This might seem like an odd topic for Giz Explains, our weekly "WTF is that?" series, but a bunch of comments last week revealed a need to plainly explain the tussle going on between internet service providers, the Federal Communications Commission, content providers and you, and how it's shaping the way you'll use internet over the next couple of years. First, a quick primer.

Comcast was caught slowing down BitTorrent traffic last year by the Associated Press. It (re)sparked cries for government-mandated net neutrality—treating all internet traffic equally, whether it's email, Skype or a bootleg of The Dark Knight over torrent. While that didn't happen, a complaint against Comcast went through the FCC, which ruled against it last week, saying that slowing down BitTorrent was a naughty thing to do, and that they must disclose all management practices to subscribers.

In the meantime, a different network management trend started to emerge among the major ISPs: metered broadband, aka data caps. It's like dial-up service or wireless data: After reaching your alotted amount of data for the month, you pay extra, maybe through the nose, as our northern neighbors in Canada are familiar with. Conveniently, it's "net neutral," since it doesn't discriminate against particular kinds of traffic, and it's fully disclosed to subscribers so it satisfies guidelines discussed by FCC Chairman Kevin Martin. In case you're looking to file a complaint, Electronic Frontier Foundation Senior Staff Attorney Fred Von Lohmann told us, "There's certainly nothing to stop them from pricing that way if they want to."

Time Warner was the first major to float the plan, which is currently in testing, with a 40GB cap at the high-end. Comcast is considering a metered approach as well, its spokesman has confirmed. AT&T is the most recent major ISP to jump onboard, and it'll be testing caps in the fall. Not to mention Cox Cable and a whole mess of regional ISPs already implement them.

Here's the rub: The P2P apps ISPs point to as pillaging their networks are increasingly a nonexistant bogeyman. Video is now the actual bandwidth monster, and it's only getting hungrier and hungrier.

The thing about all that video is that it competes with what your ISP is probably delivering to your other screen in the living room. Why watch 30 Rock on your couch at specific time when you can grab it on demand on your laptop with Hulu, or on a Netflix Roku box? That awesome Vudu box you bought? Pulling in Transformers in HD uses your cable provider's pipes, but it doesn't see a dime from the transaction.

Suppose you decide to be pseudo-green and opt for an all-digital approach from Vudu or Apple TV, and you have a moderate habit of two movies a week. A 90-minute movie running at a constant bitrate of 2.5 megabits per second (you're talking HD here) will swallow 1.69 GB. If you've got a 40GB cap, eight movies will eat over a quarter of it. And that's just your rental habit, with today's specs. The 1080p flicks they'll be streaming tomorrow will be even more bandwidth intensive.

More importantly, today's geek frontier is tomorrow's mainstream playground. Like game demos on Xbox Live? Or games-for-purchase on Steam? Those are a gig or two a pop, and as more and more games are distributed digitally, the gigs will add up. Which is also part of the problem as far as the ISPs are concerned: AT&T's tech chief glibly notes that "traffic on our backbone is growing 60 percent per year, but our revenue is not."

While I wanted to tell you that data caps will destroy the internet as we know it, really video is what's actually facing the greatest threat. Time Warner has openly said content providers can't have it both ways. And the EFF's von Lohmann told us that while he hasn't "seen any evidence that [metered broadband] will radically change the internet" he is "worried that companies that have their own video they're delivering over the same pipe they deliver internet service will have an incentive to reduce caps" and it's a "valid concern worth watching." It would effectively have us paying twice for video delivered over the internet. Most people can barely stand paying for it once.

Tru2way is actually the brand name for a common Java-based middleware stack and software platform (aka OpenCable, aka OCAP) that'll be supported across the entire cable industry (all the majors like Comcast and Time Warner others are way onboard). Hardware comes into play by way of CableCARD, the little card you can plug into your TiVo (or whatever) to get cable on it without a set-top box. It decrypts the encrypted signal the cable company sends out.

