traffic and usage

Learning from how the Internet is used

by Klaus Mochalski, CEO and co-founder of ipoque

The Web generates only ten to thirty per cent of Internet traffic, while 20 per cent of the Internet users generate between 49 and 83 per cent of the traffic with peer-to-peer (P2P) transfers. Today, , eDonkey and exchange high-volume content such as movies, music and software between users. P2P has been making a shambles of the traditional recording industry, but with more acceptable pricing structures, high quality and less digital rights management, recording companies should be able to re-take control of the market.

Klaus Mochalski is CEO and co-founder of ipoque, a vendor of deep packet inspection solutions for Internet traffic management. Prior to founding ipoque in Leipzig, and after three years as an IT consultant, Mr Mochalski worked as a researcher in computer networking at the University of Waikato in Hamilton, New Zealand, at the University of Leipzig in Germany and at the San Diego Supercomputer Centre in the United States.

He holds a master’s degree in computer science from the University of Leipzig.

It is a common misconception that the World software between Internet users - without • P2P produces between 49 and 83 per cent Wide Web is the Internet, but there is more needing central servers. In recent years, P2P of all Internet traffic - with night-time peaks than meets the eye of the Web user. In fact, networks have been responsible for between of over 95 per cent; most of today’s Internet traffic does not result 40 and over 80 per cent of all Internet traffic, from Web browsing. To understand what is while Web browsing has accounted for about • About 20 per cent of P2P traffic is going on inside one of the biggest and most 10 to 30 per cent. The wide ranges indicate encrypted; complex systems of the world and how both that the matter is quite complicated. its builders and users will shape its future, it • BitTorrent is the most popular P2P is crucial to get the complete picture. A 2007 Internet study analysed the Internet protocol, followed by eDonkey; traffic in five regions of the world between The advent of the Web in 1993 marked an August and September 2007. Comprehensive • Videos, particularly movies, are the most important turning point in the history of the, statistics about user behaviour provide a popular P2P content, not just by volume but then, nearly 25 years old Internet by suddenly unique overview of the Internet’s current also by file count, followed by music; bringing it into the public domain. The Web state. The study includes data about Internet quickly grew in popularity and became the telephony (VoIP), Skype, video streaming, • 10 to 20 per cent of all Internet users are Internet’s main tributary. This only changed instant messaging (IM), file hosting and using file hosters such as RapidShare for file when peer-to-peer (P2P) file-sharing networks encrypted P2P protocols. Three petabytes of sharing; and, entered the stage. It started in 1999 with the anonymous data representing over one million music exchange platform that, after users in Australia, Eastern Europe, Germany, • Skype is by far the most popular Internet its legally enforced demise, was quickly the Middle East and Southern Europe have telephony (i.e. Voice over IP, VoIP) service followed by a number of contenders for the been analysed. The results for these different with a share of over 95 per cent of all VoIP Internet bandwidth throne. These mostly regions vary considerably. The results include traffic. proprietary systems - prominent examples these interesting facts: being Kazaa, eDonkey and BitTorrent - have The study showed there is great interest in been designed to efficiently exchange high- • Less than 20 per cent of all Internet users current popular content. Movies and music volume content such as movies, music and participate in P2P ; accounted for the highest volumes.

