Problems: The explosive growth of video streaming and mobile technology creates bandwidth problems over the Internet. The
Question:
Problems:
The explosive growth of video streaming and mobile technology creates bandwidth problems over the Internet. The internet is designed to send content such as e-mail and web pages. However, media goods transmitted on the Internet today, such as high-definition films (HD Movie), are much larger in size. To complicate this problem, there were (as of early 2015) more than 180 million smartphone users in the United States, many of whom used the Internet to stream video content from their phones.
The problem of Internet bandwidth has a balance both economically and technologically. Today, consumers can send 1-kilobytes of e-mail or watch the latest 30-gigabyte movies on their big-screen television for the same monthly broadband cost. Unlike systems used for electricity and water bills where higher usage results in higher costs, monthly broadband fees are not tied to consumer usage.
A study from Juniper Networks (www.juniper.net) highlights this "revenue-per-bit" problem. This report predicts that internet revenues for operators such as AT&T (www.att.com) and Comcast (www.comcast.com) will grow by 5 percent per year until 2020. At the same time, Internet traffic will increase 27 percent every year, which means that operators must increase their bandwidth investment by 20 percent per year just to meet demand. Under this model, the operator's business model will face pressure, because the total investment required will exceed revenue growth.
Some industry analysts expect operators to stop investing in new capacity. Nevertheless, analysts agree that the financial crisis will come. When internet traffic surges, analysts expect revenue per megabit to decline. These images translate into much lower return on investment (ROI). Although operators can find ways to increase their capacity, it will be difficult for them to benefit from doing so.
The heart of the problem is, even if the technology is the same as the task of transmitting large amounts of data, no one knows for sure how to pay for this technology. One proposed solution is to eliminate network neutrality. Network neutrality is a model of operation in which Internet service providers (ISPs) must allow customers to equalize access to content and applications, regardless of the source or nature of the content. That is, Internet backbone operators must treat all web traffic is the same, not charging different rates by users, content, sites, platforms, or applications. Telecommunications and cable companies want to replace network neutrality with arrangements where they can charge different prices based on the amount of bandwidth consumed by content sent over the Internet. These companies believe that differentiated pricing is the fairest method by which they can finance the investment needed in their network infrastructure.
To strengthen their argument, the ISP points to the large amount of bandwidth needed to deliver pirated versions of copyrighted material through the Internet. In fact, Comcast reported in 2010 that the distribution of material protected by illegal copyrights consumed 50 percent of its network capacity. ISPs further argue that net neutrality impedes US international competitiveness by reducing innovation and minimizing capital investment in new network technologies. Without such investment and innovation, ISPs will not be able to handle exploding requests for the Internet and wireless data transmission.
From the opposite perspective, supporters of network neutrality petitioned Congress to regulate the industry to prevent network providers from adopting strategies similar to Comcast. They argue that the risk of censorship increases when network providers can selectively block or slow down access to certain content, such as access to competitive low-cost services such as Skype and Vonage. They also emphasized that a neutral Internet encourages innovation. Finally, they argue that a neutral Internet has helped create many new businesses. For example, one venture capital company said that it would avoid startup funding in the video and media arena. The company further states it will not invest in a payment system or cellphone wallet, which requires fast transaction times to be successful.
In another example, the US Federal Trade Commission (FTC) is suing AT&T after the operator allegedly "misled" millions of its smartphone customers regarding its unlimited data plan. The FTC claims that AT&T bills its customers for "unlimited data," but still reduces search speeds for as many as 3.5 million users.
Most analysts predict that the user who consumes the most data will ultimately have to pay more, most likely in the form of a tiered pricing plan. However, Americans must never argue with the limits on the amount of data they upload and download. So, there may be pressure from the user.
In 2008, Comcast openly challenged net neutrality when it slowed down the transmission of BitTorrent (www.bittorrent.com) files, a form of peer-to-peer transmission that is often used for piracy and illegal distribution of copyrighted material.
The Federal Communications Commission (FCC) responded by ordering Comcast to restore previous services. Comcast then filed a lawsuit challenging the FCC authority to enforce network neutrality. In April 2010, the Washington D.C. Circuit Court of Appeals. decided to support Comcast, stating that the FCC does not have the authority to regulate the way ISPs manage their networks. By authorizing different pricing, the court dealt a major blow to network neutrality.
Apart from these regulations, on December 21, 2010, network neutrality regulations approved by the FCC forbid wireline based broadband providers - but not cellular broadband providers - from engaging in "unreasonable discrimination" against Web traffic. These rules are known as Open Internet Order.
Reference:
Rainer, R. K., Prince, B., & Cegielski, C. (2016). Introduction to Information Systems (6th ed.). NJ: John Wiley & Sons Singapore Pte. Ltd. Page 194
Question:
1. Is the ISP correct in claiming that network neutrality will limit the development of their new technology? Explain your answer!
2. Is the content provider (eg, Netflix) right in claiming that removing network neutrality will encourage censorship by ISPs? Explain your answer!
3. Are content providers right in claiming that eliminating network neutrality will result in consumers paying higher prices for content they watch on the internet? Explain your answer!
4. Why is the debate about network neutrality so important to you? Explain your answer!
Please answer all the questions, Thank you so much in advance!
Introduction to Probability and Statistics
ISBN: 978-0495389569
13th edition
Authors: William Mendenhall, Robert J. Beaver, Barbara M. Beaver