This document discusses peer-to-peer (P2P) applications and their impact on internet service providers' (ISPs) operations. It notes that P2P networks use connections between participants rather than centralized servers. While P2P enables file sharing, telephony, and video streaming, illegal file sharing like BitTorrent dominates usage and contributes significantly to network traffic. In response, some ISPs have started limiting bandwidth intensive P2P traffic during peak hours. The document also discusses debates around "net neutrality" and whether ISPs should be able to prioritize or degrade certain traffic.

1. Peer-to-peer Applications and
Impact on ISPs' Operations
Charles Mok
Internet Society Hong Kong
2008.06.04

2. What is Peer-to-peer?

A peer-to-peer (P2P) computer network uses
diverse connectivity between participants in a
network and the cumulative bandwidth of network
participants rather than conventional centralized
resources where a relatively low number of servers
provide the core value to a service or application.
− Ad hoc connections
− Sharing of storage, cycles, bandwidth, content, etc.
− File sharing, or sharing real-time data, such as
telephony

3. P2P applications

File sharing
− Bit Torrent
− Napster
− eDonkey, eMule
− Foxy
− WinMX

Telephony
− Skype

Video streaming
− Joost
− PPLive, PPStream, Coolstreaming, etc.

4. P2P applications

Bioinformatics
− P2P networks can be used to run large programs
designed to carry out tests to identify drug
candidates

Academic
− Sciencenet P2P search engine: a free and open
search engine for scientific knowledge
− LionShare: MIT and Simon Fraser U. project for
large file-sharing among education institutions

Business
− Distributed computing, but security concerns

Military

5. Bit Torrent et al.

However, illegal file sharing dominates

Hong Kong: first successful BT prosecution
in the world
– 2005: 古惑天皇 uploaded three movies using BT
– Violating the copyright ordinance: copying and
distribution to public
– Upheld by Final Court of Appeals
• Has copyright infringing file sharing activities
subsided or not?

6. BT still dominates

1/2007: At any
given moment,
about 9.5M P2P
users on the
Internet, with
3-5M using BT
alone.

7. Decline of recorded music

2007 estimate: Global music sales will drop to US$23B in
2009, just over half of 1997's US$45B and down 16 percent
from 2006.

8. ISPs reactions to P2P

Millions of users participating in file-sharing which
contribute 50-80% of the traffic load on Internet
platforms in some Western countries

Some ISPs started to sniff out P2P traffic on their
networks and curb it, either slowing it down or
stopping it altogether
− 8/2007: Comcast (#2 ISP in US) “silently” started limiting
subscribers use of BT and penalize heavy downloaders
by suspending service
− 6/2007: Time Warner Cable announced it would slow
down bandwidth intensive P2P traffic during peak hours
on its Road Runner service
− 8/2007: Two UK ISPs said it was reluctant to carry traffic
from BBC's P2P audio/video application, iPlayer

9. Legal reactions to P2P

Copyright Board of Canada
− Imposed a US$25 government fee on each MP3
players and iPod, similar to what is done for
audio tapes and blank CDs – manufacturers
usually pass on the cost to consumers (2003)
− This levy goes into a fund to pay musicians and
songwriters for 'revenues lost from consumers'
personal copying.'

ISP responsibility proposals, e.g. 'three
strikes' rules to ban repeated file-sharing
users
− France, UK, Australia, etc.

10. 'Make P2P Legal'

Voluntary collective licensing: 'performing rights
organization' i.e. CASH

Compulsory licensing: requires copyright holders to make
their works available for fair compensation, e.g. to allow
cover versions

Works only if
the majority of
copyright
owners join
and forgo
lawsuits in
exchange for
a reasonable
price.

11. Net neutrality

Free of restrictions on the kinds of equipment
attached, on the modes of communication allowed,
which does not restrict content, sites or platforms,
and where communication is not unreasonably
degraded by other communication streams.

Protecting consumers against discriminatory
practices by ISPs, for bandwidth control reasons or
even censorship

Net neutrality vs. prioritization or even QoS

EU: proposes toimpose minimum QoS to prevent
ISPs from degrading customers (2007)

UK: "an answer to problems we don't have, using a
philosophy we don't share" (2006)

12. Net neutrality

Proponents
− Consumer Union
− Content companies: Google, Yahoo!, eBay, Microsoft
− Tim Berners-Lee, Steve Wozniak, etc.
− Vint Cerf: "The Internet was designed with no
gatekeepers over new content or services. A lightweight
but enforceable neutrality rule is needed to ensure that
the Internet continues to thrive."

Opponents
− Telecom companies, ISPs
− Equipment vendors: Cisco, Alcatel, etc.
− Free market think tanks: Cato Institute etc.
− Bob Kahn: "net neutrality is a slogan that would freeze
innovation in the core of the Internet."

13. Local perspectives

P2P is mainly an issue of:
− Copyright infringement
− Data privacy and information security
− Cost to ISPs
− Some unfairness for those who don't P2P/BT?

However:
− P2P video streaming is not as popular as in the
Mainland
− Skype impact on voice traffic/business is taken
for granted
− Net neutrality is not much debated: consumers
not asking ISPs

lack of consumer advocacy?

14. Thank you
Charles Mok
Internet Society Hong Kong
mok@hknet.com
charlespmok@gmail.com
http://www.isoc.hk/
http://charlesmok.blogspot.com/
http://www.it360.hk/