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RE: The FCC is planning new net neutrality rules. And they could

daemon@ATHENA.MIT.EDU (Hugo Slabbert)
Sun Apr 27 23:54:05 2014

X-Original-To: nanog@nanog.org
From: Hugo Slabbert <hslabbert@stargate.ca>
To: "nanog@nanog.org" <nanog@nanog.org>
Date: Mon, 28 Apr 2014 03:52:19 +0000
In-Reply-To: <CAObxEFDCDGoMMnjoALsg7Jcev5UccstTVMvfiwWt=KtGQkR4-g@mail.gmail.com>
Errors-To: nanog-bounces@nanog.org

Apologies that I dropped offlist as I was out for the day.  I think the bul=
k of my thoughts on this have already been covered by others since, includi=
ng e.g. Matt's poor grandmother and her phone dilemma in the "What Net Neut=
rality should and should not cover" thread.

Basically I think we're on the same page for the most part, with maybe some=
 misunderstandings between us.

> I covered this scenario in more detail in my post "What Net Neutrality sh=
ould and should not cover" but if you expand on the assumption that paying =
for an internet connection also pays for the direct connection of every par=
ty who you exchange traffic with then you have a scenario where only half t=
he people connected to the Internet should have to pay at all for their con=
nection because any scenario where people simply buy their own pipe would b=
e considered "double billing".

I don't think anyone on the Netflix^H^H^H^H^H^H $ContentProvider side of th=
is was saying that $ContentProvider should get everything handed to them on=
 a silver platter.  $ContentProvider pays for transit sufficient to handle =
the traffic that their customers request.  $EyeballNetwork's customers pay =
it for internet access, i.e. to deliver the content that they request, e.g.=
 from $ContentProvider.  That covers both directions here.  Links between $=
ContentProvider's transit provider and $EyeballNetwork were getting congest=
ed, and $EyeballNetwork refuses to upgrade capacity.  Where we were getting=
 into the double-dip was $EyeballNetwork saying to $ContentProvide:  "Hey, =
we know you already pay for transit, but you're gonna have to pay us as wel=
l if you want us to actually accept the traffic our customers requested".

The alternate arrangement between $ContentProvider and $EyeballNetwork seem=
s to be private peering, where again it would seem to be fair for each side=
 to bring the needed transport and ports to peering points.  In recent hist=
ory, though, it seems that $EyeballNetwork came out ahead in that agreement=
 somehow.  Now, Tore brought up a good point on paid peering in cases where=
 e.g. $EyeballNetwork is already exchanging traffic with $ContentProvider t=
hrough existing peering or below their CDR on existing transit, and indeed =
it seems that was the case for $EyeballNetwork via peering with $CheapTrans=
itProvider that $ContentProvider was using.  But it seems that $EyeballNetw=
ork was having a pissing match with $CheapTransitProvider and refusing to u=
pgrade ports.

"Okay", says $ContentProvider.  "How about we just peer directly."
"Sounds great," says $EyeballNetwork.  "Since we have to allocate capacity =
for this discrete from our existing peering capacity, you'll need to foot t=
he bill for that."
"Huh?" says $ContentProvider.  "This could have been fixed by you increasin=
g your peering capacity to match the traffic volume your users are requesti=
ng, but you didn't want to do that because of your tiff with $CheapTransitP=
rovider.  Tell me again why we're paying for your side of this *in addition=
* to our own when we're only going this route because of a decision *you* m=
ade?"
"Because you need to reach our customers, and we're the only path to them, =
so we have leverage."
*blank stare*
"So you're willing to give your customers crappy service because your custo=
mers don't have alternate options and you think we need this more than you =
do?"
"That's a possibility."
"I hate you."
"I know; sign here please."

But, again, this is outside looking in.  For now, I'll pick up a copy of Bi=
ll Norton's Internet Peering book as per Bob's suggestion, for some light S=
unday night reading.

