By: MarkJ - 5 November, 2010 (7:30 AM) - Score: 4942 - Mobile Broadband
best o2 uk broadband logoMobile operator O2 has joined a chorus of other broadband ISPs, such as BT Retail, TalkTalk and Vodafone UK, in calling for the "big" online content providers (e.g. Skype, BBC, Facebook or Google etc.) to pay for the privilege of being available with a good quality of service to customers of their Mobile Broadband and fixed line platforms.

At present many UK ISPs already restrict broadband traffic to certain services (e.g. P2P, video streaming etc.), or more generally during peak usage periods, as a means of balancing the load on their networks and giving everybody a reasonable service. This is now a normal and accepted practice.

However the real debate is not with network management solutions but the potential for harm that could occur if ISPs start favouring content sources based on who pays them the most cash. Such a move would completely abandon the principal of Net Neutrality, which seeks to treat all internet traffic as equal.

O2's CEO, Ronan Dunne, told yesterdays Westminster eForum ( ZDNet ):

"If consumers alone are paying, it's hard to see where the incentive is for content providers to use networks efficiently. Networks can't under any economic model presume to have unlimited data capability. Part of the solution is to move away from 'one-size-fits-all'."

Dunne went on to point out that the current explosion in data usage had driven costs up and was creating, "more demand than [O2] can handle." However if O2 had imposed more reasonable usage allowances earlier on and not gone down the "unlimited" path to begin with then it's likely that they'd be better equipped to handle today's load.

We certainly agree that consumers who use a lot of data should also be helping to pay their fair share, just like with your gas, water or electricity supply. However this approach is fraught with difficulty and nobody wants to lose a significant slice of their established customer base.

Never the less the idea of charging content providers, the very people who actually make us want to use the internet in the first place, is growing in popularity among the big mobile operators and ISPs. Ofcom is currently reviewing the issue but isn't expected to take any action that would prevent O2's proposal from happening, except for demanding more transparency on Traffic Management measures (e.g. clearer Fair Usage Policies).

It's worth remembering that there are literally thousands of major mobile and fixed line broadband providers around the world. Imagine what would happen if even a small portion of those started demanding cash from firms like Skype, whose profits aren't exactly vast.

That kind of money grab would be contagious among larger operators, with all wanting a slice of the same pie, yet an utter failure to see the other side of the fence could conceivably bankrupt many popular services and make the internet experience far less rewarding. Content providers have costs too.

In separate news, but at the same eForum, Virgin Media once again said that it had no plans to offer wholesale access to its cable network. Several UK ISPs have in the past called for an alternative to BT as the only major national operator they could do business with, although Virgin has no interest in assisting. That's a shame, although in fairness Virgin Media have always been commercial, while BT's network owes a lot to its publicly funded roots.
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Comments: 7

asa logotref
Posted: 5 November, 2010 - 8:56 AM
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The whole debate runs the risk of getting very complicated. I was at that meeting and Dunne quoted, as an example of an evolving business model, the fact that Amazon paid mobile networks so that Kindle customers could download ebooks over their mobile connection without eating in to their data bundles.

I don't think anyone can call how things are going to turn out yet which is why Ofcom is sitting on the fence..
asa logoMarkJ
Posted: 5 November, 2010 - 9:58 AM
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I understand you asked the Virgin Media question too cheese , nice one. Their reply was no surprise.
asa logoMik Carroll
Posted: 5 November, 2010 - 10:21 AM
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Simple fix ISP's should have to limit the number of accounts they can sell for a specific size of their network. The customers are not at fault and we should not have to pay extra.Seems as if The Isp's have too many accounts for the size of their networks. They should only be able to have as many accounts that the network can reasonably handle if every customer is using full bandwidth.
asa logoSteve
Posted: 5 November, 2010 - 1:20 PM
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Strange to see this when the <a href="http://www.uk-mobile-broadband-deals.com/topdeals.php">best mobile broadband</a> deals are including more and more data (15g from Three, Unlimited from T-mobile). I guess we may get to a position where the more successful networks like O2 and Orange severely limit the data allowances and the under capacity networks pick up the customers they lose.
asa logoMatt
Posted: 5 November, 2010 - 2:10 PM
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@Mik

A 1to1 contention ratio is not realistic for residential broadband, not unless people want to pay significantly more for their broadband connection, the only reason ISP's can actually charge the prices they do is because they work on the basis that not everyone will want to use the full speed their connection is capable of all the time.

The trick is getting the Ratio's right so that you have enough capacity to serve the peak traffic.

There are ways to reduce costs i.e direct peering between the content provider and the ISP helps reduce costs for both parties but ultimately as the demand for Data goes up so does the cost of providing sufficient capacity to meet that demand.
asa logoLegolash2o
Posted: 5 November, 2010 - 10:23 PM
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MarkJ

What was teh Virgin Media question? :P
asa logoMarkJ
Posted: 6 November, 2010 - 7:31 AM
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Tref/Timico asked whether Virgin would offer wholesale access I think :) .



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