Comments on: If Bandwidth Is Abundant, It Can’t Be Scarce, So Why Can’t We Have Net Neutrality? http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/ Keeping politicians' hands off the Net & everything else related to technology Fri, 19 Mar 2010 20:30:28 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: nulls101 http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-56374 nulls101 Wed, 15 Oct 2008 20:51:49 +0000 http://techliberation.com/?p=11592#comment-56374 Thanks for sharing.<br><br>Logan<br><a href="http://xtupload.com">http://xtupload.com</a> Thanks for sharing.

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]]> By: Berin Szoka http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-44145 Berin Szoka Tue, 05 Aug 2008 22:52:03 +0000 http://techliberation.com/?p=11592#comment-44145 I appreciate your concerns, Chadlee. But there are a number of online services that feature caps that increase at a certain rate over time--most obviously, the amount of server space you get on Gmail. I would think that this provides something of a model for how to set a demarcation point that evolves with changing use patterns. I appreciate your concerns, Chadlee. But there are a number of online services that feature caps that increase at a certain rate over time–most obviously, the amount of server space you get on Gmail. I would think that this provides something of a model for how to set a demarcation point that evolves with changing use patterns.

]]> By: Berin Szoka http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-43147 Berin Szoka Tue, 05 Aug 2008 21:52:03 +0000 http://techliberation.com/?p=11592#comment-43147 I appreciate your concerns, Chadlee. But there are a number of online services that feature caps that increase at a certain rate over time--most obviously, the amount of server space you get on Gmail. I would think that this provides something of a model for how to set a demarcation point that evolves with changing use patterns. I appreciate your concerns, Chadlee. But there are a number of online services that feature caps that increase at a certain rate over time–most obviously, the amount of server space you get on Gmail. I would think that this provides something of a model for how to set a demarcation point that evolves with changing use patterns.

]]> By: Chadlee http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-44144 Chadlee Sat, 02 Aug 2008 01:35:57 +0000 http://techliberation.com/?p=11592#comment-44144 Consumer acceptance will be the primary hurdle to the implementation of metered bandwidth.<br><br>When it comes to monthly bills, consumers don't like to think about them. To the extent that they must think about them, they prefer to think about a regular fixed expense - even if this means that for some months they may get less value out of that fixed monthly expense.<br><br>What concerns me about the “Ramsey two-part tariff” pricing model is the potential for the initial demarcation point to remain the eternal demarcation point.<br><br>If a demarcation point is set just above the usage patterns of 95% of customers today, but then either those usage patterns substantially increase or the provider's bandwidth costs substantially decrease - there will be little incentive to increase the demarcation point. Why would providers ever want to reduce the amount of metered bandwidth they sell? Especially if consumers have finally been trained to accept that particular point as the demarcation point. Consumer acceptance will be the primary hurdle to the implementation of metered bandwidth.

When it comes to monthly bills, consumers don’t like to think about them. To the extent that they must think about them, they prefer to think about a regular fixed expense – even if this means that for some months they may get less value out of that fixed monthly expense.

What concerns me about the “Ramsey two-part tariff” pricing model is the potential for the initial demarcation point to remain the eternal demarcation point.

If a demarcation point is set just above the usage patterns of 95% of customers today, but then either those usage patterns substantially increase or the provider’s bandwidth costs substantially decrease – there will be little incentive to increase the demarcation point. Why would providers ever want to reduce the amount of metered bandwidth they sell? Especially if consumers have finally been trained to accept that particular point as the demarcation point.

]]> By: Chadlee http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-43004 Chadlee Sat, 02 Aug 2008 00:35:57 +0000 http://techliberation.com/?p=11592#comment-43004 Consumer acceptance will be the primary hurdle to the implementation of metered bandwidth. When it comes to monthly bills, consumers don't like to think about them. To the extent that they must think about them, they prefer to think about a regular fixed expense - even if this means that for some months they may get less value out of that fixed monthly expense. What concerns me about the “Ramsey two-part tariff” pricing model is the potential for the initial demarcation point to remain the eternal demarcation point. If a demarcation point is set just above the usage patterns of 95% of customers today, but then either those usage patterns substantially increase or the provider's bandwidth costs substantially decrease - there will be little incentive to increase the demarcation point. Why would providers ever want to reduce the amount of metered bandwidth they sell? Especially if consumers have finally been trained to accept that particular point as the demarcation point. Consumer acceptance will be the primary hurdle to the implementation of metered bandwidth.

