Re: Why do some ISP's have bandwidth quotas?

2007-10-13 Thread Mikael Abrahamsson


On Fri, 12 Oct 2007, Brandon Galbraith wrote:

Not to drag this too far off topic, but have serious studies been done 
looking at moving switching fabric closer to the DSLAMs (versus doing 
everything PPPoE)? I know this sort of goes opposite of how ILECs are 
setup to dish out DSL, but as more traffic is being pushed user to user, 
it may make economic/technical sense.


I know some som non-ILECs that do DSL bitstream via L3/MPLS IPVPN and IP 
DSLAMs, which then if they implement multicast in their VPN would be able 
to provide a service that could support multicast TV.


For me any tunnel based bitstream doesn't scale for the future and in 
competetive markets it's already been going away (mostly because ISPs 
buying the bitstream service can't compete anyway).


--
Mikael Abrahamssonemail: [EMAIL PROTECTED]


Re: Why do some ISP's have bandwidth quotas?

2007-10-12 Thread Brandon Galbraith
On 10/12/07, Tony Finch [EMAIL PROTECTED] wrote:


 On Thu, 11 Oct 2007, Mikael Abrahamsson wrote:
 
  If it's multicast TV I don't see the problem, it doesn't increase your
  backbone traffic linearly with the number of people doing it.

 However if you have UK-style ADSL ppp backhaul then multicast doesn't
 help.

 Tony.


Not to drag this too far off topic, but have serious studies been done
looking at moving switching fabric closer to the DSLAMs (versus doing
everything PPPoE)? I know this sort of goes opposite of how ILECs are setup
to dish out DSL, but as more traffic is being pushed user to user, it may
make economic/technical sense.

-brandon


Re: Why do some ISP's have bandwidth quotas?

2007-10-12 Thread Tony Finch

On Thu, 11 Oct 2007, Mikael Abrahamsson wrote:

 If it's multicast TV I don't see the problem, it doesn't increase your
 backbone traffic linearly with the number of people doing it.

However if you have UK-style ADSL ppp backhaul then multicast doesn't
help.

Tony.
-- 
f.a.n.finch  [EMAIL PROTECTED]  http://dotat.at/
IRISH SEA: SOUTHERLY, BACKING NORTHEASTERLY FOR A TIME, 3 OR 4. SLIGHT OR
MODERATE. SHOWERS. MODERATE OR GOOD, OCCASIONALLY POOR.


Re: Why do some ISP's have bandwidth quotas?

2007-10-11 Thread Mikael Abrahamsson


On Wed, 10 Oct 2007, Marshall Eubanks wrote:


Many people leave the TV on all the time, at least while they are home.

On the Internet broadcasting side, we (AmericaFree.TV) have some viewers 
that do the same - one has racked up a cumulative 109 _days_ of viewing 
so far this year. (109 days in 280 days duration works out to 9.3 hours 
per day.) I am sure that other video providers can provide similar 
reports. So, I don't think that things are that different here in the 
new regime.


If it's multicast TV I don't see the problem, it doesn't increase your 
backbone traffic linearly with the number of people doing it.


But this is of course a problem in a VOD environment, but on the other 
hand, people are probably less likely to just leave it on if it's actually 
programming they can have when they want. You don't need a TiVo when you 
have network based service that does the TiVo functionality for you.


Personally, I'd rather pay per hour I'm watching VOD, than paying nothing 
for channels filled with commercials where I have no control over when and 
what I could watch.


--
Mikael Abrahamssonemail: [EMAIL PROTECTED]


Re: Why do some ISP's have bandwidth quotas?

2007-10-10 Thread Joe Greco

 On Mon, 8 Oct 2007, Joe Greco wrote:
  It's arrogant to fix brokenness?  Because I'm certainly there.  In my
  experience, if you don't bother to address problems, they're very likely
  to remain, especially when money is involved on the opposite side.
 
 There's a big difference between fixing brokenness and demanding that 
 somebody else do something that might make sense in your situation but not 
 in theirs.

Well, then, when someone actually demands that, then why don't you have
that little chat with them.  Otherwise, you might want to recognize that
someone actually /asked/ me what I would do - and I answered.  For you
(or anyone else) to turn that on its ear and make it out like I was
demanding that somebody else do something is, at best, poor form.

[lots of boring and obvious US Internet boom/bust history snipped]

 In other words, capacity in the US is cheap because a bunch of investors 
 screwed up.  That's nothing new; it's how the American railroads got built 
 in the mid to late 1800s, and it's how the original American phone 
 networks got built in the early 1900s.  Investors will presumably keep 
 making similar mistakes, and society will be better off because of it. 
 But counting on them to make the same mistake while investing in the same 
 thing within the same decade may be pushing it.

So there's nowhere else in the world that there's cheap capacity?
There are other areas of the world that are served by the Internet, and
it seems unlikely to me that cheap bandwidth in every single area is due 
to the competition/bankruptcy cycle.

Actually, the thing that tends to be /most/ special about a location such
as Australia is that running the capacity out there is a lot different
than running fiber along tracks in the US.  The race into financial ruin
caused by competitiveness among carriers was not a certainty, but the
excessive levels of excess capacity from numerous providers probably 
forced it to become one, as smaller fish fought for a slice of the pie.
The lack of large amounts of excess capacity on competing carriers 
clearly keeps the AU costs high, possibly (probably) artificially so.

Therefore, I'm not sure I would accept this argument about why US
capacity is cheap as being a complete answer, though in the context of
talking about why AU is expensive, it's certainly clear that the lack
of competition to AU is a major factor.

 If you're an ISP in an area served by an expensive long haul capacity 
 monopoly rather than a cheap competitive free for all, the economic 
 decisions you're likely to make are quite different than the decisions 
 made in major American cities.  If you can always go get more cheap 
 capacity, encouraging your customers to use a lot of it and thereby become 
 dependent on it may be a wise move, or at least may not hurt you much. 

I'm not actually certain under what circumstances *encouraging* your
customers to use a lot of bandwidth is a wise move, since there are still
issues with overcommit in virtually every ISP network.

 It's probably cheaper than keeping track of who's using what and having to 
 deal with variable bills.  But if the capacity you buy is expensive, you 
 probably don't want your customers using a lot of it unless they're 
 willing to pay you at least what you're paying for it.  Charging per bit, 
 or imposing bandwidth caps, is a way to align your customers' economic 
 interests with your own, and to encourage them to behave in the way that 
 you want them to.

Well, my initial message included this:

: Continued reliance on broadband users using tiny percentages of their
: broadband connection certainly makes the ISP business model easier, but
: in the long term, isn't going to work out well for the Internet's
: continuing evolution.

So, now you've actually stumbled into a vague understanding of what I 
was initially getting at.  Good.  :-)

I am seeing a continued growth of bandwidth-intensive services, including
new, sophisticated, data-driven technologies.  I am concerned about the 
impact that forcing customers to behave in the way that you want them 
to has on the development of new technologies.

Let's get into that, just a little bit.

One of the biggest challenges for the Internet has got to be the steadily
increasing storage market, combined with the continued development of
small, portable processors for every application, meaning that there's
been an explosion of computing devices.

Ten years ago, your average PC connected to the Internet, and users might
actually have downloaded the occasional software update manually.  Today,
it is fairly common to configure PC's to download updates - not only for
Windows, but for virus scanners, Web browsers, e-mail clients, etc., all
automatically.  To fail to arrange this is actually risking viral
infection.  Download-and-run software is getting more common.  Microsoft
distributed Vista betas as DVD ISO's.  These things are not getting
smaller.

Ten years ago, portable GPS-based 

Re: Why do some ISP's have bandwidth quotas?

2007-10-10 Thread Mark Smith

Hi Andrew,

On Mon,  8 Oct 2007 08:36:12 -0500 (CDT)
[EMAIL PROTECTED] (Andrew Odlyzko) wrote:

 
 As a point of information, Australia is one of the few places where
 the government collects Internet traffic statistics (which are hopefully
 trustworthy).  Pointer is at
 
http://www.dtc.umn.edu/mints/govstats.html
 
 (which also has a pointer to Hong Kong reports).  If one looks at the
 Australian Bureau of Statistics report for the quarter ended March 2007,
 we find that the roughly 3.8 M residential broadband subscribers in
 Australia were downloading an average of 2.5 GB/month, or about 10 Kbps
 on average (vs. about 20x that in Hong Kong).  While Australian Internet
 traffic had been growing very vigorously over the last few years (as
 shown by the earlier reports from the same source), growth has slowed
 down substantially, quite likely in response to those quotas.
 

These quotas have been around since the late 90s in .au, pretty much
since broadband became available. Their origins are probably the dial
up plans that were also measured that way - although there were also
dial up plans that were measured by minutes online. 

The only significant change to plans that has happened is that rather
than people who go over their quota being changed a per MB excess fee,
the customer's service is now rate limited (shaped) down to a dialup
like speed e.g. 64Kbps, resulting in a fixed monthly bill. This feature
was introduced something like 3 to 4 or maybe 5 years ago, and has
wildly spread across the industry (and as you say in one of your
papers, people like it because it's insurance against unexpected and
variable bills).

There are various levels for these quotas. The 500MB ones are really
only aimed to be for people who don't want to spend more per month than they
are for dialup - they probably act as a taster as to what you can do
with broadband, rather than being a broadband plan. Common proper
broadband quota plan values are 4000 or 5000, 1 or 12000, 2,
3, 4, 6 or 8 MB per month.

Regards,
Mark.

 Andrew Odlyzko
 
 P.S.  The MINTS (Minnesota Internet Traffic Studies) project,
 
http://www.dtc.umn.edu/mints
 
 provides pointers to a variety of sources of traffic statistics, as
 well as some analyses.  Comments, and especially pointers to additional
 traffic reports, are eagerly solicited.
 
 
 
 
 
On Fri Oct  5, Mark Newton wrote:
 
   On Fri, Oct 05, 2007 at 01:12:35PM -0400, [EMAIL PROTECTED] wrote:
 
 As you say, 90GB is roughly .25Mbps on average.  Of course, like you 
 pointed
 out, the users actual bandwidth patterns are most likely not a straight
 line.  95%ile on that 90GB could be considerably higher.  But let's take 
 a
 conservative estimate and say that user uses .5Mbps 95%ile.  And lets say
 this is a relatively large ISP paying $12/Mb.  That user then costs that 
 ISP
 $6/month in bandwidth.  (I know, that's somewhat faulty logic, but how 
 else
 is the ISP going to establish a cost basis?)  If that user is only paying
 say $19.99/month for their connection, that leaves only $13.99 a month to
 pay for all the infrastructure to support that user, along with 
 personnel,
 etc all while still trying to turn a profit. 
 
   In the Australian ISP's case (which is what started this) it's rather
   worse.
 
   The local telco monopoly bills between $30 and $50 per month for access
   to the copper tail.
 
   So there's essentially no such thing as a $19.99/month connection here
   (except for short-lived flash-in-the-pan loss-leaders, and we all know
   how they turn out)
 
   So to run the numbers:  A customer who averages .25Mbit/sec on a tail 
 acquired
   from the incumbent requires --
 
  Port/line rental from the telco   ~ $50
  IP transit~ $ 6 (your number)
  Transpacific backhaul ~ $50 (I'm not making this up)
 
   So we're over a hundred bucks already, and haven't yet factored in the 
   overheads for infrastructure, personnel, profit, etc.  And those numbers
   are before sales tax too, so add at least 10% to all of them before
   arriving at a retail price.
 
   Due to the presence of a quota, our customers don't tend to average
   .25 Mbit/sec over the course of a month (we prefer to send the ones
   that do to our competitors :-).  If someone buys access to, say, 
   30 Gbytes of downloads per month, a few significant things happen:
 
- The customer has a clear understanding of what they've paid for,
  which doesn't encompass unlimited access to the Internet.  That
  tends to moderate their usage;
 
- Because they know they're buying something finite, they tend to 
  pick a package that suits their expected usage, so customers who 
  intend to use more end up paying more money;
 
- The customer creates their own backpressure against hitting their
  quota:  Once they've gone past it they're usually rate-limited to
  64kbps, 

Re: Why do some ISP's have bandwidth quotas?

2007-10-10 Thread Mikael Abrahamsson


On Wed, 10 Oct 2007, Joe Greco wrote:


One of the biggest challenges for the Internet has got to be the steadily
increasing storage market, combined with the continued development of
small, portable processors for every application, meaning that there's
been an explosion of computing devices.


The one thing that scares me the most is that I have discovered people 
around me that use their bittorrent clients with rss feeds from bittorrent 
sites to download everything (basically, or at least a category) and 
then just delete what they don't want. Because they're paying for flat 
rate there is little incentive in trying to save on bandwidth.


If this spreads, be afraid, be very afraid. I can't think of anything more 
bandwidth intensive than video, no software updates downloads in the world 
can compete with people automatically downloading DVDRs or xvids of tv 
shows and movies, and then throwing it away because they were too lazy to 
set up proper filtering in the first place.


--
Mikael Abrahamssonemail: [EMAIL PROTECTED]


Re: Why do some ISP's have bandwidth quotas?

2007-10-10 Thread Marshall Eubanks



On Oct 10, 2007, at 5:18 PM, Mikael Abrahamsson wrote:



On Wed, 10 Oct 2007, Joe Greco wrote:

One of the biggest challenges for the Internet has got to be the  
steadily

increasing storage market, combined with the continued development of
small, portable processors for every application, meaning that  
there's

been an explosion of computing devices.


