Re: Cui bono..? Re: Europeans warned that 'Network neutrality' could raise broadband prices

[David Farber <dave () farber net>]

Begin forwarded message:

From: Brett Glass <brett () lariat net>
Date: October 21, 2008 7:11:16 PM EDT
To: dave () farber net, "ip" <ip () v2 listbox com>
Subject: Re:  Cui bono..? Re: [IP] Europeans warned that 'Network  
neutrality' could raise broadband prices

Everyone:

Ad hominem arguments against the publishers of the reports mentioned  
in this thread do not affect their validity. And valid they are.... As  
I, as an ISP, can attest, policies which prohibit network management  
and optimization would indeed raise our costs substantially. In fact,  
even if we invested much more money in expensive infrastructure and  
backbone bandwidth (which is especially dear in our area), we would  
still likely fail to maintain good quality of service. Why? Because --  
as experience in Japan has shown -- the appetite of P2P for bandwidth  
is essentially insatiable. What's more, longstanding flaws in the TCP/ 
IP protocol suite allow applications such as BitTorrent to seize  
priority over time-critical traffic, causing jitter on VoIP calls and  
annoying pauses in streaming video.

Who benefits if network engineers are allowed to do their jobs,  
network designers are allowed to innovate and broadband providers are  
allowed to compete on the basis of the quality of their customers'  
experience? Everyone... except for the bandwidth hogs and pirates.

For more, see

http://blog.quintarelli.it/blog/files/network_management_coalition_stmt__031008_final_.pdf

and also

http://www.brettglass.com/principles.pdf

--Brett Glass







> Begin forwarded message:
>
> > From: "Dirk van der Woude" < dirkvanderwoude () gmail com>
> > Date: October 21, 2008 11:48:04 AM EDT
> > To: dave () farber net
> > Subject: Cui bono..? Re: [IP] Europeans warned that 'Network  
> > neutrality' could raise broadband prices
> > Reply-To: dhvanderwoude () gmail com
> >
> > Dave, for IP if you wish
> >
> >
> > I would think the given price increases are very precise.
> > There's two sources of information that exact: the EU
> > Commission or telco's. The Commission only can use
> > this kind of info an a base of non disclosure, so one is
> > inclined to think the researchers got it from the industry
> > itself.
> >
> > Next this reports see the light in exactly the weeks in
> > which the EU Commission is consulting the market and
> > consumers on... network neutrality, the new telecom
> > regulation framework etc.
> > And of course after Commissioner Reding in her speech
> > in September in Copenhagen stated to be in strong favor
> > of neutral networks - and in search of tools to mandate
> > them.
> >
> > It is interesting to go to the sites of these (independent?)
> > research institutes and see how they make a living.
> > I would think it even more interesting to hear from them who
> > exactly financed these two studies, so that one would be
> > able the 'cui bono' question.
> >
> > CopenhagenEconomics mentions as its primary group
> > of clients "medium size and large European companies,
> > public agencies and business organisations in various
> > sectors;" (next to the European Commission and other
> > public bodies)
> > http://www.copenhageneconomics.com/About-Us.aspx
> >
> > The Centre for European Policy mentions that is funding
> > for at least 53% is from corporations:
> > "34% of CEPS' income is accounted for in membership
> > fees, essentially corporate memberships. Most of the
> > remainder comes from income generated through projects
> > (31% from project contracts tendered by EU institutions and
> > national governments and awarded to CEPS on a competitive
> > basis, 19% from private organisations and 7% from foundations)."
> > http://www.ceps.be/wAbout.php?article_id=1
> >
> >
> >
> > On Tue, Oct 21, 2008 at 4:51 PM, David Farber <dave () farber net>  
> > wrote:
> >
> >
> > Begin forwarded message:
> >
> > From: dewayne () warpspeed com (Dewayne Hendricks)
> > Date: October 21, 2008 10:13:32 AM EDT
> > To: Dewayne-Net Technology List <xyzzy () warpspeed com>
> > Subject: [Dewayne-Net] Europeans warned that 'Network neutrality'  
> > could raise broadband prices
> >
> > EUROPEANS WARNED THAT 'NETWORK NEUTRALITY' COULD RAISE BROADBAND  
> > PRICES
> >
> > Broadband prices could rise by up to one-third if regulators in  
> > Europe insist on strict "net neutrality" rules that would block  
> > carriers from charging content providers premium prices to  
> > prioritize certain web traffic, a leading think-tank is set to  
> > warn. An industry-commissioned report from consultants at  
> > Copenhagen Economics, due to be published next week, is set to warn  
> > that imposing net neutrality in Europe will "pass on the cost of  
> > scarcity to all consumers" and significantly increase broadband  
> > prices. That, in turn, could depress broadband demand. The report's  
> > authors suggest, for instance, that the average monthly broadband  
> > subscription rate could rise from €33 ($44) to €44 in Sweden, and  
> > from €29 to €39 in Germany. In the latter case, the loss in  
> > "consumer welfare" from the increased cost and lower broadband  
> > penetration could be as much as €1.7bn annually. A separate report,  
> > due out in the next few days from the Centre for European Policy  
> > Studies, also concludes that "mandating net neutrality would not be  
> > a desirable option".
> >
> > < http://www.ft.com/cms/s/ 
> > 0/8d0c0df8-9ece-11dd-98bd-000077b07658.html >
> >
> > Courtesy of the Benton Foundation <http://www.benton.org>RSS Feed:  
> > < http://www.warpspeed.com/wordpress>
> >
> >
> >
> >
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> >
> >
> > --
> > A successful society is characterized by a rising living standard  
> > for its population, increasing investment in factories and basic  
> > infrastructure, and the generation of additional surplus, which is  
> > invested in generating new discoveries in science and technology.
> > --Robert Trout
>
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