Category: Law

Ars Technica botches another story

Why is it so hard for the tech press report on the broadband business with some semblance of accuracy? I know some of this stuff is complicated, but if it’s your business to explain technology and business developments to the public, isn’t it reasonable to suppose you’re going to get the facts right most of … Continue reading “Ars Technica botches another story”

Why is it so hard for the tech press report on the broadband business with some semblance of accuracy? I know some of this stuff is complicated, but if it’s your business to explain technology and business developments to the public, isn’t it reasonable to suppose you’re going to get the facts right most of the time?

Case in point is Matthew Lasar at Ars Technica, the hugely popular tech e-zine that was recently purchased by Conde Nast/Wired for $25 million, healthy bucks for a web site. Lasar is a self-appointed FCC watcher who seems to consistently botch the details on targets of FCC action. The most recent example is a story about a clarification to AT&T’s terms of use for its U-Verse triple play service. The update advises customers that they may see a temporary reduction in their Internet download speed if they’re using non-Internet U-Verse television or telephone services that consume a lot of bandwidth. Lasar has no idea what this means, so he turns to Gizmodo and Public Knowledge for explanation, and neither of them gets it either. So he accepts a garbled interpretation of some AT&T speak filtered through Gizmodo’s misinterpretation as the gospel truth of the matter:

Ars contacted AT&T and was told by company spokesperson Brad Mays that the firm has no intention of “squeezing” its U-verse customers. “It’s more a matter of the way data comes into and travels around a home,” Mays said. “There are things (use of PCs, video, etc.) that can impact the throughput speed a customer gets. We are not doing anything to degrade the speed, it’s just a fact of the way data travels.”

The AT&T guy is trying to explain to Lasar that U-Verse TV uses the same cable as U-Verse Internet, but U-Verse TV has first call on the bandwidth. The cable’s bandwidth is roughly 25 Mb/s, and HDTV streams are roughly 8 Mb/s. If somebody in your house is watching two HDTV shows, 16 of that 25 is gone, and Internet can only use the remaining 9, which is a step down from the 10 Mb/s that it can get if you’re running one HDTV stream alongside an SDTV stream.

This isn’t a very complicated issue, and it shouldn’t be so muddled after multiple calls to AT&T if the writers in question were mildly up-to-speed on IPTV.

Lasar botched another recent story on Comcast’s agreement with the Florida Attorney General to make its monthly bandwidth cap explicit as well, claiming that Comcast had adopted the explicit cap in a vain attempt to avoid a fine:

Ars contacted the Florida AG about this issue, and received the following terse reply: “We believe the change pursuant to our concerns was posted during our investigation.” When asked whether this means that when the AG’s probe began, Comcast didn’t post that 250GB figure, we were told that the aforementioned one sentence response explains everything and to have a nice day.

In fact, the cap was part of its agreement with Florida, as the AG’s office explains on its web site:

Under today’s settlement, reached with Comcast’s full cooperation, the company has agreed not to enforce the excessive use policy without prior clear and conspicuous disclosure of the specific amount of bandwidth usage that would be considered in violation of the policy. The new policy will take effect no later than January, 1, 2009.

And everybody who follows the industry knows that. The Comcast cap is also less meaningful than Lasar reports, since Comcast says they’re only going to get tough on customers in excess of the cap who are also in the top 1% of bandwidth consumers, so simply going over 250 GB won’t get you in trouble at the future date in which everyone is doing it.

The tech press in general and Ars Technica in particular needs to upgrade its reporting standards. It’s bad enough when Ars trots out opinion pieces on network neutrality by Nate Anderson thinly disguised as reporting; most sensible readers understand that Anderson is an advocate, and take his “reporting” with the necessary mix of sodium chloride. But Anderson doesn’t consistently get his facts wrong the way Lasar does.

It would be wise for Ars to spend some of the Conde Nast money on some fact-checkers, the better to avoid further embarassment. We understand that Gizmodo is simply a gadget site that can’t be counted on for deep analysis, and that Public Knowledge is a spin machine, but journalists should be held to a higher standard.

