Showing posts with label politics. Show all posts
Showing posts with label politics. Show all posts

Friday, September 9, 2011

A Coming Storm – Bandwidth Caps, Streaming Content and Cloud Computing.

Not so long ago, Cable and Broadband Internet provider Comcast was in the news over the disconnection of a customer for excessive broadband use. Now, It'd be easy for me to write a page and a half of Comcast hate on this topic, as many people who have had dealings with that company have been dissatisfied with their service. However, the issue is more complicated than "Comcast Sucks," there are readers out there who live in countries or areas of the US where Comcast isn't even an option, and what is going on affects anyone who uses the internet, or it soon will. This issue skirts perilously close to the politically-charged concept of Net Neutrality, so we may drift into that discussion as well.


Since the early days of the internet, the companies that provide access have sought a way to change fee structures to either a usage-based model (like mobile phones have) or content-priority model (like Cable TV.) It makes sense, on its surface. People are willing to pay a certain amount for internet access, but technology moves ever forward, and new infrastructure, better speeds and more bandwidth cost more for the provider, without providing significant additional revenue. The problem is, since the time of America On-Line as a dial-up service, customers have unilaterally rejected any attempts to carve up service or to charge on a per-hour basis. However, customer outrage only accomplishes so much, especially in regions where there is little or no competition. A customer can be as angry as they like, but if they cannot take their business elsewhere, they have little recourse.

The massive costs associated with establishing a network infrastructure capable of providing residential high-speed internet has created a unique situation. In order to entice companies to create and do at least minimal improvements and maintenance on those lines, governments offer a regulated monopoly in many cases to recoup those costs. Unfortunately, the legal definition of "competition" in networking doesn't keep pace with technological development, so even after exclusive contracts run out, virtual monopolies may remain in place because while there is technically competition, the service alternatives may not provide a reasonable level of service. This leaves large areas with two, or even just one legitimate options for internet service as the norm, rather than the exception, and all sorts of customer abuse and anti-competitive practice can take place outside the auspices of laws designed to protect consumers from monopolies.

Well, not that sort of Monopoly, but you get my point.

These companies provide access to their network, but would, of course, prefer that individual customers not use all of their capacity all the time. If a significant percentage of customers did this, the network couldn't handle it, meaning more expensive and difficult network upgrades for the same fees. Since the public won't stand for certain changes to fee structuring, and in some countries internet access has been classified as a basic human need along with other essential utilities, blunting the power of the monopoly, something has to give. The solution was intially to throttle certain types of traffic, slowing down the connection for users who are performing certain network operations. The legal and ethical concerns around snooping into data entering or leaving customer homes made this a poor solution, and the concept of a bandwidth cap was instituted.

Coming at the issue from another angle, normal and legal consumer uses for bandwidth-hevy operations seem to be increasing daily. Streaming video through YouTube and similar services, High-Definition TV and Film by way of Netflix, Hulu and HBOGo, Voice-over-IP telephone service like Skype scratch the surface of high-bandwidth use. Cloud computing shares hardware and network resources to use applications like Google Documents, run websites like Reddit and provide online virtual backup drives for long-term storage that is not at risk of a single power outage or natural disaster wiping out all copies of important files. As these services become more popular, a whole lot of data needs to be transferred around, and that means more bandwidth and strain on the networks.

It isn't just pirates using large amounts of bandwidth anymore.

It was easy at first for large companies to "sell" the concept of bandwidth caps by insinuating that unless someone was a filthy pirate illegally downloading and uploading "stolen" intellectual property, that the caps wouldn't affect anyone. These caps have been in place in many areas for three or more years, and the hard limits are not going up, despite the increasing demand for bandwidth in legitimate internet traffic. Average caps in the US are currently around 250GB/Mo for service providers who also provide cable TV, leading to accusations that these caps are in place partly to discourage use of streaming video services that compete with cable television services. In Canada, caps are frequently even lower, especially away from large metropolitan areas where caps are as low as 25-60GB per month. That is as low as 12 HD films streamed over a connection in a month before disconnection of service. In Europe, the figures vary wildly, as the geographic size of areas needing to be covered by lines for networking is comparatively smaller in many countries, which in some places allows for better networks and more healthy competition.

Land lines, laptops and desktops aren't the only devices running into monitored and limited internet usage. As the internet speeds on mobile devices has improved over the years, customers found ways to use Unlimited data plans to "tether" mobile devices to computers for a comparable high-speed internet connection to DSL or Cable. As a result, many mobile providers no longer offer such plans as a financial necessity. It isn't just the cable companies and DSL providers that would prefer a customer who only uses their connection to check e-mail and play Farmville. With more devices in production that are connecting to the internet this tug of war will only get worse. Tablet PCs, gaming devices, internet radio receivers, and e-book readers are in use now, and even curiosities like digital picture frames with their own e-mail address to be mailed photos for display are currently on the market, and all will use a bit of bandwidth.

