[discuss] [ISOC_KE] Fwd: Who should Pay for Netflix?

Ali Hussein ali at hussein.me.ke
Mon Mar 24 04:37:01 UTC 2014


Thanks for  sharing. That is a compelling argument which in my humble opinion telcos have failed to convince me. In fact I think the argument is now moot as more and more telcos are entering the triple play space. 

I'm however really curious how this issue will pan out since its a mix of regulatory interventions and free market forces. This argument by telcos is forcing players like Google and Facebook to enter the infrastructure space.

Ali Hussein

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Twitter: @AliHKassim
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"I fear the day technology will surpass human interaction. The world will have a generation of idiots".  ~ Albert Einstein

Sent from my iPad

> On Mar 24, 2014, at 6:01 AM, Patrick Ryan <pryan at pryan.net> wrote:
> This is, in many ways, isn't this a remix of the "sending party pays" discussion?  There are lots of analysis of this available, although a lot of it is covered in a report that Scott Markus put together a couple years ago: "Network Operators and Content Providers: Who Bears the Cost?"  It's here on SSRN: http://ssrn.com/abstract=1926768  
>> ---------- Forwarded message ----------
>> From: McTim <dogwallah at gmail.com>
>> Date: Mon, Mar 24, 2014 at 10:42 AM
>> Subject: Re: [discuss] [ISOC_KE] Fwd: Who should Pay for Netflix?
>> To: Mwendwa Kivuva <Kivuva at transworldafrica.com>
>> Cc: "isoc at orion.my.co.ke" <isoc at orion.my.co.ke>, 1Net List <discuss at 1net.org>, KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
>> Hi Mwendwa,
>> On Sun, Mar 23, 2014 at 10:05 PM, Mwendwa Kivuva
>> <Kivuva at transworldafrica.com> wrote:
>> > The answer seems to lie on the text below. As a consumer, I don't see
>> > why I should pay for a service I don't use.
>> This is a cleverly crafted, but erroneous argument spun by highly
>> profitable telcos who don't want to upgrade their networks to the
>> bandwidth levels that we should all enjoy at much lower costs.  Look
>> at the places like Singapore or South Korea or even places in the US
>> where Google fiber project has rolled out.  ISPs can be profitable at
>> much lower price points delivering much higher speeds to consumers.
>> They just don't want to do it this way, as they are quite comfortable
>> making windfall profits while delivering as little bandwidth as they
>> can.
>> >
>> >>> When Netflix delivered its movies by mail, the cost of delivery was
>> >>> included in the price their customer paid.  It would've been neither right
>> >>> nor legal for Netflix to demand a customer's neighbors pay the cost of
>> >>> delivering his movie.  Yet that's effectively what Mr. Hastings is
>> >>> demanding here, and in rather self-righteous fashion.  Netflix may now be
>> >>> using an Internet connection instead of the Postal Service, but the same
>> >>> principle applies.  If there's a cost of delivering Mr. Hastings's movies
>> >>> at the quality level he desires - and there is - then it should be borne
>> >>> by Netflix and recovered in the price of its service.
>> >
>> > But that answer negates net-neutrality principles : All internet
>> > traffic should be treated equal. It's a tough debate
>> It's pretty simple.  I pay my ISP to deliver packets to me.  i pay
>> them for an "all you can eat" service.  If I choose to stream movies
>> or the ICANN meeting or music or just email, it makes no difference.
>> They still should provide me with the service I pay for, simple
>> --
>> Cheers,
>> McTim
>> "A name indicates what we seek. An address indicates where it is. A
>> route indicates how we get there."  Jon Postel
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> -- 
> patrick s. ryan
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