[AusNOG] FW: [CAnet - news] Charging content providers is now happening

Stephen Baxter steve at staff.pipenetworks.com
Wed Jan 18 09:41:49 EST 2006

Interesting article about the whole 2 tier Internet. 

-----Original Message-----
From: news-bounces at canarie.ca [mailto:news-bounces at canarie.ca] On Behalf
Of Bill St.Arnaud
Sent: Wednesday, 18 January 2006 6:09 AM
To: news at canarie.ca
Subject: [CAnet - news] Charging content providers is now happening

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From: DV Henkel-Wallace -d

BellSouth wants new Net fees

By Frank Barnako, MarketWatch
Last Update: 4:40 PM ET Jan. 16, 2006

WASHINGTON (MarketWatch) -- BellSouth Corp. confirmed Monday that it  
is pursuing discussions with Internet content companies to levy  
charges to reliably and speedily deliver their content and services.

Bill Smith, chief technology officer at BellSouth justified content  
charging companies by saying they are using the telco's network  
without paying for it.

"Higher usage for broadband services drives more costs that we have  
to recover," he said in a telephone interview.

  He suggested that Apple Computer might be asked to pay a nickel or  
a dime to insure the complete and rapid transmission of a song via  
the Internet, which is being used for more and more content-intensive  
purposes. He cited Yahoo Inc.'s plans to stream reality TV shows as  
an example.

"It's the shipping business of the digital age," Smith said, arguing  
that consumers should welcome the pay-for-delivery concept.

  BellSouth has discussed its idea with MovieLink, a film-download  
service. He called MovieLink an example of the kind of company that  
wants customers to have a good experience and would view costs  
incurred in the strengthening of BellSouth's Internet capacity as  
worthwhile. Smith also said online game companies are likely  
candidates for charges.

Over the weekend, Internet entrepreneur and NBA team owner Mark Cuban  
wrote on his blog at BlogMaverick.com that such fees are critical to  
the survival of the Internet. "Our ability to consume bandwidth is  
growing far, far faster than the speed at which it is being added,"  
he said. "The more bandwidth we consume, the more Internet traffic  
jams we have."

Cuban wants telephone and cable and wireless companies to work out a  
way to deliver traffic at various levels of service quality. "Yes,  
that will mean some content will cost more if we want it faster," he  
conceded. "But that will be our choice."

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