amongst ISPs with everyone undercutting everyone else. There's probably around 100 ISPs I could choose from to get my ADSL line from. I think the toll booth would fit in more with some US areas where there's only 1 ISP available (AFAIK).

But they all buy the ADSL access from BT and are basically just billing operations - if BT chooses to implement a pay per content they will have to pass that on. If you have a cable connection then it's probably owned by Sky (murdoch) already.

Incorrect. Many of them, do buy the ADSL access from BT. But many of the only use BT for them exchange->house portion, and install their own equipment in exchanges. (Local loop unbundling).

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#47

Earlier quoted context omitted.

That's not quite true - all they buy from BT is the "last mile" between the telephone exchange and the customer end point. Everything else is on the ISP's own (or rented) infrastructure.

True, all they rely on BT for is the bit that's completely impossible for them to get anywhere else or duplicate.

Actually they're completely free to create their own last-mile connections, most simply choose not to and try to irk out their living being the middle man.
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