Up Front: Should broadband providers offer customers tiered service?

By Angela Gunn and the Betanews Staff | Published June 18, 2009, 9:00 AM

What's Now | What's Next main bannerEric Massa, a freshman congressman from New York's 29th District, introduced a bill yesterday that would keep ISPs -- including those providing mobile service -- from abruptly changing usage rules on accounts or slapping undocumented "we know it when we see it" overage caps on so-called "unlimited" accounts. The Broadband Internet Fairness Act (HR 2902) would require most large ISPs to submit plans to the FTC and undergo hearings if they wishes to institute metering-based plans.

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House of Reps examines usage-based caps

Morning of June 17, 2009 • A first draft of Rep. Massa's bill (PDF available here) would stipulate, in long and explicit language, that any broadband service provider wishing to offer service tiers to consumers must provide explanation to the Federal Trade Commission first as to how it breaks down the need for such tiers. The FTC, then consulting with the FCC, would then decide whether that breakdown is valid.

The bill would not ban service tiering -- such a move might be viewed as too much government regulation, you see. But you can't have too much government bureaucracy, thus the need for an expensive analysis on a per-case basis...which cable providers probably would find taxing on their calendars, at least, resulting in a kind of de facto ban on tiering.

"Cable providers want to stifle the Internet so they can rake in advertiser dollars by keeping consumers from watching video on the Internet," Rep. Massa stated yesterday. "But so long as Americans can't choose which cable channels they want to pay for, I don't think cable operators should be able to determine consumers' monthly Internet usage. Additionally, charging based on a bandwidth usage is a flawed model when the cost of usage is totally out of line with the price. Consumers are much better served by plans based on the speed of the connection rather than amount of bandwidth used. Competition is crucial to our economy and I refuse to let monopolistic corporations dominate the market and gouge my constituents."

Voicing its opposition to the bill is the American Cable Association, naturally, whose member CATV providers happen to provide the most cable modems. ACA's argument, voiced by its president and CEO Matthew Polka, is that the bill would preclude its members from being able to offer competitive pricing options to its customers.

"Consumption-based billing plans will give consumers the ultimate control over how much they spend each month for their Internet access," reads Polka's statement. "Rep. Massa's bill would have a chilling effect on broadband operators offering these types of consumer-friendly options. During his Senate confirmation Tuesday, Federal Communications Commission member Robert McDowell noted that Americans today are watching a staggering 17 billion online videos each month, a use of the Internet that he said is growing at 16% per month. With these increases coming, Internet usage payment models will allow broadband providers to better manage their networks by imposing higher costs on the heaviest users who often are the ones responsible for slowing speeds for all users on the Internet.

Today, John Timmer at Ars Technica explains why Massa, whose district covers an area in western New York including Rochester, is in a prime location to be "exquisitely sensitive to the US broadband market."

Microsoft's got a Bing thing going

Afternoon of June 17, 2009 • The claims that Microsoft's new search has Google running scared seem painfully overblown (and really, a little paranoia -- the fiber in a corporate culture's diet -- couldn't hurt the search giant), as PaidContent's Joseph Tartakoff points out. But comScore's got numbers for the second week since Bing's launch, and the numbers are certainly interesting, with Microsoft's share of search results up 3% in the past 14 days.

Wired allows how a gain like that isn't likely to be giving Sergey Brin nightmares, but that the gains are "nice improvements for Microsoft's perpetually sub-10 percent share, third-place search engine." (We do not speak of Carol Bartz's nightmares, as the Yahoo CEO is presumably made of sterner stuff; it's possible in fact that nightmares have Carol Bartz.) Mashable pokes at the numbers and notices that though the number of searchers is up, the number of queries per user is down. Passing fad or better results? Time will tell.

Broadband popularity is up -- and so is its price

June 17, 2009 • The Pew Internet and American Life Project continues to compile longitudinal data about how we live with the Net, and their latest study indicates that we love our broadband -- so much so that we're tolerating stiff price increases. Broadband adoption is up 15% over last year, and up $4.50 (about 13%) in price as well.

The Associated Press cast its coverage around the accelerated adoption by traditionally slow adopters (elderly people, poorer households), and noted that people pay less for broadband where there's competition (surprise). EWeek noted that respondents said they'd be more likely to cut back on cable or cell phone (!) plans than to give up broadband. And the wonderfully named Daily Yonder (motto: "Keep it rural") really dug into the numbers, looking at the correlations between their demographic and what the numbers tell us.

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RIM earnings report

June 18, 2009 5:00 pm EDT > Analysts expect the handset manufacturer to report earnings per share of around 94 cents for Q1 2010.

So long, Centrino (sort of)

Q1 2010 > Confused by Intel's convoluted product lines? You're not the only one, and in a blog post on Wednesday, Intel's Bill Calder explains how the company means to simplify that. The "hero" Core brand is the core, with high-, mid- and entry-level chips called the i7, i5 and i3 respectively; below the Core line is Pentium (still officially a brand, representing all those old pre-sub-micron processors still in inventory), Celeron is below that, and then there's the Atom line for netbooks and such. And leaving the pack altogether is Centrino, off PCs and onto Wi-Fi and WiMax products starting next year.

Our Scott Fulton takes a nostalgic look at Centrino this morning, while dutifully noting that there's some shrewd anti-AMD reasoning behind the brand change, too. Also, Xbit Laboratories does a nice job of breaking it down to bullet points, and AnandTech breaks it down to cores, threads, and nanometers.