The one thing that scares me the most is that I have discovered  
people around me that use their bittorrent clients with rss feeds  
from bittorrent sites to download everything (basically, or at  
least a category) and then just delete what they don't want.  
Because they're paying for flat rate there is little incentive in  
trying to save on bandwidth.


If this spreads, be afraid, be very afraid. I can't think of  
anything more bandwidth intensive than video, no software updates  
downloads in the world can compete with people automatically  
downloading DVDRs or xvids of tv shows and movies, and then  
throwing it away because they were too lazy to set up proper  
filtering in the first place.




Many people leave the TV on all the time, at least while they are home.

On the Internet broadcasting side, we (AmericaFree.TV) have some  
viewers that do the same - one has racked
up a cumulative 109 _days_ of viewing so far this year. (109 days in  
280 days duration works out to 9.3 hours per day.) I am sure that  
other video providers can provide similar reports. So, I don't think  
that things are that different here in the new regime.


Regards
Marshall



--
Mikael Abrahamssonemail: [EMAIL PROTECTED]




Re: Why do some ISP's have bandwidth quotas?

2007-10-10 Thread Joe Greco

 On Oct 10, 2007, at 5:18 PM, Mikael Abrahamsson wrote:
  On Wed, 10 Oct 2007, Joe Greco wrote:
  One of the biggest challenges for the Internet has got to be the  
  steadily
  increasing storage market, combined with the continued development of
  small, portable processors for every application, meaning that  
  there's
  been an explosion of computing devices.
 
  The one thing that scares me the most is that I have discovered  
  people around me that use their bittorrent clients with rss feeds  
  from bittorrent sites to download everything (basically, or at  
  least a category) and then just delete what they don't want.  
  Because they're paying for flat rate there is little incentive in  
  trying to save on bandwidth.
 
  If this spreads, be afraid, be very afraid. I can't think of  
  anything more bandwidth intensive than video, no software updates  
  downloads in the world can compete with people automatically  
  downloading DVDRs or xvids of tv shows and movies, and then  
  throwing it away because they were too lazy to set up proper  
  filtering in the first place.
 
 Many people leave the TV on all the time, at least while they are home.
 
 On the Internet broadcasting side, we (AmericaFree.TV) have some  
 viewers that do the same - one has racked
 up a cumulative 109 _days_ of viewing so far this year. (109 days in  
 280 days duration works out to 9.3 hours per day.) I am sure that  
 other video providers can provide similar reports. So, I don't think  
 that things are that different here in the new regime.

That's scary enough.  However, consider something like TiVo.  Our dual-
tuner DirecTiVo spends a fair amount of its time recording.

Now, first, some explanation.

We're not a huge TV household.  The DirecTiVo is a first generation, ~30
hour unit.  It's set up to record about 50 different things on season pass,
many of which are not currently available.  It's also got an extensive
number of thumbs rated (and therefore often automatically recorded as a
suggestion) items.  I'm guessing that a minimum of 90% of what is recorded
is either deleted or rolls off the end without being watched, yet there 
are various shows (possibly just one) on the unit from last year yet.

All things considered, this harms no one and nothing, since the TiVo is
not using any measurable resource to do the recordings that would not
otherwise have been used.

A DVR on a traditional cable network is non-problematic, as is a DVR on
any of the next gen broadcast/multicast style networks that could be
deployed as a drop-in replacement for legacy cable.

More interesting are some of the new cable video on demand services,
which could create a fair amount of challenge for cable service 
providers.  However, even there, the challenge is limited to the service
provider's network, and it is unlikely that the load created cannot be
addressed.  Multiple customer DVR's requesting content for speculative
download purposes (i.e. for TiVo-style favorites support) could be 
broadcast or multicast the material at a predetermined time, essentially
minimizing the load caused by speculative downloading.  True in-real-time
VOD would be limited to users actually in front of the glass.

All of this, however, represents content within the cable provider's
network.  From the TiVo user perspective above, even if a vast majority
of the content is being discarded, it shouldn't really be a major problem.

Now, for something (seemingly) completely different.

Thirty years ago, TV was dominated by the big broadcast networks.  Shows
were expensive to produce, equipment was expensive, and the networks tried
to aim at large interest groups.  Shows such as Star Trek had a lot of
difficulty succeeding, for many reasons, but thrived in syndication.

With the advent of cable networks, we saw the launch of channels such as
SciFi, which was originally pegged as a place where Star Treks and
other sci-fi movies would find a second life.  However, if you look at
what has /actually/ happened, many networks have actually started
originating their own high-quality, much more narrowly targetted shows.
We've seen Battlestar Galactica and Flash Gordon appear on SciFi,
for example.  Part of this is that it is less difficult and complex to
produce shows, with the advances in technology that we've seen.  I
picked SciFi mainly because there's a lot of bleedover from legacy
broadcast TV to provide some compare/contrast - but more general 
examples, such as HBO produced shows, exist as well.

A big question, then, is will we continue to see this sort of effect?
Can we expect TV to continue to evolve towards more highly targetted
segments?  I believe that the answer is yes, and along with that may
come a move towards a certain amount of more amateur content.  Something
more like video podcasting than short YouTube videos.  And it'll get
better (or worse, depending on POV) as time goes on.  Technology improves.
Today's cell phones, for example, can take 

Re: Why do some ISP's have bandwidth quotas?

2007-10-09 Thread Steve Gibbard


On Mon, 8 Oct 2007, Joe Greco wrote:


It's arrogant to fix brokenness?  Because I'm certainly there.  In my
experience, if you don't bother to address problems, they're very likely
to remain, especially when money is involved on the opposite side.


There's a big difference between fixing brokenness and demanding that 
somebody else do something that might make sense in your situation but not 
in theirs.


People in different places deal with different economic factors, whether 
in terms of telecommunications, or the movement of goods, or labor.


In the US, we automate a lot of household tasks (dish washing, clothes 
washing, etc.) because the machines to do those tasks are cheap, and 
peoples' time is expensive.  Many people have cars, because they can 
afford them, but hiring a chauffeur would be extremely extravagant.  In 
some other parts of the world, importing machines to wash dishes or wash 
clothing would be considered extremely expensive.  Anybody who could 
afford such things would instead spend $10 per month on a servant who 
would do what those machines do, and clean the house and cook meals. 
Cars, made with expensive foreign materials by expensive foreign labor, 
would mostly be unaffordable, but anybody who could afford one would also 
spend the extra $10 per month on somebody to drive it for them.


The same goes for telecommunications connectivity.  In the US, we've been 
conditioned over the last ten years to think of long haul telecom capacity 
between major cities as a seemingly infinite resource with a price 
approaching zero, so expending extra effort to limit its use wouldn't make 
much sense.  In parts of the world where the same long distance capacity 
that we take for granted sells for $5,000 per megabit per second per 
month, and where $5,000 represents 10 or 20 years of income for the 
average person, people look at it differently.


So, what drives the telecom cost differences?  Distance and difficulty of 
terrain are certainly partial answers, as are economies of scale.  But, if 
we look at what happened in the US, the story is a bit different.  In the 
late 1990s, we had a telecom construction boom.  Demand for capacity was 
surging and lots of investors wanted to invest in new capacity.  There was 
a set of cities that were seen both as where the money was, and where a 
network had to be to be a peer of all the other networks.  Once somebody 
was laying a little bit of fiber, it didn't cost much more to lay a lot of 
it, so lots of companies ended up burying lots more fiber than they had a 
use for between the same set of points.  Doing that was really expensive, 
and the construction had to be paid for up front before the fiber could be 
used.  Presumably, the investors assumed that once the fiber was in, it 
would sell for what fiber was selling for before the construction boom, 
and they'd all make their money back.


Unfortunately if you're an investor, but fortunately if you're an American 
consumer, the market didn't work that way.  It became a competitive market 
with high capital costs, a near infinite supply of the product, and lots 
of competition.  The fiber companies couldn't price their services to 
recover their construction costs, because if they had charged more than 
any of their competitors they wouldn't have made a cent.  Instead, they 
priced their services to be cheaper than the competition, trying to 
salvage whatever money they could.  The competitors responded by pricing 
things even cheaper, trying to make sales of their own, and the cycle 
repeated itself again and again as the price of capacity along those 
routes fell towards zero.  Eventually, the construction debt went away in 
bankruptcy, the fiber got bought up cheaply by companies that hadn't lost 
everything in building it, and what it had cost to build ceased to be 
relevant at all.


In other words, capacity in the US is cheap because a bunch of investors 
screwed up.  That's nothing new; it's how the American railroads got built 
in the mid to late 1800s, and it's how the original American phone 
networks got built in the early 1900s.  Investors will presumably keep 
making similar mistakes, and society will be better off because of it. 
But counting on them to make the same mistake while investing in the same 
thing within the same decade may be pushing it.


Unfortunately for consumers, and fortunately for investors, this pattern 
didn't repeat itself everywhere.  Those who built fiber on paths that 
were not seen as where the money was ended up with monopolies.  They can 
charge far more than their construction costs, as long as they can find 
customers willing to pay.  They're vulnerable, of course, to somebody else 
coming along and building a parallel cable that forces their prices 
towards zero, but such a cable would force its own price towards zero as 
well, and generally wouldn't be a good investment.  Second cables do 
occasionally get built, but often their either on 

Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Mikael Abrahamsson


On Mon, 8 Oct 2007, Mark Newton wrote:

Thought experiment:  With $250 per megabit per month transit and $30 - 
$50 per month tail costs, what would _you_ do to create the perfect 
internet industry?


I would fix the problem, ie get more competition into these two areas 
where the prices are obvisouly way higher than in most parts of the 
civilised world, much higher than is motivated by the placement there in 
the middle of an ocean.


Perhaps it's hard to get the transoceanic cost down to european levels, 
but a 25 time difference, that's just too much.


And about the local tail, that's also 5-10 times higher than normal in the 
western world, I don't see that being motivated by some fundamental 
difference.


--
Mikael Abrahamssonemail: [EMAIL PROTECTED]


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Roland Perry


In article [EMAIL PROTECTED], Andy 
Davidson [EMAIL PROTECTED] writes
In this bit of Europe (UK), it's the opposite: the cable companies 
(CLEC style companies) tend to run unlimited (but within fair use) 
aggregate throughput policies, but the DSL operating companies have  to 
impose aggregate throughput caps because the last mile  connectivity is 
run by the national incumbent.


Surely the incumbent doesn't impose a cost on the bandwidth along the 
local loop - the bottleneck (and cost per gigabyte) is the backhaul from 
their locally operated DSLAM to the ISP's own network.

--
Roland Perry


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Andy Davidson



On 8 Oct 2007, at 13:06, Roland Perry wrote:

Surely the incumbent doesn't impose a cost on the bandwidth along  
the local loop - the bottleneck (and cost per gigabyte) is the  
backhaul from their locally operated DSLAM to the ISP's own network.


Yes, and it's £1,758,693 ($3.5m) PA for a 622Mbit BT Central, (so in  
bandwidth terms, equates to $471/Mbit per month - if the central is  
maxxed out).


(Using $2=£1)

Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Tim Franklin

On Mon, October 8, 2007 1:06 pm, Roland Perry wrote:

 Surely the incumbent doesn't impose a cost on the bandwidth along the
 local loop - the bottleneck (and cost per gigabyte) is the backhaul from
 their locally operated DSLAM to the ISP's own network.

If you're buying wholesale from the incumbent, it's effectively the same
thing, as there's some kind of L2 connection per subscriber back to your
own network, so no possibility to talk to other local subscribers without
the hairpin.  (At least, I've yet to see such a thing in the offering from
any European incumbent.  I guess you could in theory with a virtual-router
or VRF per ISP on the incumbent's kit at the exchange, but that brings
other problems when you want to do things beyond basic Internet, e.g. VPN
or pseudowire services.)

Unbundling does change the model - renting just the metal path from BT is
not actually *that* horrific - but you then have to factor in your own kit
in the exchange.  That's not just cost, there's a big logistics piece -
and a lot of processes to change if you've built your business around
wholesale.

Regards,
Tim.




Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Miquel van Smoorenburg

In article [EMAIL PROTECTED],
Andy Davidson  [EMAIL PROTECTED] wrote:


On 8 Oct 2007, at 13:06, Roland Perry wrote:

 Surely the incumbent doesn't impose a cost on the bandwidth along  
 the local loop - the bottleneck (and cost per gigabyte) is the  
 backhaul from their locally operated DSLAM to the ISP's own network.

Yes, and it's 1,758,693 ($3.5m) PA for a 622Mbit BT Central, (so in  
bandwidth terms, equates to $471/Mbit per month - if the central is  
maxxed out).

Wow. The pricing of the local incumbent in .NL is public - you
can find everything on www.kpn-wholesale.com. Here is a direct
link to the pdf with wholesale-prices:
http://www.kpn-wholesale.com/content/doc/WBA%20annex%204%20CM%20v1.3.pdf

I guess it's about 50-100 times cheaper, but OTOH, we only put
like ~3000 customers on an STM-4, so we need way more of them.

Mike.


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Andrew Odlyzko

As a point of information, Australia is one of the few places where
the government collects Internet traffic statistics (which are hopefully
trustworthy).  Pointer is at

   http://www.dtc.umn.edu/mints/govstats.html

(which also has a pointer to Hong Kong reports).  If one looks at the
Australian Bureau of Statistics report for the quarter ended March 2007,
we find that the roughly 3.8 M residential broadband subscribers in
Australia were downloading an average of 2.5 GB/month, or about 10 Kbps
on average (vs. about 20x that in Hong Kong).  While Australian Internet
traffic had been growing very vigorously over the last few years (as
shown by the earlier reports from the same source), growth has slowed
down substantially, quite likely in response to those quotas.

