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The Internet Businesses Networking

Is Verizon a Network Hog? 310

pillageplunder wrote to mention a piece in BusinessWeek asking whether or not Verizon has the right to set aside bandwidth for its own projects. They're planning a television service, and have allocated a swath of their bandwidth (which could otherwise be used for net and phone traffic) to back this service. From the article: "Leading Net companies say that Verizon's actions could keep some rivals off the road. As consumers try to search Google, buy books on Amazon.com, or watch videos on Yahoo!, they'll all be trying to squeeze into the leftover lanes on Verizon's network. On Feb. 7 the Net companies plan to take their complaints about Verizon's plans to the Senate during a hearing on telecom reform."
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Is Verizon a Network Hog?

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  • by jhill ( 446614 ) on Thursday February 02, 2006 @01:46PM (#14627605) Homepage
    Since Verizon's recent purchase of MCI, they have more bandwidth, both lit and unlit, than they know what to do with. Making the whole point of squeezing anything totally a non issue.
  • They Paid For It (Score:4, Interesting)

    by Anonymous Coward on Thursday February 02, 2006 @01:47PM (#14627613)
    Why shouldn't they be able to do what they want with it?
  • by Anonymous Coward on Thursday February 02, 2006 @01:48PM (#14627630)
    Let's play devil's advocate. It is their network, why shouldn't they be able to do with it what they want? I mean we hear the I own the software I should be able to do anything I want with it all the time. How is this any different?
  • by poeidon1 ( 767457 ) on Thursday February 02, 2006 @01:49PM (#14627647) Homepage
    As long as verizon keeps on delievering the 2 MB/s connection bandwidth to me , I donot care about their reservations. But if they cut it to promote their products, its then illegal.
  • by us7892 ( 655683 ) on Thursday February 02, 2006 @01:51PM (#14627664) Homepage
    It's simply a matter of competition. If Comcast or another local cable provider can provide better bandwidth for a similar price, then go with the competitor.

    I'm supposed to get 768/128 throughput. I actually get more like 640/100 with my Verizon DSL. If Verizon can't maintain something close to this even with their pipe-grab, then I would simply switch to broadband from 1 or 2 of the other options available.

    If it's a matter of shared phone lines and other DSL providers being choked out too, then that's a good reason to go with cable or over-air altogether.
  • by tdemark ( 512406 ) on Thursday February 02, 2006 @01:53PM (#14627697) Homepage
    Is it just me or does this article appear to be confusing two issues?

    (1) Pay-to-play - ISP's charging content providers so that traffic to and from their site is not delayed (Internetwork traffic)
    (2) QoS - ISPs doing QoS to reserve bandwidth for specific applications they themselves offer their own customers (Intranetwork traffic)

    - Tony
  • by JFlex ( 763276 ) on Thursday February 02, 2006 @01:54PM (#14627710)
    Don't cable companies do the same thing? A cable modems bandwidth is shared with their TV broadcasting, and it doesn't seem to effect internet use.
  • Hog? In what sense? (Score:4, Interesting)

    by FellowConspirator ( 882908 ) on Thursday February 02, 2006 @01:54PM (#14627712)
    As far as I can tell, they're the only player lighting up the last mile, and the majority of their video bandwidth will be on segments wholly devoted to their own network. I regularly use 50Mb/sec, but since it's withing my house and on my LAN, I don't think anybody has a right to complain.

    I'd like to say that more of the laid fiber is lit, but most of it is just plain dark. So long as we're only using a small fraction of the capacity of the medium already in place, what does it matter how much they use? They pay for it, they light it up, they can use it. If there's more demand, light up some more fiber.
  • by Tweekster ( 949766 ) on Thursday February 02, 2006 @01:55PM (#14627726)
    And not breaking contracts... they can do as they please in the way of allocating their resources. (not that bullshit bellsouth wants) this is about physical lines how much to use for their products.. tehy are obligated to provide certain quantities of bandwidth for their customers but other than that. why cant they use their networks for different projects?
  • by cimmer ( 809369 ) on Thursday February 02, 2006 @01:57PM (#14627752)
    As much as I am a proponent for the Good Of All Mankind, I am confused by the idea of a mandate that says Verizon must use their bandwidth in this way or that way. I understand that Verizon (MCI) owns a lot of Internet backbone, but the Internet is a public entity. Verizon is not. The money they spent to build those fiber highways did not come from public coffers (unless I don't know about some kind of subsidy program).
  • Re:Yes, they do (Score:3, Interesting)

    by drakaan ( 688386 ) on Thursday February 02, 2006 @02:05PM (#14627832) Homepage Journal
    If deliberate degradation of service is written into the TOS as something that they're allowed to do, then I guess the "pack your sh*t and go somewhere else" option is the only one that has any bearing.

