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Net Neutrality Gives 'Free' Internet To Netflix and Google, ISP Claims (arstechnica.com) 361

Frontier Communications is asking employees for help in its fight against state net neutrality rules in California, claiming that the rules will give "free" Internet to major Web companies while raising costs for consumers. From a report: The Internet service provider urged employees to submit a form letter asking Governor Jerry Brown to veto the net neutrality bill that was recently approved by the state legislature. Frontier sent an email to employees and set up an online form for them to send the form letter to Brown. "I am proud to work at Frontier and help operate a network that is part of an incredibly successful Internet ecosystem that is the backbone of our economy and daily life," the form letter says. But net neutrality rules "will harm consumers and impose complex layers of costly regulation," and therefore "deter investment and delay broadband deployment in California, especially in rural areas that still lack high-speed Internet access," the letter says. The letter claims that net neutrality rules "will create significant new costs for consumers" but did not make it clear what those new costs would be.
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Net Neutrality Gives 'Free' Internet To Netflix and Google, ISP Claims

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  • Why? (Score:5, Interesting)

    by RickyShade ( 5419186 ) on Monday September 10, 2018 @11:43AM (#57284816)
    Why are corporations all a bunch of lying-ass trash?
    • Re:Why? (Score:5, Insightful)

      by Anonymous Coward on Monday September 10, 2018 @11:49AM (#57284888)

      It's the easiest way to make money.

      • Exactly this - and I think we have enough proof that there are literally NO ramifications for them doing this, either. You can fuck up as hard as Equifax and actually make money off of it. North America is fucked.
    • Because american ultra capitalist culture admires greed, treachery, and deceit. Until social norms will change, what you call "lying-ass trash" will continue to be celebrated as heroes.

      • Re: (Score:3, Informative)

        Because american ultra capitalist culture admires greed, treachery, and deceit. Until social norms will change, what you call "lying-ass trash" will continue to be celebrated as heroes.

        Right? Let's put those greedy lying-ass ultra capitalists in perspective for a moment, shall we?

        • Google: Market cap: 814.76 billion USD
        • Facebook: Market cap: 474.63 billion USD
        • Netflix: Market cap: 151.75 billion USD
        • Apple: Market cap: 1.06 trillion USD
        • Frontier Communications: Market cap: 571.37 million USD

        You would think that the companies with the most resources would be interested in helping invest in the infrastructure needed to reach their customers (and their customers to reach them), rather than sp

    • Re:Why? (Score:5, Insightful)

      by Gravis Zero ( 934156 ) on Monday September 10, 2018 @12:08PM (#57285026)

      Why are corporations all a bunch of lying-ass trash?

      It's all about feedback loops. There is no penalty for them to constantly lie but there is plenty to gain from deceiving people.

    • by taustin ( 171655 )

      Frontier is special, even in real of Evil Empire corporations. They are the worst phone company in the world, and always have been. Their takeover of Verizon's landline business was a disaster. It made service as bad as the areas they already had.

      If Frontier is against it, then I'm for it, regardless of what "it" is.

      There's a special place in Hell for Frontier, and it's a management position.

      • Agreed, part of Frontier used to be Roseville phone. Which was at the time, the 'worst phone company in the world'.

    • Frontier is not lying. Correctly implemented Net Neutrality does give Netflix and Google free Internet. You see, under Net Neutrality, ISPs are not supposed to double-bill. Once the end user has paid for "Internet," they can't charge the content provider for the same "Internet." Can't charge Netflix for the same bytes that the end user has already paid for.

      Since the end user has already paid for those bytes, Netflix gets them for free. Frontier isn't lying; they're "spinning" a desirable trait as if it was

      • Incidentally, the technical name for this is "settlement-free reciprocal peering." It means that without either company paying the other, they trade data packets whose destination has already paid the receiving ISP to handle those packets. ISPs who refuse a peering request are usually double-billing.

  • Last I checked (Score:5, Insightful)

    by Anonymous Coward on Monday September 10, 2018 @11:46AM (#57284854)

    Netflix/google/whomever is paying for internet access, in a different way then regular consumers.

    The teleco's can go fuck themselves.

    • As much as I agree with that theory, this discussion is completely ignoring Peering [wikipedia.org].

      There is no such thing as a single tube to the internet. The situation is a bit more complicated and you could choose to have a ridiculously small link to someone you don't like and a huge link to someone you want to favor. No QoS, no routing rule, just ... simple routing and .. an oriented hardware infrastructure.

