Comcast refused to upgrade their peering connections to the networks used by Netflix (Level3 I believe was one of them?) to extort money from them. Netflix doesn't get service from Comcast, yet Comcast decided it could charge them to get access to their customers.
The internet is built upon no-fee exchanges between Tier 1 providers, but since Comcast (and some others like CenturyLink, Verizon, AT&T) is both a consumer ISP AND a major transit provider they try to make arguments like "you're sending us more traffic than we send you, this isn't fair" even though their customers are the ones requesting the data. It's total bullshit, and they will milk this for everything it's worth.
Net Neutrality doesn't prevent peering disputes.
You're right NN doesn't necessarily solve peering disputes, but one could argue extortion like this falls right in line with it (under a proper regulatory framework crap like this wouldn't fly, "no we aren't throttling netflix, we're in a peering dispute" would be seen through by the courts pretty quickly when documentation of them demanding money from netflix is submitted).
Netflix is what... 37% of Internet traffic? They aren't sending anything to Comcast other than Comcast traffic, guaranteed. Same with Verizon, AT&T, Cox, etc.
Also, Comcast's backbone isn't large enough for someone like Netflix to inefficiently deliver data. Netflix is delivering the data locally, not using Comcast's national backbone.
So sure... Comcast might offer "Tier 1" internet services, but they don't have enough connectivity to other ISPs to matter to major CDNs.
Why?
Because the other major eyeball networks in the US employ the same tactics as Comcast! They all want to force major CDNs to connect directly, for different reasons. Some ISPs do it to avoid paying "tier 1" internet providers, allowing CDNs to peer settlement free. Others do it to extort CDNs.
Google and Netflix wanted to implement rules prohibiting a perfectly normal transaction in business because it would cost them money, and framed it as the public good. I'm entirely okay with the two giants having to pay more, it provides Google and Netflix's competitors additional room to breathe and innovate.
I don't think this is always true, is it? The price of a phone call isn't contingent on the contents of the call. Regarding the internet, though, I'd feel better if there was any guarantee at all that these "negotiations" would be on a level playing field. If you're a startup that wants to complete with some Comcast streaming service, the Comcast ISP side of things can kill you day one. There's no negotiation possible when one party has all the power. Maybe that's the system working as intended, but if that's the case, then the system creeps me out.
You're right Google and Netflix et al will cut a deal with the major US ISPs to get their traffic delivered, they have the money to do so.
But innovation... the next up and coming netflix (or any other data heavy service) isn't going to have a good time. Start-ups can't afford to pay for the same as rich incumbants, so they have no chance.
Why would a US ISP agree to carry a data heavy service without recompense now, when they can charge incumbants with deep pockets for the same bandwidth.
This seems very likely to hurt innovation , not help it.
In reality Netflix might offer to pay a little more to comcast if comcast is willing to up the costs on their competitors, or other such arrangement. The problem with removing NN is that we're inviting oli/monolopy forming to occur, which the free market cannot deal with.
Anticompetitive behavior is a problem that exists well beyond just telecoms, and getting back into trustbusting would do wonders across the board for consumers.
Google, one of net neutrality's principal backers, obviously is not fond of this approach.
Obviously you pay for what you use. but say a start-up starts blowing up and in the way of things isn't making money yet (as many early stage start-ups don't)
If their niche happens to be a bandwidth heavy one the ISPs can and probably will start levying charges on them as they grow, which the start-up will be in a poor position to pay.
and that doesn't even touch on the possibly anti-competitive aspect.
Say an ISP has a competing service, do you really think they won't try to throttle start-ups in that area using bandwidth charging? Given that US ISPs already have a record of doing exactly that.
And it doesn't have to touch on the anti-competitive aspect: The FCC is not an antitrust regulator. The FTC is. And revoking Title II places ISPs back under the FTC's purview. Anticompetitive behavior should be addressed by the agency charged with ensuring competition.
I pay Comcast for 1 TB/month. Why should Comcast be allowed to say that I cannot use some of my 1 TB/month on Netflix and Google unless Netflix and Google (who are NOT customers of Comcast) pay Comcast?
