Tales of the Sausage Factory

Canada Continues To Play With Itself For My Amusement — CRTC Allows New Tarrif for Metered/Capacity Limited Wholesale Services.

Back in December, I was very excited by the decision of the Canadian Radio-Telecommunications Commission (CRTC) to permit Bell Canada to throttle traffic for its wholesale customers. This represented the first OECD country taking a major step away from mandatory unbundling since the FCC deregulated our telcos in 2005. As a lover of empirical data, the thought of another country playing games with its critical infrastructure to test market absolutism struck me as a welcome relief from the U.S. always playing the guinea pig on free market absolutism.

And now, CRTC has gone further. In this Order, the CRTC approves an interim tariff for usage based billing (UBB) or, as we would call it here, metered billing with a capacity cap. I’m not sure if, reading this, it merely permits Bell Canada to offer a wholesale metered plan or if it allows Bell Canada to drop their unmetered plans and offer only metered plans. If the later, CRTC has pretty much delegated the entire industry structure over to Bell Canada. But even if this is just an option, it lets Bell Canada set the business model for how ISPs can do metered billing. So again, Bell Canada is going to have pretty tremendous influence on how the business model for DSL delivery evolves going forward.

Bell Canada had also asked for a fairly steep charge against an ISP if the ISP could not identify the specific customer using capacity, since that would evade the capacity cap. Happily for independent ISPs in Canada, the CRTC decided to hold off on that one for a bit.

As always, I shall be very interested to see what happens as a result. It’s always rare to see a similarly situated country willing to become a laboratory for experiments with its critical infrastructure. I look forward to seeing multi-year data on what happens to their broadband penetration, pricing, and overall use as a consequence.

Stay tuned . . . .

Posted in Series of Tubes, Tales of the Sausage Factory | Also tagged , , , , , | Comments closed

Tales of the Sausage Factory

Comcast and BitTorrent, or "Honestly Charlie Brown, The Market Dictates I Let You Kick The Football THIS Time.”

[First, a rather important point to Richard Bennett and anyone who may be confused. This blog is my own. It is not a “Media Access” blog, and it does not represent MAP policy. I very deliberately do not show this stuff to anyone at MAP for prior approval before I write it. This is me personally sounding off. Got it? This is in addition to my day job. (Although my wrath at this mischaracterization is tempered by his describing this blog as “popular.”)]

There must be something in the air that has turned Comcast from a fighter to a lover. Apparently, Comcast and BitTorrent have kissed and made up, Brian Roberts has stood barefoot in the snow beneath Kevin Martin’s window at Canossa, and all is now supposed to be well in the world. Nothing to see here, move along, these aren’t the droids we’re looking for, and once again the magic of the market solves everything.

I would have written earlier, but I was having a flashback to when AOL Time Warner committed to creating an interoperable instant messenger. Then I was flashing on when AT&T Broadband and Earthlink “solved” the original open access problem by negotiating a contract and thus proving that “the market” would guarantee that independent ISPs would be able to resell cable modem service just like they were reselling DSL. Then I woke up vomiting. I always have a bad reaction to whatever folks smoke to conclude “the free market solves everything” especially when (a) this was the result of a regulatory two-by-four applied directly to Comcast’s scalp, repeatedly; and (b) nothing actually happened except for a real and sincere comitment to yack about stuff — at least until the regulators go away. Still, like Lucy and Charlie Brown, there are some folks for whom this just never gets old.

So while I’m glad to see Comcast forced to play the penitent, confess wrongdoing, and appear to give a full surrender, and while I generally like the idea of industry folks and ISPs getting together to actually do positive stuff on internet architecture issues, I think wild celebrations from the anti-regulators and the expectation that we can declare “Mission Accomplished” and go home is a shade premature. Indeed, the only people who believe this announcement actually solves anything are — by and large — those who didn’t believe there was a problem in the first place. I believe the technical term for such folks is “useful idiots.”

My further thoughts below….

Read More »

Posted in Series of Tubes, Tales of the Sausage Factory | Also tagged , , , , | 19 Comments (Comments closed)

Tales of the Sausage Factory

I'll miss my ISP when its gone, *sniff*

Sometime real soon now (perhaps as early as tomorrow), the FCC will reclasify DSL as an “information service” and the same rules that right now apply to cable broadband (i.e., none) will apply to DSL.

I have been very happy as a residential phone and telco subscriber to Cavalier Telephone. I’ll sure miss them when they’re gone . . .

Read More »

Posted in General, Tales of the Sausage Factory | Also tagged , , | 2 Comments (Comments closed)

Tales of the Sausage Factory

Tales of the Sausage Factory: Of Open Access, Kicking Butt, and Why Arbs Don't Know Jack

The Ninth Circuit has given us another win in the fight to make cable plants open their facilities to independent ISPs (aka “open access” ). Winning feels good, especially when you predicted it over the odds given by the “experts”. The experts here are the industry analysts and arbitrageurs (or “arbs” ). What does it mean, and why are the experts so often wrong? See my opinions below.

Read More »

Posted in General, Tales of the Sausage Factory | Also tagged , , , , , , | 2 Comments (Comments closed)
  • Connect With Us

    Follow Wetmachine on Twitter!

Username
Password

If you do not have an account: Register