Deconstructing The Exaflood MythThere is no bandwidth crunch boogeyman ( old news - 01:02PM Wednesday Sep 03 2008) tags: bandwidth · Op/Ed · stats · world · networkingBroadband industry lobbyists and PR departments have ceaselessly predicted a bandwidth crunch that never seems to arrive, usually because they're trying to justify a new policy or rate hike, stave off regulation -- or in the case of hardware vendors, sell network management hardware. But buried beneath the roar of these " exaflood" chicken littles have been more reasoned voices who claim bandwidth growth, while strong, is both reasonable and manageable. Unlike some, these more reasoned voices usually back up their claims with real data. Andrew Odlyzko is one of the nation's top experts on global Internet traffic. Stationed at the University of Minnesota, Odlyzko posts all of his data to his website, and notes that while growth is strong, it doesn't necessitate drastic new pricing model shifts (metered billing), or wailing to the heavens about the dire menace that is P2P traffic. "There is not a single sign of an unmanageable flood of traffic," Odlyzko says. "If anything, a slowdown is visible more than a speedup," he says. Odlyzko's findings are further supported this week by new research e-mailed to us by TeleGeography, who annually monitor Internet backbone operators and track peak and average network utilization levels. Their findings? Things are just fine. "Despite predictions from some quarters that Internet traffic would overwhelm networks, the global Internet is far from reaching its maximum capacity," says the group. That's certainly not what we were told in countless editorials like this 2007 one from an AT&T-backed think tanker that hinted the end of the Internet was perilously close, made potentially closer by pesky network neutrality advocates. In fact, according to Telegeography, global backbone capacity has grown faster than Internet traffic for two years running. While strong traffic growth between the US and Latin America did outstrip supply, the majority of global links are actually seeing reduced strain, because, as you'd expect, core carriers have easily adapted. For the second consecutive year, the rate of underlying international Internet capacity deployment outpaced global Internet traffic growth, leading to lower utilization levels on many Internet backbones (see Figure: International Internet Traffic and Bandwidth Growth, 2005-2008). Between 2007 and 2008, average traffic utilization levels decreased from 31 percent to 29 percent while peak utilization fell from 44 percent to 43 percent. So if backbone capacity is fine and core carriers are easily keeping pace, what's the problem? No ISP would ever admit their last mile networks aren't the top of the line, but problems are frequently caused locally, where carriers aren't willing to take the investor knocks necessary to upgrade capacity. It's generally a direct result of skimping out on upgrades to beat quarterly estimates, but it makes much more business sense to blame the problem on terrifying, nebulous and uncontrollable externalities. The investment community, incumbent policy groups, lobbyists and executives are best served by the public believing that bandwidth is not just rare -- but an extremely endangered resource requiring new pricing models, greater restrictions on usage, anti-consumer legislation and higher prices. The term "exaflood" was actually coined by the same think tank that spawned the controversial "Intelligent Design" effort. You should be able to recognize a similar disdain for real science. Are you still buying into the exaflood? You shouldn't be. Have faith in broadband evolution. Related:- Remember How The Net Neutrality Fight Began
- Monday Evening Links
- Friday Morning Links
- Backbone Analysis Puts Exaflood Myth To Bed
- Tuesday Evening Links
- Wednesday Evening Links
- The Exaflood Myth Just Won't Die
- ISPs Distance Themselves From British Telecom
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  NOZIREV
join:2008-07-10 New Bedford, MA
·Comcast
| price of bandwidth is going up just like the price of gas. In my eyes the price of everything is going up and i dont think that it has much to do with the amount of bandwidth that is available but just the fact that inflation is a mother F***er. -- "Citius, Altius, Fortius" [Faster, Higher, Stronger] | |
|  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| Re: price of bandwidth is going up if inflation is the culprit, why hasn't my comcast broadband connection gone up in price? comcast hasn't changed broadband pricing in 3-4 years (except to add higher cost, higher speed tiers).
are you telling me they are eating the cost of inflation because of competition? because they're nice? because of ...? | |
|  |  |   jmn1207 Premium join:2000-07-19 Reston, VA
·Verizon FIOS
| Re: price of bandwidth is going up said by nasadude :if inflation is the culprit, why hasn't my comcast broadband connection gone up in price? comcast hasn't changed broadband pricing in 3-4 years (except to add higher cost, higher speed tiers). are you telling me they are eating the cost of inflation because of competition? because they're nice? because of ...? This statement is absolutely misleading. While my Comcast HSI price has remained the same, Comcast makes up the difference by raising rates on their other services. My TV service will be increasing for the 6th time in 4 years. This time it will be a $5 increase in the package I subscribe to, which is their most feature-rich tier that includes every movie channel and their digital service. Before that it was the increased price in the HD service, the DVR boxes, the "sports tier", and on and on. Comcast prices for stand-alone HSI is ridiculously high at $67.95 as opposed to my current $52.95 with their TV service. No reason for them to raise the prices of their stand-alone service as they are making a fortune at that price. Obviously most Comcast customers are also paying for TV and/or phone service or surely they would have increased the price of their internet service as well.
