Saturday, October 28, 2023

Net Neutrality and "Fair Share" are Flatly Incompatible and Contradictory

One might argue that neither network neutrality nor “fair share” payments by a few hyperscale app providers make sense. 


Net neutrality is the principle that internet service providers (ISPs) should treat all data on the internet equally, regardless of the source, destination, or type of content.Without net neutrality, proponents argue, ISPs could block or slow down access to certain websites or services, or charge consumers higher fees for accessing certain content.


“Fair share” is the concept that a few popular app providers should pay telcos a fee for using their infrastructure. You see the contradiction. “Fair share,” by definition, treats bits differently and allows ISPs to charge fees to some sources. 


Note that the principles are mutually exclusive: treating all bits the same--irrespective of source--means no “fair share” payments are allowed. 


Beyond that, even when net neutrality rules are in place, ISPs are allowed to groom traffic during times of congestion. But net neutrality does not prevent ISPs from practicing traffic shaping or congestion control, which do not treat all bits equally. 


Also, keep in mind that ISPs and internet domains already compensate each other for asymmetrical traffic flows, in the form of  interconnection payments.


Critics might note that internet domains--including the targeted hyperscale firms--already pay such fees for traffic asymmetry, even ignoring the fact that it is ISP customers themselves who are asking the hyperscalers to send data to them. 


Hyperscale App Provider

ISP

Interconnection Payment

Netflix

Comcast

$1 billion

Netflix

Verizon

$750 million

Amazon Web Services

Comcast

$1.2 billion

Amazon Web Services

Verizon

$900 million

Microsoft Azure

Comcast

$1 billion

Microsoft Azure

Verizon

$750 million

Google Cloud

Comcast

$800 million

Google Cloud

Verizon

$600 million

Microsoft Azure

AT&T

$75 million per year

Alphabet

Charter

$100 million per year

Amazon

AT&T

$150 million per year

Microsoft

Charter

$75 million per year

Google

AT&T

$125 million per year

Meta

Charter

$50 million per year

Meta

AT&T

$75 million per year

Alphabet

China Telecom

$150 million per year

Amazon

NTT

$125 million per year

Microsoft

Deutsche Telekom

$100 million per year

Google

Telefónica

$75 million per year

Meta

Singtel

$50 million per year

Meta

Orange

$75 million per year


Some might argue that “fair share” essentially is an effort to recreate the old closed network, where every app on the network had to be approved by the access service provider.

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