[173648] in North American Network Operators' Group
Re: Netflix To Cogent To World
daemon@ATHENA.MIT.EDU (Mark Tinka)
Wed Jul 30 08:34:25 2014
X-Original-To: nanog@nanog.org
From: Mark Tinka <mark.tinka@seacom.mu>
To: Brandon Butterworth <brandon@rd.bbc.co.uk>
Date: Wed, 30 Jul 2014 14:34:09 +0200
In-Reply-To: <201407301050.LAA15754@sunf10.rd.bbc.co.uk>
Cc: nanog@nanog.org
Reply-To: mark.tinka@seacom.mu
Errors-To: nanog-bounces@nanog.org
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On Wednesday, July 30, 2014 12:50:17 PM Brandon Butterworth=20
wrote:
> Internet should be utility, many providing it don't wnat
> to be a utility and so try doing other services usually
> best left to specialists
When we did FTTH at $previous_employer, it really was the=20
first time an operator (albeit a competitive) was bundling=20
voice, video and data on an end-to-end fibre connection to=20
the home (even the incumbent's solution was FTTB, and then=20
copper (Ethernet or VDSL) to the home.
To make the service more utilitarian, we didn't do the=20
selling or marketing. We left it to our partner (the Tv=20
network, primarily a satellite Tv provider) to sell it,=20
brand it their own, e.t.c. We were happy with just a=20
"Powered By" at the bottom of their web site or sales=20
material.
Made sense, since they had the customer base, market=20
visibility, back-end after-sales support and cash in the=20
bank to do so.
Their bundling made sense to customers:
- Tv channels were packaged based on customer
demographics.
- Voice plans were simple.
- Internet access was either 6Mbps, 12Mbps or
24Mbps, with an option to "boost" ("boost" is
easier for Joe Blog to understand than "burst") to
50Mbps via a web tool the customer can use at
their discretion.
- Multi-screen view options inside the home.
- How many simultaneous live streams can you view
while you record others.
And that was it.
As a provider, we ensured that there was sufficient capacity=20
delivered to each home to make the above possible. In this=20
case, it was 100Mbps (GPON), but could have also been 1Gbps=20
(Active-E).
We realized that customers didn't care how much bandwidth=20
was required to watch their favorite channel in HD. They=20
just wanted to watch their favorite channel in HD. How it=20
all works is not their problem, and they don't want to know=20
or care to be impressed by the details.
What would drive network expansion would be what services=20
customers wanted. If customers suddenly wanted 100% of their=20
channels in HD, at 1080p, they would ask for and pay for=20
that. If it means delivering 1Gbps to every home to do that,=20
so be it; it was never going to become the customer's=20
problem.=20
They just want what they want, and more often than not, they=20
don't want bandwidth (which is what ISP's typically know how=20
to sell) - they just don't want video/audio buffering.=20
Sounds like the same thing, but from a customer's point of=20
view, it's not the same thing.
If, as service providers, we can get ourselves to that point=20
(either at a corporate level or with external help from=20
policy and legislation), Internet will, thus, have become a=20
utility.
Your guess is as good as mine if that will ever happen. And=20
given that content owners are the ones "who appear" most=20
interested in the customer experience, 21st century=20
traditional ISP's need to watch their backs.
Mark.
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