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Streaming video on the Web can be a bumpy experience: The video can slow or stop altogether. To avoid these problems, Netflix, the biggest online video outlet, has been trying to install special equipment directly connected to the networks of Internet access providers. But the yearlong effort hasn't got very far with the major U.S. cable and phone companies. A big reason: some of them have asked Netflix to pay for that access.
People close to the company say it doesn't want to set a precedent for itself, although it is in talks with broadband providers about compromise solutions. The standoff highlights a quiet but momentous shift in the relationship between major Web content companies and Internet access providers in the past several years. And at the heart of the debate is an increasingly pressing question: Who is responsible for the Internet's growing costs? According to people familiar with the matter, many Internet content companies -- including Facebook, Google and Microsoft -- have been paying major providers, such as Comcast, Verizon Communications and AT&T, for connections to get faster and smoother access into their networks.
Web Companies Pay for Internet Fast Lane
Netflix’s impasse with cable operators was sparked by its request to put its own servers directly inside their data centers. It was a proposition that makes big cable firms uncomfortable, executives and analysts say, because it could open the prospect of other content companies asking for the same thing.
The streaming video service has reached deals to directly connect its specialized technology—which it is offering free of charge—with hundreds of providers around the world. These include smaller U.S. operators like Google Fiber, Cablevision and Cox Communications. But it hasn't come to any agreement with the biggest U.S. companies in the industry—Comcast, Time Warner Cable, AT&T, or Verizon, which between them controlled 62% of the nation's broadband marketplace at the end of 2012, according to SNL Kagan data.
Netflix Sought Direct Connection at Cable Firms
An article appeared earlier this week at GigaOm, in which the authors “blame Verizon” for failing to accommodate the growing volume of traffic coming from Cogent Communications, another bandwidth provider. Unfortunately, GigaOm didn’t have the full story.
The authors accurately describe settlement-free peering as “essentially an arrangement between two bandwidth providers where they send and receive traffic from each other for free.” It goes on to say: “the logic is that the data sent from one network to another is reciprocated.” What the article doesn’t say, however, is that Cogent is not compliant with one of the basic and long-standing requirements for most settlement-free peering arrangements: that traffic between the providers be roughly in balance. When the traffic loads are not symmetric, the provider with the heavier load typically pays the other for transit. This isn’t a story about Netflix, or about Verizon “letting” anybody’s traffic deteriorate. This is a fairly boring story about a bandwidth provider that is unhappy that they are out of balance and will have to make alternative arrangements for capacity enhancements, just like any other interconnecting ISP.
Unbalanced Peering, and the Real Story Behind the Verizon/Cogent Dispute
"Whatever the future of broadcasting might be, there is no question that broadcasters have the same First Amendment rights as other speakers."
That was the message to the FCC from Public Knowledge, TechFreedom, Electronic Frontier Foundation and the Center for Democracy & Technology in comments filed at the Federal Communications Commission. Public Knowledge et al want the FCC to get out of the content regulation business entirely, and see indecency regulations as censorship. "The Commission's proposal that it will only address 'egregious' incidents of indecency is a step in the right direction, and its recent dismissal of more than a million unmeritorious complaints against broadcasters demonstrates a renewed attention to the First Amendment rights of broadcast speakers," they told the FCC. But they suggest that tweaking regulations is just putting a better caliber of lipstick on the same old pig.
Public Knowledge: Broadcasters Should Be Free From Content Regulations
Though being a parent has never been easy, the Internet hasn't made the job any easier. Just how seriously are parents taking their role of monitoring their children's online behavior?
A new study from the Digital Future Project finds a divide in parental approaches to Internet supervision. Seventy percent of parents say they monitor their child's online activity while on Facebook and other social media sites, and 46% have password access to their children's accounts. In contrast, 30% of parents don't chaperone online interactions because they trust their kids, don't want to show a lack of trust, don't know how to use social media sites or don't have time to. The findings come from the Digital Future Project, a long-term study of views and behavior of Internet users, conducted by the USC Annenberg Center for the Digital Future and led by director Jeffrey Cole.