AFTER THE JUMP: Thursday's tech headlines...

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Comments

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Regarding bandwidth usage tiers, I have several problems with this. I agree with the others that requiring providers to present their proposals sounds like overkill. I would rather see Congress encouraging more ISP start-ups to encourage competition. Many outlying suburbs of larger metropolitan areas are forced to choose between one cable provider and one DSL provider. With no competition, those providers use every opportunity to take advantage of their customers.

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Dial-up and satellite are very likely providing in your area as well. This brings the grand total to at *least* 4. Sure, you may dismiss all but two out of hand, but that's your choice, not you being *forced*.

"those providers use every opportunity to take advantage of their customers."

Those customer that always seem more than willing to pay? That's called pricing your product so as not to leave profit sitting on the table. It's a very tight balancing act between that and losing money by charging *more* than the majority of customers are willing to pay. Chances are, given 12 DSL/cable providers, *all* of their pricing would be "high" (by your estimation) as the bar has already been set. The market has already determined the min/max on this service.

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They already offer tiered services, just not
by total bits DL'd.
Even Clearwire (which I still consider a
startup) offers two tiers--1.5mbits/sec and
2.0mbps
If the ISPs want to switch to selling byte
DL'd they need to upgrade everyone to their
networks best speed and explicitly state how
much you've DL'd, and how much you have
left before your next billing date of xx/yy/zzz.

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Why can't they have it both ways?

1.5mbps, 6mbps, 20mbps and 50mbps all @ 30, 50, 150 and unlimited?

Sure, the pricing would be a nightmare and probably cause aneurysms among those to whom 6 OS versions is confusing, but their pricing has very rarely been known to be intelligent or remotely understandable...why should that change? ;)

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to: PC_Tool Jun 20, 2009 - 2:40 PM

Six OS vers? Humph! I'll have you know
I'm not the least confused about my
favorite OS ver being Firefox! Why, I'm
even just about ready to think that the
about:config setting 'network.prefetch-
next' default of 'true' is good.

When I said about what the ISPs would
need to do maybe I meant "in my dreams."

Aneurysm time plus customer service. I
can imagine it:
"[Dude, like I signed up for the 150
megabit per month Supra Ultimate 768
plan because I only YouTube a couple
hours a day and like 150 million is like?
_Lots!_ and the networking tab in Task
Manager says I'm only getting half a
percent of that and the tech guy at the
help number said this is because I'm
away and I'm like _telling_ him I'm at
home and he keeps babbling about how my
being at home means I'm away and like
OMGod I'm _so_ going to call my brother
Sue who's a lawyer and boy, does he say
Sue's just a nickname!]"

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*laughing*

Wow. That was a hard one to follow. ;)

Oh, and I think that lawyer may be taking you for a ride. *grin* Mine's Fred, and *she* says they all are...except her, of course.

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re to PC_Tool Jun 23, 2009 - 9:37 AM
>Wow. That was a hard one to follow. ;)

Thank you. I was trying. :-p

Edit: And about the Ravenous Bugblatter
Beast of Traal.
An editor of the Guide made a mistake:
That entry should have said said to put the
towel over the _beasts_ head for about the
same reason.
This is mentioned in one of the later books
in the series, along with that the error has
caused some people slight problems.

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*chirp chirp* *chirp chirp*

;)

Couldn't resist the temptation, Angela. :p

Let me do what I can to fix that for ya. (dons flameproof suit)

FWIW: Any government involvement on this issue will be a bad thing and only *slow* growth. The ISP's provide a service and while I agree that it should properly and explicitly detail such caps and throttling, if they *do* choose to artificially limit their usefulness....it's *their* business, *their* service....and *their* unhappy customers (until another company swoops in and scoops them all up.)

Now, I know a few of you just stopped reading and have already hit "reply" to rant about your lack of options and how they've "monopolized" access to the internet. In hopes that after posting your rant, you might cool down and become capable of rational thought again, I'll cover my responses below:

1.) Google the definition of monopoly for your specific country. I guarantee no ISP falls into that category. Now, if you can prove collusion, well....let's see some evidence.

2.) Dial-up and Satellite are available virtually *anywhere*. Most rural areas include multiple options for both as well as at least one cable and one DSL provider.

3.) Internet access (of any kind) is not a right. It is a service provided by the work of others to which you are not born entitled.

4.) You pay what you are willing to pay. All the whining and moaning abut it means nothing to the business in question if you are still paying it. Don't like it? Stop paying for it. (I should take this advise regarding Google's homepage shenanigans - sans any "paying" taking place, of course asit is a free service)

5.) Public/Emergency services: Radio, Ham radio, TV, and cellular provide countless alternative means of communication. (There was another obvious one on the tip of my fingers but I lost it. Kudos in advance to anyone who can pluck it from them for me)

6.) Job hunting: Free internet access at your local library as well as a virtually unlimited amount of hotspots in any remotely urban area

That pretty much cover it?

Okay, you may now commence calling me a corporate shill, apologist, and "libertopian". ...and hey, if you few non-drooling posters actually have something *intelligent* to add, I just might take you up on it.

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"sugar", sirens comes to mine but that would be too obvious.:)Note to Bn and this is just a suggestion- On this section it might be helpful to specify who contributed what to the piece so that one knows how to direct comments. just a suggestion.

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