Pressure on world goverments and dedicated public relations campaigns representing both consumers and the interest of Internet Service Providers are fighting this issue out as we speak. At stake is how much and based on what criteria people will pay for internet access, and the difficult balancing act of maintaining a reasonable profit for companies who pay to establish and upgrade critical data networks against the growing needs of consumers and their desire for fair pricing. These are already many essential services that rely at least partially on internet access, so the argument declaring it a luxury weakens every year. I will, at the very least, be keeping a close eye on the outcome of this battle in both laws passed around the globe, and the court of public opinion.
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Wednesday, June 15, 2011

Virtual Currencies – From WoW Gold to Bitcoin, with a stop in Second Life.

It is difficult to talk about currency in any form these days without the whole topic getting muddled and mired into politics. The economics surrounding the behavior of companies and governments and the attendant problems and crises are on everyone's minds, and they extend in particular to this blog. (After all, if not for unemployment, I'd just be the “Geek.”) However, there's one place where we don't have to worry about taxes, inflation, volatility of currency, government regulations, interest rates and the global banking community. The internet. Sure, there are a few places that you might have to pay sales tax online depending on where you live, and if you make money online you're probably taxed on that, but our day-to-day transactions online, whether they are in gold pieces in an MMORPG or credits on any number of websites... surely those are free from the standard economic worries and the politics that come with them. Or are they?

So I have to fill out form 1099-WOW and append it... can I claim my non-combat
pets as dependents?

There has been a bit in the news recently about a virtual currency that on its surface doesn't have much in common with a gold piece picked up from the purse of a dead virtual orc. Bitcoin has surfaced in reports several times in the last week with the United States Congress taking an interest in the system in light of its connection to buying and selling drugs, and a user recently reported that a hacker compromised a system he was storing bitcoins on to the tune of $500,000USD gone in a flash. The interest in the virtual currency has gotten a lot of attention, with attention comes people doing research, getting excited and participating, which increased the value of the coins in the system. Though highly volatile, each bitcoin is currently (as of June 2011) worth about twenty dollars in US currency. The upward trend attracts speculators, which drives the value up further.

So what is it and how does it work? Each bitcoin is a piece of code with encryption designed to prevent counterfeiting or duplication or other fraud, including transfer fraud. The verification of transactions using coins are distributed across the peer-to-peer network, making all transfers of coins public and verifiable, but the addresses of the people making the transactions secure and private. Without a centralized authority, currency goes from one person's hands to another without fees or regulations, and no government or bank can devalue the currency by injecting more into the system to create inflation. Libertarians, cryptology geeks, conspiracy theorists and criminals love the idea. It is like a digital version of briefcases full of cash. Governments and bankers aren't so keen on it. Individual coins are created by “mining” where the computing power to create the blocks of code in a new coin are purchased from any user running the mining program, rewarding the miner with a brand new coin after a lot of work on a powerful PC. Each coin takes exponentially longer to create than the last, so the amount of new coins entering the system is controlled and stable.





There aren't a lot of places to spend these coins for real world goods, at least not yet. There are virtual currency exchanges set up to turn regular money into bitcoins and vice-versa, and websites that allow purchases to be made using them. The anonymous and secure nature of the coins means that some are used to buy illegal goods online, such as the Silk Road marketplace that sells illegal drugs online, or for money laundering. Currency proponents insist that legitimate uses outnumber illegal uses for bitcoins, and they are no different from cash in what they can be used for or by whom. Governments, especially in the United States don't like currencies involved in untracable, untaxable transactions, and the future of the currency may well rest in its decentralized, peer-to-peer system's ability to resist governmental interference. (If the same strategy that makes it nearly impossible to stamp out piracy in P2P is effective in this, things could get interesting.)

This isn't the first time that a virtual currency has attracted the interest of powerful people who would really prefer you use the currencies they, not coincidentally, already have a lot of. The online game Second Life and its currency, the Linden Dollar gained a lot of attention from around 2004-2007 based on the idea that the currency could be traded for “real” money through a currency exchange using PayPal, and businesses could be run in-game to earn more Linden Dollars, including trading in real estate in-game and playing the currency market as a speculator. The fact that the company that ran Second Life explicitly retained ownership of all these credits and they acted as a combination central bank and clearinghouse for all exchanges and markets drew criticism concerning whether or not these Linden Dollars were currency at all. With regard to taxation, European users were charged the VAT (Value Added Tax) on certain Second Life transactions, including some dealing only in Linden Dollars.

I messed with Second Life for a while, off and on. A lot of it looks like the Sims, with a lot
more elves, catgirls, winged angels and porn. Hard to describe.

With the established value of virtual currency as something that can bring real, non-internet wealth, thinking about taxation and tracking of income is changing. Many online gamers know about the “gold farmers” who play MMORPGs to earn virtual currency for sale in online semi-legal or illegal transactions. In China, where many of these operations were run, the issues concerning running many virtual black markets up to and including theft of in game currency and property made it to real-world court systems. In 2009, China limited transactions concerning virtual currencies and how they could and could not be used to interact with “real money trading.” South Korea has ruled virtual currency the same as any other currency, and taxation on virtual goods as a policy is being floated throughout Asia.