Up until now CableCARD has had some problems: It was meant to replace your set-top box, but besides crappy industry support, it was missing stuff like the programming guide and VOD. Tru2way aims to fulfill the original promise. Not only will tru2way be in half of all actual cable boxes by 2013 according to ABI Research—Time Warner already has a million boxes out there—TV manufacturers like Panny, Sammy and Sony are building tru2way sets that won't need cable boxes. (ABI principal analyst Steve Wilson tells us that Sony's agreement is particularly important in pushing tru2way forward, since it got the cable operators to agree to the same set of specs and common goals, like a full rollout by 2009.) So tru2way isn't vaporware—it's not a butter smooth road, but you will probably see it fairly soon(ish).

The biggest tru2way advantage for consumers is that the box becomes an option based on the capability of your TV. You'll finally get the program guide, VOD and other advanced features with a tru2way TV, without a black behemoth next to it. And, as is implied in the name, it allows two-way communication, something older CableCARD devices couldn't do. That means cable operators can offer a lot of the same interactive features as AT&T's U-verse IPTV service. Since it's a common platform for all cable operators, a developer's app that works for Time Warner will work for Comcast and vice versa, no messy porting required. And it's just Java, so there's not much of a learning curve, paving the way for lots of innovative apps (if the cable co. allows them), not to mention the obvious like local weather widgets, voting, news, RSS. ABI's Steve Wilson also mentioned an on-TV caller ID app similar to AT&T's.

The major catch is that this requires new hardware, either a new box (from the cable company) or a new TV (from you wife's pension fund). Cable dudes are going to cycle to the new boxes gradually, not replace them all at once, and that will take some time. Also, don't expect these wonderful new services to be wonderfully free, Wilson tells us. The super-sweet stuff is going to be part of higher-tiered services that are probably gonna cost you. And the boxes themselves might be pricey. There will lower levels with more basic interactivity, but those cheap-o boxes will have a slower rollout. (Though it'll be hastier in markets invaded by FiOS and U-verse according to Wilson.)

So, while CableCARD and tru2way aren't going to invade the country overnight, the way most people watch TV—even if they actually still sit on a couch in front of an actual boob tube—is going to change significantly in the next couple of years. But it's not like they have much of a choice anymore. Even now, people (mostly young whippersnappers) are changing the way they watch TV, whether or not the cable companies and telecoms go along. Time to evolve... or die.

As Ars points out, it seems to be the "third pipe" many hoped that the 700MHz auction would deliver (before Verizon snapped up the open access C block)—that is a third, totally open broadband alternative to cable and DSL that would provide some competition and shake up the established players.

New Clearwire's WiMax network will also be available for "non-exclusive" wholesale, meaning anyone can buy resell Clearwire's WiMax services under their own brand—basically as an MVNO—which Sprint, Comcast, Time Warner Cable and Bright House Networks have already signed up for, with the cable companies interested in offering quadruple play services (cable, internet, phone, wireless internet). Course, all this still depends on WiMax getting off the ground and then not getting trounced by LTE. [Ars]

P.S. WiMax, LTE and more explained here.

Designed to thwart hardcore data slurpers (and soon HD video downloads that'll in time seriously compete with cable's offerings), consumption-based billing throws us back to the days AOL—sure, it's more data, but the principle is effectively the same, and it'll to regular consumers sooner than the cable industry would have you believe, especially once online video actually gets rolling. While Time Warner emphasized to us it's just a test, we don't expect this to stay in Texas for long, especially with Comcast mulling over similar plans. Long live internet in the US. [Yahoo]

He puts the deal value at $12 billion all told, with a billion from Comcast, (another) one billion from Intel and half billion each from Time Warner and Google. The other new nugget is the updated timeframe for WiMax: Two years, meaning it'll effectively arrive at the same time as LTE from AT&T and Verizon, making WiMax's uphill battle that much steeper. That said, we'd consider changing "may not be easy for the group to create a wide-ranging and adequately reliable service" to "big ego clusterfuck."

