Verizon Exec Whines About Google Spiking The Kool-Aid At Its Free Lunch

from the not-sure-who's-drinking-the-spiked-kool-aid dept

Another week, another bizarre and misleading statement from a telco on network neutrality. It seems that the telcos are really stepping up their efforts to get online offerings to pay extra -- but it's fairly amazing that no one in the press seems to be calling the telcos' bluff on all of this. No one is pointing out that what they're saying is 100% false. Last week, it was AT&T's Ed Whitacre claiming that the internet connection you paid for only went from your endpoint to the backbone, and now a Verizon exec is trying to get away with claiming that Google is somehow getting a "free lunch" online, while also claiming that the debate has been skewed because Google "spiked the Kool-Aid." That's fascinating, because we still can't figure out which part of the network isn't getting paid for. Google pays for the bandwidth it uses. End users pay for the bandwidth they use. Everyone knows that the value isn't in getting to the middle, but in connecting all the endpoints. So we're left with a network that is clearly paid for, and a bunch of telcos who are resorting to what appear to be outright lies and misstatements based simply on greed and jealousy. Of course, if the telcos actually got their way, it would destroy a lot of the value in what they provided, hopefully opening the doors to some much needed competition.
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  1. identicon
    Michael, 7 Feb 2006 @ 7:49am

    Re: No Subject Given

    I'll admit that their partly proposing a protection racket, and yes, those bastards squandered a lot of tax money. I never said I liked them, or their plan.

    I'm just saying that there is a point in there. I'm also saying that it's their problem to solve, and not content providers. I agree that Google shouldn't have to pay for network B and C's bandwidth when they use network A.

    In that light, the argument is settled. We both agree that their proposal is crap.

    But on a side note, there is still the issue of rising utilization and funding. In the example above, networks B and C will have to improve their service if Google releases a high-bandwidth app on network A. They can either a) choose not to and lose customers, b) do so at their own cost to retain their customers, c) do so at taxpayers expense, d) increase and/or restructure customer subscription fees, or e) try to extort the content providers.

    Obviously, they're currently doing some of (b) and (c) and threating a lot of (a) and (e). I'm against the latter, but what is the correct answer? Is their profit so rediculously high that we can rightfully demand (b) exclusively? What if they say "screw you" and choose (a) because lack of competition (because of a gentlemen's agreement between major providers) will keep customers from going anywhere?

    Uhg.... messy.

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