I have been using TelstraClear cable modem services for many years, in its many different "brands" - Chello, Saturn, TelstraClear - and really enjoy having a plan that provides me with consistently good speeds and reliability (but don't try calling their customer services line).
Digital media in all its different forms is now part of many families every day life. Here at home we are able to rent and buy movies from iTunes at any time and have those quickly delivered to our media center. We have two VoIP lines at home, being completely POTS free. We have 100GB+ of online backup stored at Mozy servers - including all those iTunes movies, music, family photos and short movies captured with our Flip video camera. We have six computers at home, and we work from home.
This is all possible because we subscribe to a TelstraClear 80GB cable modem plan with good download and upload speeds - and frequently go over the cap. I don't mind paying for the service when it provides me with the means to exercise my freedom - freedom of work, freedom of play.
A few years back, Dr Allan Freeth, TelstraClear CEO was quoted as saying "the main result of faster broadband links to the home may be more downloads of pornography and movies rather than improvements to productivity." This was also reported on Computerworld.
That statement made then InternetNZ Executive Director Keith Davidson jump with a release saying "Dr Freeth's view that true high-speed broadband available at home is not important for New Zealand's future is not a view we share. High speed broadband - 100mbps and more - is vital to New Zealand's future" .
So what? The Internet is for Porn (safe for work except for the word "porn"). But try watching this short movie on a TelstraClear connection - even a fast 10Mbps connection - and you might have problems. Actually since just before September last year people started reporting problems when accessing YouTube clips over a TelstraClear connection.
This problem is still going on, and while TelstraClear have very quietly admitted there's a problem, it seems the solution is not coming any time soon.
Could it be that politics of peering are involved in this? Peering is a very sensitive subject within TelstraClear. Dr Allan Freeth remarks were "Peering has become an extremely emotional issue, as noted in the recent Internet NZ report, which also noted there was no evidence of market failure. Our decision was a commercial one - we need to earn a return for the use of our assets. While some people believe the Internet is 'free', I can assure you my shareholder doesn't see it that way. Organisations that have content they want to supply to end users can buy a service from us, which is tied in with the cost of national carriage. This is still more cost effective than international bandwidth."
A lot of an ISP traffic goes to all of Google's properties. YouTube is probably the biggest one of those services and to help reduce traffic, Google does peer locally with larger ISPs. It basically comes to this: Google is clever and wants free (or low cost) distribution of its content. To this end they enter an agreement with larger ISPs and colocate cache boxes.
Of course if your ISP don't have one of these boxes then your traffic to Google's online properties needs to find the content somewhere else. In TelstraClear's case it seems this traffic goes all the way to the US and back.
There are local YouTube caches in New Zealand, with other ISPs. But the problem then is back to the peering camp. It seems TelstraClear rather have a lot of traffic going out over international connections than to have it flowing locally and pay for it to a competitor.
If this is not the case, I'd love to see an explanation from TelstraClear - something I feel they owe their customers. To me it comes down to YouTube access through TelstraClear is crippled and the way the company acts is disrespectful to their paying customers.
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