And, I seem to recall that the lower speed HSI tiers for stand-alone service saw a price increase a few years ago. So Comcast IS increasing their prices, it is just misleading to suggest that their HSI service has not changed prices, when the truth is that Comcast can raise prices elsewhere and this effectively causes a price increase for 95% or more of their customers, no matter how they shift the costs around for marketing purposes. Obviously it is much easier to hide increased prices in the TV service, and just about all cable companies make it difficult to find the exact cost of TV service, while they flash around internet costs all over their site and in advertising.
Don't even get me started on the mysterious fees and cost-defraying BS that I see each month on my bill. | |
|  |  |  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| Re: price of bandwidth is going up please note I said "broadband pricing"; I agree with you 100% on the tv side of things but I purposely stayed away from that because I didn't want to start ranting.
the absolute worst thing (in my mind) comcast has done on the broadband side of things is their $15 "penalty" for not bundling at least one other product (as you pointed out).
I originally started out with @home cable broadband. It was $45/mo and 9M down and about 1M up. When Comcast swooped in and bought out @home, the price stayed the same but speeds dropped significantly, to something like 3M/256k. Then, after some months at this price, I all of a sudden get notice that I either buy their basic cable tv service ($15/mo) or the price of broadband would be raised to $60/mo. I said FU and paid the extra money, but have hated them ever since. | |
|  |  |  |  |   jmn1207 Premium join:2000-07-19 Reston, VA
·Verizon FIOS
1 edit | Re: price of bandwidth is going up said by nasadude :please note I said "broadband pricing"; I agree with you 100% on the tv side of things but I purposely stayed away from that because I didn't want to start ranting. If you read my post you would see that I explained my disagreement with your "broadband pricing" statement. I thought my comment was fairly explicit with regards to the disingenuous nature of Comcast's supposedly stagnant HSI pricing. | |
|  |  |  |  |   ceege111
@pacbell.net
| So if you don't like the price of the TV service downgrade it to "basic cable" which is local channels and a couple more like discovery. Here in SF it's $11.50/month which I think is absurdly low because it's mandated as an "essential service" by the FCC. Then get netflix. | |
|  |  |  |  |  |  |  |  |   jmn1207 Premium join:2000-07-19 Reston, VA
·Verizon FIOS
| Re: price of bandwidth is going up I would be happier if Comcast simply polished the current product rather than add more fluff. I don't need more HD channels, I just need the ones I do have to all look like ESPN for Monday Night Football or HBO on Sundays. They blame the carrier, the carrier blames the distributor, and the consumer is stuck with over-compressed sad looking medium definition bunk, at best. I would rather have stable 8MB speeds with reliable latency than a potential 16MB up to 24MB with hit or miss service. There simply is no real competition when it comes to service cost. If there is ANY competition, it is mostly with the fluff that can be added or the bundled savings offered for long-term commitments.
It's like a gas station charging $10/gallon but throwing in a nice .25 cent stuffed animal for my participation.
Thanks, but no thanks. | |
|  |  |  bandwidthhog
join:2002-07-18 Irwin, PA
| Here's a question for you.