I'm not saying Comcast should hold other video services for ransom; I'm just pointing out an oddity of the argument you're using.
If it actually does cost them more, then shouldn't they be trying to bill their own customers for what it costs? (I don't believe Pai for a second when his document claims that ISPs cannot figure out how to bill users for bandwidth).
What will they do if Netflix tells its customers on Comcast that their bill is going up unless they switch to accessing Netflix via a VPN? Will Comcast then start blocking VPNs? So then I cannot work at home? (My office went 100% work from home a couple months ago, so that would be very irksome).
Finding alternate revenue streams is fine...but I don't see why they should be allowed to stop me from using the service they sold me in order to try to convince some entity, which they have no relationship with other than that they and that entity have mutual customers, to pay them something.
I'm fine with it if my ISP wants to find alternative revenue by establishing some kind of relationship with outside sites and selling them something, just as long as the ISP continues to provide the service they sold me, on the terms they sold it to me.
For example, something like AT&T's "sponsored data" is fine. That lets sites pay AT&T to not count data AT&T users exchange with those sites against those user's AT&T plan data limits.
That's fine because AT&T's customers get the service they paid for. If a site buys "sponsored data" some AT&T customers get more than they paid for. If a site does not buy "sponsored data", those AT&T users that use the site still get what they paid for.
The EFF and other leading net neutrality proponents would probably disagree with me on "sponsored data". This is the kind of thing I was thinking of in another comment when I talked about trying to shove things into net neutrality that do not belong there. Yes, "sponsored data" favors bigger, established content providers, so could harm competition. We've got antitrust law to deal with that.
When an ISP charges a service provider to get access to their customers, they are leveraging their monopoly on those customers to extract rents from other service providers. What is the social value of this behavior?
The main problem with this line of argument is that is can be applied to anything an ISP does, because there is of course no functioning market for last-mile connectivity in most areas. A real fix would be unbundling or something else that split allowed there to be a functioning market over shared infrastructure. That doesn't mean we can't stop them from rent-seeking from other firms in the "short" term. Doing so is in line with Republicans' claimed pro-business stance.
And while Google is much less public about their special peering agreements and CDN setups, Netflix is pretty public, so let's talk about Netflix Open Connect. Netflix Open Connect boxes are hosted "at no charge to the ISP" at various ISPs, as if it's a charitable offering. https://openconnect.netflix.com/en/
But essentially, Open Connect boxes are colocated. If anyone but Netflix were to ask for free colocation, they'd get laughed right out of the room. A startup trying to compete with Netflix could never get what Netflix gets for free. Net neutrality effectively removes Comcast's negotiating power to demand Netflix pays for the service, because things like throttling their peering traffic isn't allowed. The irony is, in this instance, net neutrality is actually granting Netflix an exclusive advantage (by the nature of their size and customer demand for them) that smaller players can't hope to match.
Once again, net neutrality regulations help big monopolies and hurt smaller players.
This also ignores the fact that consumers have paid the ISP for general internet access, no where did it stipulate some services you want to access should pay extra for us to carry their data to you.
Sure. But it was an attainable solution, which is much better than no solution at all. It's not like Pai is going to find some other way to protect NN.
(Not that I would necessarily like to see the horse-cum-camel design-by-committee solution these grifters would negotiate their way too...)
The fact that the FCC had to suspend most regulations under Title II sort of proves it.
You are exhibiting a knee-jerk reaction to the fact that there are (god forbid!) dissenting views from your own.
Theres a lot of reports and other tasks that the ISP would have to do, but was put of 2 to 3 years since 2015.
Do you have a compelling reason why? Tittle II worked fantastically for phone calls. I see zero reason why it wouldn't work for internet as well.
If I get a report from my ISP outlining how they throttled me, how am I supposed to act on that information?
I would rather see the FTC address EULAs. If a company says, "we may from time-to-time limit your bandwidth" I think they should be on the hook to produce a report every month when and why they limited you. This is not much different than the report you get from your investments, or your cell phone carrier report when you place a call or send a text message.