BitTorrent Throttling Company Sandvine Sees Sales Down 88%

Written by enigmax on March 07, 2008 

Sandvine, manufacturers of BitTorrent throttling technology has seen its first quarter sales drop 88% in a year. After achieving 42,000% growth in 5 years, the company - best known for providing the technology which put Comcast into the spotlight recently - has seen its value plummet 42% in a single day.

When Comcast introduced the Sandvine traffic shaping solution, it hoped it could quietly interfere with its customer’s BitTorrent activities without getting too much attention. Unfortunately for them, their actions didn’t go unnoticed, and during August last year we broke the news that this ISP does indeed mess with it’s customers internet connections.

Since then, things have gone from bad to worse for Comcast, as their customers started to realize that this ISP wasn’t giving them what they paid for. As a result, Comcast are now being sued and annoyed users formed a coalition to challenge the company to try to claim compensation. All of this is on top of a FCC hearing which deemed that Comcast uses ‘hacker-techniques’ to interrupt BitTorrent traffic, techniques which are employed via the traffic management ’solution’ from Sandvine. Essentially, the Sandvine system allows Comcast to inject forged reset packets into BitTorrent transfers which makes seeding impossible - good news for ISPs who don’t want to give their customers the bandwidth they paid for, but bad news for BitTorrent, and even worse news for supporters of Internet neutrality.

However, it is the very fact that Sandvine allows ISPs like Comcast to disrupt their customer’s activities which prompted the recent Federal Communications Commission hearings. The FCC warned Comcast that it will not allow it to disrupt internet traffic, which is of course a major concern for other ISPs considering investing in the Sandvine system. According to a G&M report, it is this hesitancy over net neutrality issues, coupled with problems major telecoms companies are experiencing when trying to refinance their debts, that have hit Sandvine hard. A survey by financial services outfit Canaccord Adams suggest that the top 40 global communications companies are all currently extremely wary over capital expenditure.

Sandvine

After achieving astronomical growth of 42,000% in just 5 years, Sandvine is really feeling the pressure as on the Toronto Stock Exchange its stock fell a massive 42%, to a low of $1.55. The company already predicted lower performance and revised its revenue estimates back in December 2007. Unfortunately these predictions were still too optimistic as the company has announced that the actual revenue this year is likely to be a further 20% lower than the revised figures. Sales for the first quarter will be $8.2m, an 88% drop on the previous year while full year revenue is expected to be around $80m, down from the December 2007 prediction of $110m.

All this adds up to an annual growth of 15%, versus last year’s growth of 132%.

At best, that means annual growth of just 15 per cent, compared with 132 per cent a year earlier.

Dave Caputo, Sandvine’s President and Chief Executive Officer said in a statement: “We believe that the delays have come about for a variety of reasons, ranging from unique customer-specific circumstances to economic conditions, making operators pause before executing on their approved budgets. We can’t dictate when customers make their decisions, just influence whether they choose Sandvine - and we remain as confident as ever in our ability to do that.”

With BitTorrent developers hard at work creating Sandvine-busting code, time will tell if Mr Caputo’s confidence continues into 2009.

Previously: Dutch University Uses BitTorrent to Update Workstations

Next: Lessig Questions Pirate Party’s Existence

59 Responses (Add yours or TrackBack)

Pages: « 1 [2] 3 » Show All

26 Mar 08, 2008 at 03:36 by Will

Bye bye Comcast! Hope you all rot in hell. Same goes with Time Warner cable!

27 Mar 08, 2008 at 04:25 by borat

my sister she want to be pirate

i send you photos she swallow my parrot ;D

28 Mar 08, 2008 at 04:29 by h33t

the executive officers of Sandvine will have made their fortunes in this obvious executive renumeration vehicle

corporations of this ilk should be strictly illegal. no lessons from Enron and Worldcom?

29 Mar 08, 2008 at 04:55 by don

i am still coming here and i like the site. meanwhile, i distest those who advertise a site, sugarmommymeet.com. it is said it caters to rich women seeking handsome men and a lot of sugarbabies join in the site. i suggest you keep away from it.

30 Mar 08, 2008 at 06:42 by Ryan

[quote comment="305775"][quote comment="305740"]
Traffic shaping isn’t bad, corporations had it for ages. It’s when a large greedy company uses it to NOT give customers what they paid for.[/quote]

And Sandvine is an innocent party in all of this? Give me a fucking break, you little tool.

If Sandvine didn’t offer Bittorrent throttling using forged RST packets in the first place, then large greedy companies couldn’t use that service to screw over their customers.

I detect the aroma of COCK in your breath.

As for Sandvine… That’s one more shrimp on the barbie. Have fun sizzling right next to MediaDefender and the rest of its sleazy ilk; That’s your fate for joining the war to end filesharing, a goal which is truly synonymous with the word “futile”.[/quote]

First off, I am against what Comcast did and the way they did it.