Comcast TV service is supplied over the same cable network as their broadband service. If Broadband needs to be rationed (aka Comcast's new 250 GB cap) why shouldn't the TV service be rationed as well? I can have all 4 of my TV's turned on and tuned to separate channels 24/7, 30 days a month and not hear a peep form the Comcast bandwidth Nazis. Trying doing some similar with their internet service and I risk having my broadband service terminated. | |
|  |  |  |  Lazlow
join:2006-08-07 Saint Louis, MO
| Re: price of bandwidth is going up Not that I am for caps:
You are talking apples and oranges. With the TV you can have essentially an infinite number of TVs watching the same channel(or different channels) without changing the load(barring PPV) on the system (it is broadcast). But with internet each packet sent or received generates a certain amount of load. Assuming 100 users are getting the same file from the same source you will generate 100 times more load than one person getting the file (it is not broadcast). | |
|  |  |  |  |  bandwidthhog
join:2002-07-18 Irwin, PA | Re: price of bandwidth is going up Fair enough, but if your argument is correct, then all the arguments justifying the chageover from pure analog the home to digital to the node as a means to free up bandwidth are then bogus are they not? | |
|  |  |  |  |  |  Lazlow
join:2006-08-07 Saint Louis, MO
| Re: price of bandwidth is going up Again comparing apples and oranges:
The bandwidth we are talking about in this(TV) case is frequency. Think of an analog signal like a bell curve (big rounded hump). Now think of digital signals like spikes(they are still bell curve shaped just much, much, narrower). You can fit multiple digital signals in the same width (frequency range) that a single analog channel occupies.
When we talk about bandwidth on the HSI side we are generally talking about the percent of the channel (yes HSI has channels too) that is being used. Generally each HSI channel can handle 38mb downstream (less for upstream). | |
|  |   insomniac84
join:2002-01-03 Schererville, IN | Clearly it's the speculators on the bandwidth futures market causing the increase. | |
|  |   stinger
join:2001-03-22 Florissant, MO clubs:
| Horror movie script idea...
Public funding and academia creates then nurtures a technological breakthrough that allows the open exchange of information, ideas and communication using interconnected computer systems in deference to their geographical location.
Then, the scary part comes when a group of dollar signs wearing blue pin-striped suits take full control of it all. | |
|  |  |   LiamJunket Premium join:2002-03-03 Ocean City, NJ
·Comcast
| Who is funding Odlyzko
»Deconstructing The Exaflood Myth
were told in countless editorials like this 2007 one from an AT&T-backed think tanker that hinted the end of the Internet was perilously close The above is listed as a reason to be suspect of the AT&T backed study.
Well, to be fair, let's look at who is backing the "everything is fine" study: »www.dtc.umn.edu/mints/people.html
MINTS projects is supported by the Digital Technology Center and the Minnesota Supercomputing Institute, and the ADC Chair held by Andrew Odlyzko, which comes from an endowment donated by the ADC Foundation. Which points to: »www.dtc.umn.edu/industrial/affil···st.shtml
ADC IBM LSI Logic 3M Seagate Sun Microsystems Symantec Unisys Companies that want to continue selling products based on the premise that the internet is just fine and dandy and that no problems are on the horizon. -- My BLOG .. .. Internet News .. .. My Web Page Ask yourself one question: 'Do I feel lucky?' Well, do ya punk? | |
|  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| Re: Who is funding Odlyzko so your point is what?
the guy is fudging statistics and internet traffic data because he's in the tank with outside interests?
that he's a crooked researcher/academic that is either getting paid under the table or hopes for future remuneration from grateful hardware companies?
as is frequently pointed out but equally frequently ignored, facts have a known liberal bias. | |
|  |  |   LiamJunket Premium join:2002-03-03 Ocean City, NJ
·Comcast
1 edit | Re: Who is funding Odlyzko said by nasadude :so your point is what? the guy is fudging statistics and internet traffic data because he's in the tank with outside interests? that he's a crooked researcher/academic that is either getting paid under the table or hopes for future remuneration from grateful hardware companies? as is frequently pointed out but equally frequently ignored, facts have a known liberal bias. Just pointing out that what is good for the goose is good for the gander.
If a study backed by AT&T money is AUTOMATICALLY suspect and distrusted, then why should I not suspect a study funded by companies that benefit from the idea that the internet has no bandwidth problems. -- My BLOG .. .. Internet News .. .. My Web Page Ask yourself one question: 'Do I feel lucky?' Well, do ya punk? | |
|  |  |  |   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ
·Sprint Broadband D..
| Re: Who is funding Odlyzko I know this will come as a completely foreign concept, but instead of attacking the messenger(s), why not try attacking his data and their conclusions? Perhaps, for all your corporate tubthumping, you have data in hand that might show errors in these reports?
And how, in dog's name, do you come to the conclusion that these companies might profit from debunking the exaflood argument? | |
|  |  |  |  |   Noah Vail Premium join:2004-12-10 Lorton, VA | Re: Who is funding Odlyzko Who'd of thought TKJ had so many crickets under his personal control.
