[171738] in North American Network Operators' Group
Re: Observations of an Internet Middleman (Level3) (was: RIP Network
daemon@ATHENA.MIT.EDU (Owen DeLong)
Mon May 12 11:01:07 2014
X-Original-To: nanog@nanog.org
From: Owen DeLong <owen@delong.com>
In-Reply-To: <CF9650CC.1B4CD%wesley.george@twcable.com>
Date: Mon, 12 May 2014 07:55:59 -0700
To: "George, Wes" <wesley.george@twcable.com>
Cc: "nanog@nanog.org" <nanog@nanog.org>
Errors-To: nanog-bounces@nanog.org
On May 12, 2014, at 7:41 AM, George, Wes <wesley.george@twcable.com> =
wrote:
>=20
> On 5/12/14, 10:07 AM, "Owen DeLong" <owen@delong.com> wrote:
>=20
>>=20
>> On May 12, 2014, at 6:02 AM, Nick Hilliard <nick@foobar.org> wrote:
>>=20
>>> On 10/05/2014 22:34, Randy Bush wrote:
>>>> imiho think vi hart has it down simply and understandable by a lay
>>>> person. <http://vihart.com/net-neutrality-in-the-us-now-what/>. =
my
>>>> friends in last mile providers disagree. i take that as a good =
sign.
>>>=20
>>> Vi's analogy is wrong on a subtle but important point. In the =
analogy,
>>> the
>>> delivery company needs to get a bunch of new trucks to handle the
>>> delivery
>>> but as the customer is paying for each delivery instances, the =
delivery
>>> company's costs are covered by increased end-user charges.
>>=20
>> Two words nuke your suggestion here: Amazon Prime
>=20
> Amazon Prime isn=92t a flat-rate delivery service for the delivery =
company,
> else it=92d be called FedUPS Prime. It=92s a flat rate shipping =
subscription
> for *Amazon*, and is likely a loss leader to ensure better stickiness =
of
> Amazon=92s potential customers. They may have a great deal of =
negotiating
> leverage on their delivery partners to reduce their shipping costs, =
and
> the sheer volume of Amazon warehouses mean that they can take =
advantage of
> proximity to reduce costs further (like a CDN), but I haven=92t seen
> anything implying that they=92ve been successful in negotiating a =
contract
> that is insensitive to the *amount* of items being shipped.
>=20
Who cares? It=92s insensitive from the end-customer perspective. Same as
what I pay to Comcast is insensitive to my usage. Amazon hasn=92t =
negotiated
insensitive pricing with their shipping companies, just as Comcast =
hasn=92t
negotiated insensitive pricing for infrastructure upgrades.
Seems to me that the analogy holds.
Owen
