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why everyone thinks ISP will start to sell internet as tiered tv channels? this is not happening and will not happen. what will, and is happening for the last
by gcb0 9y ago
why everyone thinks ISP will start to sell internet as tiered tv channels? this is not happening and will not happen.
what will, and is happening for the last 3 decades, is that ISP charge to do something they used to beg for: co location of high traffic services.
contente providers, lets pick netflix as an example, uses ton of bandwidth. but they already paid for their uplink. now, customers pay for the downlink. and ISP now see their oversold pipes actually being used (what a surprise). so they beg netflix to pretty please place some edge servers on their data centers so they dont pay the expensive outbound traffic. and netflix gladly did that because that cut latency from 300ms to 2ms for those customers. everyone happy.
then ISPs started to sell that as a feature for the reduced latency. but if nobody bougth, they would still fall back to begging for them to do that for free. and everyone still happy.
now they can outrigth limit how much expensive outbound bandwidth they will spend on netflix content. no matter that the ISP own customers already paid for bandwidth for that service or another. so netflix and all other providers will have to pay a huge premium for colocation (for that great latency reduction feature) or a still high premium simply to not be blocked!
the client will just see that they can't connect to netflix. the isp doesnt even have to warn their own users, because there is nothing they can do. netflix is the one who have to pay up. so they will have to charge more and pass that to ISPs. and that is the ISP end game. they can still be afloat after cable cutters moved to streaming platforms they dont own and operate (which is the likely outcome, since all their attempts are falling flat on their faces)