Who Gets Special Access to Comcast’s Customers? Who Decides?


Things that make you go “hmmm”:

Apple Inc. is in talks with Comcast Corp. about teaming up for a streaming-television service that would use an Apple set-top box and get special treatment on Comcast’s cables to ensure it bypasses congestion on the Web, people familiar with the matter say.

….Under the plan Apple proposed to Comcast, Apple’s video streams would be treated as a “managed service” traveling in Internet protocol format—similar to cable video-on-demand or phone service. Those services travel on a special portion of the cable pipe that is separate from the more congested portion reserved for public Internet access.

People familiar with the matter said that while Apple would like a separate “flow” for its video traffic, it isn’t asking for its traffic to be prioritized over other Internet-based services.

Making video-on-demand operate properly requires careful engineering. It doesn’t work if you just dump it out on the public internet and call it a day. However, that careful engineering costs money, and it’s not unfair for companies to demand reasonable compensation of some sort if they’re the ones who bear the costs.

But who decides what’s reasonable and what isn’t? In a competitive market, the market eventually decides. Price signals and competition do the heavy lifting with only light government regulation to set a level playing field and police the worst abuses. But when companies like Comcast have effective monopoly control over internet access in their territories, who decides then? There are no market forces to rely on, which means that Comcast gets to decide unilaterally. So, for example, when Netflix finally agrees to pay a fee to Comcast for delivery of its video content, the quality of Netflix transmissions miraculously goes up almost instantly. Apparently there were no infrastructure issues at all and no special buildout costs. It was just a matter of Comcast extorting some extra revenue from Netflix.

The Apple case is different in the details, but it raises the same basic principle: Who decides? Who gets special access to Comcast’s customer base? Who gets shut out? The market can’t provide any guidance because Comcast has little genuine competition in this space.

So who decides?

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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