Comcast holds its users for ransom; Bad for Skypers

Phil Wolff 30 November 2010 10:14 pm

many hatted hydraArs Technica has a much better and detailed explanation for what’s going on between Level 3 and Comcast. In short, ISPs move data over the internet in two ways: directly to their destination (termination) and through other networks before they get to their destination (transit). US oligopolist cable company Comcast does both.

Comcast told Level 3 to pay a toll before sending Netflix video streams to Comcast users. This fee wouldn’t be unusual if, say, Level 3 were moving the video files over Comcast’s network to Verizon or BT customers (transit). But Comcast is charging both the home user and then charging again for the data the user is trying to download. They’ve already been paid to move the data.

Comcast is holding customers hostage while interfering with their freedom to use the Internet.

Comcast is abusing its oligopoly power.

This is bad for Skype and its customers. It doesn’t take much imagination to see Comcast charging Skype for voice and video call traffic before it ever gets to a callee.

Perhaps it is time to break up Comcast into separate companies: one each for content creation, traffic termination, Internet transit, and communication. Is it too late to block the Comcast-NBC Universal deal? It takes strength and independence to take on Comcast. Few congressmen have either.

See also:

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30 November 2010 10:14 pm

Category: competition, netneutrality, politics, Skype

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  • http://mrblog.org David B

    And you don’t think Skype would do the same thing if they were holding the position of power / control over Comcast or whoever? They a already do it to interconnect to SIP, the open Internet analog for VoIP.

    • Phil Wolff

      I think if Skype had Comcast’s degree of market power they would be very tempted to exploit that power. That’s how power works.

      Skype is an interesting case because they are very much in the transnational game. As a “second choice” for calling, Skype tries to stay under the regulatory radar. That will last until someone dies because they couldn’t Skype for emergency services or when Skype becomes the de facto choice in a market over the native triple-play providers.

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    Microsoft’s own products, before its launch, many people have doubts about Microsoft Security Essentials of real meaning. But according to the current view, Microsoft’s strategy is successful, the first, Microsoft Security Essentials while failing to meet professional standards, but have reached their position — simple basic antivirus software(network security); Secondly, it is also attracting a means for Microsoft Windows users. Simple functionality, and windows systems supporting the formation of the firewall. Streaking friends than to wear the pants!

  • http://cat-studio-project.com/ kitty cat

    Nice idea, please explain more!

  • drstenso

    I have no idea what you’re talking about. being both a subscriber to comcast and netflix. which I stream online and my bill from comcast hasn’t changed at all. I still pay the same amount as I always have for my high speed internet… where do you get your facts?

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