      And peering contracts is a never-ending battle between ISPs and service providers.

      Maybe we should have some r

      • by iCEBaLM ( 34905 )

        All ISPs either peer, or pay for bandwidth, with other ISPs. The negotiations of which can be quite convoluted.

        That said, if Netflix, or anyone, can convince an ISP to let them peer for free, they should absolutely do it. Just like if you could convince an ISP to let you use their service for free, you should absolutely do it.

        I highly doubt any ISP is allowing Netflix to do this, and **even if they were** it would not negate the fact that even if Netflix isn't paying for their bandwidth, their ISP would be,

  • by Anonymous Coward on Monday September 10, 2018 @11:47AM (#57284862)

    I paid for it. I the customer. I already paid for it.

    When you say free, you mean you want to double-charge. You want to charge them to get to me, as much as you want to charge me to get to them. But they make all their money from me. This really boils down to, you want to double-charge me.

    I already paid for it.

    It doesn't cost you $100/month to move the electrons. You aren't buying $100/mo worth of equipment. Be honest. It is all profit, and you like profit with minimal cost. If you could get all your profit that way, you would love it. You prefer slavery. If you could, you would do it.

    You drink blood. Eventually, you end up drinking your own, along with the vast pool of mine and everyone like me. It kills you when you do it. To watch you die at your own hand I just have to be able to wait long enough to see it.

    • by thule ( 9041 )
      No, they are not double charging. There are two ways to get a packet to a network. One way is to use transit. The customer pays for some amount of max bandwidth and the packet can go to any point on the Internet. The other service is peering. The customer pays for packets to be delivered to a single destination network (not THROUGH it). This cost is lower than transit. Since these are entirely different services, they are NOT double charging.

      One way, both sides pay transit. The other way one pays transit
      • by reg ( 5428 )

        Nonsense. "Peering" is just a group of ISPs that think they are the Internet. This is nothing to do with the Internet, it is purely a business model. One that is very profitable.

      • No, they are not double charging. There are two ways to get a packet to a network. One way is to use transit. The customer pays for some amount of max bandwidth and the packet can go to any point on the Internet. The other service is peering. The customer pays for packets to be delivered to a single destination network (not THROUGH it). This cost is lower than transit. Since these are entirely different services, they are NOT double charging.
        One way, both sides pay transit. The other way one pays transit and the other pays peering (much cheaper than transit).

        Companies like Netflix already pay for peering agreements. What the ISPs want to do is double charge for transit. You aren't violating net neutrality by creating a mutually beneficial peering agreement with Netflix so that your customers can have faster access to Netflix. You are violating net neutrality (and double dipping) when you want to charge Netflix for sending packets across the public internet transit to your customer when you are already charging your customer to receive those same packets.

  • Less, not more (Score:4, Insightful)

    by satsuke ( 263225 ) on Monday September 10, 2018 @11:48AM (#57284876)

    Net neutrality on a technical level is less regulation and complexity, not more.

    The idea is very simple, treat all traffic equally and design your network to peer with the other guy's in such a way that it keeps costs down for both parties.

    Netflix is the reason your customers are buying faster tiers of internet,.

    • Re: (Score:2, Interesting)

      by HornWumpus ( 783565 )

      You don't even know the definition of net neutrality.

      Net neutrality doesn't make QoS illegal. It requires that all traffic of the _same_type_ be treated the same.

      Which is the downside of course. A bunch of clueless fuckwit, government lawyers are in charge of the definition of QoS.

      • Net neutrality doesn't make QoS illegal. It requires that all traffic of the _same_type_ be treated the same.

        This is a terrible definition of network neutrality. It allows the ISP to make random decisions on what types of traffic get priority. The ISP could arbitrarily classify youtube and netflix as different "types" of video and give them different priorities. It also encourages consumers to masquerade their traffic as other traffic. ALL traffic should be treated the same by the ISP whether it is a torrent download or a real time video chat. The consumer is welcome to prioritize traffic and the ISP is welco

      • by jon3k ( 691256 )
        Who's definition are you using? From wikipedia:

        Net neutrality is the principle that Internet service providers treat all data on the Internet equally, and not discriminate or charge differently by user, content, website, platform, application, type of attached equipment, or method of communication.

