Earlier this year Netflix and Comcast had a little contretemps about their peering agreement. Unless you spend time trying to keep up with the various layers, and the players therein, that make up the technical infrastructure of the internet then that statement potentially means absolutely nothing to you whatsoever, but actually its all quite important.
Peering is the name given to the agreements that cover the terms for transferring internet traffic between networks and they are a fundamental cornerstone of the modern internet. Because there is not one single network that covers the whole world it is important that traffic can be exchanged, as required by the needs of the user, with the least possible friction. Historically these agreements were made between engineers and each network simply agreed to open to each other as required, no money involved. Comcast decided that they wanted to buck that history and demanded payment from Netflix. Netflix suggested that prior to this negotiation Comcast were deliberately allowing congestion in certain parts of their network to negatively affect Netflix’s customers (something Comcast denied) and that they had no choice but to pay the ransom.
Level 3 is one of the big global internet backbone companies that carry enormous amounts of web traffic. They are the one of the companies that pay for, and own and maintain, the cable that runs under the oceans. This post on their blog lays out some of the dynamics that go into peering agreements and even though this post doesn’t deal directly with the situation between Netflix and Comcast it should probably give you enough information to understand who is playing the shithead and who isn’t.
I never did try playing Go the ancient Chinese strategy game, and after reading this article i’m starting to think that that is no bad thing. Like chess its a 2 player war game, but unlike chess its a game (possibly the only game left) that retains an unbeaten crown in human vs computer match-ups. Machines beat humans at checkers in 1994 and chess was added to the list in 1997. Now, 17 years later Go still holds out, and holds out with comfort. Every year the University of Electro-Communications in Tokyo hosts the UEC cup where computer programs compete against each other for the opportunity to compete against a Go sage, who will be one of the world’s top Go players. The challenge is not one of brute force computing power, its more about strategic understanding and the fact that by all accounts we don’t really understand what goes into being a great Go player, human or otherwise.
Ever wondered why the airwaves are licensed by the government? If you think about it a little, the chances are you will come to what seems like a very simple and straightforward conclusion, which is that the airwaves are licensed so that broadcasting signals don’t interfere with each other. To ensure that when you tune in to 97-99 FM here in the UK, you will receive radio one, not some other outfit broadcasting on the same frequency. Which is all well and good except that electromagnetic waves simply don’t interfere with each other. This concept of interference seems to imply that there is only so much space on any particular frequency that can carry signals, that there is only so much spectrum available. Colours are on the same spectrum as radio waves, separated only by their different frequencies, to suggest that spectrum is limited is to suggest that there is only so much Red to go around, which is clearly a farcical concept.
All of that, which is sound and uncontroversial 6th form physics, does raise some interesting questions about our radios and TVs and mobile phones, all of which broadcast across licensed electromagnetic frequencies. It turns out that the problem of interference is a problem of the broadcasting and receiving equipment not the natural scarcity of the airwaves. We have a system that limits access to frequencies because we are still using a technology base optimised to an old technical paradigm.
This piece published in Salon gives you the full detail and quotes extensively from the work of David Reed an important and prominent scientist from MIT, famous for writing the text that nailed the modern architecture of the internet. Understanding what is actually going on here turns out to be entertaining and enlightening.
I don’t know whether this last link is being serious or not, and that alone might be the best observation I have to make about the state of modern economics.
Alex Tabarrok is a right leaning economist who authors the blog Marginal Revolution with Tyler Cowen, both are professors at George Mason University in Virginia. This short post, one of many from the right responding to the fuss being made by Piketty’s Capital, offers “2 surefire solutions to inequality”. One is to increase fertility among the rich, dilute the inheritance and reduce capital concentration. The other surefire way? To reduce fertility among the rich! The author of the post puts a lot more detail into this position than I do here. I’m leaning towards the opinion that he is simply having a laugh, but then as he is an economist i’m really not so sure.