Verizon Public Policy on Netflix
marka at isc.org
Mon Jul 14 07:23:17 UTC 2014
In message <alpine.DEB.2.02.1407140734410.7929 at uplift.swm.pp.se>, Mikael Abraha
> On Sun, 13 Jul 2014, Brett Glass wrote:
> > My customers do not want me to "creatively" find ways to extract
> > additional money from them so as to cover expenses that Netflix should
> > be covering. Nor do they want me to subsidize Netflix subscribers from
> > the fees from non-Netflix subscribers. They want to pay a fair price for
> > their Internet that does not include paying ransom to third parties.
> The Netflix users either have to pay to you, or they have to pay to
> Netflix. Now, if you're paying $20 per megabit/s/month then you and your
> users are victims of lack of competition in your area.
> In properly developed places in the world with working competition,
> bandwidth prices are around $0.5-5/megabit/s/month. With those levels, you
> would have much less problem covering the cost of transit and your
> customers could use the service as much as they want because on margin,
> producing more bandwidth doesn't cost too much. At $20, I can understand
> that you're hurting. However, you paying $20 isn't Netflix problem. I
> don't see how Netflix could be re-imbursing you for your bandwidth costs,
> because it's not their fault either.
> So, the real problem you should spend your energy on is why are you paying
> so much for bandwidth, not going after Netflix.
> Since this is probably not something you can fix short term, I see no
> other option than to externalise your high margin cost to customers by
> imposing a monthly cap on usage and charging more for the people using the
> service more. You need to make sure your reveue model matches your
> expenditure model.
And in some parts of the world bandwidth caps are the norm even for
terrestial lines. My DOCIS home line has a 120G (down + up on this
plan) limit then it is rate limited for the rest of the month. I
don't hit the 120G limit though I regularly go over 60G. If I need
more bandwidth I would go up to the next tier. This gives me a
fixed price as well as well defined service expectations.
> Mikael Abrahamsson email: swmike at swm.pp.se
Mark Andrews, ISC
1 Seymour St., Dundas Valley, NSW 2117, Australia
PHONE: +61 2 9871 4742 INTERNET: marka at isc.org
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