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Kevin Martin threatens Comcast

Kevin Martin is upset that Comcast has challenged his authority by filing a lawsuit against the FCC for making up law out of thin air. The Chairman of the FCC expressed his scorn by releasing a statement that makes him sound like one of the dumbest men in America: “Given Comcast’s past failure to disclose … Continue reading “Kevin Martin threatens Comcast”

Kevin Martin is upset that Comcast has challenged his authority by filing a lawsuit against the FCC for making up law out of thin air. The Chairman of the FCC expressed his scorn by releasing a statement that makes him sound like one of the dumbest men in America:

“Given Comcast’s past failure to disclose its network management practices to its customers, it is important Comcast respond to the many still-unanswered questions about its new management techniques,” Martin warned in a statement released this afternoon. Most notably, what exactly does Comcast mean when it says it will have a “protocol agnostic” management system in place by the end of the year?

And as for the bandwidth limits that Comcast has now announced: “How will consumers know if they are close to a limit?” Martin asked. “If a consumer exceeds a limit, is his traffic slowed? Is it terminated? Is his service turned off?”

Let’s see if we can help the Chairman:

1. The “end of the year” is December 31, at midnight. In urban areas, people will make noise and drink a lot. It would be good for Kevin Martin to be among them.

2. Comcast has said they’ll write a *very mean letter* to customers over the 250 GB limit and among the top 1% in bandwidth consumption. It was in the papers, but not on the funny page.

3. I won’t define “protocol agnostic” as that subject was covered, at length, the order the FCC’s lawyers wrote in the Comcast matter. Martin should have one of them explain it to him.

Where did Bush find this person?

Comcast Appeals

Comcast has appealed the FCC’s crazy order in the DC Circuit today. Here’s the statement: Although we are seeking review and reversal of the Commission’s network management order in federal court, we intend to comply fully with the requirements established in that order, which essentially codify the voluntary commitments that we have already announced, and … Continue reading “Comcast Appeals”

Comcast has appealed the FCC’s crazy order in the DC Circuit today. Here’s the statement:

Although we are seeking review and reversal of the Commission’s network management order in federal court, we intend to comply fully with the requirements established in that order, which essentially codify the voluntary commitments that we have already announced, and to continue to act in accord with the Commission’s Internet Policy Statement. Thus, we intend to make the required filings and disclosures, and we will follow through on our longstanding commitment to transition to protocol-agnostic network congestion management practices by the end of this year. We also remain committed to bringing our customers a superior Internet experience.

We filed this appeal in order to protect our legal rights and to challenge the basis on which the Commission found that Comcast violated federal policy in the absence of pre-existing legally enforceable standards or rules. We continue to recognize that the Commission has jurisdiction over Internet service providers and may regulate them in appropriate circumstances and in accordance with appropriate procedures. However, we are compelled to appeal because we strongly believe that, in this particular case, the Commission’s action was legally inappropriate and its findings were not justified by the record.

It’s a little odd that they have to appeal to resolve the procedural irregularities despite planning to follow the order anyhow. But that’s life.

Media Access Project has already filed appeals in the 2nd, 3rd, and 9th circuits, in an attempt to create a jurisdiction fight that would have to be resolved by the Supremes. MAP wants the court to waive the phase out period for Comcast’s Sandvine system, but that’s simply a pretext for the jurisdiction fight.

Story in Broadcasting and Cable.

Your broadband service is going to get more expensive

See my article in The Register to understand why your broadband bill is going to rise: Peer-to-peer file sharing just got a lot more expensive in the US. The FCC has ordered Comcast to refrain from capping P2P traffic, endorsing a volume-based pricing scheme that would “charge the most aggressive users overage fees” instead. BitTorrent, … Continue reading “Your broadband service is going to get more expensive”

See my article in The Register to understand why your broadband bill is going to rise:

Peer-to-peer file sharing just got a lot more expensive in the US. The FCC has ordered Comcast to refrain from capping P2P traffic, endorsing a volume-based pricing scheme that would “charge the most aggressive users overage fees” instead. BitTorrent, Inc. reacted to the ruling by laying-off 15 per cent of its workforce, while network neutrality buffs declared victory and phone companies quietly celebrated. Former FCC Chairman Bill Kennard says the legal basis of the order is “murky.”

Comcast will probably challenge on grounds that Congress never actually told the regulator to micro-manage the Internet. In the absence of authority to regulate Internet access, the Commission has never had a need to develop rules to distinguish sound from unsound management practice. The order twists itself into a pretzel in a Kafka-esque attempt to justify sanctions in the absence of such rules.
Technically speaking, they’re very confused

The FCC’s technical analysis is puzzling, to say the least.