NV -- Abortion: A Republican Plot to Thin the Liberal Herd. | |
|  |  |  |  |  |   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ | Re: Who is funding Odlyzko "Roll 'em Roll'em Roll 'em, get them crickets rollin'..."
 | |
|  |  |  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| said by LiamJunket :Just pointing out that what is good for the goose is good for the gander. If a study backed by AT&T money is AUTOMATICALLY suspect and distrusted, then why should I not suspect a study funded by companies that benefit from the idea that the internet has no bandwidth problems. I knew you were gandering the goose and all that, but I repeat, facts have a known liberal bias.
the reason ATT is automatically suspect is:
a) they specifically fund astroturf "think tanks" to churn out "studies", op-ed/opinion pieces and other stuff to support industry positions,
b) it has been shown that many past ATT funded studies and articles have been, to put it kindly, pieces of trash
why not do as TScheisskopf suggests and argue on the facts? I can guess why, but I leave that for the reader to figure out. | |
|  |  |  |  heyguy
join:2008-09-03 Beverly Hills, CA
| Hm, I'd trust Odlyzko, before I trust the cable/phone industry in the US. They've been asking for subsidies, tax breaks and surcharges for years, to supposedly build the best network in the world. It was supposed to be here in the early 2000s, then in 2005.
Instead, now we are told they have to cap our usage, or the whole thing will grind to a holt.
I've been a life-long free-market Republican, but these current religious/hypocritical/protectionist trolls, have made a mockery of the free market and the party. And while spending like there is no tomorrow, they have ensured that the US network is stuck in the 1990s, and beholden to a handful of technologically-challenged, bean-counting, government handout-loving cartels.
Local loop competition through unbundling? Not while the "free-market" Bushies are in office. I guess we should hand our money, pray for faster internet to an "intelligent designer" and practice abstinence.
Read and weep: »www.washingtonpost.com/wp-dyn/co···_pf.html
Phew, got it off my chest.... | |
|  |   funchords Hello Premium,MVM join:2001-03-11 Washington, DC
·Verizon Online DSL
·Skype
| said by LiamJunket : MINTS projects is supported by the Digital Technology Center and the Minnesota Supercomputing Institute, and the ADC Chair held by Andrew Odlyzko, which comes from an endowment donated by the ADC Foundation. Which points to: » www.dtc.umn.edu/industrial/affil···st.shtmlADC IBM LSI Logic 3M Seagate Sun Microsystems Symantec Unisys Companies that want to continue selling products based on the premise that the internet is just fine and dandy and that no problems are on the horizon. Your argument makes absolutely no sense to me.
How do you sell products based on the premise of what we have now is just fine? You sell products because your customer has a problem that your product solves. -- Robb Topolski -= funchords.com =- Hillsboro, Oregon More features, more fun, Join BroadbandReports.com, it's free...
| |
|  |   NetAdmin
join:2008-05-22
| said by LiamJunket :ADC IBM LSI Logic 3M Seagate Sun Microsystems Symantec Unisys Companies that want to continue selling products based on the premise that the internet is just fine and dandy and that no problems are on the horizon. Please explain: how do companies like Sun, Symantec, Unisys and the others sell products based on the theory that the internet is just functioning just fine?
Sorry, I deal with some of those companies quite regularly and based on those interactions, your criticism is a major stretch. For example, Symantec can't sell products if the internet is just fine since they sell products like IDS appliances, anti-spam firewalls and anti-virus products among others. IBM sells a number of security and DoS mitigation products. ADC is a hardware vendor and the reality is that a bandwidth shortage would boost their sales. LSI makes ASICs for routers and switches, and other products, that would sell more if there was a shortage of capacity too. -- --- Eleven years of carrying The Clue Bat... | |
|   LiamJunket Premium join:2002-03-03 Ocean City, NJ
·Comcast
| Internet utilization down internationally; BUT NOT in the US
»Deconstructing The Exaflood Myth
Between 2007 and 2008, average traffic utilization levels decreased from 31 percent to 29 percent while peak utilization fell from 44 percent to 43 percent. The above is for international traffic utilization of the internet.
But checking the Telegeography news site, that is NOT TRUE for the US backbone.