Andrew Odlyzko

P.S.  The MINTS (Minnesota Internet Traffic Studies) project,

   http://www.dtc.umn.edu/mints

provides pointers to a variety of sources of traffic statistics, as
well as some analyses.  Comments, and especially pointers to additional
traffic reports, are eagerly solicited.





   On Fri Oct  5, Mark Newton wrote:

  On Fri, Oct 05, 2007 at 01:12:35PM -0400, [EMAIL PROTECTED] wrote:

As you say, 90GB is roughly .25Mbps on average.  Of course, like you 
pointed
out, the users actual bandwidth patterns are most likely not a straight
line.  95%ile on that 90GB could be considerably higher.  But let's take a
conservative estimate and say that user uses .5Mbps 95%ile.  And lets say
this is a relatively large ISP paying $12/Mb.  That user then costs that 
ISP
$6/month in bandwidth.  (I know, that's somewhat faulty logic, but how else
is the ISP going to establish a cost basis?)  If that user is only paying
say $19.99/month for their connection, that leaves only $13.99 a month to
pay for all the infrastructure to support that user, along with personnel,
etc all while still trying to turn a profit. 

  In the Australian ISP's case (which is what started this) it's rather
  worse.

  The local telco monopoly bills between $30 and $50 per month for access
  to the copper tail.

  So there's essentially no such thing as a $19.99/month connection here
  (except for short-lived flash-in-the-pan loss-leaders, and we all know
  how they turn out)

  So to run the numbers:  A customer who averages .25Mbit/sec on a tail acquired
  from the incumbent requires --

 Port/line rental from the telco   ~ $50
 IP transit~ $ 6 (your number)
 Transpacific backhaul ~ $50 (I'm not making this up)

  So we're over a hundred bucks already, and haven't yet factored in the 
  overheads for infrastructure, personnel, profit, etc.  And those numbers
  are before sales tax too, so add at least 10% to all of them before
  arriving at a retail price.

  Due to the presence of a quota, our customers don't tend to average
  .25 Mbit/sec over the course of a month (we prefer to send the ones
  that do to our competitors :-).  If someone buys access to, say, 
  30 Gbytes of downloads per month, a few significant things happen:

   - The customer has a clear understanding of what they've paid for,
 which doesn't encompass unlimited access to the Internet.  That
 tends to moderate their usage;

   - Because they know they're buying something finite, they tend to 
 pick a package that suits their expected usage, so customers who 
 intend to use more end up paying more money;

   - The customer creates their own backpressure against hitting their
 quota:  Once they've gone past it they're usually rate-limited to
 64kbps, which is not a nice experience, so by and large they build
 in a safety margin and rarely use more than 75% of the quota.
 About 5% of our customers blow their quota in any given month;

   - The ones who do hit their quota and don't like 64kbps shaping get
 to pay us more money to have their quota expanded for the rest of
 the month, thereby financing the capacity upgrades that their 
 cumulative load can/will require;

   - The entire Australian marketplace is conditioned to expect that
 kind of behaviour from ISPs, and doesn't consider it to be unusual.
 If you guys in North America tried to run like this, you'd be 
 destroyed in the marketplace because you've created a customer base
 that expects to be able to download the entire Internet and burn
 it to DVD every month. :-)  So you end up looking at options like
 DPI and QoS controls at your CMTS head-end to moderate usage, because
 you can't keep adding infinite amounts of bandwidth to support 
 unconstrained end-users when they're only paying you $20 per month.
 (note that our truth-in-advertising regulator doesn't allow us to
 get away with saying Unlimited unless there really are no limits --
 no quotas, no traffic shaping, no traffic management, no QoS controls.
 Unlimited means unlimited by the dictionary 

Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Joe Greco

 On Mon, 8 Oct 2007, Mark Newton wrote:
  Thought experiment:  With $250 per megabit per month transit and $30 - 
  $50 per month tail costs, what would _you_ do to create the perfect 
  internet industry?
 
 I would fix the problem, ie get more competition into these two areas 
 where the prices are obvisouly way higher than in most parts of the 
 civilised world, much higher than is motivated by the placement there in 
 the middle of an ocean.
 
 Perhaps it's hard to get the transoceanic cost down to european levels, 
 but a 25 time difference, that's just too much.

That's approximately correct.  The true answer to the thought experiment
is address those problems, don't continue to blindly pay those costs and
complain about how unique your problems are.  Because the problems are
neither unique nor new - merely ingrained.  People have solved them
before.

 And about the local tail, that's also 5-10 times higher than normal in the 
 western world, I don't see that being motivated by some fundamental 
 difference.

The fundamental difference is that it's owned by a monopoly.

Here in the US, we wrestled with Mark's problems around a decade ago, 
when transit was about that expensive, and copper cost big bucks.  There
was a lot of fear and paranoia about selling DSL lines for a fraction of
what the cost of the circuit if provided with committed bandwidth would
cost.  

The whole Info Superhighway thing was supposed to result in a national
infrastructure that provided residential users with 45Mbps to-the-home
capabilities on a carrier-neutral network built by the telcos.  These
promises by the telcos were carefully and incrementally revoked, while
the incentives we provided to the telcos remained.  As a result, we're
now in a situation where the serious players are really the ILEC and
the cable companies, and they've shut out the CLEC's from any reasonable
path forward.

Despite this, wholesale prices did continue to drop.  Somehow, amazingly,
the ILEC found it possible to provide DSL at extremely competitive
prices.  Annoyingly, a bit lower than wholesale costs...  $14.99/mo
for 768K DSL, $19.99/mo for 1.5M, etc.  They're currently feeling the 
heat from Road Runner, whose prices tend towards being a bit more
expensive, but speeds tend towards better too.  :-)

Anyways, as displeased as I may be with the state of affairs here in the
US, it is worth noting that the speeds continue to improve, and projects
such as U-verse and FIOS are promising to deliver higher bandwidth to 
the user, and maintain pressure on the cable companies for them to do
better as well.

US providers do not seem to be doing significant amounts of DPI or other
policy to manage bandwidth consumption.  That doesn't mean that there's
no overcommit crisis, but right now, limits on upload speeds appear to
combine with a lack of killer centralized content distribution apps and
as a result, the situation is stable.

My interest in this mainly relates to how these things will impact the
Internet in the future, and I see some possible problems developing.  I
do believe that video-over-IP is a coming thing, and I see a very scary
(for network operators) scenario of needing to sustain much greater levels
of traffic, as podcast-like video delivery is something that would be a
major impact.  Right now, both the ILEC and the cable company appear to
be betting that they'll continue to drive the content viewing of their
customers through broadcast, and certainly that's the most efficient
model we've found, but it only works for popular stuff.  That still
leaves a wildly large void for a new service model.  The question of
whether or not such a thing can actually be sustained by the Internet is
fascinating, and whether or not it'll crush current network designs.

With respect to the AU thing, it would be interesting to know whether or
not the quotas in AU have acted to limit the popularity of services such 
as YouTube (my guess would be an emphatic yes), as I see YouTube as being 
a precursor to video things-to-come.  Looking at whether or not AU has
stifled new uses for the Internet, or has otherwise impacted the way users
use the Internet, could be interesting and potentially valuable 
information to futurists and even other operators.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Daniel Senie


At 09:50 AM 10/8/2007, Joe Greco wrote:



 On Mon, 8 Oct 2007, Mark Newton wrote:
  Thought experiment:  With $250 per megabit per month transit and $30 -
  $50 per month tail costs, what would _you_ do to create the perfect
  internet industry?

 I would fix the problem, ie get more competition into these two areas
 where the prices are obvisouly way higher than in most parts of the
 civilised world, much higher than is motivated by the placement there in
 the middle of an ocean.

 Perhaps it's hard to get the transoceanic cost down to european levels,
 but a 25 time difference, that's just too much.

That's approximately correct.  The true answer to the thought experiment
is address those problems, don't continue to blindly pay those costs and
complain about how unique your problems are.  Because the problems are
neither unique nor new - merely ingrained.  People have solved them
before.


Address those problems sounds quite a bit like an old Sam Kinnison 
routine, paraphrased as move to where the broadband is! You live in 
a %*^* expensive place. Sorry, but your statement comes across as 
arrogant, at least to me.




 And about the local tail, that's also 5-10 times higher than normal in the
 western world, I don't see that being motivated by some fundamental
 difference.

The fundamental difference is that it's owned by a monopoly.


Bingo. So, how do you propose an ISP in Australia fix the political 
structure, and do it in a timescale that fits your expectations?




Here in the US, we wrestled with Mark's problems around a decade ago,
when transit was about that expensive, and copper cost big bucks.  There
was a lot of fear and paranoia about selling DSL lines for a fraction of
what the cost of the circuit if provided with committed bandwidth would
cost.

The whole Info Superhighway thing was supposed to result in a national
infrastructure that provided residential users with 45Mbps to-the-home
capabilities on a carrier-neutral network built by the telcos.  These
promises by the telcos were carefully and incrementally revoked, while
the incentives we provided to the telcos remained.  As a result, we're
now in a situation where the serious players are really the ILEC and
the cable companies, and they've shut out the CLEC's from any reasonable
path forward.

Despite this, wholesale prices did continue to drop.  Somehow, amazingly,
the ILEC found it possible to provide DSL at extremely competitive
prices.  Annoyingly, a bit lower than wholesale costs...  $14.99/mo
for 768K DSL, $19.99/mo for 1.5M, etc.  They're currently feeling the
heat from Road Runner, whose prices tend towards being a bit more
expensive, but speeds tend towards better too.  :-)


I should note that this applies only where the ILEC (or cable 
company, for that matter) has bothered to deploy service. Unlike 
telephone service, there has been no universal service approach. 
There are large areas without service other than dialup.


Verizon, it's particularly sad, charges $19.95/month for dialup 
that'll also tie up a POTS line, where it'll offer the lowest DSL 
speeds at $14.95. And Verizon cherry picks the places where it 
offers DSL (and moreso for FiOS) so the affluent towns get high speed 
service, while the rural and poorer places only have available dialup 
(and that dialup is more expensive).


I would be curious if any of the places in the world with higher-cost 
high-speed service also have any sort of requirement of coverage?




Anyways, as displeased as I may be with the state of affairs here in the
US, it is worth noting that the speeds continue to improve, and projects
such as U-verse and FIOS are promising to deliver higher bandwidth to
the user, and maintain pressure on the cable companies for them to do
better as well.


Of course this only applies if you live in an inner city or wealthy suburb.



US providers do not seem to be doing significant amounts of DPI or other
policy to manage bandwidth consumption.  That doesn't mean that there's
no overcommit crisis, but right now, limits on upload speeds appear to
combine with a lack of killer centralized content distribution apps and
as a result, the situation is stable.

My interest in this mainly relates to how these things will impact the
Internet in the future, and I see some possible problems developing.


Do you believe there is any reason for the Internet of the Future 
to be everywhere? You're concerned about video over IP delivery and 
other advanced applications, but do you expect to make a video call 
to your cousin who owns a farm outside of town? This question is 
largely ignored in discussions about cranking the 'net to ever faster 
speeds, at least in the US. I'd be interested to know how it's 
addressed elsewhere in the world.



  I
do believe that video-over-IP is a coming thing, and I see a very scary
(for network operators) scenario of needing to sustain much greater levels
of traffic, as podcast-like video delivery is something that would be a

Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Adrian Chadd

On Mon, Oct 08, 2007, Joe Greco wrote:

 With respect to the AU thing, it would be interesting to know whether or
 not the quotas in AU have acted to limit the popularity of services such 
 as YouTube (my guess would be an emphatic yes), as I see YouTube as being 
 a precursor to video things-to-come.  Looking at whether or not AU has
 stifled new uses for the Internet, or has otherwise impacted the way users
 use the Internet, could be interesting and potentially valuable 
 information to futurists and even other operators.

.. or try to attract those sorts of content delivery networks into Australia
to serve said content locally and bypass the whole US transit issue.

Of course, the Australian market is so god damned small compared to the American
one, let alone trying to get content providers over to the West Coast when
there's two million people here, and 15+ million over east.

Some ISPs played around with Youtube caching. I won't name names, but there
were more than two of them. Its whats inspiring me to start getting some numbers
on bandwidth saved. What they found is that caching Youtube under test
conditions gave -immediate- traffic savings, but it skewed the TX/RX ratios.
Their inbound dropped but their outbound stayed the same, so their links were
just as utilised. They then judged it not to be worth it at this time.
Of course, I'd say can't you invent something to put in place of your now
lower RX utilisation? but I'm just an Arts student, what do I know about
content? :)



Adrian
(Why don't I move overseas again?)


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Andy Johnson

From: Daniel Senie [EMAIL PROTECTED]
 Verizon, it's particularly sad, charges $19.95/month for dialup
 that'll also tie up a POTS line, where it'll offer the lowest DSL
 speeds at $14.95. And Verizon cherry picks the places where it
 offers DSL (and moreso for FiOS) so the affluent towns get high speed
 service, while the rural and poorer places only have available dialup
 (and that dialup is more expensive).

In my experience, the support cost of DSL is significantly cheaper than
dial-up in terms of helpdesk calls. DSL/Cable/FiOS is typically a plug and
play, where as dialup can be quite a bit more troublesome, involving more
tech time in the long run.




Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Justin M. Streiner


On Mon, 8 Oct 2007, Andy Johnson wrote:


In my experience, the support cost of DSL is significantly cheaper than
dial-up in terms of helpdesk calls. DSL/Cable/FiOS is typically a plug and
play, where as dialup can be quite a bit more troublesome, involving more
tech time in the long run.


I occasionally see providers offering pay-per-incident tech support,
particularly for their lower-priced service offerings, as a way to offset 
the higher support costs as a percentage of overall revenue from those 
users.  I'm not saying it's right or wrong, but it is out there.


jms


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Joe Greco

 That's approximately correct.  The true answer to the thought experiment
 is address those problems, don't continue to blindly pay those costs and
 complain about how unique your problems are.  Because the problems are
 neither unique nor new - merely ingrained.  People have solved them
 before.
 
 Address those problems sounds quite a bit like an old Sam Kinnison 
 routine, paraphrased as move to where the broadband is! You live in 
 a %*^* expensive place. Sorry, but your statement comes across as 
 arrogant, at least to me.

It's arrogant to fix brokenness?  Because I'm certainly there.  In my
experience, if you don't bother to address problems, they're very likely
to remain, especially when money is involved on the opposite side.

   And about the local tail, that's also 5-10 times higher than normal in the
   western world, I don't see that being motivated by some fundamental
   difference.
 
 The fundamental difference is that it's owned by a monopoly.
 
 Bingo. So, how do you propose an ISP in Australia fix the political 
 structure, and do it in a timescale that fits your expectations?

I have no expectations for them, and therefore there's no required
timescale.  However, apparently I am not the only one to recognize that
a problem exists.  Upon a minor amount of further research into the
issue, it appears that Pipe Networks, VSNL, etc., are working on a new
cable, a project referred to as Project Runway, to connect Australia
to Guam at multiterabit speeds - so it may soon come to pass that the
current off-continent duopoly for bandwidth may need to adjust somewhat.
That could represent one significant problem - solved in a year or two.
The local political problem - well, I have to note that political != 
technical, and politics can be affected, whereas technical problems
tend to organize them into problems that can be solved, and problems 
that cannot.

 Despite this, wholesale prices did continue to drop.  Somehow, amazingly,
 the ILEC found it possible to provide DSL at extremely competitive
 prices.  Annoyingly, a bit lower than wholesale costs...  $14.99/mo
 for 768K DSL, $19.99/mo for 1.5M, etc.  They're currently feeling the
 heat from Road Runner, whose prices tend towards being a bit more
 expensive, but speeds tend towards better too.  :-)
 
 I should note that this applies only where the ILEC (or cable 
 company, for that matter) has bothered to deploy service. Unlike 
 telephone service, there has been no universal service approach. 
 There are large areas without service other than dialup.

Large geographic areas, yes.  This isn't good.  Our regulation of the
telecoms has sadly been extremely permissive when it comes to giving
up on the points that were originally part of the plan for broadband
in America.

 Verizon, it's particularly sad, charges $19.95/month for dialup 
 that'll also tie up a POTS line, where it'll offer the lowest DSL 
 speeds at $14.95. And Verizon cherry picks the places where it 
 offers DSL (and moreso for FiOS) so the affluent towns get high speed 
 service, while the rural and poorer places only have available dialup 
 (and that dialup is more expensive).
 
 I would be curious if any of the places in the world with higher-cost 
 high-speed service also have any sort of requirement of coverage?

Interesting question.

 Anyways, as displeased as I may be with the state of affairs here in the
 US, it is worth noting that the speeds continue to improve, and projects
 such as U-verse and FIOS are promising to deliver higher bandwidth to
 the user, and maintain pressure on the cable companies for them to do
 better as well.
 
 Of course this only applies if you live in an inner city or wealthy suburb.

Oddly, it's reported that the cable company, which has very high
penetration rates, has boosted RR speeds throughout the service area,
and the speeds being offered exceed U-verse speeds, AFAICT.  I would 
actually view this as a challenge for the ILEC, though I fundamentally
dislike the duopoly aspects.

I would much prefer to see a carrier neutral last mile network here,
and I've yet to see a compelling argument that it wouldn't work if it
was given a chance, which is probably why the telcos have lobbied so
incredibly hard against actually doing it.

 US providers do not seem to be doing significant amounts of DPI or other
 policy to manage bandwidth consumption.  That doesn't mean that there's
 no overcommit crisis, but right now, limits on upload speeds appear to
 combine with a lack of killer centralized content distribution apps and
 as a result, the situation is stable.
 
 My interest in this mainly relates to how these things will impact the
 Internet in the future, and I see some possible problems developing.
 
 Do you believe there is any reason for the Internet of the Future 
 to be everywhere? 

Above Vint Cerf's IP Everywhere?  :-)

 You're concerned about video over IP delivery and 
 other advanced applications, but do you expect to make a video call 

Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Tony Finch

On Sat, 6 Oct 2007, Joel Jaeggli wrote:
 [EMAIL PROTECTED] wrote:
 
  And P2P is the main way to reduce the overall load that video places
  on the Internet.

 We could have used IP Multicast, but nobody on the consumer side wanted
 to carry state instead of packets.

Multicast works when watching broadcast TV or recordings that were
scheduled in advance, but people on the net want video on demand.

Tony.
-- 
f.a.n.finch  [EMAIL PROTECTED]  http://dotat.at/
IRISH SEA: SOUTHERLY, BACKING NORTHEASTERLY FOR A TIME, 3 OR 4. SLIGHT OR
MODERATE. SHOWERS. MODERATE OR GOOD, OCCASIONALLY POOR.


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Martin Barry

$quoted_author = Joe Greco ;
 
  That's approximately correct.  The true answer to the thought experiment
  is address those problems, don't continue to blindly pay those costs and
  complain about how unique your problems are.  Because the problems are
  neither unique nor new - merely ingrained.  People have solved them
  before.
  
  Address those problems sounds quite a bit like an old Sam Kinnison 
  routine, paraphrased as move to where the broadband is! You live in 
  a %*^* expensive place. Sorry, but your statement comes across as 
  arrogant, at least to me.
 
 It's arrogant to fix brokenness?  Because I'm certainly there.  In my
 experience, if you don't bother to address problems, they're very likely
 to remain, especially when money is involved on the opposite side.

it's arrogant to use throwaway lines like address those problems when the
reality is a complex political and corporate stoush over a former government
entity with a monopoly on the local loop.

AU should be at a stage where the next generation network (FTTx, for some
values of x hopefully approaching H) will be built by a new, neutral entity
owned by a consortium of telcos/ISPs with wholesale charges set on a cost
recovery basis.  if either political party realises how important this is
for AUs future and stares down telstra in their game of ACCC chicken, that
may even become a reality.  

cheers
marty

-- 
You get 10 points for difficulty, 
but for execution you get minus three.

Holding On - Lazy Susan


Re: Why do some ISP's have bandwidth quotas?

2007-10-08 Thread Joe Greco

 $quoted_author = Joe Greco ;
  
   That's approximately correct.  The true answer to the thought experiment
   is address those problems, don't continue to blindly pay those costs and
   complain about how unique your problems are.  Because the problems are
   neither unique nor new - merely ingrained.  People have solved them
   before.
   
   Address those problems sounds quite a bit like an old Sam Kinnison 
   routine, paraphrased as move to where the broadband is! You live in 
   a %*^* expensive place. Sorry, but your statement comes across as 
   arrogant, at least to me.
  
  It's arrogant to fix brokenness?  Because I'm certainly there.  In my
  experience, if you don't bother to address problems, they're very likely
  to remain, especially when money is involved on the opposite side.
 
 it's arrogant to use throwaway lines like address those problems when the
 reality is a complex political and corporate stoush over a former government
 entity with a monopoly on the local loop.
 
 AU should be at a stage where the next generation network (FTTx, for some
 values of x hopefully approaching H) will be built by a new, neutral entity
 owned by a consortium of telcos/ISPs with wholesale charges set on a cost
 recovery basis.  if either political party realises how important this is
 for AUs future and stares down telstra in their game of ACCC chicken, that
 may even become a reality.  

So, in other words, it is arrogant for me to not have a detailed game plan
to deal with another continent's networking political problems, and instead
to summarize it as address those problems.

Okay, then.

Well, I certainly apologize.  My assumption was that the membership of this
mailing list was:

1) Not stupid,

2) Actually fairly experienced in these sorts of issues, meaning that they
   are capable of filling in the large blanks themselves, and

3) Probably not interested in a detailed game plan for something outside
   of the North American continent anyways, given the NA in NANOG.

Certainly the general plan you suggest sounds like a good one.  We kind of
screwed that up here in the US.  Despite having screwed it up, we've still
got cheap broadband.  I'd actually like to see something very much more
like what you suggest for AU here in the US.

But there was more than one problem listed.

The other major factor seems to be transit bandwidth.  I believe I already
mentioned that there are others who are actually working to address those
problems, so I am guessing that my terse suggestion was actually spot on.
Otherwise they wouldn't be working on a new fiber from Australia to Guam.

The only thing that seems to be particularly new or unique about this
situation is that it was a momentary flash here in the US, when broadband
was first deployed, and providers were terrified of high volume users.
That passed fairly rapidly, and we're now on unlimited plans. 

I would, however, caution the folks in AU to carefully examine the path
that things took here in the US - and avoid the mistakes.  We started out
with a plan to have a next generation neutral network, and it looks like
it would have kept the US in the lead of the Internet revolution.  The
first mistake, in my opinion, was not creating a truly neutral entity to
do that network, and instead allowing Ma Bell to create it for us.  But
it's late and I'm guessing most of the interested folks here have already
got a good idea of how it all went wrong.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Joe Greco

 On Sat, Oct 06, 2007, Joe Greco wrote:
  However, it is equally possible that there'll be some newfangled killer 
  app that comes along.  At some point, this will present a problem.  All
  the self-justification in the world will not matter when the customers
  want to be able to do something that uses up a little more bandwidth.
 
 The next newfangled app came along - its P2P. Australian ISPS have already
 responded by throttling back P2P.

I'm not talking about the next newfangled app that came along 8 years
ago.  That's what P2P is.

P2P, as it currently exists, is a network-killer app, but not really the
sort of killer app that I'm talking about.

The World Wide Web was a killer app.  It transformed the Internet in a
fundamental way.

Instant messaging was a killer app.  It changed how people communicated.

VoIP and YouTube are somewhat less successful killer apps, and that less
successful is at least partly tied into some of the issues at hand here.

We're starting to see the (serious) distribution of video via the Internet,
and I expect that one possible outcome will be a system of TiVo-like video
delivery without the complication of a subscription to a cable or satellite
provider's choice of package.  This would allow the sourcing of content
from many sources.  It could be that something akin to video podcasting 
is the next killer app, in other words.

Or it could be time for something completely different.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Joe Greco

   Comparative to Milwaukee, I'd be guessing delivering high performance
   internet and making enough money to fund expansion and eat is harder at
   a non US ISP. It's harder, but there's nothing wrong with it. It compels
   you to get inventive.
  
  The costs to provide DSL up here in Milwaukee are kind of insane,
 
 Insanity is a relative term :-) Try to deliver Internet outside of the
 US in countries that share western culture and you'll start to
 understand why caps are seen as an excusable form of treatment for the
 insanity.

Okay, so, let's pretend that today I'm sitting in Sweden.  Go.

Extremely high speed connectivity, uncapped, well in excess of what is
delivered in most parts of the US.  I was just informed that Road Runner
upgraded locally from 5 to 7Mbps a month ago, and has a premium 15Mbps
offering now, but there are folks with 100Mbps over there.

So, your point is, what, that it's easier to deliver Internet outside of
the US in countries that share western culture?  That could be true, we're
tied up by some large communications companies who don't want carrier-
neutral networks to the residence.

If we just want to start making up claims that fit the observed facts, I
would say that the amount that a user can download from the Internet in 
countries that share western culture tends to decrease with distance from
Sweden, though not linearly.  AU gets placed on the far end of that.  :-)
(That's both a joke AND roughly true!)

 Clearly they're not something we'd prefer, but they are useful
 to manage demand in the context of high costs with customers who
 benchmark against global consumer pricing (or those who think that the
 Internet is a homogeneous thing)
 
 ...Hmm, that's a good idea, perhaps you should do that (get out of the
 US) before you start saying what we're doing is wrong with your
 business or insane or perhaps unreasonable.
 
 And I agree with Mark Newton's sentiments. It's completely delusional of
 you to insist that the rest of the world follow the same definition of
 reasonable. We're not the same. Which is good in some respects as it
 does create some diversity. And I'm quite pleased about that :-)

Well, since I didn't insist that you follow any definition of reasonable,
and in fact I started out by saying

: Continued reliance on broadband users using tiny percentages of their
: broadband connection certainly makes the ISP business model easier, but
: in the long term, isn't going to work out well for the Internet's
: continuing evolution.

it would seem clear that I'm not particularly interested in your local
economics, no matter how sucky you've allowed them to be, but was more
interested in talking about the problem in general.  I *am* interested
in the impact that it has on the evolution of the Internet.

That you're so pleased to be diverse in a way that makes it more
difficult for your users to join the modern era and use modern apps
is sufficient to make me wonder.  There's certainly some delusional
going on there.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Mark Newton

On Sun, Oct 07, 2007 at 10:33:19AM -0500, Joe Greco wrote:

  Well, since I didn't insist that you follow any definition of reasonable,
  and in fact I started out by saying
  
  : Continued reliance on broadband users using tiny percentages of their
  : broadband connection certainly makes the ISP business model easier, but
  : in the long term, isn't going to work out well for the Internet's
  : continuing evolution.

