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34764170

join:2007-09-06
Etobicoke, ON
reply to InvalidError

Re: Yeah, let's just ignore the access charges

said by InvalidError:

Most incumbent ISPs have pretty close to an effective monopoly over their respective service areas so going out of business due to not upgrading is unlikely.

As for ISPs wanting to extract revenue from their transit providers, Comcast has tried it with Peer1 and Free is trying it on Google so there certainly are some who are tempted to test those waters. While the scheme may be upsetting for CDNs and transit providers, it actually has a handful of advantages if the ISPs' savings from it are passed down to their end-users, one of them being that it takes most capacity-related costs out of end-users' monthly fees... pay directly for physical access, pay indirectly for your actual usage.

I'm not saying it would on its own but its another nail in their coffin. ISPs in this situation are typically very small and are already struggling as it is.

Actually it is France Telecom/Orange and Google. The amount of money these very large ISPs are extracting from these companies is a drop in the bucket in the bigger picture and I'm very skeptical the ISPs will pass on any savings to the users. These companies never do anything that truly benefits the end user. If they were using the money to directly go towards doing network upgrades then I wouldn't be against this concept so much but that isn't the case. They just want another revenue stream and drag out doing network upgrades as much as possible.

InvalidError

join:2008-02-03
kudos:5
reply to 34764170

said by 34764170:

Then those ISPs can expect to go out of business. and extract money from their transit providers? Please stop making me laugh.

Most incumbent ISPs have pretty close to an effective monopoly over their respective service areas so going out of business due to not upgrading is unlikely.

As for ISPs wanting to extract revenue from their transit providers, Comcast has tried it with Peer1 and Free is trying it on Google so there certainly are some who are tempted to test those waters. While the scheme may be upsetting for CDNs and transit providers, it actually has a handful of advantages if the ISPs' savings from it are passed down to their end-users, one of them being that it takes most capacity-related costs out of end-users' monthly fees... pay directly for physical access, pay indirectly for your actual usage.