The order describes an all-powerful IP envelope, seeking to evoke an emotional response to Deep Packet Inspection. The order claims the DPI bugaboo places ISPs on the same moral plane as authoritarian regimes that force under-aged athletes into involuntary servitude. But this is both uninformed and misleading. Network packets actually contain several “envelopes”, one for each protocol layer, nested inside one another like Russian dolls. Network management systems examine all envelopes that are relevant, and always have, because there’s great utility in identifying protocols.

The FCC’s order is especially bad for people who use both P2P and Skype. The comments lack the usual snarkiness, and I don’t know if that’s good or bad.

UPDATE: Right on cue, a price war is breaking out between cable and phone companies, according to the Wall St. Journal. I wonder if the converts are going to be the high-volume users worried about the caps, or the nice, low volume grannies every carrier wants.

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Guardian takes on the Google myth

David Smith confronts the Google myth for The Observer, including accounts of the pilgramages politicians take to Google HQ: Shortly after Obama’s pilgrimage to the ‘Googleplex’, it was the turn of David Cameron. Cameron was accompanied there by Steve Hilton, his director of strategy, who has since moved permanently to California with his wife, Rachel … Continue reading “Guardian takes on the Google myth”

David Smith confronts the Google myth for The Observer, including accounts of the pilgramages politicians take to Google HQ:

Shortly after Obama’s pilgrimage to the ‘Googleplex’, it was the turn of David Cameron. Cameron was accompanied there by Steve Hilton, his director of strategy, who has since moved permanently to California with his wife, Rachel Whetstone, Google’s vice-president of global communications and public affairs (she is also godmother to Cameron’s eldest son, Ivan). Andrew Orlowski, executive editor of the technology website The Register, says: ‘The web is a secular religion at the moment and politicians go to pray at events like the Google Zeitgeist conference. Any politician who wants to brand himself as a forward-looking person will get himself photographed with the Google boys.’

Washington, also, is keen to bathe in Google’s golden light. Al Gore, the former Vice-President, is a long-time senior adviser at the company. Obama has been taking economic advice from Google CEO Eric Schmidt and received generous donations from Google and its staff. Google will be omnipresent at the Democratic and Republican national conventions, providing software for delegates such as calendars, email and graphics. ‘Google has moved into the political world this year,’ says its director of policy communications, Bob Boorstin, a former member of the Clinton administration.

Google’s staff in Washington include five lobbyists, among them Pablo Chavez, former general counsel for John McCain. This year Google moved into new 27,000-square-foot headquarters in one of Washington’s most fashionable, eco-friendly buildings. Visiting senators and congressmen can now share in the famed ‘googly’ experience of free gourmet lunches, giant plasma screens and a game room, named ‘Camp David’, stocked with an Xbox 360 and pingpong.

None of this much impressed Jeff Chester, the executive director of the small but influential Center for Digital Democracy, when he was invited there. ‘It puts all the other lobbying operations to shame,’ he says. ‘They invite politicians into their Washington HQ to give advice on using Google to win re-election. It is the darling of the Democratic Party and there’s no doubt that a win by Obama will strengthen Google’s position in Washington.’

Undeterred by criticisms of his benefactor, Google’s professor of piracy rights, Larry Lessig, congratulates Google’s boys at the FCC for protecting the Google monopoly in a rare foray into the world of the written word. It’s quite amusing and utterly deranged.

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FCC finally issues Comcast memo

Kevin Martin and his Democratic Party colleagues at the FCC have issued their Comcast order, available at this link. They find some novel sources of authority and apply some interesting interpretations of the facts. I’ll have some detailed commentary after I’ve read it all and checked the footnotes. It’s an amusing exercise, if you like … Continue reading “FCC finally issues Comcast memo”

Kevin Martin and his Democratic Party colleagues at the FCC have issued their Comcast order, available at this link. They find some novel sources of authority and apply some interesting interpretations of the facts. I’ll have some detailed commentary after I’ve read it all and checked the footnotes. It’s an amusing exercise, if you like that sort of thing.

For a good summary of the order, see IP Democracy.