With respect, Joe, you also said this:

 # Of course, that's obvious.  The point here is that if your business is so
 # fragile that you can only deliver each broadband customer a dialup modem's
 # worth of bandwidth, something's wrong with your business.

Now, I don't know what you think you've trying to achieve by throwing around
doubts and aspersions about other peoples' business viability without the
faintest idea about the constraints said businesses are working under, but
whatever it is I doubt you're achieving it  :-)

Thought experiment:  With $250 per megabit per month transit and $30 - $50 
per month tail costs, what would _you_ do to create the perfect internet
industry?

Be warned that the industry is already full of sharks who don't know what
they're talking about, and if what you suggest happens to match the business
model deployed by one of those guys who has subsequently gone broke, I 
reserve the right to point and laugh derisively.

Yours,

  - mark

-- 
Mark Newton   Email:  [EMAIL PROTECTED] (W)
Network Engineer  Email:  [EMAIL PROTECTED]  (H)
Internode Systems Pty Ltd Desk:   +61-8-82282999
Network Man - Anagram of Mark Newton  Mobile: +61-416-202-223


Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Martin Barry

$quoted_author = Joe Greco ;
 
 The real problem is the ability of users to adopt new killer apps.  This
 eventually breaks down to issues of how long is it reasonable for users
 to fund that shiny telco network at $50/line/month and things like that,
 because rather than solving the problems, it appears that AU ISP's are
 simply passing on costs, minimizing the services offered in order to keep
 service prices as low as possible, and then sitting around justifying it.

if only it was so easy. 

AU's infrastructure has a long been a quagmire of political fumbling and
organised chaos. 

as mark keeps trying to point out the current state has nothing to do with
the wants of the ISP industry. they all wish it was different too...

 
 At a certain point, the deployment cost of your telco network is covered,
 and it is no longer reasonable to be paying $50/line/month for mere access
 to the copper.

nice rhetoric. can you come and convince our politicians of that?

cheers
marty

-- 
You need only two tools, WD-40 and duct tape. If it doesn't move and
it should, use the WD-40. If it moves and shouldn't, use the tape.


Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Adrian Chadd

On Mon, Oct 08, 2007, Martin Barry wrote:

  At a certain point, the deployment cost of your telco network is covered,
  and it is no longer reasonable to be paying $50/line/month for mere access
  to the copper.
 
 nice rhetoric. can you come and convince our politicians of that?
 

I think you meant why wouldn't business love that? and who is going to
fund my next infrastructure upgrade?



Adrian



Re: Why do some ISP's have bandwidth quotas?

2007-10-07 Thread Randy Bush

 AU's infrastructure has a long been a quagmire of political fumbling and
 organised chaos. 

hey, i thought it was great of you folk to take joe nacio, convicted
felon, off our hands.

randy


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Roland Perry


In article 
[EMAIL PROTECTED], Vassili 
Tchersky [EMAIL PROTECTED] writes

In Europe, the only ISPs where i've seen bandwith quotas was some
cables operators


Almost all ADSL operators in the UK operate bandwidth quotas.

eg: Currently my ISP is selling 50/20/5/0.5 GB a month options.

There are many reasons, the most powerful being price competition - the 
cheapest domestic ADSL is $18 a month (inc tax), ranging up to $50 a 
month for the highest quotas.


--
Roland Perry


RE: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Steven Haigh

ISPs offering 200Mb plans on ADSL2+ here in Australia, then charging HUGE
amounts for excess - usually with no notification (at around the $12AU/Gb
rate) may well find themselves in an interesting legal position. Under
Australian law, the 'Bait and Switch' protection is very strict.

With things such as Windows Updates, Virus definition updates, anti-spyware
updates, etc etc etc on a monthly basis, this would easily eat up the 200Mb
allowed by the ISP - leaving ANY usage by the users to be billed at a very
expensive rate.

I've thought for a while that it's only a matter of time before someone sues
an ISP under the 'bait and switch' rules arguing that the ISP knew of these
facts and charged them a premium rate for all their normal surfing - or
offer to switch them to a more expensive, higher quota plan.

Out of interest, has anyone heard of this happening elsewhere on the planet?

--
Steven Haigh

Email: [EMAIL PROTECTED]
Web: http://www.crc.id.au
Phone: (03) 9001 6090 - 0412 935 897



-Original Message-
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of
Roland Perry
Sent: Saturday, October 06, 2007 6:01 PM
To: nanog@merit.edu
Subject: Re: Why do some ISP's have bandwidth quotas?


In article 
[EMAIL PROTECTED], Vassili 
Tchersky [EMAIL PROTECTED] writes
In Europe, the only ISPs where i've seen bandwith quotas was some
cables operators

Almost all ADSL operators in the UK operate bandwidth quotas.

eg: Currently my ISP is selling 50/20/5/0.5 GB a month options.

There are many reasons, the most powerful being price competition - the 
cheapest domestic ADSL is $18 a month (inc tax), ranging up to $50 a 
month for the highest quotas.

-- 
Roland Perry




Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joe Greco

 Joe Greco wrote:
  Technically the user can use the connection to it's maximum
  theoretical speed as much as they like, however, if an ISP has a
  quota set at 12G/month, it just means that the cost is passed along
  to them when they exceed it.
  
  And that seems like a bit of the handwaving.  Where is it costing the
  ISP more when the user exceeds 12G/month?
  
  Think very carefully about that before you answer.  If it was arranged
  that every customer of the ISP in question were to go to 100%
  utilization downloading 12G on the first of the month at 12:01AM, it
  seems clear to 
  me that you could really screw up 95th.
 
 First, the total transfer vs. 95%ile issue.  I would imagine that's just a
 matter of keeping it simple.  John Q. Broadbanduser can understand the
 concept of total transfer.  But try explaining 95%ile to him.  Or for that
 matter, try explaining it to the average billing wonk at your average
 residential ISP.  As far as the 12GB cap goes, I guess it would depend on
 the particular economics of the ISP in question.  12GB for a small ISP in a
 bandwidth-starved country isn't as insignificant as you make it sound.  But
 lets look at your more realistic second whatif:

Wasn't actually my whatif.

  90GB/mo is still a relatively small amount of bandwidth.  That works
  out to around a quarter of a megabit on average.  This is nowhere
  near the 100% situation you're discussing.  And it's also a lot
  higher than the 12GB/mo quota under discussion.
 
 As you say, 90GB is roughly .25Mbps on average.  Of course, like you pointed
 out, the users actual bandwidth patterns are most likely not a straight
 line.  95%ile on that 90GB could be considerably higher.  But let's take a
 conservative estimate and say that user uses .5Mbps 95%ile.  And lets say
 this is a relatively large ISP paying $12/Mb.  That user then costs that ISP
 $6/month in bandwidth.  (I know, that's somewhat faulty logic, but how else
 is the ISP going to establish a cost basis?)

That *is* faulty logic, of course.  It doesn't make much sense in the
typical ISP scenario of multiple bursty customers.  It's tricky to
compute what the actual cost is, however.

One of the major factors that's really at the heart of this is that a
lot of customers currently DO NOT use much bandwidth, a model which fits
well to 12G/mo quota plans.  It's easy to forget that this means that a
lot of users may in fact only use 500MB/mo.  As a result, the actual
cost of bandwidth to the ISP for the entire userbase doesn't end up being
$6/user.

 If that user is only paying
 say $19.99/month for their connection, that leaves only $13.99 a month to
 pay for all the infrastructure to support that user, along with personnel,
 etc all while still trying to turn a profit.  In those terms, it seems like
 a pretty reasonable level of service for the price.  If that same user were
 to go direct to a carrier, they couldn't get .5Mbps for anywhere near that
 cost, even ignoring the cost of the last-mile local loop.  And for that same
 price they're also probably getting email services with spam and virus
 filtering, 24-hr. phone support, probably a bit of web hosting space, and
 possibly even a backup dial-up connection.

That makes it sound really nice and all, but the point I was trying to
make here was that these sorts of limits stifle other sorts of innovation.
My point was that cranking up the bandwidth management only *appears* to
solve a problem that will eventually become more severe - there are going
to be ever-more-bandwidth-intensive applications.

That brings us back to that question of how much bandwidth should we be
able to deliver to users, so the $6/user is certainly relevant in that
light.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joe Greco

 In the Australian ISP's case (which is what started this) it's rather
 worse.
 
 The local telco monopoly bills between $30 and $50 per month for access
 to the copper tail.
 
 So there's essentially no such thing as a $19.99/month connection here
 (except for short-lived flash-in-the-pan loss-leaders, and we all know
 how they turn out)
 
 So to run the numbers:  A customer who averages .25Mbit/sec on a tail acquired
 from the incumbent requires --
 
Port/line rental from the telco   ~ $50
IP transit~ $ 6 (your number)
Transpacific backhaul ~ $50 (I'm not making this up)

These look like great places for some improvement.

 Like I said a few messages ago, as much as your marketplace derides 
 caps and quotas, I'm pretty sure that most of you would prefer to do 
 business with my constraints than with yours.

That's nice from *your* point of view, as an ISP, but from the end-user's
point of view, it discourages the development and deployment of the next
killer app, which is the point that I've been making.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joe Greco

  Of course, that's obvious.  The point here is that if your business is so
  fragile that you can only deliver each broadband customer a dialup modem's
  worth of bandwidth, something's wrong with your business.
 
 Granted 12G is a small allocation. But getting back to the original
 question which was Is there some kind of added cost running a non US
 ISP?
 
 Why yes, yes there is. Transit out of the country (or in a US context,
 out of a state) is around 25 times more expensive.

Than local peering costs?  That seems fine.  The real question is what
transit bandwidth costs.  We've got small ISP's around here paying $45-
$60/Mbit.

 Combine that with a
 demand on offshore content of around 70-90% of your total network load
 and you can see that those kind of changes to the cost structure make
 you play the game differently. Add to that an expectation to be as well
 connected as those in the continental US, and you can see that it's
 about managing expectations.
 
 Comparative to Milwaukee, I'd be guessing delivering high performance
 internet and making enough money to fund expansion and eat is harder at
 a non US ISP. It's harder, but there's nothing wrong with it. It compels
 you to get inventive.

The costs to provide DSL up here in Milwaukee are kind of insane, as 
you tend to get it on both ends.  However, I'm not aware of any ISP's
setting up quotas.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joe Greco

  No, its that they've run the numbers and found the users above 12G/month
  are using a significant fraction of their network capacity for whatever
  values of signficant and fraction you define.
  
  Of course, that's obvious.  The point here is that if your business is so
  fragile that you can only deliver each broadband customer a dialup modem's
  worth of bandwidth, something's wrong with your business.
 
 If your business model states that you will not charge clients for
 something when they have no problem paying for it in order to make the
 service better for them, then there is something wrong with your
 business model.
 
 Note that no one said can't deliver the service. You want unlimited
 bandwidth, either pay for it, or go to one of the bigger guys who will
 give it to you. Good luck when you want any sort of technical support...

Actually, I wasn't talking about unlimited bandwidth.  I was talking
more about quotas that are so incredibly small as to be stifling to new
offerings.  There are USB pen drives that hold more than 12GB.

I'm really expecting InterneTiVo to become a big thing at some point in
the not-too-distant future, probably nearly as soon as there's some
broadband deployment capable of dealing with the implications, and an
Akamai-like system to deliver the content on-net where possible.

However, it is equally possible that there'll be some newfangled killer 
app that comes along.  At some point, this will present a problem.  All
the self-justification in the world will not matter when the customers
want to be able to do something that uses up a little more bandwidth.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Mark Newton

On Sat, Oct 06, 2007 at 10:16:16AM -0500, Joe Greco wrote:

   So to run the numbers:  A customer who averages .25Mbit/sec on a tail 
   acquired
   from the incumbent requires --
   
  Port/line rental from the telco   ~ $50
  IP transit~ $ 6 (your number)
  Transpacific backhaul ~ $50 (I'm not making this up)
  
  These look like great places for some improvement.

Of course.  

Transpacific backhaul may drop in price once the AJC/Southern Cross duopoly
is broken.  Perhaps 2009, we'll have to see.

Port/line rental?  Ha.  We have an incumbent telco who owns 100% of the
copper local loop, who is so aggressive about protecting their monopoly
that they've actually sued the Federal Government to obtain relief from
the requirement to offer wholesale access to the local loop to their
competitors.

The competition regulator has recently imposed an order on them to 
drop their price of access to the raw copper;  The incumbent's response
has been to initiate a national political debate during the present
federal election campaign campaign over the merits of a nation-wide
Fiber-To-The-Node network which, just coincidentally, requires the
exclusion of competition to make the numbers in the business case add
up.

So I wouldn't be holding my breath about that one.

   Like I said a few messages ago, as much as your marketplace derides 
   caps and quotas, I'm pretty sure that most of you would prefer to do 
   business with my constraints than with yours.
  
  That's nice from *your* point of view, as an ISP, but from the end-user's
  point of view, it discourages the development and deployment of the next
  killer app, which is the point that I've been making.

Generalizing:

We're living in an environment where European service providers use
DPI boxes to shape just about everyone to about 40 Gbytes per month,
and where US service providers have enough congestion in their 
reticulation networks that the phrase unlimited access carries ironic
overtones, and where Australian and New Zealand service providers give 
uncongested access at unconstrained ADSL2+ rates for as much capacity
as an end user is prepared to pay for, and Asian ISPs where in-country
is cheap but international is slow and expensive (but nobody cares
because they don't speak English and don't need international content
anyway), and most of the rest of the world is so expensive that hardly
anyone uses it anyway.