Cheers,

--
Hugo

________________________________
From: Rick Astley <jnanog@gmail.com>
Sent: Sunday, April 27, 2014 8:45 AM
To: Hugo Slabbert
Cc: nanog@nanog.org
Subject: Re: The FCC is planning new net neutrality rules. And they could e=
nshrine pay-for-play. - The Washington Post

If it were through a switch at the exchange it would be on each of them to =
individually upgrade their capacity to it but at the capacities they are at=
 it they are beyond what would make sense financially to go over an exchang=
e switch so they would connect directly instead. It's likely more along the=
 lines of needing several 100G ports as Netflix is over 30% of peak usage t=
raffic in North America:

"Netflix (31.6%) holds its ground as the leading downstream application in =
North America and together with YouTube (18.6%) accounts for over 50% of do=
wnstream traffic on fixed networks."  (source https://www.sandvine.com/tren=
ds/global-internet-phenomena/ )

That amount of data is massive scale. I don't see it as double dipping beca=
use each party is buying the pipe they are using. I am buying a 15Mbps pipe=
 to my home but just because we are communicating over the Internet doesn't=
 mean the money I am paying covers the cost of your connection too. You mus=
t still buy your own pipe in the same way Netflix would. I covered this sce=
nario in more detail in my post "What Net Neutrality should and should not =
cover" but if you expand on the assumption that paying for an internet conn=
ection also pays for the direct connection of every party who you exchange =
traffic with then you have a scenario where only half the people connected =
to the Internet should have to pay at all for their connection because any =
scenario where people simply buy their own pipe would be considered "double=
 billing".

The cost for residential broadband is high enough in the US without a polic=
y like that in place. If there is one policy that would keep poor families =
from being able to afford broadband it would be that one.





On Sun, Apr 27, 2014 at 2:58 AM, Hugo Slabbert <hslabbert@stargate.ca<mailt=
o:hslabbert@stargate.ca>> wrote:

> ...but if that point of congestion is the links between Netflix and Comca=
st...

Which, from the outside, does appear to have been the case.

> ...then Netflix would be on the hook to ensure they have enough capacity =
to Comcast to get the data at least gets TO the Comcast network.

Which I don't believe was a problem?  Again, outside looking in, but the ap=
pearances seemed to indicate that Comcast was refusing to upgrade capacity/=
ports, whereas I didn't see anything indicating that Netflix was doing the =
same.  So:
> I have gear; you have gear.  I upgrade or add ports on my side; you upgra=
de or add ports on your side.


> The argument at hand is if Comcast permitted to charge them for the links=
 to get to their network or should they be free/settlement free. I think it=
 should be OK to charge for those links as long as its a fair market rate a=
nd the price doesn't basically amount to extortion.

Are we talking here about transport between Netflix's POPs and Comcast's?  =
I definitely don't expect Comcast to foot the bill for transport between th=
e two, and if Netflix was asking for that I'm with you that would be out of=
 line.  If there are existing exchange points, though, would it not be reas=
onable to expect each side to up their capacity at those points?


> Once that traffic is given directly to comcast no other party receives pa=
yment for delivering it so there is no double billing.

The "double-dip" reference was to charging both the content provider and th=
e ISP's own customer to deliver the same bits.  If the traffic from Netflix=
 was via Netflix's transit provider and Comcast then again was looking to b=
ill Netflix to accept the traffic, we'd hit double billing.

I guess that's the question here:  If additional transport directly been PO=
Ps of the two parties was needed, somebody has to pay for the links.  Relea=
ses around the deal seemed to indicate that the peering was happening at IX=
s (haven't checked this thoroughly), so at that point it would seem reasona=
ble for each party to handle their own capacity to the peering points and c=
all it even.  No?

--
Hugo

________________________________
From: Rick Astley <jnanog@gmail.com<mailto:jnanog@gmail.com>>
Sent: Saturday, April 26, 2014 11:23 PM
To: Hugo Slabbert
Cc: nanog@nanog.org<mailto:nanog@nanog.org>
Subject: Re: The FCC is planning new net neutrality rules. And they could e=
nshrine pay-for-play. - The Washington Post

>How is this *not* Comcast's problem?  If my users are requesting more traf=
fic than I banked on, how is it not my responsibility to ensure I have capa=
city to handle that?  I have gear; you have gear.  I upgrade or add ports o=
n my side; you upgrade or add ports on your side.  Am I missing something?

Sort of yes, it's Comcasts problem to upgrade subscriber lines but if that =
point of congestion is the links between Netflix and Comcast then Netflix w=
ould be on the hook to ensure they have enough capacity to Comcast to get t=
he data at least gets TO the Comcast network. The argument at hand is if Co=
mcast permitted to charge them for the links to get to their network or sho=
uld they be free/settlement free. I think it should be OK to charge for tho=
se links as long as its a fair market rate and the price doesn't basically =
amount to extortion. Sadly the numbers are not public so I couldn't tell yo=
u one way or the other aside from I disagree with the position Netflix seem=
s to be taking that they simply must be free. Once that traffic is given di=
rectly to comcast no other party receives payment for delivering it so ther=
e is no double billing.