BitTorrent Soap Opera continues

Valleywag’s outstanding reporting on the BitTorrent collapse continues with a detailed account of the tussle: BitTorrent has denied our report that the company laid off 12 out of 55 employees. That may be true: While our source told us 12 employees were on the layoff list, we’ve learned that, at the last minute, the jobs … Continue reading “BitTorrent Soap Opera continues”

Valleywag’s outstanding reporting on the BitTorrent collapse continues with a detailed account of the tussle:

BitTorrent has denied our report that the company laid off 12 out of 55 employees. That may be true: While our source told us 12 employees were on the layoff list, we’ve learned that, at the last minute, the jobs of two sales engineers, an HR manager, and an office manager were spared. Another tipster — “you can guess as to whether I’m an insider or not” — says that the BitTorrent layoffs aren’t the fault of new CEO Doug Walker, who came to the those-crazy-kids file-sharing startup to add some enterprise-software gravitas. Instead, the elimination of BitTorrent’s sales and marketing departments amounts to a coup by cofounders Bram Cohen and Ashwin Navin, pictured here to Walker’s right and left, who are giving up on the notion of marketing BitTorrent’s file-sharing technology to businesses and hardware makers, and instead pinning their hopes on becoming an “Internet peace corps.”

One part that I can confirm is the lack of enthusiasm for DNA on the part of the tech people. I’ve asked them why anybody should care about DNA and I got was silence.

How long until we hear about the equally vexing woes at Vuze? They won their battle with Comcast before the FCC, at the expense of their corporate viability. Peer-to-peer needs to be domesticated, but the FCC has forbidden that. The only other choice is extermination, and metered pricing will take care of that quite efficiently.

Sad.

Previous entry here.

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How Net Neutrality killed BitTorrent

Valleywag explains why BitTorrent, Inc., had to lay off all its sales and marketing staff in this fine piece, Unintended Consequences: How the FCC killed BitTorrent’s promising business When Comcast was caught blocking file sharing on its network, the Federal Communications Commission seemed to strike a blow in favor of peer-to-peer startups everywhere by fining … Continue reading “How Net Neutrality killed BitTorrent”

Valleywag explains why BitTorrent, Inc., had to lay off all its sales and marketing staff in this fine piece, Unintended Consequences: How the FCC killed BitTorrent’s promising business

When Comcast was caught blocking file sharing on its network, the Federal Communications Commission seemed to strike a blow in favor of peer-to-peer startups everywhere by fining the cable company. Observers assumed that the FCC decision would open the field for file sharing to turn into a legitimate business. But for BitTorrent Inc., a San Francisco startup seeking to commercialize the BitTorrent file-sharing protocol, the move against Comcast led to layoffs instead. The ruling may ultimately prove fatal to the company.

The problem for Comcast and other Internet service providers is that they can no longer block file-sharing traffic from their networks. And yet file-sharing usage is consuming more and more bandwidth, which they must pay for. Broadband providers are businesses, not charities. So they are increasingly considering charging their users by the bit for bandwidth over a certain level. Most users won’t be affected, but file-sharing downloaders will be.

The prospect of pay-by-the-bit bandwidth had immediate consequences for BitTorrent’s two main businesses: an online-media store delivered via file sharing, and a content-delivery network which competed with the likes of Akamai and Limelight Networks.

For users who would have to pay bandwidth fees to their ISPs on top of paying the usual charges, BitTorrent’s Torrent Entertainment Network store would soon look uncompetitive with the likes of Apple’s iTunes Store and Microsoft’s Xbox Marketplace which prompted Best Buy to back out of talks to acquire TEN for $15 million.

As for BitTorrent’s content-delivery network, it was premised on the notion that BitTorrent would negotiate with ISPs to get privileged delivery for their file-sharing packets, while Comcast blocked others. With the FCC forcing Comcast to treat all file-sharing traffic equally, the promise of that business evaporated.

Be careful what you wish for, boys and girls of the pro-regulatory, net neutrality movement, because it’s going to cost more than what you’ve got.

UPDATE: BitTorrent, Inc. PR flack Lilly Lin didn’t want this story to get out, and demands Owen’s sources. Not a smooth move, Lilly, and please don’t sue me for saying so (we’ve talked before, so I can adopt this personal tone.)

UPDATE HERE.

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FCC bandwidth subsidy doesn’t help BitTorrent, Inc.

The recent FCC order requiring ISPs to donate bandwidth to peer-to-peer services was supposed to protect the Innovative-New-Application from competitive duress, but BitTorrent, Inc. didn’t get the memo: BitTorrent Inc., the file-sharing startup whose underlying technology is responsible for much of the piracy that plagues Hollywood, is laying off its sales and marketing department. The … Continue reading “FCC bandwidth subsidy doesn’t help BitTorrent, Inc.”

