Is Verizon Warring on AWS, Netflix?

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Is Verizon Warring on AWS, Netflix?

A bunch of articles that were forwarded to me today -- Mashable, GigaOm, and a blog -- all about the consumer experience with FiOS, Verizon's fiber-to-the-home service, is throttled to certain destinations like AWS.

The blog post shows a chat session where a VZ tech confirms the limiting bandwidth for home users to cloud providers like AWS and Netflix. (Netflix utilizes AWS.)

I don't have FiOS. I have cable. I experience buffering when watching Netflix often. It's annoying, especially the tech support replies. Do a speed test. All is fine. Reboot this or that. Ummm, I can surf the web; just not get my packets in real time from Netflix. (It happens with my VoIP business line sometimes too.)

The advertised speed is bullsh!t because you get that for last mile and maybe a little longer, but most servers can't deliver a 1GB experience. And the bottleneck is the Peering points.

In both articles, Verizon points out that its peering needs to be equal. If not, someone has to pay. Netflix uses Cogent to get to VZ apparently. That will never work out. Cogent always has peering fights - always.

Since the Net Neutrality court battle, many have pointed to the lousy service as a Net Neutrality fight. VZ hurting Netflix to help Redbox Instant (its partner). They fail to notice that VZ has a big dog in the IAAS arena, which is where Amazon and its AWS are winners. VZ could be throttling to help its own IAAS and VPS business.

Or it really could be a peering battle.

Either way, it people are working at home more and more and more. As layoffs - like the Dell's 3000 and the other 2000 telecom jobs in the past month - more people will be working at home. Freelancing will be king. Cloud services will grow and bandwidth usage will increase. The bandwidth has to work. The throughput has to be valid. I already ask why anyone would pay for 25MB or more. You aren't going to use it. The bottleneck is not your last mile pipe.

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