When it comes to monthly bills, consumers don’t like to think about them. To the extent that they must think about them, they prefer to think about a regular fixed expense – even if this means that for some months they may get less value out of that fixed monthly expense.

What concerns me about the “Ramsey two-part tariff” pricing model is the potential for the initial demarcation point to remain the eternal demarcation point.

If a demarcation point is set just above the usage patterns of 95% of customers today, but then either those usage patterns substantially increase or the provider’s bandwidth costs substantially decrease – there will be little incentive to increase the demarcation point. Why would providers ever want to reduce the amount of metered bandwidth they sell? Especially if consumers have finally been trained to accept that particular point as the demarcation point.

]]> By: Berin Szoka http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-44143 Berin Szoka Fri, 01 Aug 2008 20:18:45 +0000 http://techliberation.com/?p=11592#comment-44143 Quite right, Gary. Thank you for providing that additional terminological clarification! Quite right, Gary. Thank you for providing that additional terminological clarification!

]]> By: Berin Szoka http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-42998 Berin Szoka Fri, 01 Aug 2008 19:18:45 +0000 http://techliberation.com/?p=11592#comment-42998 Quite right, Gary. Thank you for providing that additional terminological clarification! Quite right, Gary. Thank you for providing that additional terminological clarification!

]]> By: Gary McGath http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-44142 Gary McGath Fri, 01 Aug 2008 18:03:52 +0000 http://techliberation.com/?p=11592#comment-44142 In economics, the opposite of "scarce" isn't "abundant," but "unlimited." Anyone who's every downloaded a large file knows that bandwidth is hardly unlimited.<br><br>The key is explaining what is meant economically by a "scarce resource" and why it matters. Food is abundant in the United States, too, but it would be senseless to have a "food neutrality" requirement in which everything you eat comes at the same per-pound price. In economics, the opposite of “scarce” isn’t “abundant,” but “unlimited.” Anyone who’s every downloaded a large file knows that bandwidth is hardly unlimited.

The key is explaining what is meant economically by a “scarce resource” and why it matters. Food is abundant in the United States, too, but it would be senseless to have a “food neutrality” requirement in which everything you eat comes at the same per-pound price.

]]> By: MikeT http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-44141 MikeT Fri, 01 Aug 2008 17:32:57 +0000 http://techliberation.com/?p=11592#comment-44141 The common sense solution to the demand issue is metered bandwidth. Metered bandwidth can save everyone money because it would be based primarily on what you do actually use, not what you might use. Therefore, if someone is too busy to download a lot of content one month, their bill may end up actually being lower that month than it would be under an all-you-can-eat plan. The common sense solution to the demand issue is metered bandwidth. Metered bandwidth can save everyone money because it would be based primarily on what you do actually use, not what you might use. Therefore, if someone is too busy to download a lot of content one month, their bill may end up actually being lower that month than it would be under an all-you-can-eat plan.

]]> By: Gary McGath http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-42994 Gary McGath Fri, 01 Aug 2008 17:03:52 +0000 http://techliberation.com/?p=11592#comment-42994 In economics, the opposite of "scarce" isn't "abundant," but "unlimited." Anyone who's every downloaded a large file knows that bandwidth is hardly unlimited. The key is explaining what is meant economically by a "scarce resource" and why it matters. Food is abundant in the United States, too, but it would be senseless to have a "food neutrality" requirement in which everything you eat comes at the same per-pound price. In economics, the opposite of “scarce” isn’t “abundant,” but “unlimited.” Anyone who’s every downloaded a large file knows that bandwidth is hardly unlimited.

The key is explaining what is meant economically by a “scarce resource” and why it matters. Food is abundant in the United States, too, but it would be senseless to have a “food neutrality” requirement in which everything you eat comes at the same per-pound price.

]]> By: MikeT http://techliberation.com/2008/08/01/if-bandwidth-is-abundant-it-cant-be-scarce-so-why-cant-we-have-net-neutrality/comment-page-1/#comment-42993 MikeT Fri, 01 Aug 2008 16:32:57 +0000 http://techliberation.com/?p=11592#comment-42993 The common sense solution to the demand issue is metered bandwidth. Metered bandwidth can save everyone money because it would be based primarily on what you do actually use, not what you might use. Therefore, if someone is too busy to download a lot of content one month, their bill may end up actually being lower that month than it would be under an all-you-can-eat plan. The common sense solution to the demand issue is metered bandwidth. Metered bandwidth can save everyone money because it would be based primarily on what you do actually use, not what you might use. Therefore, if someone is too busy to download a lot of content one month, their bill may end up actually being lower that month than it would be under an all-you-can-eat plan.

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