Bell Responds to Wholesale Traffic-Shaping Allegations as AT&T VP Predicts Network Overload

The Video Explosion

AT&T Vice-President for Legislative Affairs Jim Ciccone has spoken out at the Westminster eForum on Web 2.0 in London (United Kingdom), warning that the internet systems currently in place face meltdown from the increasing amounts of uploaded, user-generated content and video traffic. Making what Global Insight believes to be a vast overstatement of the situation, CNet News reports that he stated, "In three years' time, 20 typical households will generate more traffic than the entire internet today." However, Ciccone is pushing home the point that capacity is becoming strained and that investment will be required to maintain effective networks: "We are going to be butting up against the physical capacity of the internet by 2010." His estimates are that a US$55-billion investment in backbone infrastructure is needed in the United States alone and US$130 billion worldwide. AT&T will itself invest US$19 billion to meet a fifty-fold increase in broadband traffic by 2015 as video—particularly high-definition video—grows from 30% of traffic to 80%.

While he is likely overstating the case, the internet is increasingly strained by the growth in video-content traffic, with peer-to-peer networking offloading the cost of delivering content on to carriers (see United Kingdom:14 April 2008: A Looming Crisis—BBC & Co Overload U.K. Broadband Network and World: 21 February 2008: Web TV: The Game Changer Gaining Traction). In the United States, Verizon and Comcast have reportedly begun working with key peer-to-peer networking developers in an effort to reduce or optimise network traffic, while operators have begun to implement usage caps, pay-per-MB or simply raising prices to manage the traffic explosion (see United States: 17 March 2008: Verizon Works to Optimise File-Sharing Traffic; 16 April 2008: Comcast to Test Pando's Network Aware P2P Technology; 21 January 2008: Time Warner Tests Pay-per-MB Broadband Tariffs; and 4 February 2008: AT&T to Raise DSL Prices).

Stating the Case against Network Neutrality

The reason for Ciccone—notably the vice-president of legislative affairs—to overstate the case is that the traffic explosion and technological advancement are also leading operators to use new methods to manage traffic. Certain high-use services, such as the operation of servers, have previously been managed using techniques such as port blocking or simply prohibition under terms of use. However, the introduction of tools that can use 'deep-packet inspection', which identifies the content and application types of individual packets, has led to a situation where carriers can discriminate against certain applications more easily and sensitively.

While this is a bonus in that it allows time-sensitive traffic, such as VoIP telephony and streamed video, to be prioritised, it can also lead to allegations of improper behaviour, which is at the source of the 'network neutrality' debate. In the United States, the FCC has been examining the issue while a bill enshrining network neutrality attempts passage through the legislature (see United States: 14 February 2008: New Net Neutrality Bill Set for Debate in U.S.). Overall, the FCC shows mixed feelings towards the issue, with a natural stance towards loose regulation, but with some support for 'anti-discrimination'-type legislation, proposed by Tim Wu, to prevent abuse of market power. Comcast in particular has been in the firing line for throttling and inserting reset messages that interrupt P2P traffic, leading to the announcement that it will work with P2P developers following criticism by the FCC (see United States: 11 March 2008: FCC's Chairman Speaks Out on Network Management).

Wholesale Traffic Management by Bell Canada

This illuminates the background to a case emerging in Canada. At the beginning of April 2008, the Canadian Association of Internet Providers (CAIP) filed a part VII application with the Canadian Radio Television and Telecommunications Commission (CRTC—the regulator) for Bell Canada to cease and desist from throttling its 'Gateway Access Services', a wholesale ADSL access service product. The application alleged that the implementation of deep-packet inspection and traffic-shaping without prior notification had significantly degraded services, and broken several regulatory rules and policy directions. It also noted that this could be construed as anti-competitive behaviour, coming as Bell Canada implemented unpopular pay-for-use tariffs.

Bell Canada has now responded to the application, essentially telling the CAIP that it has introduced DPI and that it is throttling peer-to-peer traffic—specifically mentioning BitTorrent—between the peak hours of 16:30 and 02:00. However, the extent of problems beyond P2P alleged by the CAIP has been denied. Bell notes that tariffs “clearly state speeds are ‘up to’” and that it would only really affect the 5% of heavy P2P users who use up 33% of the bandwidth. Bell states that it does not believe that it is breaking any of the regulations highlighted by the CAIP and it is not a case requiring emergency intervention.

Bell has further placed the onus on CAIP members to prove that it has caused irreparable harm or that the effect of shaping extends beyond that which it has noted. Encryption has also caused problems with some DPI systems, reportedly downgrading service for all encrypted traffic, but Bell notes its investigations have not found any evidence that it extends beyond targeted P2P traffic. Largely, Bell states that if wholesale customers are unhappy, they should use a different solution to provide end-services to customers, such as co-location, LLU, the non-managed business-oriented (and premium cost) high-speed access service, or go to a competitor, such as a cable provider, for last-mile access.

Outlook and Implications

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