Update 2 The Wall Street Journal brings more color (like that Comcast roped Time Warner into the deal Sprint's request) and more of the human story, odd for usually cold Journal, focusing on surprisingly affable (almost cheery given Sprint's situation) Sprint CEO Dan Hesse: "It's sort of like, 'Dan, you haven't vacuumed the bedroom,"' Mr. Hesse said. "Well, that's because the house is on fire. I will get around to it later." It's not behind the subby wall, so if you've gotten this far into the post, you should read it. [Fortune]

No, p2p is no longer the single biggest traffic whore, responsible for only 20 percent of total traffic. It's streaming video, like YouTube and Hulu, which is now 50 percent of total traffic. During peak congestion—the times when Comcast will slow you down for hitting the pipe too hard—70 percent of it is http.

Which explains Comcast's flip on network management and why it's a total smokescreen. P2P is no longer the number one leech on networks, it's streaming video across regular old http. So they don't need to throttle p2p exclusively anymore—they need to slow the whole pipe down, hence the new "protocol agnostic" scheme. But they can look good showing off how much they love p2p. It remains to be seen how much of it the FCC will eat up. [GigaOM]

• "Content available on cable networks is changing all the time. New services are added, some are redesigned and others are removed."

• "SDV technology is designed to expand the range of services offered by cable operators, not reduce them."

• "Many CE companies chose to implement receivers that lack the necessary circuitry to provide a full two-way cable experience with the CableCard."

• "No product was ever originally designed to work with this new Tuning Adaptor including the existing Tivo UDPC products...Since consumer products don't use Microsoft Windows, they don't have plug-in drivers. Instead a new firmware update is needed to include the necessary driver controls to interact with this new external device. Makers of any existing UDCPs that already have a USB port (there are many) are just as able to provide new firmware as Tivo, if they chose to do so."

• "Consumers should look for products identified as tru2way to ensure they will be able to get all the new and advanced services their digital cable systems can deliver."

Last we checked, Panasonic was the only one with a tru2way TV pegged to an actual shipdate, and Comcast was the only cable company even talking about implementing it this year, but again, hopefully we'll hear a lot more about this come the NCTA's Cable Show on May 18-20. We certainly look forward to hearing good news from CableLabs (and we're sure they look forward to sharing some). [CableLabs; Original HD Guru Story]

Cablevision and Time Warner Cable say that there is a CableLabs fix, a USB-based dongle that will enable the upstream communication required for SDV. But Merson says makers of CableCard TV sets (fewer and farther between these days) can't make use of any USB dongles. TiVo, on the other hand, said in December it would release the SDV-compatible dongle at an unspecified time this year, though they're not talking any more about it at the current time.

It's a lot of cable-tech mumbo jumbo, but if it means losing channels (and not getting any kind of payback for the loss, says Merson), well, it's a crisis. Fortunately, the big industry Cable Show will be happening soon, so let's make sure they have something to talk about. Check with your provider, and let us know if you're experiencing any SDV-related shafting on your end. [HD Guru]

Following Sciacca's advice, I ran a Google search for "'Survivor' 'dvr' 'didn't record'", and found several message board posts detailing similar problems. The issue is present in other DVR types as well, including DirecTV and standalone TiVo. However, some other users say that they haven't experienced any problems with their time-shifted Survivor eps at all. To make sure this problem was confined to Survivor, I checked other popular shows like Lost and American Idol, and came up empty-handed.

We've put in a call to CBS to explain this paranormal activity, and the folks there are looking into the problem. Sciacca suggests that this may be a case of altering show metadata to instruct DVRs to stop recording—in the past, networks have been known to alter their programming to stop DVR users from getting content (and skipping ads)—but we will reserve judgment until we hear more. In the meantime, if you've been experiencing similar problems, please share. [Sound & Vision]

The scariest scenario is invasive "packet filtering," where companies look at what you're downloading and punish you for perceived misconduct. Comcast was the poster child for BitTorrent throttling before getting cozy with it to avoid an FCC smackdown, and AT&T infamously broached the idea of filtering its entire network for copyrighted content. Beyond packet filtering, there are two potentially more widespread ways big ISPs can try to bring down the Torrent mad: "Caps," already used by local ISPs such as BendBroadband and Sunflower, are set amounts you can download each month. Anything over that, like cellphone plans, means overage penalties. "Throttling" is the ability of the ISP to, any given moment, put the brakes on your connection when you're being too much of a resource hog. Here's where the ISPs stand on the tactics above and your pipes.

