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FCC examining reasons for Internet traffic jams

By WTOP Staff

MICHAEL LIEDTKE
AP Technology Writer

SAN FRANCISCO (AP) — The Federal Communications Commission is setting out to unravel the mystery behind the Internet traffic jams bogging down the delivery of Netflix videos and other online content.

The inquiry announced Friday by FCC Chairman Tom Wheeler will dissect the routes that video and other data travel to reach Internet service providers such as Comcast and Verizon.

This crucial handoff of content has gained more attention in recent months as Netflix Inc. and other critics have accused the two Internet service providers of deliberately slowing incoming traffic from websites unwilling to pay for a less congested entry point.

Comcast and Verizon contend Netflix should bear some of the cost for handling the heavy traffic caused by its 36 million U.S subscribers watching video over high-speed Internet connections. At peak viewing hours, Netflix accounts for about one-third of the Internet traffic in the U.S., according to the research firm Sandvine.

The picture quality of Netflix video, though, has been increasingly erratic during the past year at several major Internet service providers, including Comcast and Verizon, which have a combined 30 million subscribers in the U.S. While Netflix has been streaming more smoothly at Comcast since those two companies forged their partnership in February, some problems have still been occurring on Verizon’s network.

Netflix CEO Reed Hastings has continued sniping at both Comcast Corp. and Verizon Communications, arguing they should be able to afford to deliver whatever online content that their subscribers want, given that their customers pay $50 to $80 per month for their Internet service. Netflix charges $8 to $12 per month for its Internet video service.

With the FCC inquiry, Wheeler hopes to get a better understanding of how Netflix and other websites are reaching the Internet service providers through interconnection, or “peering,” arrangements.

“The bottom line is that consumers need to understand what is occurring when the Internet service they’ve paid for does not adequately deliver the content they desire, especially content they’ve also paid for,” Wheeler said in a statement.

In the process, the FCC also could shed more light on whether Netflix is saving money in its peering deals with Comcast and Verizon. Although the terms of the partnerships haven’t been disclosed, both Comcast and Verizon have suggested Netflix is paying them less for a direct connection to their network than what it previously cost Netflix to deliver video through other intermediaries.

In a rare show of unanimity, Netflix and Comcast both said they welcomed the FCC’s inquiry in the interests of greater transparency. Verizon reaffirmed its support for the status quo and pointed out that “Internet traffic exchange has always been handled through commercial agreements.”

The tensions over peering arrangements is part of a much larger debate over Internet neutrality, the concept that all online traffic should be treated equally so service providers can’t set up a system that gives special preference to their own content or websites willing to pay for privileged access.

The FCC’s previous guidelines for so-called net neutrality were scrapped by a federal appeals court in January, requiring Wheeler to draw up new rules. Wheeler’s initial blueprint for net neutrality raised fears that he was going to empower Internet service providers to charge for toll roads, a fear that Wheeler has sought to quell in his public statements.

Peering deals haven’t been considered to be part of net neutrality, but Hastings is pushing for interconnection to become part of the equation.

Hastings’ critics believe he is seizing an opportune time to publicly skewer Internet service providers in an attempt to eliminate all peering fees and boost Netflix’s earnings. He has been escalating his attacks while Comcast has been trying to win government approval of its politically sensitive $45 billion acquisition of Time Warner Cable, another major Internet service provider. Hastings is urging regulators to reject that deal on the grounds that it might make it even easier for Comcast to impose Internet tolls on content providers.

Former FCC Commissioner Michael Powell, now president of National Cable & Telecommunications Association, blasted Netflix and other unnamed Internet companies for trying to “move the goal posts” to suit their own interests. “They want to protect their profits by ensuring that the disproportionate impact caused by delivering traffic to their customers is spread across all broadband subscribers and not just those who actually use the service,” Powell wrote in a blog post earlier this week.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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