[AusNOG] Netflix in AU, break up Go4, or TPG peering breakup?

Chris Ricks chris.ricks at securepay.com.au
Mon Jul 21 15:40:40 EST 2014


Given TPG's acquisition of AAPT and their tendency to go after market
share with price being their differentiator, is there a possibility that
TPG's pricing of transit will disrupt the GoF status quo to some degree?

Chris

On 21/07/14 15:35, Curtis Bayne wrote:
> It is somewhat ironic that the "regulation" of domestic
> interconnection resulted in the formation of a 4-way cartel which is
> nearly single-handedly responsible for inflation of domestic transit
> costs.
>
> To those arguing for more government intervention, my only thoughts
> are that the aforementioned is a prime example of how glacial the
> regulators are in comparison to the industry. Seemingly reasonable
> short term decisions can have pretty major long term impacts.
>
> We're starting to see the infrastructure rot in the last mile (aging
> DSLAMs, contented backhauls still running at 1Gbps) from the lack of
> private infastructure investment due to the now-defunct FTTP NBN.
>
> This is very dangerous territory in which to tread...
>
>
> On Mon, Jul 21, 2014 at 3:26 PM, Bevan Slattery <bevan at slattery.net.au
> <mailto:bevan at slattery.net.au>> wrote:
>
>     Yes.  Yahoo, Google, Akamai, Limelight, Facebook, Microsoft will
>     all tell you that the cost of domestic transit in Australia is
>     high when compared to most other developed countries in the world.
>      So when users (consumers/voters) want to watch movies on demand
>     they find themselves restricted due to copyright/studio monopolies
>     establishing a different set of licensing arrangements which are
>     burdensome and costly and of course geo-restricting and then a
>     peering arrangement which has not changed since the late 90's
>     which inhibits new entrants from firstly investing in domestic
>     infrastructure and then secondly creating exciting and disruptive
>     services.
>
>     It is more expensive to connect to your domestic instance of
>     Amazon than your US instance... considerably.  The same will
>     probably happen with Azure, Google Compute.  All because of
>     domestic transit costs.  I'm not blaming those in the club -- all
>     the power to them.  Drink away.  But this dance has been going on
>     for 15 years and some how "OzEmail" are still in the GoF despite
>     being a trickle in terms of traffic.  The regulators have created
>     an entrenched club and failed to look at what opportunities we
>     have lost.
>
>     What if a Nextgen or Vocus were included in a peering arrangement
>     (and the terms of which are supposed to be published on the
>     websites of the GoF as part of the determination)?  We would have
>     a really interesting player to deliver a national domestic product
>     to the networks that would change the commercial paradigm
>     significantly.  But alas we are geo-excluded (copyright),
>     commercially challenge (GoF) and soon to be further legally
>     corn-holed from accessing off-shore content (Copyright Treaty).
>
>     If you can't see much wrong with that picture then you may have
>     spent too long sniffing the packets :)
>
>     [b]
>
>     From: Sam Silvester <sam.silvester at gmail.com
>     <mailto:sam.silvester at gmail.com>>
>     Date: Monday, 21 July 2014 2:45 PM
>     To: "ausnog at lists.ausnog.net <mailto:ausnog at lists.ausnog.net>"
>     <ausnog at lists.ausnog.net <mailto:ausnog at lists.ausnog.net>>
>
>     Subject: Re: [AusNOG] Netflix in AU, break up Go4, or TPG peering
>     breakup?
>
>     I'd say based on popularity Netflix seem to have what they need to
>     operate just fine...again, why is this something for the
>     Government to solve? Have Netflix said they have problems / see
>     problems distributing content in Australia? Have other streaming
>     providers?
>
>     https://getpocketbook.com/blog/netflix-australia-2-stats-scare-local-players/
>
>
>     On Mon, Jul 21, 2014 at 1:40 PM, Jacob Gardiner
>     <jacob at jacobgardiner.com <mailto:jacob at jacobgardiner.com>> wrote:
>
>         What about the potential for Australian produced content to be
>         streamed to your nearest internet connected computer or
>         tablet? Or better yet, exported via Netflix to a global audience?
>
>         Netflix solve a distribution issue, they're not a studio. This
>         being said, Netflix need the infrastructure to be present and
>         that's what this conversation is about. The NBN idea was meant
>         to stimulate our industry to move beyond what it is now and
>         enable businesses LIKE Netflix to set up and provide new
>         services to Australia. (hence my dig at our dependance on mining)
>
>         IF the government was to talk to a business like Netflix and
>         ask them what a fast growing online business needs to operate
>         they'd hopefully be more receptive than listening to a bunch
>         of complainers (I imagine the government looks at groups like
>         this as whingers). 
>
>         netflix need - good connectivity, everywhere & local film and
>         media content. - I think most people in AU want the same?
>
>
>         On 21 July 2014 at 12:03:59 pm, Lincoln Dale (ltd at arista.com
>         <mailto:ltd at arista.com>) wrote:
>>         On Mon, Jul 21, 2014 at 11:49 AM, Jacob Gardiner
>>         <jacob at jacobgardiner.com <mailto:jacob at jacobgardiner.com>> wrote:
>>
>>             On 21 July 2014 at 11:18:36 am, Mark Newton
>>             (newton at atdot.dotat.org <mailto:newton at atdot.dotat.org>)
>>             wrote:
>>>             The Government is entirely impotent in this area.  They
>>>             cannot force an offshore provider to make decisions
>>>             which are suboptimal to their business.
>>
>>             This is exactly where the mindset needs to change. 
>>
>>             If the Government wants a business like Netflix and many
>>             others to invest into Australia's market then there
>>             should be incentives to do so. 
>>
>>
>>         umm. Just exactly what do you think the 'government' gets out
>>         of Netflix and others offering services in Australia? And
>>         what makes you think thats "investing in Australia" ?
>>
>>         Employees in Australia? Not likely. At least not any more
>>         than they would otherwise have.
>>
>>         Equipment in Australia? Possibly. But I can pretty much
>>         guarantee that not a single physical thing inside a server,
>>         disk, NIC or switch has been manufactured in Australia.
>>
>>         Netflix buying more of that 'stuff' may indirectly contribute
>>         to suppliers to Netflix, but likely that doesn't magically
>>         result in more tax $ to the Australian Government or
>>         magically promote 'investment' in Australia.
>>         You think otherwise?
>>
>>
>
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