<div dir="ltr">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: <b style="font-weight:normal" id="docs-internal-guid-e2f9ebe7-f206-6aff-8aee-a97efb517ae9"><span style="font-size:15px;font-family:Arial;color:rgb(0,0,0);background-color:transparent;font-weight:normal;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre-wrap"><a href="http://ssrn.com/abstract=1926768">http://ssrn.com/abstract=1926768</a> </span></b><div>
<div><div class="gmail_extra"><br><div class="gmail_quote"><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="ltr"><br><div class="gmail_quote">
---------- Forwarded message ----------<br>From: <b class="gmail_sendername">McTim</b> <span dir="ltr"><<a href="mailto:dogwallah@gmail.com" target="_blank">dogwallah@gmail.com</a>></span><br>Date: Mon, Mar 24, 2014 at 10:42 AM<br>
Subject: Re: [discuss] [ISOC_KE] Fwd: Who should Pay for Netflix?<br>To: Mwendwa Kivuva <<a href="mailto:Kivuva@transworldafrica.com" target="_blank">Kivuva@transworldafrica.com</a>><br>Cc: "<a href="mailto:isoc@orion.my.co.ke" target="_blank">isoc@orion.my.co.ke</a>" <<a href="mailto:isoc@orion.my.co.ke" target="_blank">isoc@orion.my.co.ke</a>>, 1Net List <<a href="mailto:discuss@1net.org" target="_blank">discuss@1net.org</a>>, KICTAnet ICT Policy Discussions <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>><br>
<br><br>Hi Mwendwa,<br>
<div><br>
On Sun, Mar 23, 2014 at 10:05 PM, Mwendwa Kivuva<br>
<<a href="mailto:Kivuva@transworldafrica.com" target="_blank">Kivuva@transworldafrica.com</a>> wrote:<br>
> The answer seems to lie on the text below. As a consumer, I don't see<br>
> why I should pay for a service I don't use.<br>
<br>
<br>
</div>This is a cleverly crafted, but erroneous argument spun by highly<br>
profitable telcos who don't want to upgrade their networks to the<br>
bandwidth levels that we should all enjoy at much lower costs. Look<br>
at the places like Singapore or South Korea or even places in the US<br>
where Google fiber project has rolled out. ISPs can be profitable at<br>
much lower price points delivering much higher speeds to consumers.<br>
They just don't want to do it this way, as they are quite comfortable<br>
making windfall profits while delivering as little bandwidth as they<br>
can.<br>
<div><br>
<br>
><br>
>>> When Netflix delivered its movies by mail, the cost of delivery was<br>
>>> included in the price their customer paid. It would've been neither right<br>
>>> nor legal for Netflix to demand a customer's neighbors pay the cost of<br>
>>> delivering his movie. Yet that's effectively what Mr. Hastings is<br>
>>> demanding here, and in rather self-righteous fashion. Netflix may now be<br>
>>> using an Internet connection instead of the Postal Service, but the same<br>
>>> principle applies. If there's a cost of delivering Mr. Hastings's movies<br>
>>> at the quality level he desires - and there is - then it should be borne<br>
>>> by Netflix and recovered in the price of its service.<br>
><br>
> But that answer negates net-neutrality principles : All internet<br>
> traffic should be treated equal. It's a tough debate<br>
<br>
</div>It's pretty simple. I pay my ISP to deliver packets to me. i pay<br>
them for an "all you can eat" service. If I choose to stream movies<br>
or the ICANN meeting or music or just email, it makes no difference.<br>
They still should provide me with the service I pay for, simple<br>
<span><font color="#888888"><br>
<br>
--<br>
Cheers,<br>
<br>
McTim<br>
"A name indicates what we seek. An address indicates where it is. A<br>
route indicates how we get there." Jon Postel<br>
</font></span><div><div><br>
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