So you say that Netflix as a company shouldn't try to get the best deal they can they can when signing with an ISP? Interesting theory...
I don't see him saying that. Not at all.
Any ISP signing a contract with Netflix should realize what a bandwidth hog Netflix is. If that incurs extra costs for the ISP it's THEIR problem.
No argument there. If Netflix buys services from Level 3, then Level 3 is on the hook to provide that service.
But Netflix did not buy service from Comcast. It's the peering that is congested, not the internal Level 3 network.
... the users ISP has oversold their available bandwidth.
Do you not realize what it would cost to provide 100% service to everyone at the same time? It would require a huge investment in capacity that would be underutilized most of the time. The cost of service would skyrocket for no apparent benefit.
This isn't a new concept. There was never one dialtone generator for each subscriber telephone line, there was a set number based on statistical usage patterns. There was never one step-by-step switch for every phone line, there were a fixed number based on statistical use patterns. (And when BBSs/dialup ISPs became so popular it skewed that pattern to more and longer calls consuming switch capacity. That's why telcos tried to get "data line" service as an extra cost feature, so they could pay for the added switching capacity necessary to support the new pattern.)
And sometimes, if you tried to make a long distance call during heavy use (like on Mother's Day) you got a busy signal. Not because Mom was talking to one of your siblings, but because there were no long distance circuits available.
And you think that 100% capacity should be the goal? I'd rather pay less and get some congestion at peak periods, thanks. You see, we're seeing the exact same pattern in ISP service that we saw when BBSs/dialup hit the wireline. Systems designed for expected use patterns are being overloaded because more people are getting more data for longer times. I didn't want to pay a "data line" charge then, I don't want to pay a "my neighbor wants Netflix" fee, either.
It's a fact that the internet provider market in the US lacks competition and is more or less monopolistic or duopolist with hints of cartel agreements.
I keep asking, nobody has given me an answer. What ISP has been granted a monopoly? What two ISPs have been granted a duopoly? If you are unhappy with your cable-wired internet service, what stops you from starting your own ISP and providing better/faster/cheaper service? Hint: it isn't the government.
Yeah, the existing cable companies are evil for agreeing not to compete directly. Unfortunately, you cannot legislate that they must enter a market where they don't want to. You CAN use legal remedies if they have contractually agreed to service an area and they haven't. But if there is an area where there is no service, grab the opportunity for huge profits by creating your own cable company and providing it. Someone would have done that -- if they could make a profit. It isn't the government stopping them, it's simple economics.