    This isn't an issue of what they're allowed to do (legally) with their network. It's theirs, and they can do what they want with the parts they control, as far as prioritizing traffic.

    The interesting issue is exactly how much Verizon thinks it can get away with before they start irritating customers. It's not like it'll be hushed up, and it's not as if people won't explain exactly why it's a bad idea.

  • 30 percent is a lot (Score:2, Interesting)

    by whitelabrat ( 469237 ) on Thursday February 02, 2006 @02:08PM (#14627879)
    As a FIOS customer, I'll tell you with certainty that it makes sense that 80% of their fibre optic networks would be used for their services. That's because the optic line running into my house replaces my copper based phone line and provides my internet service. Eventually television services will be included. With fibre optics running into my home, 80% usage for phone/tv/etc leaves me with more bandwidth than I'll need for now!
  • Re:They Paid For It (Score:5, Interesting)

    by $1uck ( 710826 ) on Thursday February 02, 2006 @02:10PM (#14627895)
    Did they pay for it? I mean really did they pay for all of it? All companies that lay wire/pipe/cable/radio frequencies etc they all make use of emminent domain (AFAIK) when they run things through your property do they ask your permission? do they pay you rent? Most of these companies are effectively monopolies (at least in the areas they server) or were at one time. I think when it comes to things like pipes/roads/canals and most other conduits the evil-hated socialist word applys. You can't make a useful network/roadwork radio communication with out going through almost everyone's property, so the resource should belong to everyone. Power company's shouldn't own the power lines (maybe we could actually shop/compete for where to buy energy -this happens to a limited degree now). People should be able to pay for the channels/shows they want and not have to buy the service from the cable company.

  • by walt-sjc ( 145127 ) on Thursday February 02, 2006 @02:13PM (#14627929)
    I don't believe this is about the long-haul backbones, this is probably about the local POP / loop, and the POP connection to the regional backbone. If a Verizon FIOS "hub" has a total of 1G bandwidth, and verizon is taking 800M of it, then all the other internet traffic can only use 200M split over who-knows-how-many end users. Furthermore, the POP to POP links may be allocated the same way. VOL will probably end up doing some massive video on demand system that will suck down most of the total bandwidth.

    This would put any video on demand service that Google may (will) have at a severe disadvantage.

    Even if a gob more dark fiber is available for all these pipes, it costs serious amounts of money to light them up. Obviously if VOL can "reserve" a big portion of bandwidth on the existing links to the point where they can offer all their value-add services, they don't have an incentive to light up more fiber.
  • Re:They Paid For It (Score:3, Interesting)

    by leonmergen ( 807379 ) <lmergen@gmaEEEil.com minus threevowels> on Thursday February 02, 2006 @02:13PM (#14627935) Homepage

    No, they paid for the networks, the customers paid them... if the customers don't feel like they get the speed they think their money is worth, a competitor will step up and the customers will go there...

  • Re:They Paid For It (Score:5, Interesting)

    by blamanj ( 253811 ) on Thursday February 02, 2006 @02:21PM (#14628033)
    Amen. If you look at your phone bill, you'll see a variety of charges that the carriers have gotten the government to allow them to charge. There's the Federal Access Charge, the Federal Universal Service Fund, and a number of others that vary from state to state (e.g., see Colorado [state.co.us]).

    The money from many of these fees goes directly to the phone company to "enable them" to build networks to outlying areas, improve their infrastructure, etc. These fees are basically taxes and as such we the people have been paying for their expansion.
  • Ummm, no. In short, no. Also, no. :-)

    Seriously, capacity is not some monolithic thing that you "have enough of" or "have too much of". Capacity is from a place to a place across a set of resources. VZ can have plenty of capacity from NY to VA but not enough peering to AS3356 (level3). Or They might have plenty of cross-country capacity until a train derails in Colorado causing a 3-4 day outage of the middle path and congesting some other paths. It all depends and the devel is in the detail.