If there's another killer app on the way, there are enough global
constraints on its development that I reckon Australian ISPs' business
cases probably aren't the be-all and end-all of its developmental
merits.

Five years ago the typical .au quota was 3Gbytes per month.  Now it's
more like 30 - 50 Gbytes per month.  If there's a killer app there'll
no doubt be commercial pressure on ISPs to bump it again.  But until
said app comes along?  Well, it isn't an ISPs job to subsidize the 
RD overheads of application developers, is it?

The point here is that you guys in the US have a particular market
dynamic that's shaped your perspective of what reasonable is.  It's
completely delusional of you to insist that the rest of the world
follow the same definition of reaosnable, *ESPECIALLY* when the rest
of the world is subsidizing your domestic Internet by paying for all
the international transit.

  - mark

-- 
Mark Newton   Email:  [EMAIL PROTECTED] (W)
Network Engineer  Email:  [EMAIL PROTECTED]  (H)
Internode Systems Pty Ltd Desk:   +61-8-82282999
Network Man - Anagram of Mark Newton  Mobile: +61-416-202-223


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Mikael Abrahamsson


On Sun, 7 Oct 2007, Mark Newton wrote:


We're living in an environment where European service providers use
DPI boxes to shape just about everyone to about 40 Gbytes per month,


This doesn't fit with my picture of european broadband at all. Most 
markets are developing into flat rate ones without per-minute or 
per-traffic charges, and residential broadband is closing in on 50-70% 
market penetration all across the continent, with the northern part being 
a bit ahead of the southern part.


Competition is so fierce that a lot of ISPs are electing to get out of 
certain markets due to uncertainty of future profits even with quite slim 
organisations and tight budgets on technology without ATM etc (IP dslams). 
France for instance, it's hard to make any money unless you sell triple 
play and try to make total profits on the combined services, just selling 
one doesn't work.


It's not uncommon for low-bandwidth (.25-.5 megabit/s) residential access 
to be in the USD15/month range and 24 meg costing USD30-50 per month 
including tax. This is without any monthly quota at all, ie flatrate.


5-10% of swedish households have the possiblity to purchase 100/10 over 
CAT5 for USD50 a month including 25% sales tax, without any quota, and 
they can actually use the speeds. Some even have 100/100.


Recipe for this is to have competitive markets with copper being 
deregulated and resold at a decent price. Bitstream with incumbant 
providing access just doesn't work, new services such as multicast IPTV 
doesn't work over bitstream.


In a lot of continental europe ISPs can purchase wholesale internet in the 
gigabit range for USD6-15/meg/month depending on country and if it 
includes national traffic or not.


Having a competitive market with a lot of players makes all the 
difference.


--
Mikael Abrahamssonemail: [EMAIL PROTECTED]


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Randy Bush

 5-10% of swedish households have the possiblity to purchase 100/10 over
 CAT5 for USD50 a month including 25% sales tax, without any quota, and
 they can actually use the speeds. Some even have 100/100.

from japan that seems pretty normal, except for it being available for
such a small proportion of the population.

north america is a ridiculous back-water with insanely high prices for
negligible bandwidth.  in hawai`i i pay $70/mo for just layer two of
768k.  tokyo is significantly less money for usable 100m/100m.

randy


Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread James Spenceley





...  a month including 25% sales tax

^^

and we are complaining about download quotas, ouch

--
James



Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Adrian Chadd

On Sat, Oct 06, 2007, Joe Greco wrote:

 However, it is equally possible that there'll be some newfangled killer 
 app that comes along.  At some point, this will present a problem.  All
 the self-justification in the world will not matter when the customers
 want to be able to do something that uses up a little more bandwidth.

The next newfangled app came along - its P2P. Australian ISPS have already
responded by throttling back P2P.



adrian



Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joe Greco

 The competition regulator has recently imposed an order on them to 
 drop their price of access to the raw copper;  The incumbent's response
 has been to initiate a national political debate during the present
 federal election campaign campaign over the merits of a nation-wide
 Fiber-To-The-Node network which, just coincidentally, requires the
 exclusion of competition to make the numbers in the business case add
 up.

Sounds much like the sort of shenanigans that happened here in the US.
Problem is, by many accounts, we already paid for a carrier neutral 
fiber network and the telcos took the money and ran.

The reality is that if you allow them to make up the numbers for the
business case, it always appears to be bad business.

 So I wouldn't be holding my breath about that one.

Yet it's fairly obvious that there is a solution.  Just not necessarily
the one that the carrier prefers.

Like I said a few messages ago, as much as your marketplace derides 
caps and quotas, I'm pretty sure that most of you would prefer to do 
business with my constraints than with yours.
   
   That's nice from *your* point of view, as an ISP, but from the end-user's
   point of view, it discourages the development and deployment of the next
   killer app, which is the point that I've been making.
 
 Generalizing:
 
 We're living in an environment where European service providers use
 DPI boxes to shape just about everyone to about 40 Gbytes per month,

HUH?  What in the world are you talking about?  I see stats of numerous
European customers where they're pulling TERABYTES per month on a resi
connection, some more terabytes than you can count on a hand, from a
wide variety of providers.  Now, if you're extending European to
include Israel and Egypt, or possibly eastern Europe, I guess maybe
it could be happening SOMEWHERE, but not as a general rule 

Otherwise, the only major EU thing I can think of is:

Virgin in the UK, having introduced their fair use policy, which seems 
to be intertwined with what appears to be an unpublicized problem with 
US-facing capacity where they're pegging it during peak times, and 
appear to have solved this with shaping during peak hours, but this 
only affects peak hours.  Actual reality may be different, I'm talking 
about observed data, posted policy, and extrapolation.

 and where US service providers have enough congestion in their 
 reticulation networks that the phrase unlimited access carries ironic

There are a few Canadian providers which seem to have some congestion
from the US into Canada during peak times.

There are some problems with one very specific US cable provider and
backbone capacity that I'm aware of.  There are probably lesser problems
with a whole bunch of networks, providers and backbone, where they run
their network at a capacity percentage that might lead to some
discomfort.  There are reports of Road Runner implementing some sort of
fair use policy as well.  However, from what I can tell, it is
statistically extremely unusual to find a US broadband customer on a
sufficient circuit who cannot get a constant 1Mbps of download capacity,
and that's been improving fairly steadily.

 overtones, and where Australian and New Zealand service providers give 
 uncongested access at unconstrained ADSL2+ rates for as much capacity
 as an end user is prepared to pay for,

The ideal situation, from a service provider's viewpoint.

 and Asian ISPs where in-country
 is cheap but international is slow and expensive (but nobody cares
 because they don't speak English and don't need international content
 anyway), and most of the rest of the world is so expensive that hardly
 anyone uses it anyway.
 
 If there's another killer app on the way, there are enough global
 constraints on its development that I reckon Australian ISPs' business
 cases probably aren't the be-all and end-all of its developmental
 merits.

No, it'll be developed in Europe, most likely, where 20Mbit access is
pretty common, and growing.  The problem, from my point of view, is that
I'd rather see new killer apps being designed here in the US, and driven
by customer demand here in the US.

 Five years ago the typical .au quota was 3Gbytes per month.  Now it's
 more like 30 - 50 Gbytes per month.  If there's a killer app there'll
 no doubt be commercial pressure on ISPs to bump it again.  But until
 said app comes along?  Well, it isn't an ISPs job to subsidize the 
 RD overheads of application developers, is it?

No, but then again, that's not the problem I'm pointing at, is it (and it
isn't even a real problem, regardless, unless maybe you're some kid writing
the next Napster, but I'm willing to pretend even that doesn't happen).

The real problem is the ability of users to adopt new killer apps.  This
eventually breaks down to issues of how long is it reasonable for users
to fund that shiny telco network at $50/line/month and things like that,
because rather than solving the problems, it 

Re: Why do some ISP's have bandwidth quotas?

2007-10-06 Thread Joel Jaeggli

[EMAIL PROTECTED] wrote:
 
 And before anyone accuses me of sounding overly critical 
 towards the AU ISP's, let me point out that we've dropped the 
 ball in a major way here in the United States, as well.
 
 We've dropped the ball in any place where the broadband architecture is
 to backhaul IP packets from the site where DSL or cable lines are
 concentrated, into an ISP's PoP. This means that P2P packets between
 users at the same concentration site, are forced to trombone back and
 forth over the same congested circuits. And P2P is the main way to
 reduce the overall load that video places on the Internet.

We could have used IP Multicast, but nobody on the consumer side wanted
to carry state instead of packets.

 --Michael Dillon
 



RE: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread michael.dillon


 And before anyone accuses me of sounding overly critical 
 towards the AU ISP's, let me point out that we've dropped the 
 ball in a major way here in the United States, as well.

We've dropped the ball in any place where the broadband architecture is
to backhaul IP packets from the site where DSL or cable lines are
concentrated, into an ISP's PoP. This means that P2P packets between
users at the same concentration site, are forced to trombone back and
forth over the same congested circuits. And P2P is the main way to
reduce the overall load that video places on the Internet.

--Michael Dillon


Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Adrian Chadd

On Fri, Oct 05, 2007, [EMAIL PROTECTED] wrote:
 
 
  And before anyone accuses me of sounding overly critical 
  towards the AU ISP's, let me point out that we've dropped the 
  ball in a major way here in the United States, as well.
 
 We've dropped the ball in any place where the broadband architecture is
 to backhaul IP packets from the site where DSL or cable lines are
 concentrated, into an ISP's PoP. This means that P2P packets between
 users at the same concentration site, are forced to trombone back and
 forth over the same congested circuits. And P2P is the main way to
 reduce the overall load that video places on the Internet.

Hm, Australia is pretty much that exact architecture.



Adrian



Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Ron da Silva


On 10/5/07 5:28 AM, [EMAIL PROTECTED] [EMAIL PROTECTED] wrote:
 And before anyone accuses me of sounding overly critical
 towards the AU ISP's, let me point out that we've dropped the
 ball in a major way here in the United States, as well.
 
 We've dropped the ball in any place where the broadband architecture is
 to backhaul IP packets from the site where DSL or cable lines are
 concentrated, into an ISP's PoP. This means that P2P packets between
 users at the same concentration site, are forced to trombone back and
 forth over the same congested circuits. And P2P is the main way to
 reduce the overall load that video places on the Internet.

Michael - I don't think this is the case for most NA cable operators.  P2P
between subscribers in the same general area simply hairpins back over the
HFC from the aggregation hub (location of the CMTS), no unnecessary backhaul
to another distant PoP location.  Now, the rest of the traffic will be
aggregated further up on its way towards upstream peering...but that is a
different traffic flow.

-ron

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Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Joe Greco

  Now, ISP economics pretty much require that some amount of overcommit
  will happen.  However, if you have a 12GB quota, that works out to
  around 36 kilobits/sec average.  Assuming the ISP is selling 10Mbps
  connections (and bearing in mind that ADSL2 can certainly go more than
  that), what that's saying is that the average user can use 1/278th of
  their connection.  I would imagine that the overcommit rate is much
  higher than that.
 
 I don't think that things should be measured like this. Throughput !=
 bandwidth.

No, but it gives some rational way to look at it, as long as we all realize
what we're talking about.  The other ways I've seen it discussed mostly
involve a lot of handwaving.

 Technically the user can use the connection to it's maximum theoretical
 speed as much as they like, however, if an ISP has a quota set at
 12G/month, it just means that the cost is passed along to them when they
 exceed it.

And that seems like a bit of the handwaving.  Where is it costing the ISP
more when the user exceeds 12G/month?

Think very carefully about that before you answer.  If it was arranged
that every customer of the ISP in question were to go to 100% utilization
downloading 12G on the first of the month at 12:01AM, it seems clear to
me that you could really screw up 95th.

  Note: I'm assuming the quota is monthly, as it seems to be for most
  AU ISP's I've looked at, for example:
 
 Yes most are monthly based on GB.
 
  capacity is being stifled by ISP's that are stuck back
  in speeds (and policies) appropriate for the year 2000.  
 
 Imagine a case (even in the largest of ISP's), where there are no
 quotas, and everyone has a 10Mbps connection.

I'm imagining it.  I've already stated that it's a problem.

 I don't think there is an ISP in existence that has the infrastructure
 capacity to carry all of their clients using all of the connections
 simultaneously at full speed for long extended periods.

I'll go so far as to say that there's no real ISP in existence that
could support it for any period.

 As bandwidth and throughput increases, so does the strain on the
 networks that are upstream from the client.

Obviously.

 Unless someone pays for the continuously growing data transfers, then
 your 6Mbps ADSL connection is fantastic, until you transit across the
 ISP's network who can't afford to upgrade the infrastructure because
 clients think they are being ripped off for paying 'extra'.
 
 Now, at your $34/month for your resi ADSL connection, the clients call
 the ISP and complain about slow speeds, but when you advise that they
 have downloaded 90GB of movies last month and they must pay for it, they
 wont. Everyone wants it cheaper and cheaper, but yet expect things to
 work 100% of the time, and at 100% at maximum advertised capacity. My
 favorites are the clients who call the helpdesk and state I'm trying to
 run a business here (on their residential ADSL connection).

90GB/mo is still a relatively small amount of bandwidth.  That works out 
to around a quarter of a megabit on average.  This is nowhere near the 
100% situation you're discussing.  And it's also a lot higher than the
12GB/mo quota under discussion.

