SBC: We Own The Internet, So Google Should Pay Up

from the uh-oh.--trouble-coming. dept

It's become pretty clear that Kevin Martin's FCC has no problem considering "competition" in the broadband space to mean incumbent telcos vs. incumbent cable companies. So far, the FCC has done just about everything possible to make it much harder for any third parties to get into the game. So is it really any surprise to hear the CEO of SBC, Ed Whitacre, in an interview suggest that it's only a matter of time before they start going after any of the services that make the internet useful to try to make them pay up to remain reachable? When asked about companies like Google, Yahoo and Vonage, he says: "Now what they would like to do is use my pipes free, but I ain't going to let them do that because we have spent this capital and we have to have a return on it. So there's going to have to be some mechanism for these people who use these pipes to pay for the portion they're using. Why should they be allowed to use my pipes? The Internet can't be free in that sense, because we and the cable companies have made an investment and for a Google or Yahoo! or Vonage or anybody to expect to use these pipes [for] free is nuts!" In other words, he's talking about going well beyond blocking some ports like BellSouth, to actually blocking out websites and services unless they first pay SBC a fee. It certainly has the feel of extortion: pay up or no one on our network will be able to reach your website. If you thought that mess Level 3 and Cogent was problematic, just wait until you can't access Google from SBC, because Google fails to pay up SBC's "connection" fees. What Whitacre seems to be forgetting is that it's all of these services and the ability to connect that makes the internet access worthwhile. Now who was just saying that network neutrality wasn't needed? Notice that the only reason this is possible now is because there's less competition in the broadband space, not more. If there were real competition, SBC would never even dare to suggest that they might cut off a Google, Yahoo or Vonage.

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  1. identicon
    BSC's Only Joking, Right?, 31 Oct 2005 @ 9:03am

    BSC's Only Joking, Right?

    I sent and email to Ed as well as SBC Regulatory/Legislative Regulator Mike Balmoris
    I would hope that you were kidding or intoxicated when you made recent remarks about making companies "pay up" for using "your" services.
    A few key points to remember:
    1) Your customers pay a fee to access the Internet which includes Google, Yahoo, etc.
    2) Companies (Google, Yahoo, etc) pay a fee to access the Internet
    Do you think you are a Toll Booth and can just step in and stick your extortion hand out?
    Google, Yahoo, etc pay based on "amount used". If they use 50 exabytes of bandwidth per month, they pay for it. Do you REALLY think they are getting the use of the pipes for free? And what about not so big websites - "ma and pop" websites?
    Based on what you farted out of your bunghole, the following could also happen:
    A) If I have a residential phone with SBC, SBC could start making the people that I call also pay a connect fee in order to receive a phone call from me.
    B) American Airlines can start charging Florida for all tourists that are flown to Florida.
    C) Could Google charge YOU for your customers accessing

    You, as a CEO of a company, have made a flat out fool of yourself and SBC.

    Thank You,
    A NON SBC Customer (Thank God!)

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