Mar 27 2014

Comcast, Verizon and AT&T plan on killing off Netflix with bandwidth fees


723 Comcast, Verizon and AT&T plan on killing off Netflix with bandwidth fees

Netflix is under siege. I love how the ISPs in the United States are offloading the responsibility of building up and extending their networks to hold and maintain higher bandwidth traffic, while trying to offload the cost of that network expansion to another company— Netflix.

Comcast, Verizon and AT&T all have TV customers, all provide cable service and they all provide video-on-demand service for the customers. They’re pissed off because they can’t provide the level of video-on-demand service that Netflix has; all the time and effort that Netflix took in creating their video-on-demand service.


It’s clear to me that what’s going to happen, if the FCC doesn’t step in and do something about net neutrality, is that the big cable companies/ISPs are going to start offloading all the costs of their network maintenance on to Netflix because Netflix is using so much bandwidth.

This is crap logic because all these companies understand that it’s their responsibility to maintain their networks and to expand them to be able to handle higher network traffic in the future. Not only are they not doing that, but they’re charging your customers a premium for marginal service. Legalized extortion for basic Internet service; with limitations.

The bigger question is, where does this stop?

If the big ISPs of the United States are going to stand together and say that Netflix is responsible for the networks being bogged down with high-bandwidth usage, what’s to say that they don’t go after YouTube? People watch YouTube videos all the time. YouTube uses a time of bandwidth as well.

So, based on their crap logic, the ISPs are going to generate a list of say the top 50 bandwidth users on the Internet, and then they are going to go after those bandwidth users and start charging them because people are accessing the content. Essentially charging these successful media sources a surcharge for being successful, but also going after them because they don’t feel like that they’re responsible for maintaining their own network.

Let’s completely forget about their customer base that’s paying them for bandwidth each and every month at a premium. The article referenced below, indicates that AT&T made roughly hundred and $129 billion in revenue in 2013. I don’t have a problem with income revenue, they have a problem with putting it where it should go. That money should be going back into their own network to make it more robust and future proof, but what they’re doing is taking the money and giving it to the fatcat CEOs.

The problem isn’t that Internet service providers think that Netflix is the reason the networks are bogged down, the problem is Netflix is successful at what they’re doing, the Internet service providers are not and because of the position that there in, they feel justified in being able to charge anyone an additional fee just because.

 

ref: AT&T: Netflix Capacity Fees Paid by Netflix or Customers | BGR.

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