Cable group is outraged at the idea of the FCC being transparent

For years, large broadband players such as AT&T, Verizon and Comcast let peering points saturate to kill settlement-free peering and extract new fees from a variety of video streaming sites. Essentially, major ISP’s were refusing to upgrade interconnection points to intentionally cause a degradation of Netflix service, in turn forcing Netflix to pay for direct interconnection. Cogent CEO admitted as such. Additionally, Level 3 called out Verizon in 2014 for this very same issue. The State of New York has even begun to investigate whether ISP’s agreed to interconnection deals and STILL didn’t provide anywhere near their advertised speeds.

Network services provider Level 3 has therefore asked the FCC to “mandate information about congestion at interconnection points (as) a requirement of its enhanced disclosure provisions of new Open Internet rules.” Basically, Level 3 wants ISP’s to supply basic information about the management of their networks.

As BroadcastingCable reports, cable operators are not happy and through their top lobbying organization, the National Cable & Telecommunications Association (NCTA) are begging asking the FCC to reject this request by claiming that such a request was “erroneous and unwarranted.”

According to cable operators, even though the FCC included interconnection issues within their reach thanks to Net Neutrality, the FCC didn’t include specific rules about such interconnection issues, instead opting to make it a case-by-case situation. This means, again according to cable operators, that the FCC has already rejected Level 3’s request.

The cable operators want no part of this request because it would mean that their backdoor shenanigans with peering points would be exposed. For years, we heard fixed and wireless operators claim that they needed to force customers onto data caps due to “network congestion” issues. Granted, we never saw a single piece of evidence backing up any of these claims. Fast forward to today and the same providers quietly admit that usage caps are, and always have been, about milking consumers out of as much money as possible.

If only we had had access to network management reports when data caps were first forced onto customers.

ISP’s are right….net neutrality is destroying their business

Today, net neutrality is being argued in court. The FCC will claim that they have the authority to define ISP’s are common carriers under Title II’s definition of “telecommunications services.” ISP’s, on the other hand, will argue that the FCC has no such power.

For months, ISP’s have spent many millions trying to convince the public and government that net neutrality would destroy the broadband business. ISP’s have told us that if net neutrality was put into law, super secret new taxes would jump onto consumers bills, network investment would suddenly fall off a cliff and their financial bottom lines would suffer significantly.

Almost a year after net neutrality was successful put in place by the FCC, we have seen no secret taxes and network investment continues to break new ground with record amounts of money being spent during spectrum auctions and/or mergers.

To be fair, I am guessing that the ISP’s are seeing drastic decreases in profits and revenues.

Let’s ask Cable One CEO Thomas Might how his business is doing after net neutrality was introduced:

Speaking at the Wells Fargo Securities Technology, Media & Telecom conference in New York, Might said that operating cash flow margins for “product B” (high-speed Internet) are in the 50 percent range. “It’s new math,” Might said. – FierceCable

But frankly, even those absurd financial numbers are not enough. Cable One has recently announced ANOTHER price increase for broadband customers, this time charging consumers $5 per month for simply using the internet.

Maybe we are simply focusing on one company. Let’s see how the broadband business services are dealing with net neutrality.

AT&T is also rumored to have more than $10 billion ready to go during the next spectrum auction.

Honestly, can someone explain to me how these companies are able to work under such atrocious conditions?