AT&T

We have said consistently that AT&T will not allow itself to become a policeman or enforcement agent on the Internet. We have also made clear that there is nothing inherently wrong with P2P applications like BitTorrent, which are advanced, and legal, technologies that are used and welcomed on our network... We do not block or degrade any P2P application to manage network congestion. At the same time, we feel that any company involved with the Internet should be concerned about illegal activity, whether it is identity theft or intellectual property theft, and should be prepared to cooperate in legal means of addressing such problems while protecting fully the privacy of our customers.

Update: AT&T wrote in with an additional statement: "We can't give you details on our specific network management techniques to handle times of high-volume" citing similar reasons as Time Warner, "but those techniques don't include degrading or blocking traffic."

Comcast:
Here's the statement we got pre-BT chumminess, though we now know that Comcast is moving to a more management style that'll temporarly slow all traffic, whether it's cracked copies of Final Cut Pro from your favorite P2P or YouTube, to a drip during congestion:

We have a responsibility to provide all of our customers with a good Internet experience and we use the latest technologies to manage our network so that they can continue to enjoy these applications. During periods of heavy peer-to-peer congestion, which can degrade the experience for all customers, we use several network management technologies that, when necessary, enable us to delay—not block—some peer-to-peer traffic.

Comcast is not currently using or testing any filtering technologies. We agree that copyright owners have a right to protect their content. We work well with them under existing law and will continue to work with content owners to find solutions to help support their efforts around piracy. We cannot speculate on what AT&T is doing or how its technology works.

Speakeasy
They got back to us after we went to press, but here's what they had to say on network management: "Our position on this is that [we] attempt to manage our network to account for peak usage so that we do not need to throttle bandwidth of customers pending applications in order to keep our pipes unclogged." And on content filtering: "Speakeasy does not currently do any content filtering, and at this time we have no plans to filter content."

The Takeaway
Since BitTorrent became a rallying point for net neutrality advocates (and caught the attention of the FCC) ISPs have made a show of stepping back from P2P hampering to shield themselves from both nerd backlash and FCC Chairman Kevin Martin's steely gaze. Verizon and AT&T, for instance, both pointed me toward their corporation-friendly "P4P" file-sharing development initiatives for more effective downloading (at an unknown cost), and Comcast has touted its R&D with BitTorrent.

All of that's a pretty effective smokescreen for moving to more hardcore capping and throttling, allowing them to cry "We treat all traffic equally, neutrally even!" while nuking all of your traffic without prejudice. Most people downloading the hugest amounts are probably not paying for all that content. And note that everyone except Verizon left themselves plenty of hedge space on the issue. Time Warner says it doesn't talk about it because it's afraid others will use it in marketing; well, Verizon is kinda sorta using their total lack of filtering as an underground marketing thing already, which is especially effective when coupled with FiOS's insane speeds.

Even with ever-higher speeds, bandwidth will remain an issue for ISPs as they try to cram more and more HD content down pipes you're using to download movies, swap music and other increasingly bandwidth-intensive applications. So more management is going to go hand and hand with more bandwidth, make no mistake.

But it doesn't have to be a bad thing, if they're smart about it. They make a genuine movement to smarter protocols and management techniques that don't hose anyone's broadband (like that P4P stuff, if it's really open), but instead help everyone squeeze every last bit out of it as efficiently as possible. We can only hope.

