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[ NNSquad ] BT speculates that they may block Internet video, and more

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From: David Farber <dave@farber.net>
To: "ip" <ip@v2.listbox.com>
Subject: [IP] British Telecom says bandwidth costs unsustainable. True?
Date: Wed, 24 Sep 2008 03:11:20 -0400

Begin forwarded message:

From: Dave Burstein <daveb@dslprime.com>
Date: September 23, 2008 9:33:28 PM EDT
To: dave@farber.net
Subject: British Telecom says bandwidth costs unsustainable. True?

Sally Davis at BT just gave a speech (below) saying BT might have to  
block the iPlayer and other Internet video because their bandwidth  
costs are unsustainable. Other carriers, like Verizon, say they have  
no problem handling the video load, nor expect to have a problem. So  
I'm sending her comments over to see if anyone can provide evidence on  
why BT's experience is different or that Davis' comments are unproven  
hyperbole. It's especially surprising to hear BT's 21st Century  
Network, (superbly designed by superb engineers) is inadequate. Key  
competitor Sky just pulled off all limits on their $20 broadband  
service, saying,"it had invested in creating 'a high-capacity network  
that is designed to carry huge amounts of traffic without congestion'?  
without traffic shaping. I've written BT to doublecheck the reporter  
got it right, but the quotes are pretty clear.

    So am I missing something unique to the UK, or are Ms. Davis'  
comments unfounded? Facts welcome.

Wholesale giants say Internet will no longer be free
... the answer could be to restrict "free" access to services like the  
BBC's iPlayer that allows users to stream BBC TV content over the  
Internet ... "One thing keeps me awake at night. In the immortal words  
of Jerry McGuire 'show me the money!'," said Sally Davis, CEO of BT  
Wholesale. ... Today there are a number of unsustainable business  
models out there, and these need to change, Davis insisted.
... the ISPs are saying "I can't keep increasing the bandwidth for no  
more money," Davis said, a situation that will ultimately lead to ISPs  
adopting traffic shaping measures and the like to keep control of  
bandwidth usage on their networks. ...
"We're going to have some very grumpy people," namely the content  
owners and end-users, said Davis.
As such, "we have to find new ways around it? Content distribution  
models will play a role in that," Davis said. "We will see those  
business models emerge," but more work needs to be done, she cautioned.
... "In the next three years? we will see some different models  
emerge," said Davis, a prediction that was greeted with some  
scepticism from others in the auditorium.

There won't be just one model, "there will be room for many models,"  
agreed Kathryn Morrissey, EVP at AT&T Wholesale.

"Somebody at some point is going to have to pay for [this network  
usage]," she said.


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