  What are we missing out on because ISP's are more interested in keeping
  bandwidth use low?  
 
 I don't think anyone wants to keep bandwidth use low, it's just in order
 to continue to allow bandwidth consumption to grow, someone needs to pay
 for it.

How about the ISP?  Surely their costs are going down.  Certainly I know
that our wholesale bandwidth costs have dropped orders of magnitude in 
the last ~decade or so.  Equipment does occasionally need to be replaced.
I've got a nice pair of Ascend GRF400's out in the garage that cost $65K-
$80K each when originally purchased.  They'd be lucky to pull any number
of dollars these days.  It's a planned expense.  As for physical plant,
I'd imagine that a large amount of that is also a planned expense, and is
being paid down (or already paid off), so arguing that this is somewhere
that a lot of extra expense will exist is probably silly too.

  What fantastic new technologies haven't been developed
  because they were deemed impractical given the state of the Internet?
 
 Backbone connections worth $34/month, and infrastructure gear that
 upgrades itself at no cost.

Hint: that money you're collecting from your customers isn't all profit.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Joe Greco

  And before anyone accuses me of sounding overly critical 
  towards the AU ISP's, let me point out that we've dropped the 
  ball in a major way here in the United States, as well.
 
 We've dropped the ball in any place where the broadband architecture is
 to backhaul IP packets from the site where DSL or cable lines are
 concentrated, into an ISP's PoP. This means that P2P packets between
 users at the same concentration site, are forced to trombone back and
 forth over the same congested circuits. 

This would seem to primarily be an issue /due/ to congestion of those
circuits.  The current solution, as you suggest, is not ideal, but it
isn't necessarily clear that a solution to this will be better.

Let's look at an infrastructure that would be representative of what
often happens here in Milwaukee.

ATT provides copper DSL wholesale services to an ISP.  This means that
a packet goes from the residence to the local CO, where ATT aggregates
over its network to a ATM circuit that winds up at an ISP POP.  Then, to
get to a DSL customer with actual ATT service, the packets go down to
Chicago, over transit to ATT, and then back up to Milwaukee...

Getting the ISP to have equipment colocated at the point where DSL lines
are concentrated would certainly help for the case where packets where
transiting from one neighborhood customer of an ISP to another
neighborhood customer of an ISP, but in the common case, it isn't clear
to me that the payoff would be significant.

Getting all the ISP's to peer with each other at the DSL concentration
point would solve the problem, but again, the question is how
significant that payoff would be.

It would seem like a larger payoff to simply make sure sufficient 
capacity existed to move packets as required, since this not only solves
the local packet problem you suggest, but the more general overall
problem that ISP's face.

 And P2P is the main way to
^currently
 reduce the overall load that video places on the Internet.


... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Adrian Chadd

On Fri, Oct 05, 2007, Joe Greco wrote:

  Technically the user can use the connection to it's maximum theoretical
  speed as much as they like, however, if an ISP has a quota set at
  12G/month, it just means that the cost is passed along to them when they
  exceed it.
 
 And that seems like a bit of the handwaving.  Where is it costing the ISP
 more when the user exceeds 12G/month?

No, its that they've run the numbers and found the users above 12G/month
are using a significant fraction of their network capacity for whatever
values of signficant and fraction you define.





Adrian



RE: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread andrew2

Joe Greco wrote:

 Technically the user can use the connection to it's maximum
 theoretical speed as much as they like, however, if an ISP has a
 quota set at 12G/month, it just means that the cost is passed along
 to them when they exceed it.
 
 And that seems like a bit of the handwaving.  Where is it costing the
 ISP more when the user exceeds 12G/month?
 
 Think very carefully about that before you answer.  If it was arranged
 that every customer of the ISP in question were to go to 100%
 utilization downloading 12G on the first of the month at 12:01AM, it
 seems clear to 
 me that you could really screw up 95th.

First, the total transfer vs. 95%ile issue.  I would imagine that's just a
matter of keeping it simple.  John Q. Broadbanduser can understand the
concept of total transfer.  But try explaining 95%ile to him.  Or for that
matter, try explaining it to the average billing wonk at your average
residential ISP.  As far as the 12GB cap goes, I guess it would depend on
the particular economics of the ISP in question.  12GB for a small ISP in a
bandwidth-starved country isn't as insignificant as you make it sound.  But
lets look at your more realistic second whatif:

 90GB/mo is still a relatively small amount of bandwidth.  That works
 out to around a quarter of a megabit on average.  This is nowhere
 near the 100% situation you're discussing.  And it's also a lot
 higher than the 12GB/mo quota under discussion.

As you say, 90GB is roughly .25Mbps on average.  Of course, like you pointed
out, the users actual bandwidth patterns are most likely not a straight
line.  95%ile on that 90GB could be considerably higher.  But let's take a
conservative estimate and say that user uses .5Mbps 95%ile.  And lets say
this is a relatively large ISP paying $12/Mb.  That user then costs that ISP
$6/month in bandwidth.  (I know, that's somewhat faulty logic, but how else
is the ISP going to establish a cost basis?)  If that user is only paying
say $19.99/month for their connection, that leaves only $13.99 a month to
pay for all the infrastructure to support that user, along with personnel,
etc all while still trying to turn a profit.  In those terms, it seems like
a pretty reasonable level of service for the price.  If that same user were
to go direct to a carrier, they couldn't get .5Mbps for anywhere near that
cost, even ignoring the cost of the last-mile local loop.  And for that same
price they're also probably getting email services with spam and virus
filtering, 24-hr. phone support, probably a bit of web hosting space, and
possibly even a backup dial-up connection.

Andrew



Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread James Blessing

Hex Star wrote:
 Why is it that the US has ISP's with either no quotas or obscenely high
 ones while countries like Australia have ISP's with ~12gb quotas? Is
 there some kind of added cost running a non US ISP?

In the UK there is a very good reason - BT, see this write up:

http://www.kitz.co.uk/adsl/adsl_cost.htm

J
-- 
COO
Entanet International
T: 0870 770 9580
W: http://www.enta.net/
L: http://tinyurl.com/3bxqez


Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Joe Greco

 On Fri, Oct 05, 2007, Joe Greco wrote:
 
   Technically the user can use the connection to it's maximum theoretical
   speed as much as they like, however, if an ISP has a quota set at
   12G/month, it just means that the cost is passed along to them when they
   exceed it.
  
  And that seems like a bit of the handwaving.  Where is it costing the ISP
  more when the user exceeds 12G/month?
 
 No, its that they've run the numbers and found the users above 12G/month
 are using a significant fraction of their network capacity for whatever
 values of signficant and fraction you define.

Of course, that's obvious.  The point here is that if your business is so
fragile that you can only deliver each broadband customer a dialup modem's
worth of bandwidth, something's wrong with your business.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-05 Thread Mark Newton

On Fri, Oct 05, 2007 at 01:12:35PM -0400, [EMAIL PROTECTED] wrote:

  As you say, 90GB is roughly .25Mbps on average.  Of course, like you pointed
  out, the users actual bandwidth patterns are most likely not a straight
  line.  95%ile on that 90GB could be considerably higher.  But let's take a
  conservative estimate and say that user uses .5Mbps 95%ile.  And lets say
  this is a relatively large ISP paying $12/Mb.  That user then costs that ISP
  $6/month in bandwidth.  (I know, that's somewhat faulty logic, but how else
  is the ISP going to establish a cost basis?)  If that user is only paying
  say $19.99/month for their connection, that leaves only $13.99 a month to
  pay for all the infrastructure to support that user, along with personnel,
  etc all while still trying to turn a profit. 

In the Australian ISP's case (which is what started this) it's rather
worse.

The local telco monopoly bills between $30 and $50 per month for access
to the copper tail.

So there's essentially no such thing as a $19.99/month connection here
(except for short-lived flash-in-the-pan loss-leaders, and we all know
how they turn out)

So to run the numbers:  A customer who averages .25Mbit/sec on a tail acquired
from the incumbent requires --

   Port/line rental from the telco   ~ $50
   IP transit~ $ 6 (your number)
   Transpacific backhaul ~ $50 (I'm not making this up)

So we're over a hundred bucks already, and haven't yet factored in the 
overheads for infrastructure, personnel, profit, etc.  And those numbers
are before sales tax too, so add at least 10% to all of them before
arriving at a retail price.

Due to the presence of a quota, our customers don't tend to average
.25 Mbit/sec over the course of a month (we prefer to send the ones
that do to our competitors :-).  If someone buys access to, say, 
30 Gbytes of downloads per month, a few significant things happen:

 - The customer has a clear understanding of what they've paid for,
   which doesn't encompass unlimited access to the Internet.  That
   tends to moderate their usage;

 - Because they know they're buying something finite, they tend to 
   pick a package that suits their expected usage, so customers who 
   intend to use more end up paying more money;

 - The customer creates their own backpressure against hitting their
   quota:  Once they've gone past it they're usually rate-limited to
   64kbps, which is not a nice experience, so by and large they build
   in a safety margin and rarely use more than 75% of the quota.
   About 5% of our customers blow their quota in any given month;

 - The ones who do hit their quota and don't like 64kbps shaping get
   to pay us more money to have their quota expanded for the rest of
   the month, thereby financing the capacity upgrades that their 
   cumulative load can/will require;

 - The entire Australian marketplace is conditioned to expect that
   kind of behaviour from ISPs, and doesn't consider it to be unusual.
   If you guys in North America tried to run like this, you'd be 
   destroyed in the marketplace because you've created a customer base
   that expects to be able to download the entire Internet and burn
   it to DVD every month. :-)  So you end up looking at options like
   DPI and QoS controls at your CMTS head-end to moderate usage, because
   you can't keep adding infinite amounts of bandwidth to support 
   unconstrained end-users when they're only paying you $20 per month.
   (note that our truth-in-advertising regulator doesn't allow us to
   get away with saying Unlimited unless there really are no limits --
   no quotas, no traffic shaping, no traffic management, no QoS controls.
   Unlimited means unlimited by the dictionary definition, not by some
   weasel definition that the industry has invented to suit its own
   purposes)

 - There is no net neutrality debate to speak of in .au because everyone
   is _already_ paying their way.

Like I said a few messages ago, as much as your marketplace derides 
caps and quotas, I'm pretty sure that most of you would prefer to do 
business with my constraints than with yours.

  - mark


-- 
Mark Newton   Email:  [EMAIL PROTECTED] (W)
Network Engineer  Email:  [EMAIL PROTECTED]  (H)
Internode Systems Pty Ltd Desk:   +61-8-82282999
Network Man - Anagram of Mark Newton  Mobile: +61-416-202-223


Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Hex Star
Why is it that the US has ISP's with either no quotas or obscenely high ones
while countries like Australia have ISP's with ~12gb quotas? Is there some
kind of added cost running a non US ISP?


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Leigh Porter

Yeah, try buying bandwidth in Australia! The have a lot more water to
cover ( and so potentially more cost and more profit to be made by
monopolies) than well connected areas such as the US.

Also there may be more tax costs, staff costs, equipment costs with
import duty etc which obviously means buying more equipment to support
more throughput costs more money.

--
Leigh


Hex Star wrote:
 Why is it that the US has ISP's with either no quotas or obscenely high ones
 while countries like Australia have ISP's with ~12gb quotas? Is there some
 kind of added cost running a non US ISP?

   


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread David E. Smith


Hex Star wrote:
Why is it that the US has ISP's with either no quotas or obscenely high 
ones while countries like Australia have ISP's with ~12gb quotas? Is 
there some kind of added cost running a non US ISP?


There are more than a few US ISPs that have bandwidth quotas, mostly in 
the last-mile fixed-wireless space.


I imagine the cost of backhauling traffic a few thousand miles in 
underseas cables would add to the cost of running an ISP in, say, 
Australia, especially since many sites the end-users will want to see 
are still hosted in the US.


David Smith
MVN.net



Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Mark Newton

On Thu, Oct 04, 2007 at 03:50:11PM +0100, Leigh Porter wrote:

  Also there may be more tax costs, staff costs, equipment costs with
  import duty etc which obviously means buying more equipment to support
  more throughput costs more money.

The biggest issues are the transmission costs to get to the USA.

There are basically two cable systems, Southern Cross and AJC
(we'll ignore SEA-ME-WE-3 because you can only buy STM-1's on it,
and who wants to mess around with trivialities like that?)

Ask an economist what happens to prices in duopoly environments.
The cost of crossing the Pacific is north of US$200 per megabit
per month in .au, which I reckon is about ten times what it costs
you Europeans to get across the Atlantic (or what it costs the 
Japanese to cross the very same Pacific)

There are a few cable projects underway at the moment which
may break the duopoly, e.g.,
http://www.pipenetworks.com/docs/media/ASX_07_08_09%20Runway%20Update%204%20-%20BSa.pdf
I suspect we're going to have an interesting few years.

  - mark

-- 
Mark Newton   Email:  [EMAIL PROTECTED] (W)
Network Engineer  Email:  [EMAIL PROTECTED]  (H)
Internode Systems Pty Ltd Desk:   +61-8-82282999
Network Man - Anagram of Mark Newton  Mobile: +61-416-202-223


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Taran Rampersad


Caribbean has the same problem, though... .smaller countries, less 
ability to negotiate bandwidth usage/cost...


bananas for bandwidth program.

Leigh Porter wrote:

Yeah, try buying bandwidth in Australia! The have a lot more water to
cover ( and so potentially more cost and more profit to be made by
monopolies) than well connected areas such as the US.