46 n Asia-Pacific III 2008 Internet traffic and usage

Many of the top titles downloaded through of discs per month. Instead, they should try to copyright infringements would be valuable P2P networks reflect chart positions. This tap into the market potential out there, which particularly for business customers. proves that users indeed want high-quality they once knew quite well. This is where they content. Users invest considerable effort should have started years ago entering the Today, though, most service providers and finding what they want, and pay for high- Internet world. carriers still have a long way to go. They speed Internet access. are running their daily business blindfolded. Third, and as with RapidShare, there This was apparent to us during the data Lessons for content providers should be no strings attached, like poorly collection for our Internet studies. There implemented copy protection in the form was an incredible lack of information about For nearly a decade, the film and music of euphemistically named Digital Rights subscriber behaviour in the providers’ industries have struggled to adapt their Management (DRM). When customers buy a networks. At best, there was a few days’ business models to accommodate new title, they want to own it and decide how and worth of measurements made on a yearly, or opportunities brought by the Internet. So far, where to watch or listen to it - as they always longer, basis. These measurements provided they have mostly been reacting to Internet have with physical media. There will always snapshots and, at least, allowed for a rough piracy threats, mostly from P2P file sharing be a small part of the population that will go long-term trend observation. Providers and unusual competition - a former computer to great lengths to avoid paying for content. It need a much more detailed picture of their company called Apple being the most is important to understand that these are most network’s traffic to prepare for the challenges prominent example. Instead of simply fighting likely not potential customers. All the rest of new applications, and to plan the future of their foes, they should take a very close look will prefer to avoid the hassle and get their their business. Insight is really the first step and learn from them. Not only to ‘know material from a legitimate source - if the first towards control. n their enemies’, but to use their own weapons two conditions are met. against them. The rules of the game are set, and they are quite simple. Lessons for service providers

First, make the access easy and attractive. Just The Internet study shows that less than 20 per look at popular piracy sites such as . cent of the Internet users generate most of its org and thepiratebay.org. Their massive traffic. For a service provider using a flat-rate and always current content is painstakingly tariff model, this is a challenging proposition - Connect-World is organised in categories and subcategories challenging because both the heavy hitters and celebrating its tenth to quickly find a desired file. The content the normal customers require a satisfactory industry has much better raw material. They service, i.e. a high quality of experience anniversary not only have the original music or movie (QoE). The first group’s excessive use of with multi-language support, but also all the resources can have an adverse impact on Through the years, Connect- additional information that is included to overall network performance. The challenge World’s authors told of the rise make DVDs more attractive. So they should is to find the right balance between the two of mobile, of fibre, of wireless be able to do better than the pirates. groups - without upsetting either one of them. and of broadband; they told of How easily this can happen became apparent the dot.com meltdown, of Second, get the pricing right. Sure, the zero during the last months when it leaked to the digital inclusion and conver- price tag of pirated material is hard to beat, public that the American ISP Comcast was but this is not what the majority of customers slowing down certain file-sharing activities gence, of standards and break- expect. People have always paid for media based on BitTorrent. throughs, the rise of IP and content, and would continue to do so if the fall of switching and of the premium content was available through easily A particularly unfortunate aspect of this regulatory turnaround. accessible distribution channels at prices that endeavour was the use of a technology that do not make them feel as though they were interferes with TCP, a traditional Internet In every issue of Connect-World ripped off. transport protocol, in a non-standard way. heads of state, ministers and In response, this has already triggered much regulators, heads of Look at the business model of RapidShare, post on how to circumvent this kind of international institutions and the major file hosting service. It charges a bandwidth management by further moving monthly fee of seven Euros for a premium away from the TCP standard. If this marks leaders of industry speak of account with faster and unrestricted access the beginning of an arms race, it could well what the ICT revolution, as it to its content, which is not provided by have an unforeseeable negative effect on the happens, means to the people RapidShare itself, but by its users. This stability of the Internet as a whole. in their regions of the world. simple model with no access to actual content generates substantial profits for this company. The important lesson: do not tamper with www.connect-world.com Add legal, higher quality access to a similarly your customers’ traffic without them knowing. broad spectrum of content and many Internet Interestingly, the opposite has become users would flock to such a service, even at common practice. Instead, providers should a slightly higher price of, say, somewhere offer managed services at different prices between 15 and 40 Euros. Also, the music with QoE guarantees for customer-specific and film industries should stop calculating applications. For instance, many customers their losses by multiplying the number of would like a tariff with guaranteed Skype illegal by the official price of a call quality - and most would pay extra for CD or DVD. Nobody buys tens or hundreds it. Similarly, a clean P2P service without any

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