...improved for everyone but users, ISP subscribers, web site proprietors and other normal people not affiliated with the investor classes.
After that Cassandra-like piece I did the other day on the coming
death of the Internet, I had a bunch of email wondering how or even if our overlords could in fact shut the whole thing down. Although I'm nowhere near being an Internet architect or expert technician, I do have friends who are and who have told me a little about this stuff. So I replied with what little I know.
Shutting the Internet down is technically unlikely because the Internet was originally designed with multiple redundancies (no single points of failure). Even the "backbone" is highly redundant, so if you were to cripple the "superhighway," another would take its place with little or no perceptible delay. And the traffic itself, using IP headers and router tables for navigation, can be steered onto alternative data paths (virtual circuits) on the fly. There's no main router or choke point I know of that, if disabled, would shut the whole thing down, although various denial of service attacks, worms and other disruptions have slowed it down considerably in the recent past.
However, I think the real threat lies in imposing financial barriers like exorbitant user fees, long distance tolls, higher ISP pop account rate structures and web site hosting charges, surtaxes for heavy users and multi-tiered quality of service levels with a rate structure that relegates the poor to dial-up speeds -- all those tactics would definitely have a chilling effect on who gets to use it, for how long, at what speed and from where.
So today, proving that little minds think alike, Time Warner's internet marketing geniuses announced that they were going to try to pry more money out of their subscribers by going to a usage-based billing structure. I.e., the more time you spend online, the more you pay per month.
Never mind that this seems to violate a basic rule of business by penalizing rather than rewarding their best customers. Nor does it make much marketing sense, given that they probably aren't going to attract many new customers by alienating their current ones. But, since Time Warner owns AOL and an assortment of AOL off-shoots, it's one of the top five Internet access providers in the country. And that means they pretty much get to do what they want. So here's the trial balloon:
Time Warner to test Internet billing based on usage
NEW YORK (Reuters) - Time Warner Cable Inc said on Wednesday it is planning a trial to bill high-speed Internet subscribers based on their amount of usage rather than a flat fee, the standard industry practice.
The second largest U.S. cable operator said it will test consumption-based billing with subscribers in Beaumont, Texas later this year as a part of a strategy to help reduce congestion of its network by a minority of consumers who pay the same monthly fee as light users.
The company believes the billing system will impact only heavy users, who account for around 5 percent of all customers but typically use more than half of the total network bandwidth, according to a company spokesman.
Slowing network congestion due to downloading of large media files such as video is a growing problem for Time Warner Cable. The company said the problem will worsen as video downloading becomes more popular.
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So instead of building out their web server farm and raising overall available computing power, they're going to keep service levels the same and just soak their best customers. Excellent. But there are some bumps on the road to billing nirvana...
But the move could prove controversial. Unlike with utility bills such as the phone or electricity, which have traditionally been based on usage, U.S. high-speed Internet subscribers have come to expect a fixed monthly charge. An Internet bill typically only varies based on the speed of the consumer's Internet access.
Time Warner Cable, which has 7.4 million residential Internet subscribers, is hoping the move will not confuse consumers if introduced nationwide and is planning a trial period.
"Largely, people won't notice the difference," said the Time Warner Cable spokesman. "We don't want customers to feel they're getting less for more." News of Time Warner Cable's plans was originally leaked on an online industry forum BroadbandReports.com.
<snip>
Even though that's exactly what they're getting.
And this may prove contagious...
Other cable operators may follow Time Warner Cable's lead and phone companies such as Verizon Communications Inc and AT&T Inc are likely to be watching the New York-based cable operator's plans.
As U.S. consumers have become more used to streaming and downloading digital media over the Web, their Internet service providers have started to come under pressure to be able to keep up with growing demand in a cost-effective manner.
Comcast Corp, the largest cable operator with around 13 million Internet subscribers, has been accused by consumer groups of blocking Web traffic moving across its networks, prompting a notice of inquiry by the Federal Communications Commission earlier this week.
Comcast denies it blocks any Internet traffic saying it uses bandwidth management technology to help improve the customer experience but which may slow down some file transfers.
This would be in sharp contrast to a friend's experiences, in which Comcast emailed her and told her that they were blocking a certain percentage of traffic to and from her site because she's a bandwidth hog. Well, not those words exactly, but...
I don't know who you scream at these days -- the FCC is corrupt, congress is useless, the larger ISPs like Time Warner are non-responsive... I suppose you could go the window, open it up and yell "I'm mad as hell...."
Ach... It's been done.
wp