[kictanet] [ISOC_KE] Fwd: Who should Pay for Netflix?

Ngigi Waithaka ngigi at at.co.ke
Mon Mar 24 09:19:46 EAT 2014


I am not very familiar with the infrastructure side of things, but from his
blog post countering Netflix's argument is does make quite some sense.

I guess what the ISPs are saying, we can only afford this much bandwidth,
which to a lot of users is fine, unless, you are watching Netflix movies,
in which case you would need your bandwidth at double or triple the
existing connection speeds.

What the ISPs should do is make those consumers asking for Bandwidth
guarantees to pay extra for those services, and then pass on those costs.
They have always done that, only this time, they are charging the
originator of the content to charge his customers on their behalf.

Easier to manage.

Makes sense.


On Mon, Mar 24, 2014 at 7:37 AM, Ali Hussein <ali at hussein.me.ke> wrote:

> That is a compelling argument which in my humble opinion telcos have
> failed to convince me. In fact I think the argument is now moot as more and
> more telco are entering into the triple play space.
>
> I'm however really curious how this issue will pan out since its a mix of
> regulatory interventions and free market forces. This argument by telcos is
> forcing players like Google and Facebook to enter the infrastructure space.
>
>
> *Ali Hussein*
>
> +254 0770 906375 / 0713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim<http://ke.linkedin.com/in/alihkassim>
>
> Blog: www.alyhussein.com
>
> "I fear the day technology will surpass human interaction. The world will
> have a generation of idiots".  ~ Albert Einstein
>
> Sent from my iPad
>
> On Mar 24, 2014, at 5:42 AM, McTim <dogwallah at gmail.com> wrote:
>
> Hi Mwendwa,
>
> On Sun, Mar 23, 2014 at 10:05 PM, Mwendwa Kivuva
> <Kivuva at transworldafrica.com> wrote:
>
> The answer seems to lie on the text below. As a consumer, I don't see
>
> why I should pay for a service I don't use.
>
>
>
> This is a cleverly crafted, but erroneous argument spun by highly
> profitable telcos who don't want to upgrade their networks to the
> bandwidth levels that we should all enjoy at much lower costs.  Look
> at the places like Singapore or South Korea or even places in the US
> where Google fiber project has rolled out.  ISPs can be profitable at
> much lower price points delivering much higher speeds to consumers.
> They just don't want to do it this way, as they are quite comfortable
> making windfall profits while delivering as little bandwidth as they
> can.
>
>
>
> When Netflix delivered its movies by mail, the cost of delivery was
>
> included in the price their customer paid.  It would've been neither right
>
> nor legal for Netflix to demand a customer's neighbors pay the cost of
>
> delivering his movie.  Yet that's effectively what Mr. Hastings is
>
> demanding here, and in rather self-righteous fashion.  Netflix may now be
>
> using an Internet connection instead of the Postal Service, but the same
>
> principle applies.  If there's a cost of delivering Mr. Hastings's movies
>
> at the quality level he desires - and there is - then it should be borne
>
> by Netflix and recovered in the price of its service.
>
>
> But that answer negates net-neutrality principles : All internet
>
> traffic should be treated equal. It's a tough debate
>
>
> It's pretty simple.  I pay my ISP to deliver packets to me.  i pay
> them for an "all you can eat" service.  If I choose to stream movies
> or the ICANN meeting or music or just email, it makes no difference.
> They still should provide me with the service I pay for, simple
>
>
> --
> Cheers,
>
> McTim
> "A name indicates what we seek. An address indicates where it is. A
> route indicates how we get there."  Jon Postel
>
>
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-- 
*Regards,*

*Wait**haka Ngigi*
Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
T + 254 (0) 20 2333 471 |Office Mobile: +254 786 28 28 28 | M + 254 737 811
000
www.at.co.ke
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