  • by bersl2 ( 689221 ) on Monday September 10, 2018 @11:49AM (#57284878) Journal
  • Form Letter (Score:3, Insightful)

    by PopeRatzo ( 965947 ) on Monday September 10, 2018 @11:49AM (#57284880) Journal

    The Internet service provider urged employees to submit a form letter asking Governor Jerry Brown to veto the net neutrality bill that was recently approved by the state legislature. Frontier sent an email to employees and set up an online form for them to send the form letter to Brown

    I find it fascinating when a corporation "encourages" its employees to a certain political action and helpfully provide them a script. Corporations are people, money is speech, and coercing your employees's speech is a very pure expression of malignant capitalism.

    • I find it fascinating when a corporation "encourages" its employees to a certain political action and helpfully provide them a script.

      And of course they probably track everyone using the "script" and will penalize those that choose not to.

      • And of course they probably track everyone using the "script" and will penalize those that choose not to.

        They don't even have to penalize them. Just the fact that they would take note of it is enough to force a behavior in an employee. That it might become a note on an annual review.is enough.

  • by Njovich ( 553857 ) on Monday September 10, 2018 @11:54AM (#57284920)

    They are right and it's called market power. ISP's should thank god Google and Netflix aren't charging ISP's yet for the privilege of having their service, as consumers would be happy to ditch any service that doesn't offer them.

    • by TFlan91 ( 2615727 ) on Monday September 10, 2018 @11:57AM (#57284942)

      I would love to see the backlash of Netflix dropping Comcast or League of Legends/DotA dropping Cox.

      I'd get the biggest bowl of popcorn and just watch

      • I'm just waiting for the day that Netflix or whoever institutes a "Comcast Customer Fee" for all customers of Comcast, with a nice information bubble explaining how Comcast is abusing access to its own customers to charge Netflix extra—despite having already been paid by those customers to retrieve the requested data and having already adopted peering agreements with Netflix's ISP to deliver the requested data—which has forced Netflix to institute a surcharge for Comcast's customers to make up t

    • I think that Google and Netflix have a lot more to lose than the ISPs. Realistically, in the US at least, many users only have a choice of 1 or 2 providers. They are also often bundled with other services. If Google denied service to Cox, then people's option would be to either move to DSL, and probably get an increase in their Cable TV bill, or just switch over to using another search engine like Bing. Google and other internet service providers can't really fight back until the ISP monopoly is dealt wi

  • by The Raven ( 30575 ) on Monday September 10, 2018 @11:58AM (#57284948) Homepage

    All the whining about Net Neutrality is garbage. Running an ISP is an inexpensive task, relatively, and it scales very well. The larger you are, the cheaper each additional customer is. I am literally baffled how large megacorps like Frontier, Spectrum nee Charter, and Comcast don't have 50% profit margins at their prices.

    For all I know they do have 50% profit margins, and all this garbage about rising costs is just that... garbage.

    The only reason that this has lasted so long, and the incumbent idiocy has not been ousted by competition, is because they don't have competition in most of their markets. Monopoly pricing has become the norm rather than the exception in the US. In the EU, which is no easier or more difficult to provide Internet to, consumer internet costs 1/2 to 1/4 what it does in the US. As far as I can tell the primary driver between the difference in price is that the EU municipalities never created monopoly markets for Internet.

    • by reg ( 5428 )
      For Comcast only about 40% [cmcsa.com]. It would have been 50% but they were forced to spend nearly 13% of revenue on capital expenditure. It must suck to work so had for so little - a mere 33% growth. They lost -9% of their customers despite investing -10% more in infrastructure in Q2. And then the government even has the gall to tax them -50% in 2017!
    • The actual numbers can be much higher than 50%. Try more like 97% [huffingtonpost.com].

    • but most estimates place it somewhere between $9-$20/mo for 100 mbps. This is based on their SEC filings. You'll generally pay $80-$100/mo for that service. $140 if you don't want a bandwidth cap (or if you go much over your cap).

      ISPs go out of their way to hide this figure because if folks knew how cheap modern telecom is they'd be furious.
  • Netflix pays for their connection to the public Internet. An ISP's customers pay for their connection to the public Internet. The ISP pays backbone provider(s) for their interconnection to every other ISP. No one is getting anything for 'FREE'.

    Now, that having been said: If ISPs would stop over-booking their own networks, then maybe everyone streaming stuff from Netflix at the same time wouldn't max out their networks and make their customers complain.