    Even using generous estimates of multicast efficiencies, video over packet (or IPTV) is going to consume a *lot* of resources. ~20-25Mb/s per channel. Right now, virtually no one has "enough capacity" for that.
  • by 99BottlesOfBeerInMyF ( 813746 ) on Thursday February 02, 2006 @02:43PM (#14628285)

    Let's play devil's advocate. It is their network, why shouldn't they be able to do with it what they want? I mean we hear the I own the software I should be able to do anything I want with it all the time. How is this any different?

    OK, here are a few differences. Does the government grant you a localized monopoly on using the software, enforced by federal agents? Does the government grant you immunity from prosecution for anything you do on behalf of your customers using your software in exchange for you not using your software in the proscribed way? Finally, did the government subsidize the creation of your software and facilitate its construction by seizing land and right of ways via immanent domain?

    If you can answer "yes" to all of these, then I think the government should have a say in how you use your software.

  • by walt-sjc ( 145127 ) on Thursday February 02, 2006 @02:45PM (#14628302)
    The public subsidizes telcos by allowing them to put their wires up all over public and private lands for free. In exchange, they pretty much have a monopoly on local phone service (and DO have a monopoly on the wires.) Yes, it's a free market, but it's also unrealistic to allow 300 providers to all put up their own wires in a community.

    Frankly the solution to this problem is to separate service from physical infrastructure - another anti-trust breakup. Have the local ILEC ONLY provide the wires / buildings and have third party service providers do everything else. True competition. Today, the ILEC's can charge customers less for full DSL service than other DSL providers are charged for the lines alone.
  • Re:They Paid For It (Score:2, Interesting)

    by Soybean47 ( 885009 ) on Thursday February 02, 2006 @03:11PM (#14628548)
    As the parent said, another player with will step in to meet those needs.

    Will they, though? Will they really? The other day, here on Slashdot, some guy was flipping out at me about how terrible Steam was because "bandwidth isn't free" and "what if you use up your bandwidth for the month?"

    So, this is someone in a country developed enough that he can get modern video games, and yet the best internet service he can find has both a monthly bandwidth limit and charges by usage. I find it difficult to believe that consumers are so happy with this arrangement that there's no point in someone setting up a competing service. So your magical free market is breaking down somewhere in there.

    It's working out ok where I live. The cable guys and the phone company (ADSL) compete with each other enough that you can get pretty high-speed unlimited-use internet for a decent price. It sounds to me, though, like there are other places (presumably still with a "Free Market") where nobody is stepping in to provide the services people are looking for.
  • If, for example, consumers find they can use Verizon's VOD well but not Google's; yet Google has the better product, consumers may well opt to get their network service from the Cable Company instead.

    The real issue is if Verizon is required to provide equal access to the local POP or not. This is a regulation issue -- is owning the copper to the home a monopoly?
  • by TubeSteak ( 669689 ) on Thursday February 02, 2006 @03:32PM (#14628781) Journal
    I'm not sure how you got modded insightful, as nobody is being sued.

    Suing would be a stupid thing for Verizon's competitors to do.

    They're taking the smarter path and trying to get the Senate to lay the smack down on Verizon.


    Since you read TFA, show me where it says anything about a lawsuit.

    Your comment got modded up by the standard "OMG TeH L4w5u1t5 aRe t3h 3viL" crowd.
    You = Offtopic

  • by techno-vampire ( 666512 ) on Thursday February 02, 2006 @04:45PM (#14629481) Homepage
    Nice line. However, I do live in LA, not in the woods, and they have my street address - that's more than enough info to figure out distance to the CO.

    You'd think so, and most often you'd be right. I did tech support for an ISP for a number of years, including DSL issues. I remember one case where a customer was right next door to the CO, but was too far away because he was at the wrong end of the loop. That's right, the loop went out and came back making him the last customer on the circuit. Don't know how it turned out, but I hope the telco was nice enough to run him a special line!

