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The FCC won't allow net neutrality to regulate the way companies like Netflix connect to the Internet

Netflix was hoping for an end to internet tolls by calling to expand the scope of net neutrality, but the Federal Communications Commission (FCC) isn't having any of it. 
 
According to National Journal, the FCC denied Netflix's call to expand net neutrality so that it covered companies and their methods of connecting to the internet. 
 
More specifically, Netflix CEO Reed Hastings wanted the FCC to regulate the way companies like Netflix connect to the internet so that they wouldn't have to pay tolls to other companies (like Comcast, for example) to make sure its video gets to customers quickly and without any issues. 
 
"Peering and interconnection are not under consideration in the Open Internet proceeding, but we are monitoring the issues involved to see if any action is needed in any other context," said an FCC spokesperson.
 
Netflix agreed last month to pay Comcast to ensure that its movies and TV shows stream easily without traffic jams on Comcast's broadband network. While it's not clear how much Netflix is paying Comcast, the new deal will span several years and Comcast said it would connect to Netflix's servers at data centers operated by other companies. 
 
But Netflix wanted this to be a one-time deal until it managed to push laws in place that eliminated these tolls. 


Having to pay Comcast means Netflix could end up having to pay tolls to other providers like Verizon and AT&T -- and there's no way these tolls come cheap. The streaming company already pays high prices for content licensing from content providers, and having this extra fee on the table (and potentially from many big cable companies) would really put a damper on Netflix's cash flow. 

"Some big [Internet service providers] are extracting a toll because they can—they effectively control access to millions of consumers and are willing to sacrifice the interests of their own customers to press Netflix and others to pay," said Hastings. 
 
"If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future."

Big cable got even bigger this year when Comcast acquired Time Warner Cable (TWC) in February for $45.2 billion USD. Comcast has about 25 percent share of the broadband market while TWC controls around 12 percent. As far as the subscription cable TV market goes, Comcast currently controls roughly 19 percent and TWC controls around 9 percent. Together, the pair would control about a third of the markets (37 percent of broadband; 28 percent of cable TV). 

Source: National Journal



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RE: ISP
By bsd228 on 4/1/2014 7:40:05 PM , Rating: 2
quote:
The irony is, when the US entered recession, the government instead of spending trillions bailing out failing companies, could have instead built a fiber network instead. Which would have created more jobs and new business's (I.E. tons of E-Business's) much like how Australia went about it.


Just how many jobs (other than running fiber) do you really see this generating? Most people have more than enough speed to web browse, and stream video at SD resolutions, and a high percentage can stream HD. Past that, it's closer to luxury than a requirement. So I don't see the synergy you suggest.


RE: ISP
By Cypherdude1 on 4/1/2014 9:32:04 PM , Rating: 3
quote:
The irony is, when the US entered recession, the government instead of spending trillions bailing out failing companies, could have instead built a fiber network instead.
I just don't get it from a foreigners perspective.
As an American, I am disgusted NONE of ANY of the major Wall Street CEO's were prosecuted. IMHO, this is a clear indication of just how IMHO corrupt our Federal Government is. Even Angelo Mozilo worth $600M, CEO of Countrywide Financial and Jon Corzine, who walked away with $300M, CEO of MF Global were not prosecuted. Out of all the Presidents, Obama is easily the biggest disappointment to me.

There are several documentaries you should see:
1. Inside Job , not available via Netflix Streaming, only DVD.
2. We're Not Broke .
3. Gasland I & II.
4. Split Estate .


RE: ISP
By Reclaimer77 on 4/2/2014 7:21:55 AM , Rating: 2
Dude Madoff was sentenced to 150 years in prison!


RE: ISP
By sorry dog on 4/3/2014 11:33:23 PM , Rating: 2
Bernie was not a Wall Street CEO.

We are talking about the large investment and mega consumer banks that had liabilities in trillions with financial derivatives and shady mortgages. We are talking about S&P and Moody's who basically should be insolvent today from lawsuits from shareholders that completely relied on their ratings that turned out to be written on single ply Charmin. The really offensive thing is that not only did these CEO's not go to jail or lose their jobs but some took home record bonuses the year after or even the same year of the meltdown hitting the fan.

