Savannah and Crabbyappleton both used our news submit to tell us that according to an
article at ZDNet, file-sharing traffic is costing ISPs (Internet Service Providers) too
As a result of more and more
high-speed Internet connections there has been an explosive increase in file
trading. Currently as much as 60% of data traffic generated on ISP networks
is in the form of music, movie and software files:
British start-up CacheLogic estimates the global
cost of file sharing to ISPs will top $1.3 billion in 2003, an expense
that will nearly triple next year. And yet
it's the popularity of sharing music, film and game files with other
computer users that is drawing many customers to high-speed broadband
Internet services in the first place.
But many industry watchers say the "all-you-can-eat''
formula for selling broadband is coming to an end. According to Jupiter
Research, nearly 60 percent of European ISPs either have instituted or are
considering instituting bandwidth limits on data-hogging customers.
Holding some of them back is a concern among some companies that a cap on
people's data allotment will anger customers who already pay roughly $58
(50 euros) in Europe per month for broadband access.
A few start-ups, including CacheLogic and Canada's
Sandvine, have developed
technological stop-gaps aimed at cutting down on costs without imposing
drastic usage measures.
CacheLogic's Parker said a number of European ISPs are
testing a new computer server that it has developed, which places limits
on file-sharing traffic flow. The server,
which operates on Linux software, largely confines file-sharing activities
to customers within the same ISP, resulting in big potential cost
According to the article the bandwidth costs associated with
file sharing are not sending ISPs into the red, but the companies are anxious to
bring the amounts under control.