Parents divided on monitoring their kids' Internet use
[Commentary] Many worry the Internet of Things will hurt our privacy.
By necessity, the backbone of the network is data about you, the user. Your data gives manufacturers and providers the information they need to figure out what services will benefit you most, based on where you live and spend your time, how you spend your money and so on. Concerns about privacy and security should be taken seriously. But we have to be careful that such concerns don’t chill disruptive innovation. Technology developers must build trust with users by disclosing what information their software, apps and devices share. They also must allow easy opt-out unless safety or health is involved. But much of this is unexplored territory. Only as we gain more experience -- through innovation and experimentation, as well as public dialogue such as the Federal Trade Commission’s upcoming workshop on privacy in November -- will we know what standards are needed to protect consumers. We must be careful that over-broad rules designed to protect privacy do not also hamper innovation. Any forthcoming rules must be based on hard data and known facts.
[Gary Shapiro is president and CEO of the Consumer Electronics Association]
Don’t Let Privacy Concerns Stifle Innovation
When Max Kelly, the chief security officer for Facebook, left the social media company in 2010, he did not go to Google, Twitter or a similar Silicon Valley concern. Instead the man who was responsible for protecting the personal information of Facebook’s more than one billion users from outside attacks went to work for another giant institution that manages and analyzes large pools of data: the National Security Agency. Kelly’s move to the spy agency, which has not previously been reported, underscores the increasingly deep connections between Silicon Valley and the agency and the degree to which they are now in the same business. Both hunt for ways to collect, analyze and exploit large pools of data about millions of Americans. The only difference is that the NSA does it for intelligence, and Silicon Valley does it to make money. The disclosure of the spy agency’s program called Prism, which is said to collect the e-mails and other Web activity of foreigners using major Internet companies like Google, Yahoo and Facebook, has prompted the companies to deny that the agency has direct access to their computers, even as they acknowledge complying with secret NSA court orders for specific data. Yet technology experts and former intelligence officials say the convergence between Silicon Valley and the NSA and the rise of data mining — both as an industry and as a crucial intelligence tool — have created a more complex reality.
Silicon Valley and Spy Agency Bound by Strengthening Web
[Commentary] Whatever one thinks about Edward Snowden and his revelations about government snooping, the case has been a useful reminder of the extent to which the government has outsourced intelligence work to the private sector and the risks in doing so. It is legitimate to use contractors when government does not possess the necessary expertise or cannot pay enough to lure experts from the private sector. But we are now into the second decade of the expansion of intelligence work that began after Sept. 11, 2001. While it may still make sense to outsource specific projects, the practice of outsourcing vast swaths of national security, with little or no attempt to develop the needed expertise inside government, has gone on for too long with too little scrutiny.
Prying Private Eyes
The announcement that Coursera, which offers free college classes online, had signed agreements with state universities enrolling more than a million students made it plain that such courses, virtually unheard-of two years ago, are now part of the higher education mainstream. But along the way, a rancorous debate has emerged over whether such courses will lead to better learning, lower costs and higher graduation rates — or to the dismantling of public universities, downgraded or eliminated faculty jobs, and a second-class education for most students.
Online Classes Fuel a Campus Debate
[From Big Data 2013 -- A special New York Times section on the business and culture of big data.]
Science, politics, crime prevention, public health, sports and industries as varied as energy and advertising are all being transformed by data-driven discovery and decision-making. The pioneering consumer Internet companies, like Google, Facebook and Amazon, were just the start, experts say. Today, data tools and techniques are used for tasks as varied as predicting neighborhood blocks where crimes are most likely to occur and injecting intelligence into hulking industrial machines, like electrical power generators. Big Data is the shorthand label for the phenomenon, which embraces technology, decision-making and public policy. Supplying the technology is a fast-growing market, increasing at more than 30 percent a year and likely to reach $24 billion by 2016, according to a forecast by IDC, a research firm. All the major technology companies, and a host of start-ups, are aggressively pursuing the business. Demand is brisk for people with data skills.
Sizing Up Big Data, Broadening Beyond the Internet NYTimes (Big Data 2013) Ways to Make Your Online Tracks Harder to Follow (NYTimes – privacy)