At 12/16/2010 05:07 AM, Tom DeReggi wrote:
> > AT&T/Verizion/WISPS
> > should be aggressively targeting Comcast subscribers with much better
> > rates, and peering with L3/Netflix everywhere.
> >
> > This is what an ASN and your own IP space buys you.
> >
>
>Well thats part of the problem. Do we really have that option?
>
>L3 and Netflix often deny peering requests from smaller operators. They dont
>let us play, and dont always allow us the option to share in the savings.
>So what do you think NetFlix's mentality is.... If we were to want to
>interconnect.... Would they ask us to eat the cost to build out to them, or
>would they eat the csot to build out to us, or would we share the csot and
>meet in the middle? Everyone thinks they are more valluable than the small
>local provider, and the small local provider usually gets leveraged into
>paying the cost to interconnect.  Why shouldn't WISPs have peering
>relationships direct with NetFlix, where either party pays the other for
>having higher push traffic? Why are we not worthy to be the recipient of
>compinsation in peering?
>
>Dont misunderstand me, I do not mean to stereo type and I am not saying for
>sure that NetFlix or any content provider aren't willing to peer or talk
>about fair terms. I'm just saying, who's in control of whether it will
>occur?

Be careful what you wish for; you might get it.

The reason that the Internet works today is that nobody's in 
charge.  Beyond the limited number of access providers, is as close 
as we come these days to a "free market".  Hence the price paid by 
one provider to another is set by negotiation, not rules.  Contrast 
this to the PSTN where there are elaborate, complex, ambiguous, 
overlapping rules for "intercarrier compensation" and carrier can 
spend huge sums on lawyers arguing over it.

The dispute between Level 3 and Comcast hinges over who gets the most 
value out of the deal.  Comcast can refuse to take Level 3's CDN 
traffic, and thus its subscribers won't get the same quality of 
Netflix.  They might lose subscribers.  Or their backbone expenses 
might rise.  Akamai apparently was paying Comcast; Level 3 doesn't want to pay.

Once regulations get written and interconnection moves from voluntary 
to mandatory (this could be part of "neutrality"), the ISPs with the 
most expensive, limited capacity are the first to get hurt.  Guess 
who that is.  Not Comcast, not AT&T.  Do you really want to tie up 
your radios with the super-low-value bits of streaming TV?

  --
  Fred Goldstein    k1io   fgoldstein "at" ionary.com
  ionary Consulting              http://www.ionary.com/
  +1 617 795 2701 



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