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Cost Shifting via P2P

Q: Why are companies such as Vuze, Inc. and Skype so keen on P2P... and so intent on not seeing protocols such as BitTorrent throttled or managed (much less blocked)?

A: Because P2P shifts the bandwidth and infrastructure costs which they would otherwise have to cover to someone else: the user's ISP. The user pays no more, because virtually all US broadband connections are "flat rate," so the ISP bears the full brunt of the cost shifting. And because of the nature of ISPs' infrastructure and backbone links, the costs are not only shifted but multiplied in the process. If regulations prevent ISPs from banning P2P or throttling the bandwidth to it consumes, ISPs must either shift to charging users by the bit (in which case larger providers will quickly force out smaller ones due to the lower costs of their pipes) or simply quit business.