    Also, as a sidebar: ISPs are completely disingenuous. Some company like Comcast/Xfinity has competing services, and furthermore are both content creators and content deliverers; as such anything they say on the subject should be disregarded.

    Overall there are too many parasite corporations in this country and they need to be taken down a few notches.
    • Now, that having been said: If ISPs would stop over-booking their own networks, then maybe everyone streaming stuff from Netflix at the same time wouldn't max out their networks and make their customers complain.

      Are you actually serious? In most cases, what you're asking is for an ISP to increase the available bandwidth by 10's to 100's of times their current if they didn't over subscribe. You could have that, you'd just pay 10 times as much. Of course I am taking your quote to mean that you want a 1:1 relation between your "purchased" bandwidth and the ISP available bandwidth. if what you mean is "they shouldn't over subscribe as much", then yeah, that seems more reasonable.

      If Comcast is over subscribed to the

      • How much are they actually over-booking their network capacity? Do you even know? I don't know the answer to that either, but I suspect the figure would be astoundingly large. That's what I'm talking about. I don't expect 1:1, but if a reasonable figure is, say, 100:1, and they're selling 1000:1 or 10000:1 then that's bullshit.
  • While I understand their argument, I guess, shouldn't Netflix et al already be paying for what they use?

    I mean, if I have a 100/20 connection, I pay for that. If Netflix has a 1 terabit connection to each of its movie servers in 36 different metro areas, shouldn't they already be PAYING for that?

    I get that their regional fees mainly are for their local access to the trunk, but doesn't the pay-chain go up from there too? Essentially, this is the main cost (I presume) that Netflix's internet provider bears,

    • by jon3k ( 691256 )
      (I've oversimplified this so please don't sic NANOG on me)

      Mostly. They've also strong-armed Netflix into paid peering arrangements instead of relying on regular transit that Netflix purchased. So if you had this example (made up):

      Netflix <-> Cogent <-> Comcast <-> Subscriber

      Let's say Netflix is paying for transit from Cogent. Subscriber requests content from Netflix, it traverses Comcast, then Cogent, then to Netflix, and the data is sent back to the subscriber.

      Now, holy shit, Comcast sees the utilization on their Cogent link is at 100% all da

  • This is just squatting from ISPs, who can set the rules (and the world view) thanks to being first on the pot. There should be no "peering points" on the internet, only connections, and the only logical way to charge is for the ISP/user generating the traffic requests to pay for their delivery. But ISPs grew up in the US telecoms market where people can be made to pay and receive phone calls and text messages...

  • by Headw1nd ( 829599 ) on Monday September 10, 2018 @12:08PM (#57285028)
    The more I hear "We need to stop net neutrality/government oversight because it will prevent us from serving poor rural customers" the more I wonder if telcos have been withholding service from these areas strategically, so that they can promise to get them service every few years in exchange for regulatory favor or just money, then renege on their promises only to bring up the same areas a few years later when they want something else.
  • by surfdaddy ( 930829 ) on Monday September 10, 2018 @12:10PM (#57285042)

    Perhaps they should consider raising their rates if they think things are free. That is what the fees are for. I've not heard of them, but what unlucky slobs get Frontier in their geographic area?

  • by gatfirls ( 1315141 ) on Monday September 10, 2018 @12:11PM (#57285048)

    Help, government we are dying without corporate welfare and bailouts!!!! We need you and appreciate how much you do for us! ...15 minutes later
    Whateva government you can't tell me what to do, I do what I want, you don't own me.

    Ad nauseam.

  • Starlink and similar services can't simply come fast enough.
  • by shess ( 31691 ) on Monday September 10, 2018 @12:26PM (#57285132) Homepage

    By this argument, Google Fiber should be self-limiting, because at some point Google not paying and Google also not paying should result in such a huge shortfall that they go out of business. Right?

  • by pecosdave ( 536896 ) on Monday September 10, 2018 @12:30PM (#57285164) Homepage Journal

    Netflix has made sure that that claim is bullshit [netflix.com]. The only reason Netflix is a burden on an ISP's backbone is an ISP going out of it's way to make sure they aren't playing nice with Netflix.