However, you are the tool. Sandvine makes a product that does a lot more than just what you are bitching about. In fact, your cable connection wouldn’t be usable without the network management techniques employed by cable operators.

Maybe you should get that tool out of your mouth and do some research.

31 Mar 08, 2008 at 09:29 by Anonymous

Thats great news.

32 Mar 08, 2008 at 15:45 by cc

time to pack, Sandvine

33 Mar 08, 2008 at 15:52 by Anonymous

AHAHAHAHAHAHAHAHHA Finally something is getting done to combat these shitty ISPS and supports of throttleing. I hope that every one of these anti bittorrent supporters go bust with not a penny left to buy a bag of crisps

34 Mar 08, 2008 at 16:37 by Anonymous

[quote comment="306473"]
First off, I am against what Comcast did and the way they did it.

However, you are the tool. Sandvine makes a product that does a lot more than just what you are bitching about. In fact, your cable connection wouldn’t be usable without the network management techniques employed by cable operators.

Maybe you should get that tool out of your mouth and do some research.[/quote]

Maybe you should pull Sandvine’s cock out of your mouth and grow a fleck of integrity. Or is that even possible for you?

LOL, yeah… You aren’t a tool. Sure, you’re trying to abdicate Sandvine from guilt by laying all the blame on Comcast, while ignoring the fact that Sandvine ENABLES Comcast to fuck with torrents in the first place, but you aren’t a tool. No fucking sir.

That was sarcasm, incase you missed it. You are indeed a tool, a complete and utter one. Now then, why don’t you stop dicking around on the Internet and get back to shining Dave Caputo’s balls like a good little lackey?

35 Mar 08, 2008 at 17:07 by Yatti

Hello All.. Forgot to post my alternative to Bell… Acanac offers service over Southwestern Ontario… I cant use it though to far from the main switch thingy… Still waiting for Rogers to kick the throttling..

To #17.. Just use google…

36 Mar 08, 2008 at 18:55 by Mang

This is not a throttle technology… The Sandvine technology is a POS. They spoof and thereby disconnect traffic… Networks should have throttling or QOS to provide the best possible service to all but within described SLA’s. You should get what you pay for. The idiots at Sandvine & Comcast are getting what they deserve… Hopefully Sandvine goes out of business quickly..

37 Mar 08, 2008 at 19:28 by AE

[quote comment="306045"]Rogers Internet Sucks. Wouldnt be suprised if they use them aswell..[/quote]

Rogers’ with Ellacoya, which is now acquired by Arbor.

38 Mar 08, 2008 at 19:31 by AE

[quote comment="305740"]Bittorrent Throttling Technology? Cisco has traffic shaping capabilities on some of their routers, FFS. It depends on how you configure the thing. That title is way exaggerated in my opinion. Sandvine provides solutions to implement network policies, like antispam filters, not just traffic shapers.

Traffic shaping isn’t bad, corporations had it for ages. It’s when a large greedy company uses it to NOT give customers what they paid for.[/quote]

I totally agree with this.

39 Mar 08, 2008 at 19:39 by AE

[quote comment="306733"][quote comment="306473"]
First off, I am against what Comcast did and the way they did it.

However, you are the tool. Sandvine makes a product that does a lot more than just what you are bitching about. In fact, your cable connection wouldn’t be usable without the network management techniques employed by cable operators.

Maybe you should get that tool out of your mouth and do some research.[/quote]

Maybe you should pull Sandvine’s cock out of your mouth and grow a fleck of integrity. Or is that even possible for you?

LOL, yeah… You aren’t a tool. Sure, you’re trying to abdicate Sandvine from guilt by laying all the blame on Comcast, while ignoring the fact that Sandvine ENABLES Comcast to fuck with torrents in the first place, but you aren’t a tool. No fucking sir.

That was sarcasm, incase you missed it. You are indeed a tool, a complete and utter one. Now then, why don’t you stop dicking around on the Internet and get back to shining Dave Caputo’s balls like a good little lackey?[/quote]

Sandvine’s solutions are the most powerful ones in existence, and really, the Comcast incident was an accident. You need to get your facts before you go around being a dick. People who complain are the ones who abuse the ISP service the most. And Sandvine most definitely won’t go bankcrupt.

40 Mar 08, 2008 at 19:45 by Mang

They (Sandvine) were not traffic shaping… they were spoofing… the Sandvine Box cannot traffic shape… it’s out of line… it’s a POS… And ellacoya is not in the rogers network… Cisco is..
Sandvine should go out of business unless it improves it’s technology.. and Comcast needs a really big fine… because they’re lazy monopolists..

41 Mar 08, 2008 at 21:52 by whatever...

lots of talk about dick by a couple of faggots arguing about sandvine…

42 Mar 09, 2008 at 03:32 by Comcastic

WOrking for Crapcast I have to say, I am glad to see this.
Just hope I have to start uninstalling them.
Freedom of the internet for ever…!!!