This diagram best describes the relationship (ignoring pricing): http://www=
.digitalsociety.org/files/gou/free-and-paid-peering.png

"Content provider" would be Netflix and Comcast would be Broadband ISP 1.




On Sun, Apr 27, 2014 at 1:56 AM, Hugo Slabbert <hslabbert@stargate.ca<mailt=
o:hslabbert@stargate.ca><mailto:hslabbert@stargate.ca<mailto:hslabbert@star=
gate.ca>>> wrote:
Okay, I'm not as seasoned as a big chunk of this list, but please correct m=
e if I'm wrong in finding this article a crock of crap.  With Comcast/Netfl=
ix being in the mix and by association Cogent in the background of that the=
re's obviously room for some heated opinions, but here goes anyway...

>A long, long time ago when the Internet was young and few, if any had thou=
ght
>to make a profit off it, an unofficial system developed among the network
>providers who carried the traffic: You carry my traffic and I'll carry you=
rs
>and we don't need money to change hands. This system has collapsed under
>modern realities.

I wasn't aware that settlement-free peering had "collapsed".  Not saying it=
's the "only way", but "she ain't dead yet".

Seltzer uses that to set up balanced ratios as the secret sauce that makes =
settlement-free peering viable:
"The old system made sense when the amount of traffic each network was send=
ing to the other was roughly equivalent."

...and since Netflix sends Comcast more than it gets, therefor Netflix need=
s to buck up:
"Of course Netflix should pay network providers in order to get the huge am=
ounts of bandwidth they require in order to reach their customers with suff=
icient quality."

But this isn't talking about transit; this is about Comcast as an edge netw=
ork in this context and Netflix as a content provider sending to Comcast us=
ers the traffic that they requested.  Is there really anything more nuanced=
 here than:

1.  Comcast sells connectivity to their end users and sizes their network a=
ccording to an oversubscription ratio they're happy with.  (Nothing wrong h=
ere; oversubscription is a fact of life).
2.  Bandwidth-heavy applications like Netflix enter the market.
3.  Comcast's customers start using these bandwidth-heavy applications and =
suck in more data than Comcast was betting on.
4.  Comcast has to upgrade connectivity, e.g. at peering points with the he=
avy inbound traffic sources, accordingly in order to satisfy their customer=
s' usage.

How is this *not* Comcast's problem?  If my users are requesting more traff=
ic than I banked on, how is it not my responsibility to ensure I have capac=
ity to handle that?  I have gear; you have gear.  I upgrade or add ports on=
 my side; you upgrade or add ports on your side.  Am I missing something?

Overall it seems like a bad (and very public) precedent & shift towards dou=
ble dipping, and the pay-for-play bits in the bastardized "Open Internet" r=
ules don't help on that front.  Now, Comcast is free to leverage their cust=
omers as bargaining chips to try to extract payments, and Randy's line of e=
ncouraging his competitors to do this sort thing seems fitting here.  Basic=
ally this doesn't harm me directly at this point.  Considering the lack of =
broadband options for large parts of the US, though, it seems that end user=
s are getting the short end of the stick without any real recourse while th=
at plays out.

--
Hugo

________________________________________
From: NANOG <nanog-bounces@nanog.org<mailto:nanog-bounces@nanog.org><mailto=
:nanog-bounces@nanog.org<mailto:nanog-bounces@nanog.org>>> on behalf of Lar=
ry Sheldon <LarrySheldon@cox.net<mailto:LarrySheldon@cox.net><mailto:LarryS=
heldon@cox.net<mailto:LarrySheldon@cox.net>>>
Sent: Saturday, April 26, 2014 4:58 PM
To: nanog@nanog.org<mailto:nanog@nanog.org><mailto:nanog@nanog.org<mailto:n=
anog@nanog.org>>
Subject: Re: The FCC is planning new net neutrality rules. And they could e=
nshrine pay-for-play. - The Washington Post

h/t Suresh Ramasubramanian

FCC throws in the towel on net neutrality

http://www.zdnet.com/fcc-throws-in-the-towel-on-net-neutrality-7000028770/

Forward!  On to the next windmill, Sancho!
--
Requiescas in pace o email           Two identifying characteristics
                                         of System Administrators:
Ex turpi causa non oritur actio      Infallibility, and the ability to
                                         learn from their mistakes.
                                           (Adapted from Stephen Pinker)



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