nanog mailing list archives

Re: Some truth about Comcast - WikiLeaks style


From: Jay Ashworth <jra () baylink com>
Date: Thu, 16 Dec 2010 00:29:10 -0500 (EST)

----- Original Message -----
From: "JC Dill" <jcdill.lists () gmail com>
If I drive from SF to LA for business or for personal purposes, my costs
for the drive are the same. But the economy of doing it for business
depends on what the client is willing to pay me. If they want me to
drive to LA but only pay $10, it's not economical (from a business
perspective) for me to do it. Right now, Comcast is carrying content
to their customers "for free" and they want to be paid by the content
providers (thru paid transit connections) to cover the cost of
carrying that content traffic across their network to the end customer.

Comcast is acting, collectively, as the agent of their customers,
who I'm sure would tell you if you asked them that they believe the
contract is "I pay you, and you carry my packets back and forth as I 
direct, as long as I follow your TOS" -- which pulling movies from 
Netflix does not presently violate, AFAICT.

Sure, Comcast's customers are also paying Comcast. But Comcast wants
to get paid from the content provider. I think they are betting that in
the long run it's easier to make money from content providers (and
have the content providers charge customers or advertisers as necessary to
make a profit) than to make money from the end consumer. And I think
they are right about this "easier" part. I think that they will succeed
at pressuring big content providers to play by Comcast's rules and
shift the cost of running Comcast's network from consumers to content
providers.

I'm sure that Comcast does think it's easier.  But that doesn't mean it's
a valid legal interpretation of their contracts with their direct customers,
and I smell a class-action lawsuit brewing in the mind of some tort-king
on just that point.

The underlying problem, of course, is lack of usable last-mile competition;
see also my running rant about Verizon-inspired state laws *forbidding*
municipalities to charter monopoly transport-only fiber providers, renting
to all comers on non-discriminatory terms, which is the only practical
way I can see to fix any of this.

Cheers,
-- jra


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