Sure, Time Warner might have been using "fiber optics for over a decade" but can you get disgusting bandwidth through them? Not yet. Also, hello irony, Time Warner is the company trialing pay-per-byte internet. Sign me up! Actually, I would like a bowl of cereal right now. I love cereal. Mmm. Verizon says it's soggy cereal, though. I like mine of kind of soft, depending on the brand, but not soggy. [Consumerist]

But then we've got the DRM/studio content restrictions: No transfer to portable devices or burning, and content automatically withers off of your computer when it hits the expiration date in 4-12 weeks. Better than the iTunes timeframe nonetheless. And that whole Roadrunner requirement, it's totally literal, as in you can only pick up new content while connected to Roadrunner.

On the upside, you can register up to five computers per household, and you've got features like series passes that auto-download within five minutes of a show airing on TV. Since the file size runs about 1.2GB for a two-hour flick, the res is probably pretty close to what iTunes offers. Besides, it's free, and you can't beat that. [DVD Dossier via Engadget]

Supposedly, consumption-based billing is aimed at all you assholes downloading movies from BitTorrent—"heavy users of large downloads," the purported 5 percent that swallows "up to 50 percent of network capacity" in order to improve network performance. But this is, at least partially, BS.

Everybody is using more bandwidth than ever, and that is going to continue ramping up with services like Netflix and iTunes that keep pushing these "large downloads" into the mainstream. So, it might only hit a small percentage of users really hard right now, but soon enough it'll be hitting everybody, which is the real point.

At the same time, ISPs and telcos are lobbying hard against network neutrality, largely so they can slap the content providers themselves with higher costs for equal priority on the network with the ISP's own services. In other words, they're reaching into the cookie jar with both hands—from the top, and a hole they're trying to cut into the bottom.

For now, Time Warner's plan will only affect new users starting sometime in the next couple of months, and they actually give you tools to monitor your data diet, but if there isn't a total revolt and pillaging of their home office, expect them to roll it out nationally and other providers to follow suit. [AP/Wired]

Google's coming out statement—essentially "whoever wins, everybody does"— was noticeably limp. No fire in their words probably signals no fire in their bid, basically.

On the other hand, Verizon throwing open its network is a decidedly hard throwdown with regard to its auction intentions. The winner of the 700MHz's contentious C Block is required to have such an open network (though only on that chunk), meaning Verizon may be strongly signaling its intent to bid and win. Gird your loins for endless "It's the Network" catchphrases, just in case. [MocoNews, CNN]

Subjecting viewers to ads is obviously the point of the new service (versus standard DVR), as Time Warner is lobbying Nielsen to count shows viewed with Look Back as "live viewing." Comcast, on the other hand, is planning a similar service, but is still undecided on whether or not it's going to shutdown the fast-forward button.

By offering the service free of charge, Time Warner (and other cable operators) are clearly trying to undercut TiVo while being more business-friendly by not letting us escape the scourge of commercials. Time Warner, naturally, doesn't see it that way. At a July conference, its president, Jeffery Bewkes, offered this golden nugget of rationalization: "People are used to advertising. A good number of people like the advertising."

Yeah, during the Super Bowl. The other 364 days of the year, not so much, Jeff. [NYT]

Having been on a three-week waiting list for Time Warner Cable's HighDef DVR box, it was finally installed yesterday. I turned it on and saw that it worked great. I leave to run the weekend errands and give my wife the remote control and the manual to set up her programs for recording. My wife and my two nieces (ages 3 and 8) sit down to learn how to record DisneyTV shows. My wife pushes the green LIST button on the remote control and up comes the previous owner's recorded content; 20 percent full of all adult content. As my wife tries to figure out how to get out of the menu mode, Hole Diggers—Part 2 starts playing.

Your New Time Warner DVR Comes With Porn! [Consumerist]

Coming later this year, you'll be able to program your DVR with your phone, much like Verizon's setup with TiVo. Also, for a "limited time," no indication on how limited, there's free text messaging between all Pivot customers.