  • by magusxxx ( 751600 ) <magusxxx_2000 AT yahoo DOT com> on Monday September 10, 2018 @12:44PM (#57285242)

    They had a piece about a city which built a new baseball stadium but had no team. And any time another city would say no to their current baseball team demands, the team owner would say, "We could always move there." So, this empty stadium was continually used as an excuse for giving the team owners what they wanted. This city's empty stadium was constantly being used as a bargaining chip and a scapegoat.

    I think of this story every time I read, "...deter investment and delay broadband deployment...in rural areas..."

  • One of humanity's greatest inventions should not be sold to the highest bidder.
  • by atrex ( 4811433 ) on Monday September 10, 2018 @01:03PM (#57285360)
    Frontier and other ISPs are upset because they spend the minimum amount necessary on infrastructure upgrades and maintenance. They oversold their minimalist networks as much as they possibly could, and then the likes of Netflix and YouTube came along and ISP customers started all consuming massive amounts of bandwidth instead of it just being the file sharers that ate bandwidth like mad.

    So now, in order to meet customer demand, ISPs have to use some of the profits they've been racking in hand over fist to go out an upgrade their networks. But, instead of just getting the job done, they'd rather spend a few million on a political propaganda campaign and buying off politicians to try and kill Net Neutrality so they can keep their grubby mitts on the most profit possible.

    Now, make no mistake, either way consumers are still going to get screwed in the end, but, better they get screwed while getting an upgraded infrastructure, instead of letting the ISPs rip off Netflix and others for the crime of serving content. Because without Net Neutrality, the ISPs get to demand tolls from Netflix, and Netflix's prices go up, while the ISPs sit back and do nothing. With Net Neutrality, the ISPs will raise prices and implement data caps - but they also build infrastructure to handle the demand.

    And Netflix already has all the incentive in the world to research, develop, and adopt new video codecs like AV1 to make their content smaller, because they still need to pay to have their content mirrored all around the country. And the smaller that content is, the less they have to pay.
  • I cannot believe ISPs expect any sympathy from their Customers. I have exactly one ISP I can use and they are actively suing to prevent / slowdown anyone else from providing service. The people that run ISPs are scum and it is easy to side with net neutrality.
  • I suspect Netflix and Google are already paying for their Internet connections. If you think you're not charging them enough for each byte, by all means, charge them more for each byte. But if you want to charge people more or less for communicating with certain companies using the bytes they're paying for, then get fucked.

  • Google pays it's ISPs to carry all of it's traffic. Doesn't matter if it goes to users, Google pays an ISP to carry it.

    ISPs pay or peer with other ISPs to carry all of their traffic. Doesn't matter if it goes to Google or users, ISPs pay an ISP to carry it.

    Users pay their ISPs to carry all of their traffic. Doesn't matter if it goes to Google, users pay an ISP to carry it.

    Who is getting free internet again?

  • Google and Netflix pay for their connections, same as us. And in fact, pretty much every commercial internet connection is metered. You pay for every bit.

  • If you don't work in the ISP/telco industry, you have no idea how cheap bandwidth is these days. You can get a full gigabit for less than $100. You can get 10 gigabit circuits for less than $2000. With the typical oversubscription rate of about 30-to-1, that means I can provide 300 people with 1 gigabit connections for $2000/month. And considering every one of those 300 people is paying roughly $70 month, that means the ISP is making about $20k/month just *on the bandwidth*.

    The ISPs just don't want to do it

  • The letter claims that net neutrality rules "will create significant new costs for consumers" but did not make it clear what those new costs would be.

    That is pure, unadulterated horseshit.

  • by p4nther2004 ( 1171621 ) on Monday September 10, 2018 @06:14PM (#57287310)

    I predicted that ending net neutrality would kill cable ISPs.

    We're getting closer.

    Frontier just admitted it wants to charge Google and NetFlix more to send their content through. We can pretty much assume at this point that they'll slow transmission rates of Google and NetFlix traffic if they don't get it.

    And this is the death kneel for Frontier and others.

    Because if Frontier is allowed to slow...(effectively stop) transmission of Google and NetFlix traffic....then Google and NetFlix can slow (effectively stop) transmissions of their traffic to Frontier.

    Google has already invested in backbone and last mile data (Google Fiber). There is NOTHING that would prevent Google from opening Fiber in Frontier's largest (most profitable) markets and slowly Frontier traffic to a crawl.

    In fact...Frontier is DEMANDING that Google be allowed to do this.

    Frontier hasn't realized that NO ONE buys Frontier access to view Frontier content.

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