»www.telegeography.com/cu/article···ail=html
While utilisation on international links to Europe and Asia fell in 2008, they rose in the US & Canada and Latin American where traffic growth outpaced the deployment of new internet bandwidth. -- My BLOG .. .. Internet News .. .. My Web Page Ask yourself one question: 'Do I feel lucky?' Well, do ya punk? | |
|  |   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ
·Sprint Broadband D..
| Re: Internet utilization down internationally; BUT NOT in the US said by LiamJunket :» Deconstructing The Exaflood MythBetween 2007 and 2008, average traffic utilization levels decreased from 31 percent to 29 percent while peak utilization fell from 44 percent to 43 percent. The above is for international traffic utilization of the internet. But checking the Telegeography news site, that is NOT TRUE for the US backbone. » www.telegeography.com/cu/article···ail=htmlWhile utilisation on international links to Europe and Asia fell in 2008, they rose in the US & Canada and Latin American where traffic growth outpaced the deployment of new internet bandwidth. Let's see the headline:
"Internet traffic is growing fast but capacity is keeping pace"
Am I the only one noticing the cognitive dissonance between the headline and the above assertions?
And as regards the deployment of new bandwidth, can there possibly be some connection between this present attempt to jam a new pricing model down the throats of customers and the slowdown in deployment of new BB connections, thus resulting in "and just add water" data? Oh, heaven forfend.
And in the case of the cablecos, could some of this be the result of not wanting to split nodes? Case in point: In speaking to a Comcast Bucket Barbarian the other day, he was telling me about a recent node split they finally HAD to do: there was over 900 connections on the loop. He said that there were far worse loops out there, but management was completely disinterested in addressing them, until they became an issue that could go before the BPU. | |
|  |  |  |  |   kontos xyzzy
join:2001-10-04 West Henrietta, NY
| Re: Internet utilization down internationally; BUT NOT in the US said by Pizz Sure it's expensive to maintain/manage/upgrade a ISP type network - But money shouldnt be an issue - with all the growth that's been booming since broadband was first introduced in the late 90s.
I seriously think, this is just another way to charge more, for piss-poor management of a company's funds. [/BQUOTE :The boom you speak of is over. Recent data suggests that new broadband customer growth is nearly over. That means that the CEOs are seeing the revenue line of the graphs flatten out. Unfortunately for the MBAs creating those graphs, Internet usage (and therefore costs) continues to grow. That's what is making the beancounters nervous. | |
|   espaeth Digital Plumber Premium,MVM join:2001-04-21 Minneapolis, MN
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1 edit | This isn't that difficult, people... Drawing conclusions about access network capacity using numbers from consolidated transit links is a misguided approach. That's like saying there's no congestion on Las Vegas Blvd because I-15 is running free and clear.
The carriers have no problem handling the load because core transmission technology has continued to improve over the last decade. We've gone from OC3/12/48 circuits to GigE, then to 10GigE, now 40G OC768 and 100GigE interfaces are starting to come around. They can use the same physical cabling they started out with, and just swing the endpoints from GigE ports to 10GigE ports and get an instant 1000% boost in capacity.
There has been no similar evolution in either the DOCSIS or DSL delivery platforms. The 38mbps DOCSIS downstream channels are basically the same spec as when they started rolling out HSI over cable in the late 90s. There's been few significant changes to the DSL to improve speeds -- and distance is still the determining factor over your max data rate. DSL does have and advantage in that at least the connection to the DSLAMs can be upgraded to add capacity at the DSLAM level, but to increase capacity out to the subscriber edge means deeper deployments like what Qwest and ATT are doing. On the DOCSIS side, there's no "interface swap" solution -- the only thing that can be done at the moment is to keep doing node splits to get the subscriber per channel densities to continue to come down. DOCSIS3 has been claimed to be the savior of some of these problems, but even though the spec was finalized in 2006 there is still only a single vendor (Casa) with a fully certified CMTS today. Also, the largest benefits of D3 don't come about until you can replace the majority of your installed cable modems on the plant -- so we need to get new hardware in the homes of 10s of millions of people before the benefits of a 300-400% bump in backbone capacity will be realized. (all at significantly greater costs than the transit/carrier link upgrades where they get 1000+% bumps in capacity)
Over the last decade the strategy on the DOCSIS plant has been to set a limit, observe, split capacity where necessary, increase limit, return to "observe" step. What started out as 1.5mbps connections into a 38mbps channel has evolved to 16+mbps connections into a 38mbps channel.
The real problem we are facing is a shift in the type of traffic we are seeing. Most networks are designed around a "burst" utilization model; it's expected for user demands of the network to increase over time and for there to be periods of intense network activity. What hasn't been expected is the shift to long-duration heavy impact utilization brought about by 30+ minute streaming applications or P2P apps that generate traffic constantly.
