Editorial by Brian Boyko
Editor, Network Performance Daily
Ars Technica reported that a memo claiming that Time Warner was going to roll out a "pay-as-you-go" metered scheme for Internet access, rather than today's subscription-based unlimited bandwidth access plans was leaked to BroadbandReports.com. That memo, which since has been removed, claimed that Time Warner was going to try metered/limited access on a trial basis in Beaumont, Texas, and Time Warner representatives have confirmed this plan with Reuters.
As Ars Technica pointed out, Comcast has tried using bandwidth caps and traffic shaping to curb Internet usage among the customers that pay Comcast for Internet access. Comcast, however, has run into trouble because it has not revealed those policies to Comcast's customers. Time Warner will supposedly give customers online tools to monitor bandwidth usage.
Of course, it would be the best solution to increase the capability of the network - ISPs have to play by different rules than corporate networks as they are common carriers. But we don't know whether it is economically feasible for Time Warner's cable division to remain profitable while increasing the bandwidth, and if an unlimited-access plan is not feasible, a pay-as-you-go plan seems at first to be the fairest of the alternatives.
That said, there's something a little, well, strange about this, because the Internet is not a big truck that you just dump something on. It's a series of tubes.
Solving The Wrong Problem
That is, all Internet connections are merely the transfer of little positively and negatively charged electrical bits which stream down the wire. The limitations are not in the availability of the resource but in the capacity of distribution. We are not, in other words, "running out of bandwidth" like we run out of oil, run out of water, or run out of diapers.
What is limited is the capacity of the "pipe." To strain a metaphor, you could push Lake Michigan through a coffee stirring straw, but it would take a very, very long time.
Any pay-as-you-go plan has a fatal flaw - it doesn't make a whole lot of sense to bill people for the data they are downloading because data is not the limited resource!
What is limited is the capacity of the ISP's infrastructure at any particular moment in time, so it would be saner to limit the usage of the pipeline at a particular time. Perhaps to even out the usage of bandwidth, the ISP could provide different speeds for peak and off-peak usage times. Those unhappy with the slow speeds at peak times could pay a premium for a greater share of the pipe.
But wait a minute! ISPs already do this - I know that my Internet connection at home is capped at a certain speed. In fact I could get a faster speed simply by asking for it and paying a premium - no delay nor needed infrastructure upgrades. Just cash.
So the move to a pay-as-you-go plan seems, to be at best a case of solving the wrong problem, and at worst a case of "double dipping" by making people pay for data and bandwidth. (If there are network slowdowns, charging people per-gigabyte won't help much if people are still downloading that gigabyte at the same time of the day, after all.)
Your Experiences May Differ
Unfortunately, I've been on the receiving ends of one of these plans. Recently I was in New Zealand filming a movie about electoral reform. Bland stuff. While I was there, I was planning to upload film to the Internet - sort of a production blog. But I found that I couldn't - the ISP there, New Zealand Telecom, had placed my flatmates and myself on a pay-as-you-go program with a cap of only one gigabyte, and they would not increase the cap until the next billing period, which would have been after I left the country.
One gigabyte. Anything over that amount was downloaded at speeds that I hadn't seen since I bought my last 56.6k modem. That meant that even doing things like normal Web browsing was a particularly hard chore. Uploading film to YouTube was right out. I was even hoping to get some extra work done for Network Performance Daily during that time but found that I simply did not have the ability to do so. I was, in a word, ticked off and frustrated. It certainly made it quite a bit harder for me to use the network - I ended up getting a lot of iced mochas at the local Internet café, as patronage was a prerequisite for Internet service.
Now, I have no idea if Time Warner plans anything like New Zealand Telecom, and Time Warner has more competition - even in Beaumont, TX - than New Zealand Telecom did in Wellington. That may force them to abandon this plan if they find customers cancelling accounts and leaving for competitors.
It is rather important to notice that the last mainstream successful service that charged you based on how much you used it was 1996's AOL.
I've never been to Japan, France, or Korea but I'm told that all of these countries have broadband available at much greater speed, without having to worry about pay-as-you-go plans. So the question is not whether unlimited broadband is technically feasible as more people use broadband, the question is whether companies are willing to make the infrastructure investments necessary. And considering that there will be more competition, not less, as new technologies (like FIOS and WiMax) become available, investing in infrastructure rather than limiting customers seems to be the smarter move in the long term.
But let's say that this plan is a success in Beaumont, and catches on. What's the upshot for enterprise networking?
You Think You Have A Recreational Network Use Problem Now…
If people come to expect that every piece of data that goes through their network is going to cost them extra money, that may mean that all the large data that they were once downloading at home now ends up getting downloaded to the corporate network and taken home via flash drives. In addition to the spike in traffic use, there are also issues with copyright infringement liability, computer security (with flash drives from home possibly containing malware - not to mention that people will probably swap flash drives within the company, spreading infections,) and people looking for large files to download before they go home instead of doing work.
Now, in many ways, the problem with limited bandwidth availability from an ISP may seem similar to limited bandwidth availability on a corporate WAN. But a business has many more options for dealing with slow networks than an ISP does. Businesses can check their application performance and if necessary recode them (many legacy apps designed for a LAN are too "chatty" for the WAN.) They can set QoS policies to make sure certain types of traffic from certain types of applications get priority. Traffic can be rescheduled so that it goes through the system during off-peak times.
Businesses have all these options - including limiting the end-users in a number of different ways - because in a business, the network is there to serve the business. But in an ISP, the network is there to serve the subscribers by providing a common-carrier communications service.
As such, the subscribers of an ISP can and should determine what traffic should be on the network, when, where, and how much. Any methods to alter, curb, slow, or block traffic from the network should be disclosed to the end-user at the very least and should be avoided unless there are no other alternatives - to do otherwise is to create a value judgment on certain types of traffic and to endorse certain types of speech over others.
(Perhaps I'm wrong on this, but…) To my knowledge, no company uses a method similar to "pay-as-you-go" to curb recreational traffic on their networks. They may limit speeds to certain applications, they may block sites, but I don't believe that any company institutes a bandwidth cap on its own employees.
That to me suggests that this plan doesn't have much merit as a solution to ISP oversubscription.
What do you think about Time Warner's plan? Disagree with the author? Feel free to make your opinions heard in our comments section.