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May11
Charging Toll for High-bandwidth Traffic
internet.jpg
Darn. With oil prices going up and everything else that's related to it, I get pretty upset when they want to start charging for souped up internet traffic. Sooner or later, price of internet traffic may then go up and consumers will be really irk about it. Then internet companies will go bankrupt and the whole cycle will repeat itself. Life goes on tho..

For all the talk about equal access and treating all data the same, the net neutrality debate is just window dressing for a less gentlemanly argument over who gets to profit in the online economy. More bluntly, Steve Effros, former president of the Cable Television Association, says, "This is about who pays."

Last April, Cisco Systems published a white paper explaining how the companies that own the phone lines and cables that connect homes and businesses to the Internet—the proverbial last mile—could use new routing technology to boost revenue. The technology would allow telephone and cable companies to establish priority lanes for high-bandwidth traffic like video, games, or voice-over-IP (VoIP) calls and then charge the Googles, Yahoos and Amazons of the world for access to these highway toll roads. Cisco's paper predicted that this new strategy would allow broadband service providers to create new revenue-sharing business models with any company that sells content online.

The new Internet will certainly make telecommunications decisions more strategic. CIOs will not only need to worry about how much bandwidth to buy, but which lane they want their traffic to travel in. And tiered service is just the beginning. Telecommunications companies will be able to rearchitect their networks however they see fit. Over time, the new architectures and the services that network owners deliver will result in complicated payer/payee relationships between companies and telecommunications companies. And if a telecommunications company decides it wants to introduce a new Internet standard, CIOs may be forced to rearchitect their company’s systems.


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