Also there may be more tax costs, staff costs, equipment costs with
import duty etc which obviously means buying more equipment to support
more throughput costs more money.

--
Leigh


Hex Star wrote:
  

Why is it that the US has ISP's with either no quotas or obscenely high ones
while countries like Australia have ISP's with ~12gb quotas? Is there some
kind of added cost running a non US ISP?

  



  



--
Taran Rampersad
Presently in: Paramaribo, Suriname
[EMAIL PROTECTED]

http://www.knowprose.com
http://www.your2ndplace.com

Pictures: http://www.flickr.com/photos/knowprose/

Criticize by creating. — Michelangelo
The present is theirs; the future, for which I really worked, is mine. - 
Nikola Tesla



Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Justin M. Streiner


On Thu, 4 Oct 2007, Hex Star wrote:


Why is it that the US has ISP's with either no quotas or obscenely high ones
while countries like Australia have ISP's with ~12gb quotas? Is there some
kind of added cost running a non US ISP?


Depending upon the country you're in, that is a possibility.  Some 
countries have either state-run or monopolistic telcos, so there is little 
or no competition to force prices down over time.


Even in the US, there is a huge variability in the price of telco services 
from one part of the country to another.


jms


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Tom Vest



On Oct 4, 2007, at 1:29 PM, Justin M. Streiner wrote:



On Thu, 4 Oct 2007, Hex Star wrote:

Why is it that the US has ISP's with either no quotas or obscenely  
high ones
while countries like Australia have ISP's with ~12gb quotas? Is  
there some

kind of added cost running a non US ISP?


Depending upon the country you're in, that is a possibility.  Some  
countries have either state-run or monopolistic telcos, so there is  
little or no competition to force prices down over time.


Even in the US, there is a huge variability in the price of telco  
services from one part of the country to another.


jms


Hint: whenever/wherever service providers are able to secure the  
majority of their essential inputs on a predictable fixed cost basis  
(e.g., circuits rather than variable IP transit), they tend to extend  
the same pricing model to their customers. However, in some cases  
there is a major lag separating the timing of the change in the  
provider-level cost model and the change in customer-facing pricing.  
Absent competition, the lag may be infinite. In other cases, there  
may be more variable costs associated with service delivery than is  
immediately obvious.


Southern Cross was completed in late 2000, and not long after (couple  
of years) incumbent operators in AUNZ had done a pretty good job of  
leveraging the new infrastructure to effect just the sort of variable- 
to-fixed cost conversion described above. Marginal improvements in  
customer pricing are just starting to happen in the last year or so...


TV 


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Joe Greco

 On Thu, 4 Oct 2007, Hex Star wrote:
  Why is it that the US has ISP's with either no quotas or obscenely high ones
  while countries like Australia have ISP's with ~12gb quotas? Is there some
  kind of added cost running a non US ISP?
 
 Depending upon the country you're in, that is a possibility.  Some 
 countries have either state-run or monopolistic telcos, so there is little 
 or no competition to force prices down over time.
 
 Even in the US, there is a huge variability in the price of telco services 
 from one part of the country to another.

Taking a slightly different approach to the question, it's obvious that
overcommit continues to be a problem for ISP's, both in the States and
abroad.

It'd be interesting to know what the average utilization of an unlimited
US broadband customer was, compared to the average utilization of an 
unlimited AU broadband customer.  It would be interesting, then, to look
at where the quotas lie on the curve in both the US and AU.

Regardless, I believe that there is a certain amount of shortsightedness
on the part of service providers who are looking at bandwidth management
as the cure to their bandwidth ills.  It seems clear that the Internet
will remain central to our communications needs for many years, and that
delivery of content such as video will continue to increase.  End users
do not care to know that they have a quota or that their quota can be
filled by a relatively modest amount of content.  Remember that a 1Mbps
connection can download ~330GB/mo, so the aforementioned 12GB is nearly 
*line noise* on a multimegabit DSL or cable line.

Continued reliance on broadband users using tiny percentages of their
broadband connection certainly makes the ISP business model easier, but
in the long term, isn't going to work out well for the Internet's
continuing evolution.

And before anyone accuses me of sounding overly critical towards the AU
ISP's, let me point out that we've dropped the ball in a major way here
in the United States, as well.

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Joe Abley



On 4-Oct-2007, at 1416, Joe Greco wrote:

It'd be interesting to know what the average utilization of an  
unlimited

US broadband customer was, compared to the average utilization of an
unlimited AU broadband customer.  It would be interesting, then, to  
look

at where the quotas lie on the curve in both the US and AU.


I think the implication here is that there's a smoothing effect that  
comes with large customer bases.


For example, I remember back to when DSL was first rolled out in New  
Zealand. It was priced well beyond the means of any normal  
residential user, and as a result DSL customers tended to be just the  
people who would consume a lot of external bandwidth.


At around the same time, my wife's mother in Ontario, Canada got  
hooked up with a cablemodem on the grounds that unlimited cable  
internet service cost less than a second phone line (she was fed up  
with missing phone calls when she was checking her mail).


She used/uses her computer mainly for e-mail, although she  
occasionally uses a browser. (These days I'm sure legions of  
miscreants are using her computer too, but back then we were pre- 
botnet).


If you have mainly customers like my mother-in-law, with just a few  
heavy users, the cost per user is nice and predictable, and you don't  
need to worry too much about usage caps.


If you have mainly heavy users, the cost per user has the potential  
to be enormous.


It seems like the pertinent question here is: what is stopping DSL  
(or cable) providers in Australia and New Zealand from selling N x  
meg DSL service at low enough prices to avoid the need for a data  
cap? Is it the cost of crossing an ocean which makes the risk of  
unlimited service too great to implement, or something else?



Joe


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Mark Smith

On Thu, 04 Oct 2007 15:50:11 +0100
Leigh Porter [EMAIL PROTECTED] wrote:

 
 Yeah, try buying bandwidth in Australia! The have a lot more water to
 cover ( and so potentially more cost and more profit to be made by
 monopolies) than well connected areas such as the US.
 

I don't necessarily think it is only that.

Customers on ADSL2+ usually get the maximum ADSL2+ speed
their line will support, so customers can have speeds of up to 24Mbps
downstream. Download and/or upload quotas have an effect
of smoothing out the backhaul impact those high bandwidth customers
could make. As they could use up all their quota in such a short time
period at those speeds, and once they exceed their quota they'd get
their speed shaped down to something like 64Kbps, it typically forces
the customer to make their bandwidth usage patterns more bursty rather
than a constant. That effect, averaged across a backhaul region helps
avoid having to provision backhaul bandwidth for a much higher constant
load.

Regards,
Mark.

-- 

Sheep are slow and tasty, and therefore must remain constantly
 alert.
   - Bruce Schneier, Beyond Fear


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Joe Greco

 On 4-Oct-2007, at 1416, Joe Greco wrote:
  It'd be interesting to know what the average utilization of an  
  unlimited
  US broadband customer was, compared to the average utilization of an
  unlimited AU broadband customer.  It would be interesting, then, to  
  look
  at where the quotas lie on the curve in both the US and AU.
 
 I think the implication here is that there's a smoothing effect that  
 comes with large customer bases.

Probably not even large customer bases.

 For example, I remember back to when DSL was first rolled out in New  
 Zealand. It was priced well beyond the means of any normal  
 residential user, and as a result DSL customers tended to be just the  
 people who would consume a lot of external bandwidth.
 
 At around the same time, my wife's mother in Ontario, Canada got  
 hooked up with a cablemodem on the grounds that unlimited cable  
 internet service cost less than a second phone line (she was fed up  
 with missing phone calls when she was checking her mail).
 
 She used/uses her computer mainly for e-mail, although she  
 occasionally uses a browser. (These days I'm sure legions of  
 miscreants are using her computer too, but back then we were pre- 
 botnet).
 
 If you have mainly customers like my mother-in-law, with just a few  
 heavy users, the cost per user is nice and predictable, and you don't  
 need to worry too much about usage caps.
 
 If you have mainly heavy users, the cost per user has the potential  
 to be enormous.
 
 It seems like the pertinent question here is: what is stopping DSL  
 (or cable) providers in Australia and New Zealand from selling N x  
 meg DSL service at low enough prices to avoid the need for a data  
 cap? Is it the cost of crossing an ocean which makes the risk of  
 unlimited service too great to implement, or something else?

Quite frankly, this touches on one aspect, but I think it misses entirely
others.

Right now, we have a situation where some ISP's are essentially cherry
picking desirable customers.  This can be done by many methods, ranging
from providing slow basic DSL services, or placing quotas on service,
or TOS restrictions, all the way to terminating the service of high-
volume customers.  A customer who gives you $40/mo for a 5Mbps connection
and uses a few gig a month is certainly desirable.  By either telling the
high volume customers that they're going to be capped, or actually
terminating their services, you're discouraging those who are
unprofitable.  It makes sense, from the ISP's limited view.

However, I then think about the big picture.  Ten years ago, hard drives 
were maybe 10GB, CPU's were maybe 100MHz, a performance workstation PC
had maybe 64MB RAM, and a Road Runner cable connection was, I believe,
about 2 megabits.  Today, hard drives are up to 1000GB (x100), CPU's are
quadcore at 2.6GHz (approximately x120 performance), a generous PC will
have 8GB RAM (x128), and ...  that Road Runner, at least here in
Milwaukee, is a blazing 5Mbps...  or _2.5x_ what it was.

Now, ISP economics pretty much require that some amount of overcommit
will happen.  However, if you have a 12GB quota, that works out to
around 36 kilobits/sec average.  Assuming the ISP is selling 10Mbps
connections (and bearing in mind that ADSL2 can certainly go more than
that), what that's saying is that the average user can use 1/278th of
their connection.  I would imagine that the overcommit rate is much
higher than that.

Note: I'm assuming the quota is monthly, as it seems to be for most
AU ISP's I've looked at, for example:

http://www.ozemail.com.au/products/broadband/plans.html

Anyways, my concern is that while technology seems to have improved 
quite substantially in terms of what computers are capable of, our
communications capacity is being stifled by ISP's that are stuck back
in speeds (and policies) appropriate for the year 2000.  

Continued growth and evolution of cellular networks, for example, have
taken cell phones from a premium niche service with large bag phones
and extremely slow data services, up to new spiffy high technology where
you can download YouTube on an iPhone and watch videos on a pocket-sized
device.

What are we missing out on because ISP's are more interested in keeping
bandwidth use low?  What fantastic new technologies haven't been developed
because they were deemed impractical given the state of the Internet?

Time to point out that, at least in the US, we allowed this to be done to
ourselves...

http://www.newnetworks.com/broadbandscandals.htm

... JG
-- 
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again. - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Bill Stewart

On 10/4/07, Hex Star [EMAIL PROTECTED] wrote:
 Why is it that the US has ISP's with either no quotas or obscenely high ones 
 while countries like Australia have ISP's with ~12gb quotas?
 Is there some kind of added cost running a non US ISP?

One early US cable modem company started propagating the Don't Let
Customers Run Anything Resembling a Server meme to many other ISPs,
primarily cable but also DSL.
One early Australian cable company started propagating the Don't Let
Customers Download More than X MB/month meme, and while it hasn't
been picked up as widely, there are a number of ISPs that have adopted
it.
At one time Australia did have a relatively small amount of Internet
bandwidth and a large non-data-clueful dominant carrier, which had
only gradually been bullied into accepting that there were data
customers who wanted an E1 line because they wanted the whole 2Mbps
for one medium-sized data channel as opposed to 30 channels of
boringly slow 64kbps (perceived by the carrier to be blazingly
fast...)  So they charged their users a lot to download data from
outside; I forget if they were the ones who had a cheaper rate for
data downloaded from inside Australia or not.

But outside the Land of Oz, it used to be that European PTTs also
charged excessive amounts of money for connections around their
countries or across borders.  That's changed  radically with
liberalization.  And of course Japan and Korea charge minimal amounts
for huge home broadband bandwidth - Korea has about triple the
population of Australia, in much smaller land area, and while it's not
quite as far from Silicon Valley as Australia is, and of course it's
much closer to Tokyo, it's still got to cost a bit to run the cables
there.
-- 

 Thanks; Bill

Note that this isn't my regular email account - It's still experimental so far.
And Google probably logs and indexes everything you send it.


Re: Why do some ISP's have bandwidth quotas?

2007-10-04 Thread Adrian Chadd

On Thu, Oct 04, 2007, Joe Abley wrote:

 It seems like the pertinent question here is: what is stopping DSL  
 (or cable) providers in Australia and New Zealand from selling N x  
 meg DSL service at low enough prices to avoid the need for a data  
 cap? Is it the cost of crossing an ocean which makes the risk of  
 unlimited service too great to implement, or something else?

The popular content is still international and the population
density sucks in a lot of places.

I note that no ISP runs free local bandwidth anymore at least
in Western Australia because it started impacting on the ability
to send data back to the client through the DSL aggregation
network. Me, I think the network design needs to change to not
be so PPPoE-to-the-nearest-capital-city, but ISPs keep telling
me its a great idea - but our current structure is fine, why
try to change it?. I understand the economic reasons (upgrading
the network to route IP all the way out to the exchanges and
let customers talk to other customers and across IX fabrics without
potentially crossing the same god damned wholesaler L2TP-tunnelled
network == expensive) but its gotta change someday.

Me, I wonder why the heck cheap services -in the CBDs- don't seem
to be popular..



Adrian