The recent FCC order requiring ISPs to donate bandwidth to peer-to-peer services was supposed to protect the Innovative-New-Application from competitive duress, but BitTorrent, Inc. didn’t get the memo:

BitTorrent Inc., the file-sharing startup whose underlying technology is responsible for much of the piracy that plagues Hollywood, is laying off its sales and marketing department. The immediate cause of the layoffs: A failure to sell the Torrent Entertainment Network, BitTorrent’s attempt at an online media store, to Best Buy for a rumored $15 million. That deal fell apart, a BitTorrent insider believes, because of a recent FCC ruling on file sharing. CEO Doug Walker, who replaced troubled founder Bram Cohen last fall, had hinted at a rethink of the store in March. Walker’s also said to be rethinking BitTorrent’s “DNA” service, which sought to offer businesses a cut-rate online content-deliver service, using file-sharing technology to undercut Limelight and Akamai’s prices. BitTorrent is now thinking about making the service free, which would certainly count as “cut-rate” — but also suggests that it hadn’t had much success selling it.

While this has been going on, the good folks at Vuze have been trying to save their own bacon by facilitating piracy by searching The Pirate Bay and Mininova.

Maybe P2P has problems so deep that even Kevin Martin’s bandwidth subsidy can’t cure them. This has the feel of a developing story.

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Vint Cerf at it again

It’s rare that I read anything by Vint Cerf these days that doesn’t make me laugh. He’s taken to making outlandish statements that foment PR crises for Google such that they’re softened and re-framed in a few days. Writing on Google Public Policy Blog he simply buries us in the obvious and contradicts himself: At … Continue reading “Vint Cerf at it again”

It’s rare that I read anything by Vint Cerf these days that doesn’t make me laugh. He’s taken to making outlandish statements that foment PR crises for Google such that they’re softened and re-framed in a few days. Writing on Google Public Policy Blog he simply buries us in the obvious and contradicts himself:

At least one proposal has surfaced that would charge users by the byte after a certain amount of data has been transmitted during a given period. This is a kind of volume cap, which I do not find to be a very useful practice. Given an arbitrary amount of time, one can transfer arbitrarily large amounts of information. Rather than a volume cap, I suggest the introduction of transmission rate caps, which would allow users to purchase access to the Internet at a given minimum data rate and be free to transfer data at at least up to that rate in any way they wish.

And here I thought pricing tiers were all standard practice all over the world. But he’s obviously not talking about that so much as providing a Committed Information Rate for low-cost residential Internet access like the much pricier business accounts have. You can tell who pays the bills in the Cerf household.

He also does the Kevin Martin two-step, applauding ISPs for raising the priority of VoIP:

In my view, Internet traffic should be managed with an eye towards applications and protocols. For example, a broadband provider should be able to prioritize packets that call for low latency (the period of time it takes for a packet to travel from Point A to Point B), but such prioritization should be applied across the board to all low latency traffic, not just particular application providers.

…and then slamming the means by which this is done:

Over the past few months, I have been talking with engineers at Comcast about some of these network management issues. I’ve been pleased so far with the tone and substance of these conversations, which have helped me to better understand the underlying motivation and rationale for the network management decisions facing Comcast, and the unique characteristics of cable broadband architecture. And as we said a few weeks ago, their commitment to a protocol-agnostic approach to network management is a step in the right direction.

So prioritizing is good, but not prioritizing is better? These people need to take some logic courses.

But I’m being too mean. Adam Thierer finds something to like about Cerf’s statesmanship:

But we know that countless more technical disputes will arise in the future at every layer of the Internet — not just with Comcast and BitTorrent. Thus, if we are really going to achieve “a broader dialogue and cooperation across industries” then what we really need is the equivalent of a multilateral trade negotiating process or forum to achieve sensible resolutions to complex technical difficulties surround Internet network management.

I am not prepared to say whether a new, formal organization is needed to accomplish this or if existing institutions and individuals (academic, trade associations, etc) might be able to work together to make this happen. For example, and I am just thinking out loud here so don’t quote me on this, what if we had the Internet Society working in conjunction with several major industry trade associations and some respected academic institutions to form some sort of collaborative, dialogue-oriented dispute resolution process? Sort of GATT or WTO for technical Internet dispute resolution.

Certainly that would be preferable to a politicized FCC taking over the show and making all these technical decisions, no? I’d be interested in hearing some input from others.

A relevant organization is not a bad idea.

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