The service is going to be rolled out to "40 metropolitan areas" by the end of the year, so suburbanites and rural dwellers are out of luck. You guys can read all about Time Warner over at Consumerist, though, if you want to feel better about being left out. – Matt Buchanan

Press Release [Sprint]

Tools released by SupportSoft and distributed by companies such as Comcast, Time Warner, and Bell South to their customers have turned out to be about as helpful as a Sony-installed rootkit. The software was designed to allow support staff to remotely access a customer's computer, but, surprise surprise, it allows basically anyone to remotely access customers' computers. So keep on using those discs as coasters, OK? –Adam Frucci

News.com [via Broadband Reports]

HDTV DVR Shortage [Via ZatzNotFunny]

Let's see, another high def format disc to confuse consumers with. Sounds like a good idea. – Nicholas Deleon

New Disc May Sway DVD Wars [New York Times]

Image via Crutchfield Advisor

It looks like Time Warner has finally decided to try to counteract Verizon's FiOS Fiber Optic Home Network service, which is much faster at 30mbps/5mbps but is glacially spreading itself around the US.

Jump to see the text of that slippery email, and then we rip them a new one.

Here's Time Warner's semi-secret "special notice" to customers (italics and boldface theirs):

"Time Warner Cable, the company that was first at fast and first at fiber optics, is increasing your speed again. We're doubling it in the new year ... for no extra cost.

In the first quarter of 2007, Road Runner will be doubling the download speed for its residential customers to 10 Mbps. Our Time Warner Cable Business Class customers will experience similar increases in speed.* The same monthly price that you've been paying will stay the same.

Increased speed. Same price. Great deal.

We haven't told the media yet. This is a special notice directly to you, our loyal and valued Road Runner customer. In the coming weeks, you'll see more information about this exciting improvement in your internet service."

We can only hope that Verizon and other competitors will release captive customers from this stranglehold of slow and unreliable broadband service that seems to be prevalent across the board in the U.S.

We say, who cares if it's going to be twice as fast? Road Runner throttles us down to zero on a daily basis, and even though we're using $70/month Business Class service that's supposedly 7Mbps, its speed is frequently 0Mbps. Do the math: 0 x 2 = 0. Bah. – Charlie White

Road Runner Doubling Bandwidth [Loot Ninja]

During the test period, not all the programs can be rewound. While many network programs are currently able to use the service, laggard greedmeisters such as Warner Bros. and New Line Cinema haven't been convinced yet. Good luck with that, Time Warner.

It sure would be nice to have a hardware-free way to time shift, pause and even fast-forward video, but those who wish to cram commercials down our throats won't like that idea a bit. – Charlie White

Time Warner Cable Launches Network DVR (Sort Of) [Zatz Not Funny]

Time Warner Cable of Raleigh does not provide support for or allow TIVO devices on our cable network. Time Warner Cable provides DVR service and equipment for customers that would like to record programs and watch them later. Cable Cards will only be installed on Cable ready, Cable Card slot available television sets. This policy is subject to change at the discretion of Time Warner Cable of Raleigh.

Strange, but possibly just a low level tech guy not knowing their policies. But then a followup query resulted in this response, after the jump:

Thank you for your inquiry. You have reached the right person. No cable company is required to provide technical support or updates for equipment that they do not provide. As Time Warner's email response indicated, TIVO devices compete with some of the converters and/or "on-demand" type services they provide. Like all other businesses, video service providers are under no obligation to assist or support their competition.

They can choose to place addressable or updateable service cards in "cable ready" televisions. They most likely do so because it enables them to sell additional video services, and they do not compete for the sale, rental or leasing of televisions. I'm sure they feel that placing cards in televisions will help their business, and that placing them in TIVO type devices will harm their business.

We'll wait and see what their final stance on Series 3 boxes are when they're actually out. – Jason Chen

Consumer Fury [via PVRBlog]

Mysteriously, the next day, after no modification whatsoever of our network equipment, the problem seemed to be fixed. This is the second time this has happened in the past week. So we put this question to you, readers: are ISPs such as Road Runner concealing problems with their networks, blaming it on the users' equipment, and then furtively attempting a fix later? Are they throttling your connection? Any insiders have info for us? Let's find the truth. Let us know in Tips. – Charlie White