New Class - Certified Public Accountant.

Are we inevitably heading towards a world with some sort of taxation on the transfer of digital goods and whenever gold pieces, credits, or coins change hands? Some economists say that we are, and there is no reason why we shouldn't. I wonder about the possibilities inherent in having to report gaming income, or on the flip side, being able to pay bills and buy groceries with currency I got by blowing up monsters in a fantasy world. Will I be able to write off repair costs for broken armor? Will we see prosecution for ninja looters, indictments for insider traders on the Auction House? When do the walls between the game world and the real world come down, and when does reasonable economic policy cross that line into the absurd? I expect many attorneys will make a lot of money answering these questions, and I further assert that they won't be taking their fees in gold pieces, Linden Dollars or Bitcoins.
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Thursday, April 28, 2011

Superman Renounces US Citizenship and Other Political Moments in Comics

I wrote not so very long ago that I don't particularly care for discussing politics (and religion) online. That statement needs a little clarification. I don't like debating about, or putting my personal political philosophy out there for public reactions. Refusing to talk about politics at all while commenting on any kind of culture, even geek culture, would be like covering my eyes and ears and pretending it doesn't exist. If I did that, I don't think I could approach any subject that crosses over into real-world issues in games, movies... or comics.

Now we get to the heart of the matter. What has me thinking about politics in geek culture and frantically insulating myself against accusations of hypocrisy? Action Comics #900. Even if at heart, I'm a Marvel fanboy, a story like this from DC can't escape my attention. It makes for a great headline: “Superman Renounces United States Citizenship.” I'll get back to that, specifically in a bit, but this sort of story in superhero comic books has been increasingly more common these last few years. American media is becoming increasingly polarized, with extreme viewpoints politically to both the left and right projected as the norm, even if most people see themselves as “moderate”. Comics are a form of media that has not proven itself immune to this effect.

Expect this guy in the news Real Soon Now.

When a reader encounters politics in comic books, it is likely to manifest with comic characters interacting with political issues in their own stories, political figures represented in comic book form, or a combination of the two. Though there's been a lot more of this recently, this isn't really a new phenomenon. All the way back to the 1940s we had Captain America punching out Adolf Hitler. It might be fair to say that in times where the culture is politically charged and propaganda is a useful tool, these elements are a lot more likely to turn up in comic books.

More than a few comics have stories based on real world issues. Political issues have turned up frequently in the X-Men which tackles the stories of mutant superheroes head-on as a discussion about race relations and civil rights in America, sometimes subtly, other times... not so much. Batman has dealt with privacy and surveillance issues in the “Brother Eye/OMAC” plotline that had Batman's own spy satellite turned on heroes as a means to track and wipe them out, culminating in Wonder Woman snapping the neck of the villain responsible for it... and the footage of the “murder” broadcast round the world. Captain America and Iron Man found themselves on opposite sides of Marvel's Civil War, with the government requiring heroes to unmask or register by law, and some fighting back by going underground. This story famously ended with the assassination of Captain America by sniper's bullet after turning himself in.

Don't worry, he got better.

In a different light, American political figures have been cast as comic book characters in several ways. In the 2008 presidential election, comic books were released for both John McCain and Barack Obama, discussing their lives in mostly non-partisan ways. Since Obama's election, he's turned up in multiple comic books, most notably on the cover of Amazing Spider-Man #583 as the focus of the story “Spidey meets the President.” Sarah Palin, McCain's running mate and former Governor of Alaska has been in many, many comic books as herself, as a zombie, and perhaps most unusually... as a steampunk hero fighting against the evils of Big Oil.

I totally didn't make that last bit up.

The news about Action Comics #900 breaks at a time where social issues and politics are a normal part of major comic storylines. “Fear Itself” promised to touch on real problems and the role of comics and the politics of their creators has been a frequent news item. Superman is something else. He was born on Krypton, but raised in Smallville, and his motto has been to fight for “Truth, Justice and the American Way.” This aspect of his character had a future Superman re-imagined as a tool and puppet for a corrupt dark future American Government in Frank Miller's “The Dark Knight Returns.” The current situation stems from the story “Grounded”, where Superman decides to walk across America, thinking about what he does and whether he's making any difference at all. He's been disillusioned by the US Government's anger when he appears in Tehran to non-violently support protesters there, and his presence is considered by Iran as an Act of War by the US.

I wonder what Perry White would have to say about this. Probably "Great Caesar's Ghost!"

Fans of comics have had decidedly mixed feelings on these sorts of stories. There has been criticism of comic books as a medium in the past as stagnant. Superhero comics marketed toward a fanbase that has grown up and who want mostly more of the same proved profitable. This led to nothing else being released, little innovation and no effort being made to reach out to new potential fans. The long-term consequences to the medium of this short-term profitable strategy changed comics, and many think the changes weren't for the better. Telling new sorts of stories publishers are trying to remain relevant by telling “not the stories that comics want, but the stories comics need.” Fans criticize the current trend with the argument that comics are escapist entertainment, and injecting real-world issues into them diminishes their power in that role.

What do you think?
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