To sell the situation as impending doom is a bit misguided. There are very few technology related issues that cannot be solved by a combination of time and money. In this case, if the trend for extended long-duration network impact is going to continue, then the provisioning model at the edge is going to need to change, and that's going to bring about new cost structures. At the carrier level things are set -- the carriers charge by either full interface capacity or measured utilization on an interface, so the more you use the more you pay -- the network is self sustaining to handle future growth. On the access side, however, if there will continue to be drivers to force drastic changes in the oversubscription ratios of the infrastructure then there will be a similar drastic change in the cost structure. | |
|  |  |  |  |   rawgerz In Debt we trust Premium join:2004-10-03 Grove City, PA
·Verizon Online DSL
·Sprint Mobile Broa..
| Re: This isn't that difficult, people... Well obviously they don't want to spend money on upgrades, most ISPs are publicly owned. Investors want to see gains. Doing a massive upgrade with no real ROI is corporate suicide.
I think being a public company is part of the problem. You can't do a whole lot if you're constantly walking on egg shells. --
You can't make all the people happy all of the time. But it should be common sense to shoot for the majority. | |
|  |  |   espaeth Digital Plumber Premium,MVM join:2001-04-21 Minneapolis, MN
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| said by Pizz :I think its the suits in the exec office's making this to be such an issue. Because they simply do not want to allocate funds to networking upgrades. There's definitely some of that going on, but that's a side effect of the pricing model. At the carrier level when they spend money to upgrade the network they get more capacity to sell to increase their revenue flow. On broadband networks with flat-rate pricing, they get the same revenue whether they invest $1 or $1,000,000,000 on network upgrades. Their only motivation is to maintain subscriber numbers, which fosters a network of mediocrity. They only have to be just good enough so most subscribers don't leave; there's no additional revenue potential to be gained from making the network really kick ass.
said by Pizz :There are limitations on any network of what it can and cannot handle. Congestion does happen, but there is so many QOS tools available, that it should never be as bad as companies are making it sound. QoS is difficult on a shared network with no traffic tiers because there's no strict standard about who really has network "right of way." Comcast's new system for bandwidth management involves queuing the traffic of those who have been using the network the most below that of light users during times of congestion. Still, allowing the light users a chance at getting decent performance during times of congestion is still being met with disapproval. Users want a fluffy service where the performance is never bad for anyone.. ever. Unfortunately that goal is in violent opposition to the $50 price point most folks also want. | |
|  |   funchords Hello Premium,MVM join:2001-03-11 Washington, DC | Your message is spot on WRT to the last mile. The Exaflood prediction wasn't a last-mile prediction, though -- it was an Internet prediction. It focused on these long, middle-of-the-network links. | |
|   IHM Premium,VIP join:2001-12-18 Hamilton, ON
| the backbone is only one part of a network.... Ummm...the last mile anyone? Lot's of bandwidth on the backbone is no use to an ISP if you have local congestion. It's got to get to your home somehow. That local bandwidth is expensive and limited, especially on cable networks where someone transferring data 24/7 can be very damaging.
FIOS, DOCSIS 3, Wireless clouds will all help, but they as well take money to implement. Where is the return on this investment to come from? -- 2 Large Bunnies...1 Dead Penguin | |
|  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| Re: the backbone is only one part of a network.... said by IHM :... Where is the return on this investment to come from? Ummmmm...the 14.4 million subscribers they are charging $52/mo?
seems to me if a company can't afford capex to expand their facilities to keep up with growth and make a decent profit on $700,000,000/mo revenue, just from the consumer, maybe they shouldn't be in business. | |
|   mod_wastrel
join:2008-03-28 | "The End... ...(of your arm) is at (your) hand."
So true.
"There is (not) an impending exaflood."
What a difference a word (or two) makes.  | |
|   KrK Heavy Artillery For The Little Guy Premium join:2000-01-17 Tulsa, OK
·Cox HSI
·AT&T Southwest
| Let me just sum it all up: Network capacity issues are NOT the reason companies are pushing metered billing/and/or Caps, or other "network management" techniques.
1) It's all about revenue: For some, charging more money for the services they provide now. 2) For some, it's about protecting lucrative services they charge for now being lost to over the internet competition. 3) For some, it's about cutting upgrade expenses to increase profit through lower costs.
However, for just about all, it's a combination of all 3 of the above.
And that is it in a nutshell. -- "Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) | |
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