God bless America!


RE: ISP
By Reclaimer77 on 4/5/2014 11:10:40 AM , Rating: 2
Those mortgages were legal, and backed by the Government though.

This IS America. We don't just throw people in jail because they did things we don't like.

Now you show me some laws the "Wall Street CEO's" broke, and hey I'm all for it. But the Left seems to think we should just throw people in jail because they have more money or the economy went sour.

In layman's terms; don't hate the player hate the game.


RE: ISP
By StevoLincolnite on 4/2/2014 9:06:33 AM , Rating: 2
quote:
Just how many jobs (other than running fiber) do you really see this generating? Most people have more than enough speed to web browse, and stream video at SD resolutions, and a high percentage can stream HD. Past that, it's closer to luxury than a requirement. So I don't see the synergy you suggest.


Years ago when I first bought a PC the salesman told me I had a massive 3.2Gb Hard drive and I would never need more.
Eventually the media demands made that obsolete relatively quickly.

Basically, what you think is "enough" might not be "enough" for the next big thing.

People for a time thought dial-up 56k was enough, but it would be next-to-useless with a media-rich web experience we have today, not to mention make Youtube completely and utterly useless.

Imagine having doctor consultation in 4k in your home? Hows about people setting up their own internet servers?
Imagine high-speed and cheaper access to your home PC to grab a movie while on a bus with a tablet or phone?
There are possibilities that aren't even thought of! - Years ago I never would have thought "Youtube" would exist et-all, additional bandwidth made that dream a reality.

As for Jobs, well, the USA is a very vast place, relatively competitive to Australia in terms of land-area, they budgeted fiber for 98% of the population at roughly 50 billion AUD.

Who knows what the initial job count would be, however in perspective you would need to hire a ton of contractors to dig out the cabling channels to put the cables underground, specialized vehicles for the laying of fiber which means more construction of machinery and the factories that support those.

More factories and their workers to manufacture the cables and the other networking equipment, new ISP's would come-about which would require the hiring of a heap of new staff and you get more higher-skilled workers out of the entire experience.

Americans then at the end result get cheaper internet, faster internet, reliable internet and more readily available internet because of better infrastructure and competition.


RE: ISP
By Fallen Kell on 4/3/2014 1:24:18 AM , Rating: 2
quote:
As for Jobs, well, the USA is a very vast place, relatively competitive to Australia in terms of land-area, they budgeted fiber for 98% of the population at roughly 50 billion AUD.

Who knows what the initial job count would be, however in perspective you would need to hire a ton of contractors to dig out the cabling channels to put the cables underground, specialized vehicles for the laying of fiber which means more construction of machinery and the factories that support those.


There are a few major flaws with your logic. While it is true that Australia is close to the size of the 48 continental states in the USA, its population distributions are VASTLY different. In Australia, 83% of the population live within 50km of the coast, and 86% live within an urban area. Also, it won't reach 98% of the population. It was only designed to reach 92% (basically just cover the cities and a few suburbs which would account for the 92%). It is now only expected to cover 22% of the population (not even going to reach every city), and will still cost 30 billion.

In contrast, in the USA only 79% of the population live in urban areas, and those areas are spread out across a much larger area of the country. Of those, many have extreme difficulty getting "right of ways" for additional wires to build a fiber network.


RE: ISP
By StevoLincolnite on 4/3/2014 9:43:29 AM , Rating: 2
quote:
In Australia, 83% of the population live within 50km of the coast, and 86% live within an urban area. Also, it won't reach 98% of the population. It was only designed to reach 92% (basically just cover the cities and a few suburbs which would account for the 92%). It is now only expected to cover 22% of the population (not even going to reach every city), and will still cost 30 billion.


Nope the original plan was for 98%.
However, the main goal was to have all towns and cities with more than 1,000 homes to have fiber.

However, keep in mind, due to the change in governments, the fiber roll out is being canned in favor of fiber to the node which can be done cheaper, thus utilizing the current copper infrastructure with something like VDSL for the last mile.


RE: ISP
By snyper256 on 4/3/2014 12:25:31 AM , Rating: 2
I think you underestimate the innovation that is enabled by decentralized open networks like the internet.


“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads














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