  • by netwiz ( 33291 ) on Thursday February 02, 2006 @04:54PM (#14629585) Homepage
    Exactly. On top of that, the FiOS product is far more advanced that the users here seem to realize. It uses a Corning high-performance DWDM fiber that, to the home, supports 10Gbit. It gets muxed back at the central office into a DWDM optical switch, where the individual services are separated out, voice, video, and data. So all the way around, Verizon's providing a truly superior product. On point of the article, it's Verizon's network, and IMO, it's their call as to what they do. They're within the law, as far as the 1996 Telecom act states.
  • "Their" pipe? (Score:4, Interesting)

    by ratboy666 ( 104074 ) <<moc.liamtoh> <ta> <legiew_derf>> on Thursday February 02, 2006 @05:13PM (#14629787) Journal
    Of course it's "their" pipe. Under "my" land.

    Let's see if we can apply some property rights here...

    Verizon (or ANYONE) is not entitled, authorized, or any such thing to dig in MY property. Whether to lay copper, fibre, or dead bodies.

    The GOVERNMENT gives the right to do so. But there are some rules. Rules that I (we) impose. If the government has allowed such action (more accurately, has FORCED it), we am entitled to some benefit:

    Specifically, access to the property or service at reasonable rates, with reasonable sharing.

    Of course "reasonable rates" are debatable; as is "reasonable sharing".

    It's not "their" pipe -- it's "our" pipe.

    When cable was rolled out, it was rolled out on the understanding that cable TV was to be provided. Was an alternate TV network contemplated when the fibre was rolled out? If it was, then ok; if not, we need a PUBLIC debate.

    Nothing against Verizon (or any other public utility), but that IS the rule. And if anyone gives me a hard time about, I'll backhoe my property. Sue me already.

    As a final observation: Let's get into this century, already. I don't see the sewage removal provider making a play for Gas delivery. I don't see the Gas provider (delivery only) making a play for water delivery. They kind of stick to their own turf.

    But the "data" services are coallescing. Voice, TV, Internet -- its all data. Reasonably, we expect that NEW pipes would treat it the same. If you close your eyes really tight, and pull back 20 years, then, yeah, its different. Which gave rise to "Cable TV" as separate from "Phone".

    Now I expect a single bundle of fibre to a home and I expect it to carry ALL the data equally. A separate "bandwidth" supplier distinct from purposing.

    As an example: if you have a home heated by a Gas furnace, and a Gas BBQ, and a Gas stove, would you really expect two or three different bills? Of course not, a single bill each month suffices.

    I want a single "data" bill every month, that combines "TV", "Phone", "Internet", "VOD" carrier fees. I may have a separate accounting for "VOD movies", "POTS integration", "HBO access".

    I advocate complete separation of the cost of maintaining the "plumbing" and "delivering" the data from the data itself. The Gas company here (Enbridge) can do, so I expect the fibre suppliers to be able to do it as well.

    Ratboy.
  • by mrchaotica ( 681592 ) on Thursday February 02, 2006 @05:29PM (#14629941)
    Public utilities and common conveniences are VERY different. Try complaining to the Public Utilities Commission that you can't get cable because you're miles out in the boonies. Or how about bitching because your DSL connection has been broken for a month? Now, if your POTS service is gone, the PUC can step in, otherwise they don't care.
    Have you noticed how hard the IRS is pushing online tax filing? Have you noticed that the DMV would like you to renew your license online instead of in person? Have you noticed that some states are experimenting with online voting?

    Alright, fine -- Internet service might not be a public utility right at this moment. However, in a very short time -- maybe 5 years, or 10 at the max -- Internet access is going to be pretty much required to function as a citizen. People who "can't afford it" have no excuse, you know, because of free access at public libraries and/or free city-wide WiFi.

    In five years, which will be more important: Internet service or POTS service? Hell, which is more important now? I say Internet!

    Even if Internet service isn't a public utility, it damn well should be!
    If there's a problem, people will stop using Verzion not because of some mysterious snooty preferential treatment, but because their speed sucks.
    Except that it's not that simple! Between telecom monopolies and content monopolies, some customers may very well be forced to use Verizon. Your solution works very well in a free market, but the particular market under discussion is approximately as far away from a free market as it can possibly get.

    You know, I consider myself to be libertarian, and support the least-interference solution wherever possible. This, however, is an issue of the tragedy of the commons [wikipedia.org] (which, by the way, most Libertarians ought to read [sciencemag.org], since they don't seem to understand the concept). It needs to be protected, and the only effective way to do that is -- unfortunately -- government regulation.

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