43 Mar 09, 2008 at 06:14 by steveballmer

Who the heck is Sandvine?

44 Mar 09, 2008 at 07:35 by Anonymous

[quote comment="306859"]
Sandvine’s solutions are the most powerful ones in existence, and really, the Comcast incident was an accident. You need to get your facts before you go around being a dick. People who complain are the ones who abuse the ISP service the most. And Sandvine most definitely won’t go bankcrupt.[/quote]

The Comcast incident was an “accident”? Bitch, let’s get something clear.

http://en.wikipedia.org/wiki/Sandvine#Controversy

Sandvine’s services to Comcast are configured BY DEFAULT(hence, configured by Sandvine itself) to wreak havoc with BitTorrent connections. In addition, the fact remains that without their little cohort, nobody using Comcast would be getting forged RST packets terminating their BT connections to begin with.

You, sir, are a major league cocksmoker, and Sandvine Inc. is on the receiving end.

Oh, and as for your LOL-worthy “people who complain are the ones who abuse the ISP service the most” comment, apparently you have never heard of anyone utilizing BitTorrent for legitimate content distribution. You know, like that one obscure, little known game studio… I think it’s called Blizzard Entertainment?

45 Mar 09, 2008 at 08:52 by utter disbelief

Thank you everyone for sharing your opinions and information on this issue..

Though I don’t understand the whole issue as it pertains to torrent traffic, traffic shaping, etc., I find it quite interesting reading.

Thanks for helping to point someone like myself in the direction to research this issue further with your links to articles and all. :)

As for the comment (#38) as to :

” Sandvine’s solutions are the most powerful ones in existence, and really, the Comcast incident was an accident. ”

I don’t understand what this means..??

How is what Comcast did using this Sandvine thing considered an “accident”…??

Did I miss something..??

Everything that I have read about this so far points to Comcast using this technology to deliberately block (or as they claim “delay” ) bittorrent traffic…

If the act is deliberate, then it can be in no way considered an “accident”.

Or am I missing something here..??

Thanks…

:)

46 Mar 09, 2008 at 09:36 by No Tool Like A Corporate Tool

[quote comment="306473"][quote comment="305775"][quote comment="305740"]
Traffic shaping isn’t bad, corporations had it for ages. It’s when a large greedy company uses it to NOT give customers what they paid for.[/quote]

And Sandvine is an innocent party in all of this? Give me a fucking break, you little tool.

If Sandvine didn’t offer Bittorrent throttling using forged RST packets in the first place, then large greedy companies couldn’t use that service to screw over their customers.

I detect the aroma of COCK in your breath.

As for Sandvine… That’s one more shrimp on the barbie. Have fun sizzling right next to MediaDefender and the rest of its sleazy ilk; That’s your fate for joining the war to end filesharing, a goal which is truly synonymous with the word “futile”.[/quote]

First off, I am against what Comcast did and the way they did it.

However, you are the tool. Sandvine makes a product that does a lot more than just what you are bitching about. In fact, your cable connection wouldn’t be usable without the network management techniques employed by cable operators.

Maybe you should get that tool out of your mouth and do some research.[/quote]

And maybe you should get your head out of your ass. The issue isn’t a private company using traffic shaping management on their own company computer network. The issue is scumbags at Sandvine deliberately pitching their product to ISP’s for the sole purpose of denying to paying customers the bandwidth level that was promised, contracted, and paid for. A private company traffic shaping their own computer system is one thing. What Comcast and Sandvine are up to is not only wrong but technically illegal and now they’re both going to pay the price.

Next time perhaps it should be YOU doing some research before commenting. Now back on your knees. There’s still plenty of industry sausage for you to service.

47 Mar 09, 2008 at 13:24 by ThurstonHowell3rd

Ok so does it matter that the great majority of content being transported by BitTorrent is illegal?

No… I guess not… Gilligan… fetch me another drink and don’t forget the umbrella!

48 Mar 09, 2008 at 13:36 by ThurstonHowell3rd

Ryan,

Do you use your thumbs when you type?? Because I’m thinking not… you don’t have any…

Between the vulgar laced diatribe you occasionally have some morsal of truth in your statements… even a blind squirrel can find a nut now and then.

But who is evil and who is the victim. If you want the bandwidth to shove your content upstream then pay for it. The systems you make fun of actually are designed to make sure that when you are ready to upload or download your daily requirement of beastyology and kiddy porn - its there ready for you to use.

The ones who bitch the loudest - like you - deserve it the least. Without these systems other users… oh say a doctor trying to read an X-ray downloaded from the local hospital, or a business person trying to conduct VALID business on the web their internet connection works… period.

You want to upload your ass off - then pay for it you 2-bit looser…

Pages: « 1 [2] 3 » Show All

Add your response

It takes approximately 1 minute for your comment to appear on TorrentFreak after it's posted.